MTMP_october11

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NationalMortgageProfessional.com

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MAMB BOARD OF DIRECTORS

Phone # E-mail

Dave Christensen President (406) 844-2345 [email protected]

Gary Tomljenovich Vice President/President-Elect (406) 259-0877 [email protected]

Charles Bott Secretary (406) 294-7070 [email protected]

Loren Olsen Treasurer (406) 556-9016 [email protected]

Steven Tucker Past President (406) 652-6677 [email protected]

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Mortgage PROFESSIONALM O N T A N A

M A G A Z I N E

Your source for the latest on originations, settlement, and servicing

Montana Association of Mortgage BrokersP.O. Box 1012 � Helena, MT 59624-1012

Phone: (406) 227-5490 � Fax: (406) 227-7000Web site: www.mtamb.com

Montana Association of Mortgage Brokers Montana Association of Mortgage Brokers

Montana Association of Mortgage Brokers

The Montana Association of Mortgage Brokers (MAMB) is an associa-tion of licensed mortgage brokers and loan originators from acrossthe state that share an interest in offering the best possible service totheir clients and supporters. By offering quality in-person training,opportunities to meet and exchange ideas and a forum for discussionabout the changes and ramifications of the licensing law, MAMB isstriving to create a level of professionalism in the state of Montanathat surpasses that of all others.

Membership in MAMB also carries a membership in the NationalAssociation of Mortgage Brokers (NAMB) which gives members a voicein Washington, D.C. and up to date information on what is happeningnationally.

The Board members and membership of MAMB have been workingdiligently for the past ten years to establish a strong relationship withthe Montana Department of Administration’s Division of Banking,brining quality trainers and courses to Montana and building strongindustry relationships.

Are You anMAMB Member?

For more information on the benefits of MAMB membership, call the MAMB state office at (406) 227-5490

or visit www.mtamb.com.

Montana Association of Mortgage Brokers

Code of Ethics and Business Standards

Honesty and IntegrityMAMB members shall conduct business in a manner reflecting honesty,honor and integrity.

Professional ConductMAMB members shall conduct their business activities in a professionalmanner.

Honesty in AdvertisingMAMB members shall endeavor to be accurate in all advertising andsolicitations.

ConfidentialityMAMB members shall avoid unauthorized disclosure of confidential infor-mation.

Compliance With LawMAMB members shall conduct their business in compliance with all appli-cable laws and regulations.

For more information on MAMB membership, call the MAMB state office at(406) 227-5490 or visit www.mtamb.com.

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Saturday, December 310:000 a.m.-5:000 p.m...........Registrationn Open

10:000 a.m.-Noon ................Committeee MeetingsSome or all of the following NAMB Committees could meet during these times … ad-ditional details will be posted at a later date: The Government Affairs Committee,Membership Committee, Ethics Committee, By-Laws and Education Committee, Com-munications Committee and the Finance Committee.

1:000 p.m.-4:000 p.m.............NAMBB Delegatee Councill Meeting

4:000 p.m.-6:000 p.m.............Networkingg Event

Sunday, December 48:000 a.m.-6:300 p.m.............Registrationn Open

8:300 a.m.-9:300 a.m.............NMLS—FHAA (Onee Hour)FHA course to be instructed by David Luna of Mortgage Educators.

9:300 a.m.-9:455 a.m.............Break

9:455 a.m.-12:455 p.m...........NMLS—Federall Laww (Threee Hours)Federal Law course to be instructed by David Luna of Mortgage Educators.

12:455 p.m.-2:000 p.m...........Networkingg Lunch

2:000 p.m.-6:000 p.m.............Expoo Halll Openn && Networkingg Reception

Monday, December 58:000 a.m.-4:000 p.m.............Registrationn Open

8:300 a.m.-10:300 a.m...........NMLS—Reversee Mortgagee (Twoo Hours)Reverse Mortgage course to be instructed by David Luna of Mortgage Educators.

10:300 a.m.-10:455 a.m.........Break

10:455 a.m.-12:455 p.m.........NMLS—Ethicss (22 Hours)Ethics course to be instructed by David Luna of Mortgage Educators.

