Broker Banker Magazine V128

AMERICA’S TRADE PUBLICATION FOR LOAN ORIGINATORS

Vol. 128

Spreading Out Technology for Remote Workers

DUMBEST “MISTAKE” #5DOING $10.00 AN HOUR

LEVERAGE TECHNOLOGYTO AVOID BUYBACKS

IT’S ABOUT THEM,NOT YOU

ONLY THE PIECESHAVE CHANGED

Get SmartLow Cost+ Guaranteed Accuracy

= Using The SmartGFE® is

a no-Brainer

Paul MassPresident

Michael ReynoldsCFO

Anthony FarwellFounder and CEO

ClosingCorp Inc.

Broker Bankers of the Month:

And BOOST the number of LOANS YOU CLOSE.

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* Except in NM where rates are set by statute.

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W W W . K A Y A D E S I G N . C O M | 8 0 5 - 4 9 5 - 8 2 1 5 | J O N @ K A Y A D E S I G N . C O M

CORPORATE IDENTITY LOGOS

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BrokerBanker

BrokerBanker | Volume 128, 2010

BROKER BANKER STAFF Executive Publisher: Ed Craine Editor: Deborah Kaya Staff Writer: Ed Craine Staff Writer: Jennifer Hadley Design: Jon Kaya – Kaya Design Production: Kaya Design Photography: Vinit Satyavrata

ARTICLES BROKER BANKER MAGAZINE welcomes editorial submissions. Send your article ideas and letters to: BROKER BANKER MAGAZINE 2645 Ocean Ave. #202, San Francisco, CA 94132 Fax us at: 415/406-2340 or e-mail to: [email protected]

ADVERTISING AND EDITORIAL OFFICE 2645 Ocean Ave. #202 San Francisco, CA 94132 415/406-2330 415/406-2340 fax [email protected] http://www.BrokerBanker.com

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Permission to reprint articles contained in BROKER BANKER MAGAZINE must be requested in writing.

BROKER BANKER MAGAZINE makes every effort to publish credible, responsible advertisements and articles. Inclusion of product ads, articles or announcements do not imply endorsement.

BROKER BANKER MAGAZINE is a registered trademark of BBMag Enterprises, LLC.

Printed in the United States. Not affiliated with any other trade publication.

FEATURES

5 GET SMART Broker Bankers product of the Month

9 SPREADING OUT: TECHNOLOGy FOR REMOTE WORKERS By B.J. Bounds

11 INDUSTRy SERVICE PROVIDERS

12 RESIDENTIAL LOAN ExCHANGE

13 ONLy THE PIECES HAVE CHANGED By Byron G. Torres

15 “DUMBEST” MISTAKE #5: By Brian Sacks

16 PRIVATE MONEy LOAN ExCHANGE

17 LEVERAGE TECHNOLOGy TO AVOID BUyBACKS By Joe Dahleen

18 BRANCH OPPORTUNITIES ExCHANGE

18 EDUCATION PROVIDERS ExCHANGE

19 IT’S ABOUT THEM, NOT yOU By Fred Arnold

21 COMMERCIAL LOAN ExCHANGE

Ed CraineExecutive Publisher

3

Regulations. Restrictions. Reduced tolerance. RESPA. The list of challenges facing lenders seems to grow daily, while the demand for accuracy when it comes to estimating closing costs has reached epic proportions. Ironically, one of the most innocuous sounding forms that originators must provide to clients, the Good Faith Estimate (GFE), now seems to be an oxymoron. In fact, due to new RESPA rules, what was once meant to serve as an estimate to borrowers is now effectively a binding quote. Moreover, an error of just 10% or more in certain sections of the HUD-1 form can result in a RESPA violation unless promptly cured by the lender. If the violation is not properly cured, the lender could be subject to civil actions while otherwise tainting the loan for resale in the secondary markets. Who needs that kind of pressure?

Fortunately, the founders of ClosingCorp Inc., an independent data provider in La Jolla, CA, recognized the need to alleviate this pressure on mortgage professionals. With extensive backgrounds in data and information technology, Tony Farwell and Steve Katinsky have created an efficient solution for producing accurate GFEs. Designed to serve both the originator who closes just a handful of loans a year and large lenders who close hundreds of thousands of loans each year, the SmartGFE® Service even comes backed by ClosingCorp’s SmartGFE® Compliance Guarantee. Oh, and did I mention that the SmartGFE® costs a mere $6.95 per loan file?

ClosingCorp was founded by Farwell and Katinsky in 2005 after the pair became aware of the lack of information and inability to search and shop for title insurance in early 2005. “We worked with the California Land Title Association

to develop the first broad-based title insurance rate calculator for the title industry in

California, The TitleWizard (www.CLTA.TitleWizard.com),” Farwell

says. This calculator would serve as the precursor to closing.com (www.closing.com), which now provides the most up-to-date, comprehensive database of

real estate service vendors in the marketplace.

However, as new regulations and rules developed, Farwell and a third partner, Paul

Mass, recognized that originators needed more than just a database. They needed a service that could generate accurate GFEs quickly and inexpensively. It took nearly five years to collect and verify vendor data and pricing to develop the

proprietary Good Faith Estimate service system that would also align with new RESPA regulations.