12:455 p.m.-2:000 p.m...........Networkingg Lunch

2:000 p.m.-3:000 p.m.............Presentationn Fromm Suee Woodardd && Jimm McMahan,Mortgagee Successs Source

3:000 p.m.-3:155 p.m.............Break

3:155 p.m.-4:155 p.m.............Presentationn Fromm Suee Woodardd && Jimm McMahan,Mortgagee Successs Sourcee (continued)

4:155 p.m.-4:300 p.m.............Grandd Prizee Drawingg forr aa Tripp too Hawaii

4:300 p.m.-6:300 p.m.............NAMBB Boardd Meeting

NAMB/WEST 2011 Loan Originator ConferenceFriday-Monday, December 3-5

MGM Grand Las Vegas3799 Las Vegas Boulevard South • Las Vegas

New in 2011!Attendees of the 2011 NAMB/WEST Conference will receive a Passport for the Exhibit Hall on Sunday, Dec. 4. Passportswill need to be validated by each exhibitor in order to be eligible for drawings. The grand prize drawing, a trip to Hawaii,will be held at the conclusion of the conference on Monday, Dec. 5. Attendees must be present to win. As a bonus, at-tendees who book their hotel with the group rate before Wednesday, Nov. 9 will receive an extra Passport.

Agenda at a glance(Subject to change)

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Hotel information

NAMB/WEST has discounted rates for conference attendees at the MGM GrandLas Vegas, located at 3799 Las Vegas Boulevard South in Las Vegas (www.mg-mgrand.com). Any attendee who books their reservations under the NAMBGroup Rate will be eligible to receive an extra Passport. The extra Passport willincrease your chances to win prizes at the conference.

Group ratesFriday, December 2 ....................$110Saturday, December 3 ................$110Sunday, December 4......................$80Monday, December 5 ....................$80Room rates are subject to state and local taxes. The group rate will be offereduntil Wednesday, Nov. 9.

Reservations can be made by calling (877) 313-5757 or (702) 891-7777, or vis-iting http://goo.gl/kjd3b. In order to secure the NAMB Group Rate, you must identify yourself as part of the National Association of Mortgage Brokers(NAMB) Conference.

Check in for the MGM Grand is 3:00 p.m. and check out is at 11:00 a.m. For your convenience, MGM Grand offers room registration at McCarran Air-port. There is an Airport Registration Desk located in the south baggage claim area, near the bottom of the escalators descending from the C and D gates,next to carousel #1 and #2. Shuttle service is available from 9:00 a.m.-11:00 p.m. Porterage service is available 9:00 a.m.-5:00 p.m. only.

Conference fees

Description Early fees (on or before 11/09/11) Regular fees (11/10/11 or later)

Member Registration Fee $200 $250Access to all conference events. You must be an NAMB member in good standing by Friday,Nov. 18 to obtain the member rates. If you are not a member in good standing by this date you will be charged additional fees upon arrival to the conference. To check the status of your membership, go to www.namb.org.

Non-Member Registration Fee $350 $450Access to all conference events.

Visit Exhibit Hall Only $100 $100This is for mortgage originators only.

Cancellation and refund policy: Notice of cancellation must be made in writing (no exceptions) and sent to [email protected] or faxed to(303) 798-3668. Cancellations received by 5:00 p.m. EST on Wednesday, Nov. 9 will be refunded 50 percent of the registration fee that was paid. Any can-cellation received after that date will receive no refund.

For more information on the NAMB/WEST 2011 Loan Originator Conference,contact Kinsley at (303) 798-3664, e-mail [email protected] or

visit www.nambwest.com.

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Advisor Asset Protection Management Bank President Branch Manager Business Analyst Business Development Manager Client Relationship Manager Client Relationship Specialist

Collateral Asset Manager Commercial Loan Officer Corporate Sales Credit Analyst Inside Sales Legal Assistant Licensing Assistant Loan Administration Manager Loan OriginatorMortgage Loan Processor Mortgage Originator National Account Manager National Sales Rep PC Support Admin Post Closing QC Expert Processor Regional Vice President

REO Closer Retail Branch Manager Retirement Planner Reverse Mortgage Specialist Sales Manager Secondary Marketing Analyst Senior Loan Officer Senior Underwriter

Senior Vice President Software Engineer Underwriter Vice President Wholesale Account Executive

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Employers• Responses from highly-qualified candidates• Your ad can also be posted on Indeed and Sim-