“New RESPA rules require originators to provide binding GFEs for origination costs, fees and taxes, which cannot vary from the final costs on the HUD-1,” says Farwell. Moreover, “estimates for required third-party services, such as title insurance or closing attorney fees, have a 10% tolerance limit. If this estimate is not provided within three business days, or if an inaccuracy exceeds the tolerance level as


Get SmartBy Jennifer Hadley

Low Cost+ Guaranteed Accuracy= Using The SmartGFE® is a no-Brainer

BrokerBanker

Volume 128, 2010 | BrokerBanker 6

measured against the final HUD-1, lenders must make up the difference,” he adds. ClosingCorp estimates that lenders will generate nearly 20 million GFEs this year that will preside over 50 million service provider engagements. Lenders are effectively guaranteeing pricing for all of these engagements unless they were borrower-selected.

Certainly, the last thing any originator needs in today’s market is to have to make up the difference in closing costs to clients. However, the numbers of those having to do so are staggering. According to a recent study, more than 80% of originators have encountered difficulties in using the new GFE and HUD-1 forms. Now imagine paying the difference in closing costs on 80% of your files. Ouch. Clearly, the SmartGFE® has the potential to pay for itself many times over by protecting originators from RESPA tolerance violations.

That’s just one reason that the market has perhaps never been better poised or receptive to the services provided by the SmartGFE®. According to ClosingCorp’s president, Paul Mass, the “SmartGFE® helps solve many of the widespread problems originators have encountered with the new forms and regulations. Now lenders can create estimates that are competitive because they are based on the most current data available.”

Farwell acknowledges that securing this huge volume of data was no easy feat. Because the system was designed to provide “real-time fees from local and national vendors in nine categories, such as title insurance, settlement services, closing attorneys, home inspections, pest inspections, appraisers and

more.” It took the company years to secure the information necessary to create the SmartGFE®.

Accuracy > EstimationAt such a bargain price, it’s no wonder that interest in the SmartGFE® Service is growing. Aside from the low cost, the SmartGFE® comes backed with the assurance that if the estimate provided exceeds HUD’s tolerance levels, the make-up difference in cost will be paid by ClosingCorp. Guaranteed.

But there are other reasons that SmartGFE® continues to earn the praise of some of the nation’s largest lenders. “The SmartGFE® is one integrated solution, so lenders have more control over their loan officers’ use of closing data and vendor rates, all accessed from one reliable source,” Farwell says. Similarly for large lenders, with each data-pull from the SmartGFE®, a compliance certificate and tracking number

is generated. “This provides loan originators with greater confidence in the data they are using while creating an audit trail for each item in a GFE worksheet,” he adds.

As originators, you’re selling a loan product, but you’re also selling—in a manner of speaking—your time. It’s no secret that “prospective borrowers are more likely to select lenders who respond quickly to loan requests,” Farwell says. It’s also no secret that researching GFE closing data and service providers can take hours, even days. By contrast; generating a SmartGFE® instantly links you to more than 11,000 closing service and related providers with real-time fees.

D O NC U R R I E

Broker Banker of the Month:

HighTechLending, Inc.


Vol. 126

D O N C U R R I E

Branching OutProviding Brokers with a New Home To Thrive

D O N C U R R I E

Branching OutProviding Brokers with a New Home To Thrive

SmartGFE® helps solve many of the widespread

problems originators have encountered with the

new forms and regulations. Now lenders can create

estimates that are competitive because they are

based on the most current data available.

Continued on


Vol. 128

Get SmartLow Cost+ Guaranteed Accuracy

= Using The SmartGFE® is

a no-Brainer

ClosingCorp Inc.ClosingCorp Inc.

Broker Bankers of the Month:Broker Bankers of the Month:

Paul MassPresident

Michael ReynoldsCFO


Paul MassPresident

Michael ReynoldsCFO



Make no mistake, the ability to generate an accurate GFE in minutes as opposed to days gives originators a leg up on the competition in terms of converting more prospects into clients. But perhaps even more significantly, it allows originators to compete smartly with other lenders or originators. According to Farwell, new RESPA regulations have driven far too many lenders to “purposefully inflate fees and costs on their GFE’s to try to play it safe in meeting HUD’s new accuracy tolerances. This produces bloated GFEs that are less attractive to borrowers. Originators can create much more competitive GFEs with live service providers’ fees offered through the SmartGFE®.”

Get SmartIf you’re thinking this all sounds too good to be true, you don’t have to take my word for it. ClosingCorp provides a great demo video of how the SmartGFE® works at www.SmartGFE.com/demo. While the service is currently integrated with Calyx®Point® 7.2, it can also be easily accessed online at www.SmartGFE.com. Integrations with additional LOS platforms and large banks are currently

underway and will be available in coming months.

By offering the SmartGFE® in all 50 states, in every major city in the nation, Farwell’s prediction that his company will generate 4-6 million SmartGFE® per year doesn’t seem so unbelievable. In fact, this may just be one of the smartest innovations in mortgage technology to hit the market in the many years Broker Banker Magazine has been reviewing mortgage products. And from where we’re standing, reducing risk while converting more prospects to clients and keeping compliant for less than 10 bucks per file is just plain smart.

Founded by data and information industry veterans Anthony Farwell and Steve Katinsky, the SmartGFE® is the nation’s largest and most up-to-date database of closing costs available to originators and lenders. From coast to coast, the SmartGFE Service delivers vendor fees backed by a compliance guarantee, along with property characteristics, transfer taxes and recording fees. For more information, contact Cathy Blaszyk at [email protected], or call 858-551-1500, 206.Visit www.smartGFE.com

BrokerBanker

Cathy Blaszyk, VP Business Development, Lender Services

Left:Tony with Tayyab Ali, PM/Business Analyst

Above:Maganda Stamos, Sr. IT Project Manager

Anthony Farwell, Founder and CEO

Farwell with members of the ClosingCorp team: Pictured left to right: Patrice Tremor, Marketing Director; Kathy Azodi, Account Manager; Mike Bennett, Sr. Account Manager; Bob Hart, Director Customer Care; Tony Farwell, CEO; Kristin Ewald, VP Content Development; Ashley Peterson, Account Manager

BrokerBanker


Are your loan officers putting in 8 hours each day in the office? Chances are they aren’t. In these times of high gas prices, crowded freeways, and long commutes, it just makes more sense to allow employees to work remotely whenever possible. Especially for loan officers, who typically are not tied to a desk full-time and yet often work unexpected hours, working remotely can be beneficial. For any business in the mortgage industry, consider that remote employment is not without risks, but proper use of available technology can help mitigate those risks.

As a business owner, allowing your loan officers to work from home will undoubtedly save you money. If you have fewer employees in the office, the costs related to office space, equipment, and utilities are reduced. Employees save money on travel related expenses, food and office attire. There is an additional time savings in travel that employees can translate into work time.

Studies also show that although many companies believe that employees must be monitored in order to perform well, the opposite is actually true. Employees who work from home are often more productive because they relish their freedom and yet feel they have to prove their worthiness to work remotely. In a 2008 study by CompTIA Research, 67% of employers polled reported that their employees were more productive working from home. More productive employees yield business growth for you.

But even as your business grows, you cannot discount the risks

involved in having sensitive data saved on various computers. Earlier I mentioned using technology to help mitigate the risks involved in telecommuting. But there is a much stronger case to be made. The bottom line is: if you don’t have the right technology, remote staffing can be detrimental to your business. Even if you reduce your overhead costs by eliminating the need for larger office space or additional equipment, you run the risk of losing data integrity that can cost you time and potentially much more with your next audit.

If your loan officers are conducting business in various locations, loan data –your customers’ valuable personal and financial information—is stored on each employee’s hard drive. Once the data is sent for processing, manipulation can occur at either end, resulting in the unfortunate loss of loan data integrity. Files can be lost; computers can be stolen or damaged; and all customer information can be easily exposed. In fact, sobering statistics from Gartner, Inc show that one laptop is stolen every 53 seconds.

In today’s world of reasonably priced advanced technology, there is no reason you cannot grow your business and protect your assets—and those of your customers—at the same time. A strong server-based loan origination system (LOS) protects your business from the simplest access restriction to ensuring that all employees follow your rules—every time—from anywhere.

Secured access to your system gives you the peace of mind BrokerBanker | Volume 128, 20109

By: B.J. Bounds

S p r e a d i n gO u t T e c h n o l o g y F o r

R e m o t e W o r k e r s

BrokerBanker


that only authorized personnel can view and manipulate sensitive loan data. Your software should be flexible enough to fit into the business process you have put in place while making sure your employees are forced to follow your process as well. Templates that you can set up within your system should be compatible with how you do business and easy enough to change as your requirements change.

More importantly, your system should allow you to enforce proper workflow to ensure compliance with changing regulations such as RESPA and MDIA. Advanced features of a good LOS system will enable you to set rules that trigger both soft and hard stops and disable compliance-related fields once disclosures have been made.

Additionally, operating from a server that allows secured Internet access eliminates the risk of multiple data files for each borrower. Every time a file is opened, it is pulled from a centralized location and saved to the same location, no matter who accessed the file with pre-established authorization. And even if the computer accessing the data is stolen or damaged, there is no risk of data discovery because the files are not stored on the hard drive. Customers can trust that their information is safe and secure.

Your system should provide oversight and activity tracking for field-level and document changes. With the click of your mouse, you can see your entire pipeline and the status of every loan in it. Tracking loan activities helps create accountability with front-line personnel and quality control capabilities for you, giving you the ability to identify and correct any issues before they go too far.

Convenience; cost-savings; security; trust. You can have it all. Customers count on you to ensure their information is secured; with eyes-only access as necessary. But they also expect convenience and good, quality service. That may mean that their loan officer arranges meetings at locations that work best for them, whether it is at their home or a local coffee house, to complete paperwork and send for processing.

Providing your employees with a system that allows them access to important loan software

via a secured Internet connection along with an electronic storage hub for all loan files and designated access, gives them the freedom they need to be productive in the field and the safety net you need to safeguard your business and build the trust you need for your customers.

B.J. Bounds is the senior marketing communications specialist for Calyx Software. In addition to media relations and copy writing, Bounds is a contributing author to the Calyx Software blog, CalyxCorner. She has more than 10 years’ experience in sales and corporate marketing with a focus on technology that spans several industries. For more information on Calyx Software, contact (800) 362-2599 or visit calyxsoftware.com or www.calyxcorner.com.

visit: www.calyxsoftware.com

email: [email protected]

Get 7.2 details at 877.862.2599

• Most Used Mortgage Platform• Most Cost Effective Solution• Easiest to Use

We Have What You Need

All with the perfect balance between compliance, origination and processing needs and flexibility to manage your business.

Point® 7.2 • PointCentral™ 7.2

Take a Closer Look at Calyx So�ware®

BrokerBanker

Industry Service Providers

David NaciriE-mail: [email protected] Phone: 888-835-3741

Value Express, the easiest and quickest way to the value of any property.

Value Express

Nickolas C. JonesE-mail: [email protected]: 408-458-4300 x 318

Jeffrey PinkertonE-mail: jeffrey @myratetrack.com Phone: 678-488-5159

Edward Jamison, Esq.Web: www.creditcrm.comPhone: 877-256-8162

Claire FennesseyE-mail: [email protected]: 203-724-1140

Gordon G. ChinE-mail: [email protected]: 415-252-2888

InTouch keeps you in touch with your clients. Ask about our Broker Banker special.

Is your business refi-ready? Get ready with myRateTrack.comReady. Set. Refi.

Start your own credit repair business and make $10k a month easy. Call to get your free brochure.

Buy Title Insurance Direct and Save your Borrowers Thousands in Closing Costs! Now in 32 states and Growing.

Achieve higher FICO scores with our Credit Scoring Tools. We are here 24 hours a day to serve you.

In Touch

MyRateTrack.com

Credit CRM

ENTITLEDIRECT

Cal Coast Credit Reports

The businesses represented in this Industry Service Providers page are all broker friendly. We encourage you to contact them for your particular needs.

Don’t see your Industry below? Call us at 415-406-2330 to add your Service to our growing list. Accounting Services

Appraisal Services

Branch Opportunities

Client Retention

Credit Repair Services

Insurance

Credit Reporting Services

Other services that can be advertised in the “Industry Services Providers include: • Coaching • Efficiency Services • Insurance Services • Legal Services • Licensing Services • Processing

Companies • SBA Loan Exchange • and more. Call 415-406-1210 to add your service to the list.

Marie CurrieE-mail: [email protected]: 866-714-2040 x 2626

Need FHA? Want to lend in multiple states? We’re focused on your success.

HighTechLending Inc.

Jon Kaya E-mail: [email protected]: 805-495-8215

We design custom SEO compatible websites that help you stand out from the competition.

Thinking2Website Services

Jon Kaya E-mail: [email protected]: 805-495-8215

We specialize in corporate identity branding including logos, ads, print collateral, e-zines, and more.

Kaya Design

Marketing & Advertising

Software

Henry Davidson - Director E-mail: [email protected]: 888.282.9747

Express Notary Service Inc.EsignNotaries.com

Notary Services


Web: www.calyxsoftware.comE-mail: [email protected]: 800-362-2599

Calyx Point is the Most Used, Most Cost Effective, and Easiest to Use LOS.

CalyxSoftware

Stephen McClanskeyE-mail: [email protected]: 949-981-0456

Need an Appraisal Report? If so, we can help. We cover most of Southern California.

Landmark Appraisals

Your Listing Here

BrokerBanker

12Volume 128, 2010 | BrokerBanker

Residential Loan ExchangeNichole Paschal E-mail: [email protected]: 214-646-1937 Ext. 7004Brightgreen Home Loans Inc. is your source for quality home loan services. We are a nationally licensed mortgage banker, headquartered in Charlotte, North Carolina, providing expert guidance, fast approval and dedicated customer service to our valued borrowers.

Bay Equity not only offers the full range of Fannie Mae (FNMA) and Freddie Mac loan (FHLMC) products, we’re also experts at Agency mortgages. Helping you close loans is what we do and we do it exceptionally well. We are expanding our products on a weekly basis, recently launching Bay’s Big Loan that allows borrowers financing up to $1.5 million, Bay VA, and conforming up to 95% LTV. Then there’s EDGE, which is Bay Equity’s Decision Generating Engine. We’ll show you how easy it is to get a pre-qual-ification online without a property address and with only a limited amount of input. When you’re ready to move forward, EDGE uploads all documents, considers all guidelines and is equipped to give you a loan approval. It’s easy, it’s efficient and it’s fast.From the paperless technology of EDGE, to our seasoned Account Executives and dedicated in-house operations specialists, experi-ence for yourself the many reasons mortgage brokers agree: Bay Equity is your home for lending.

Area: CaliforniaType: Private Money

Area: 8 Western StatesType: Conforming

Brightgreen Home Loans Inc.

John CurtinBay Equity

Marilyn TsaiE-mail: [email protected] Phone: 415-265-2470

To find your rep., go to our websiteWeb: www.prmglending

Area: No. California Type: Conf., FHA, VA


Paramount ResidentialMortgage Group, Inc.

ReunionMortgage

Phone: 415-699-4063 E-mail: [email protected]

Phone: 949-202-5092 E-mail: [email protected]

Colin Field

CMG Mortgage Area: No. California Type: Conf., FHA, VA

Brian CerrutiE-mail: [email protected]

p: 707-338-3632


Brent EckhardtE-mail: [email protected]

p: 831-566-0022

Area: Seattle & Portland Type: Conf., FHA, VA

Jeff Parry E-mail: [email protected]

p: 206-280-1500


Todd AlbrigoE-mail: [email protected]

p: 619-742-5460

Wendy EdwardsE-mail: [email protected] Phone: 775-852-6888 Ext. 225


Titan Wholesale

Raoul BaddeE-mail: [email protected]: 415-699-0980


Franklin AmericanMortgage Company

The lenders in our Residential Loan Exchange are all active residential lenders who are broker friendly. We encourage you to contact them for your residential lending needs.

Pouyan BroukhimE-mail: [email protected]: 323-935-5555 x 102

Area: CaliforniaType: Private

PB FinancialGroupCorporation

BrokerBanker


Only the pieces have changed

Byron G. Torres

When it comes to marketing and getting our names “out there”, the pieces may have changed but the rules remain the same. Technology can never replace hard work, but it can increase the number of people who see you and how those people see you.

• We still need to let everyone know what it is we do• We still have to ask for referrals from all of our

customers and prospects• Networking is a must, and• We still have to canvass our territories

Let everyone know what we doThen Unless you had the ability to be booked to speak to a group, our option was

to go around and introduce ourselves one person at a time. Although still a good idea to do this, it used to be that this was the only way to get in front of potential customers.

Now E-mail and streaming video have made it simple to reach multiple people at the same time. Depending on the size of your database, you could be seen by hundreds of people with one simple e-mail and video on your website.

BrokerBanker


SAFE Mortgage Educationand Exam Prep now available from Kaplan!

Don’t wAit— Complete your education and prepare for the exams today!

Phone: 877-792-4523 website: www.kapmortgage.com

For Texas classes: www.kaplanprofessionalschools.com/texas/mortgage

Kaplan now offers a sAFe Comprehensive solution to meet the new licensing requirements.

Also check out Exam Prep Courses to help you pass – The First Time!

MOR002Q_07Mar10

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Asking for referralsThen Face to face, on the phone or via good old fashioned

mail.

Now Face to face, on the phone or via good old fashioned mail PLUS with the added technology available today, referrals should be flowing in consistently.

#1 rule of asking for referrals: ASK (regardless of what methods or technology you use to ask)

Networking is a mustThen Donuts to real estate offices and mixers

Now Twitter, youtube, facebook, LinkdIn....and the list goes on and on.

Networking has truly leaped into the 21st century. The ability for us to network with the masses is growing with every social media website that is launched. We do not have any reason not to network. As an example, I was recently on a prospect’s twitter page looking at his company’s daily updates. I noticed one of his followers in a similar indus-try had a blog but did not have a website. I sent him a “tweet” and we struck up a dialog. Short of it is that I have now devel-oped a website and a video for my prospect’s twitter follower.

That example may not always be the result, but it is a good example of how networking has changed. My company is in California, and his company is based in Florida. Had I not used this social media website, odds are I would have never had the opportunity to work with him.

Use the mediums available to you. They are free, but you do have to work at it to be seen. Just because you build it does not mean they will come.

Canvass Our TerritoriesThen Door knock neighborhoods and local real estate

offices.

Now Not a bad idea to continue to do what we did then but again, use the technology available to your ad-vantage.

Use e-mail, text marketing and videos for the web to multiply your efforts and to increase your results.

We now have the ability to be in more than one place at once. Websites, videos and social media al-low us to communicate with customers and pros-pects 24 hours a day. Work hard and smart and sales will continue even through market downswings.

Byron G. Torres is the founder and creative director of Pritzer Media (www.pritzer.com). As a former originator, Byron understands the needs of mortgage professionals. Pritzer’s services include: website design, mo-bile marketing, videos for the web and video-SEO. Byron G. Torres can be reached at 888.214.7041 Ext 101 or by e-mail at [email protected]


Do you find yourself frustrated and burned out?

Like there aren’t enough hours in the day? Of course you do. I do, and we all do. That’s why it’s so important that as originators you recognize this, but more importantly, that you recognize that even when you’re frustrated, and even when you must operate on a tight budget, there are good uses of your time and bad uses of your time. A bad use of your time is what I’ll call $10.00/hour work. Let’s examine why doing $10/hour work is a huge mistake, particularly in a tough market.

Suppose your goal is to make $100K a year. That means you will be working about 2,000 hours (40 hours a week for 50 weeks, leaving you two weeks for vacation). I know that the truth is that you are probably working much longer than that each week and you’re probably more than a little tired. But, stay with me. If you work 2,000 hours and make $100K that means that each hour is worth $50. Yes, $50 not $10. And this is important to understand, for your job, whether you are aware of it or not, is to be marketing your services, period.

That means that all of your time must be focused on bringing in new business. Anything other than that task must be outsourced, for say $10/hour? I know, you’re thinking “Wow. That sounds great, but I can’t afford to hire anyone.”

That’s actually where you’re dead wrong. In this economy you

can’t afford NOT to hire someone for assistance. If you are licking stamps, answering phones,

or taking trash out, then you are wasting your money, because these tasks won’t earn you $50/hour. They’ll earn you $10/hour. There’s

just no other way to say it.

You see, once you focus on bringing in new business, you will be much happier as opposed to burnt out and grumpy. And finding someone to

work in your office at $10/hour won’t be that difficult. Considering the

unemployment rate in California, you can be sure that there are plenty of folks who would love

to work a few hours a day in your office. High school or college

students are also always looking to earn a little extra cash. Some of them may

even agree to work with you for work-study credits, where you don’t even need to pay them at all!

It can be hard to see, but when you make it your top priority to bring in new business, create new marketing campaigns, implement those ideas you just have never had time to try, you will see your income increase, even when you’re paying someone to help. Still have a hard time seeing how this works? Consider raising your fees by $100, earn four new deals as a result of your focus on bringing in new business, and your $10/hour assistance will be paid for.

Brian Sacks is the CEO of www.loanofficerformula.com He has been an industry expert for over 24 years closing over 6000 loans totaling 1 BILLION Dollars. Brian has trained thousands of originators And company owners in North America sharing his “FORMULA” for success that will allow you to close LESS loans, Make More Money and Have a Life REGARDLESS OF MARKET CONDITIONS.

“Dumbest” Mistakes #5:Doing $10.00 an Hour Work

By Brian Sacks

Private Money Loan ExchangeStephan Kachani E-mail: [email protected]: 310-826-2888 x28Lone Oak Fund, LLC is a private mortgage fund larger than many banks that makes bridge loans typically ranging from $250K to $10M on commercial property located throughout California. Interest from 8.9% to 9.9%; first trust deeds only; no prepayment penalties; funding within one week; minimal paperwork; creative structuring; broker cooperation. Ask about special pricing arranged by Broker Banker Publisher Ed Craine.

Type: Private LenderMin Loan: $250,000Max Loan: $10,000,000

Lone Oak Fund

Web: www.agricap.com E-mail: [email protected]: 213-542-5232

Area: CaliforniaType: SFR & CommercialAmount: $500k to $5MM

Agricap

Michael ThurmanE-mail: [email protected]: 916-338-3232 x310

Brent HoustonE-mail: [email protected]: 877-663-4268

Alex NackoulWeb: www.brownstoneloans.comPhone: 1-800-547-1285

Mike Christl E-mail: [email protected]: 818-807-3866





Blackburne & Brown MortgageCompany, Inc.

BridgelockCapital

BrownstoneMortgage CapitalCorporation

CaliforniaEquity LendersInc.

Lori RandichE-mail: [email protected]: 650-365-5341 x218


RedwoodMortgage

Eva RozaE-mail: [email protected]: 415-584-3000

Area: Northern CaliforniaType: 1-4 NOO & Comm.Amount: $200k to $1.5MM

Roza Real EstateLoans

David Gruebele E-mail: [email protected]: 916-863-7300


Second AngelBancorp

The lenders in our Private Money Loan Exchange are all active private money lenders who are broker friendly. We encourage you to contact them for your private money lending needs.

Your Listing Here

Your Listing Here

Your Listing Here

BrokerBanker






Inthecurrentmortgageenvironment,originatorsneedtoalignthemselveswithacompanythatcandeploythebestofbreedtechnologyforfulfillment,whilestillsupportingmarketingeffortsinalowriskcompliantmanner.Atthesametime,theseeffortscanandshouldbedeployedforthemainpurposeofavoidingbuybacks. Whilethereareobviousreasonsformonitoringclosingpackagestomakesuretherisksofbuybacksisminimal,itrequiresmorethanjustdoubleortriplecheckingfordataandsigningerrors.Intoday’smarket,successfuloriginatorsneedtoleveragethelatesttechnologytospeeduptheborrowercommentprocess,whileatthesametime,reducingoverallcomplianceandloanrisk. UsingtheeDisclosurestechnologyatthepointofsaleleveragesthepaperlessprocess.eDisclosuresofferslendersautomatedcompliancecheckssotheoriginatorcanfocusonrevenueproducingtasksandgoodcustomerservice.Anoriginatorusingtechnologyinthiswayappearsmoreprofessionalwithahigherleveloftransparencyandonlinesecurity. Afterautomatic,timelyandefficienteDisclosuresaredeliveredtoyourclient,thenextstepisthelockorfloatprocessandorderingtheappraisal.UsingtechnologytoolslikeaProductandPricingEngine(PPE)andanHVCCAppraisalManagementportalarebasictoolswhichreducepotentialbuybacksforcompliancereasonsorlossesofexpectedprofitsbecauseofbadpricing. SecondarylendersnowQC100%ofloanfilesdeliveredtothem.Thisrequireslenderstohaveafullscaleindependentthird

partyverificationoftheincome,employmentandhigherlevelfraudcontrolatthebeginningoftheprocess.Originatorsarerequiredtoordera4506-T,VVOE,SSICheck,DriverslicensecheckandFraudReport.Thisisnotthesameassimplypullingacreditreport,checkingFICOscoresandrunninganAUSapproval.CollateralcheckandAVMwithadetailedtransactionalhistoryofthesubjectpropertymayalsoberequired. Withtechnologyavailabletoday,theseprocessescanbealldigitalandpaperlessinsideadigitalvault.And,itcanallbedonein24hours. Today’sindustrystandardsrequireautomationofalloftheverificationsinafractionofthetimethatitusedtotake.Theolddaysofpiecemealprocessesareoutdated,inefficientandathingofthepast.Technologymustbeleveragedtospeedtheanalysisofloanfileswiththeaimofavoidingbusinessbustingbuybacks. Beingawareoftheissuesintoday’sclimateofstricterunderwritingguidelines,higherficoscoresandcomplianceisparamounttoasuccessfulmortgagebankingcompany.Secondarylenderswillpushbackoneverydetailandlenderswillpayamuchhigherpriceformistakes.Leveragingtechnologyisthebestproactiveresponsetoavoidtheserisksandthemostsuccessfuluseofmortgagetechnologyshouldstartatthepointofsale.

Joe Dahleen, VP / Chief Strategy Officer for Brightgreen Home Loans, can be reached at: [email protected]

Leverage technology to avoid buybacksBy:JoeDahleen


BrokerBankerBrokerBanker

Branch Opportunities ExchangeThe Branch Opportunities Exchange members are all broker friendly. We encourage you to contact them for their services.

Your Listing Here

Marie CurrieE-mail: [email protected]: 866-714-2040 ext 2626

Excellent rates. Fast closings. Paperless. Focused on your success.

HighTechLending Inc.

Greg FrostE-mail: [email protected]: 800-659-3767

Great pricing. Fast U/W. On time closings. Mentoring. 100% net payout. $2 Billion monthly line.

Frost MortgageLending Group

Melissa ArntzenE-mail: [email protected]: 916-960-0493

Retail Banking and Branching Company since 1996. 160+ branches. Banker/broker platform. your DBA ok.

AmericanPacific Mortgage

Amber WiertallaE-mail: [email protected]: 888-708-2707 ext 18286

Turnkey. Keep your DBA. Keep 100% of profits. All products. Western states.

Pinnacle CapitalMortgage Corporation

Dane Basham Website: gatewayloan.comPhone: 888-544-0034 ext 222

FNMA and GNMA direct lender. We provide leads. Grow with us.25 States.

GatewayMortgage Group

Linda LittE-mail: [email protected]: 877-878-8989

Since 1993, we have been the industry leader in branch opportunities. Southwest

Funding, LP

Web: www.kapmortgage.comPhone: 877-792-4473

Kaplan Real Estate Education provides mortgage brokers and bankers with an NMLS-approved education solution.

KaplanReal EstateEducation

Jeff MillerWebsite: debtzeroprocessing.comPhone: 866-356-2755

Topnotch business support, training, and back-end processing for Debt Settlement.

Debt Zero

Rick CossanoE-mail: [email protected]: 925-997-8923

FNMA direct lender with retained servicing, FHA/VA, private AMC, 20 Day Purchase Guarantee, cutting-edge technology - Can Do.

RPM Mortgage

BrokerBankerBrokerBanker

Education Providers ExchangeThe Education Providers Exchange members are all broker friendly. We encourage you to contact them for their services.

Web: www.bohlerinstitute.comInstructor Phone: 928-208-1442

NMLS-approved Loan Originator Licensing (20-Hour SAFE course), offered ONLINE.

BohlerInstitute

Esther HoganE-mail: [email protected]: 800-794-1390

20 Hour California SAFE Compre-hensive Loan Originator Prelicense Course. Contact us for more info.

HoganSchool of Real Estate, Inc.

“I provide great service, fast turn times, and honest ethical advice to clients,” you say eagerly to a REALTOR®, who you’d like to begin a business partnership with. While you say it with

absolute sincerity, and it is probably very true, you never receive a phone call back from them. You wonder what you’ve done wrong. Why didn’t they call you back? Frankly, it’s

because you’ve not only said the same thing that every other originator they’ve ever met has said, but you made another crucial error. Your pitch to them was all about you.

You provide great service. You provide fast turn times. You offer honest, ethical advice. There is nothing in your pitch that has to do with them.

Don’t beat yourself up if you’ve tried this approach, once, twice, dozens of times. We’ve all been there. But the truth of the matter is; it won’t work, no matter how many

different ways you try to spin it. That’s because you’re making the partnership about you rather than about them, and when it comes to earning REALTOR® respect, you need

to recognize that it’s about them. But how do you make your approach about them instead of you? After all, you do want to let them know that you’re

capable and eager for their business, right?

It’s actually much easier than you think. But “think” is the operative word, here. You’ll have to start by thinking. Luckily, once you’ve done that, you’ll be in a far better position to make that initial outreach, and more importantly, start earning the respect of REALTORS® (which will serve as a precursor for a referral partnership). Here are three tried and true methods for forming a relationship with a REALTOR® you’d like to work with.

1. Think About What You Have That They Want.Before you even think about contacting a REALTOR® you’ve never worked with, spend some time thinking about what it is they actually want to hear from you. Or, to put it in simpler words, “What do you have that they want?” Your knee-jerk response should be “referrals.” Yes, REALTORS®, like us, are largely referral driven professionals, so they are looking for your referrals.

How can you help them with referrals? Consider your database of clients that you regularly keep in contact with. It’s important that you only

consider those you keep in contact with, as sending a REALTOR® a cold lead -such as a client you haven’t spoken with in 10 years- is not a qualified referral. But the other

clients in your database, whom you do touch base with frequently, can all be considered leads.

The law of reciprocity will generally –although, unfortunately not always- hold true. If you can refer a lead that turns into a sale for a REALTOR®, 9 times out of 10, you can count on them to return the favor. However, before you go diving


It’s About Them, Not You3 Tried and True Methods For Earning the Respect and Referrals of REALTORS®

By Fred Arnold

BrokerBanker


into contacting a REALTOR®, you also need to do a little more thinking, this time in terms of how you can use what you have to help them.

2. Think About How You Can Use Your Resources To Help REALTORS®Once you’ve sorted through your database and identified potential referrals for a REALTOR®, you next need to make sure that you are purposefully using your resources to the benefit of your potential partner. That is, how are you going to help market them? Marketing your referral partners can be done in a variety of ways, and they need not be complicated.

Consider something as simple as your e-mail signature. In addition to your contact information, and perhaps your personalized tagline, are you offering your services to your clients as a referral source? Do you let them know that not only are you an originator, but you can also help them if they are thinking of buying or selling? Adding just a short sentence to the end of your signature is an easy way to market your REALTOR® partners. For example, “Did you know that 3 of the 4 highest foreclosure states are vacation destinations? If you’re in for a great deal on a vacation home, I can help!” Obviously, when a client responds to this question, you can then refer them to a REALTOR® who specializes in foreclosures.

Similarly, you can ask your clients directly for referrals to REALTORS® they’ve worked with and who they liked. A simple addition to an e-mail may include, “Have you worked with an amazing REALTOR®? If so, let me know, as I’d love to refer business to them.”

You may even consider adding a link to your e-mail titled something akin to “Incredible Service Providers”, where you list contact information of REALTORS® and other providers whom you endorse.

The point of this step is to think about how you can maximize your marketing efforts to the benefit of your potential REALTOR® partners, so when you make the call to them, you’re prepared. You have thought about what you have that they want, and moreover, you can show them how you intend to use these items to benefit them.

3. Make the Initial Contact CountNow that you’ve prepared what you have to offer and how you can use your resources to help your potential REALTOR® partner, you need to make the call count. Again, remember that this call is about them, and be respectful of their time. Always begin the conversation, after introducing yourself, (and the reason for your call i.e., you were referred by the Smiths) with the question, “Is this a convenient time?” Obviously, if it is not a convenient time, don’t try to squeeze in your pitch quickly. Just ask when you can call back, and then do so. However, if it is a convenient time, you now need to make the most of that time by explaining what you

have that they want and how you can help them.

A sample conversation may go something like: “As Mrs. Smith let me know, she told you I’m a mortgage professional here in Southern California. Like Mrs. Smith, I have 1,000 clients who I strive to help realize financial success. Many times they are in need of a REALTOR®, and Mrs. Smith said you’d be an excellent choice to refer my other clients to. Could we get together soon so I can find out more about your business?”

In these few words you’ve accomplished your main objectives. By mentioning your database of clients, you’ve let the REALTOR® know that you have what they want in the form of potential leads. Next, you’ve shown how you can use your resources to help the REALTOR® by saying that you want to refer out some of your business. You’ve made the call about them without taking up a great deal of their time.

Another variation of this call may work, even if your client hasn’t directly referred you to a REALTOR®. In this case the call may go like this: “Some people think that I’m in the business just to do loans, but I don’t see it that way. My number one goal is to connect my 1,000 clients to real estate professionals as they need. With that said, can I ask you a few questions to see if you’re interested in working with my clients?”

Again, you’ve let the REALTOR® know that you have an extensive database, and that you want to use your resources to help them grow their business. You’re not calling asking for leads your call is instead about them.

By making it your priority to understand and convey to potential REALTOR® partners that your vested interest is in growing their business you will, almost by default earn their respect. Naturally, you’re going to have to deliver on your promises by doing all that you’ve said you will, but that should be the easy part. You’ve already done the legwork in determining what they are looking for, and now you merely need to execute. Keep in mind that it only takes one solid lead and closed transaction for a REALTOR® to want to reciprocate, and probably even tell their colleagues about you. But the relationship must begin by earning respect shown through making it about them rather than you.

Fred Arnold is Past President of CAMP, a veteran mortgage professional, and a renowned public speaker. He hosts a radio show on AM 1220 KHTS in Southern California, as well as a televised business program “Out of the Rough,” in his hometown of Santa Clarita. Fred holds degrees in Business Administration, Finance and Real Estate, and is a founder of American Family Funding. He welcomes questions at [email protected] or via phone at (661) 284-1150 x 109


Commercial Loan ExchangeStephan Kachani E-mail: [email protected]: 310-826-2888 x28Lone Oak Fund, LLC is a private mortgage fund larger than many banks that makes bridge loans typically ranging from $250K to $10M on commercial property located throughout California. Interest from 8.9% to 9.9%; first trust deeds only; no prepayment penalties; funding within one week; minimal paperwork; creative structuring; broker cooperation. Ask about special pricing arranged by Broker Banker Publisher Ed Craine.

“Helping mortgage brokers successfully fund small commercial loans since 1976. Stated income loans and other niche products available. Call Leo for marketing tips.”

Type: Private LenderMin Loan: $250,000Max Loan: $10,000,000

Lone Oak Fund

Samuel ShummonE-mail: [email protected]: 415-257-3701

Lori Randich E-mail: [email protected]: 650-365-5341 x 218

Jim Barnett E-mail: [email protected]: 925-946-4270

Type: BankMin Loan: CallMax Loan: Call

Type: Private MoneyMin Loan: CallMax Loan: Call


Luther BurbankSavings

RedwoodMortgage

Sonoma Bank

Michael ThurmanE-mail: [email protected]: 916-338-3232 x310


Blackburne & Brown MortgageCompany, Inc.

Brent HoustonE-mail: [email protected]: 877-663-4268


BridgelockCapital


Mark Sklonick E-mail: [email protected]: 415-893-9321


Circle Bank

Don Sonsma E-mail: [email protected]: 800-714-4106


First CaliforniaBank

Timothy FisherE-mail: [email protected]: 818-957-8110


Beach BusinessBank

The lenders in our Commercial Loan Exchange are all active commercial lenders who are broker friendly. We encourage you to contact them for your commercial lending needs.

Leo GluckE-mail: [email protected]: 800-538-5626 x3

Type: Mortgage BankerMin Loan: $200,000Max Loan: $3,000,000

Commercial Mortgage Corporation

BrokerBanker



BrokerBanker

Volume 128, 2010 | BrokerBanker 22BrokerBanker | Volume 127, 2010222222

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PERMIT NO. 32

Broker Banker MagazineAmerica’s Trade Publication for Loan Originators

California Edition Volume 128, 2010

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Broker Banker Magazine V128

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Transcript of Broker Banker Magazine V128