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A Special Look at “The Future of Mortgage Banking”Capturing Opportunity in the New MortgageMarketplace By Eric Wiley 36All That You Can Be: Optimizing Efficiency in YourBank’s Mortgage Division By BJ Bounds 37The Next Generation of Mortgage Loan Originator By Casey Cunningham 38Facing the Challenges of the Current Mortgage Banking Landscape By Leif Boyd 40Banker to Broker: The Advantages to Mortgage Brokers By David Hardin 41Leading Mortgage Bankers Out of Chaos: Utilization of SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats) By Debra Gaveglio 43Featured Exhibitors at the MBA’s 98th AnnualConvention & Expo 46

FeaturesThe Elite Performer: How to Use the “F” Word in the

Mortgage Industry By Andy W. Harris, CRMS 4Short Sales: A Sweetening Alternative for Servicers By Daren Blomquist 6Credit Repair Scams: A Disease, Not a Cure By Mike Hall & Greg Holmes 8The Secondary Market Overview: From Bonds to Production … The Confidence-Jobs-Housing Connection By Dave Hershman 10Mortgage Marketing Classics: Direct Mail andNetworking By Joy Gendusa 12Who is Responsible for Post-Closing QC on FHA Loans? By Tommy A. Duncan, CMT 16Get Set for the Home Stretch By Mary Beth Doyle 18ValueNation: Maximizing the Order Module in aValuation Management Platform By David Rasmussen 18FHA Insider: Need More Realtors? FHA Gets You in the Door! By Jeff Mifsud 19Three Reasons Why Short Sale Real Estate AgentsShould be Your Best Friend By Erik Wind 23Lykken on Leadership: Communication and Leadership (Part II) By David Lykken 24The NAMB Perspective: The Value of Becoming NAMB-Certified By John L. Stearns, CMC, CRMS 26Mortgage Companies Breaking the 2011 Inc. 500 List 45

ColumnsHeard on the Street 9NMP News Flash: October 2011 11New to Market 33USA Cares Mortgage Heroes:

Traci Ramirez of Tri-County Mortgage 33NMP Mortgage Professional Resource Registry 48NMP Calendar of Events 52

Visit Our

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AllRegs ............................................................ www.allregsmortgage.com/nmp ............................38

Bay Equity LLC ................................................ www.bayeq.com ..................................................42

Benchmark Mortgage ...................................... www.iambenchmark.info ......................................5

Calyx Software ................................................ www.calyxsoftware.com ......................................37

CBC National Bank..........................................................................................................................7

Elliott and Company Appraisers, Inc................... www.appraisalanywhere.com ................................30

Flagstar Wholesale Lending .............................. www.paperless.flagstar.com ......................Back Cover

Freedom Mortgage .......................................... www.fmbranch.com ......................Inside Back Cover

Frost Mortgage Lending Group .......................... www.frostmortgage.com/nmp ..............................21

GSF Funding .................................................... gsfusda.com ........................................................11

Hometown Lenders .......................................... www.hometownbranch.com ................................35

HVCC Appraisal Ordering .................................. www.hvccappraisalordering.com ..........................30

Icon Residential Lenders, LLC ............................ www.iconwholesale.com ..............................15 & 30

Land Home Financial Services .......................... [email protected] ....................................20

Loyalty Express ................................................ www.loyaltyexpress.com ......................................16

MBA-NJ/NJAMB ................................................ www.njamb.org ..................................................10

Menlo Park Funding ........................................ www.menloparkfunding.com ................................41

Mortgage Brokers Network Corp, Inc. ................ www.mortgagebrokersnetwork.com ......................23

NAMB West ...................................................... www.nambwest.com ..........................MT2, MT3 & 22

NAPMW .......................................................... www.napmw.org ..................................................14

Nationwide Equities Corp. ................................ www.nwecorp.com ..............................................17

PB Financial Group Corp. .................................. pbfinancialgrp.com ..............................................16

Polaris Home Funding Corp. (Branches) .............. www.polarishfc.com/TimeForAChange ..................27

Polaris Home Funding Corp. (Wholesale) ............ www.polarishfc.com ............................................45

REMN (Real Estate Mortgage Network)................ www.remnwholesale.com ....................................29

Ridgewood Savings Bank .................................. www.ridgewoodbank.com ....................................44

Shortsale Speedway.......................................... www.shortsalespeedway.com/freedemo ................19

StreetLinks Lender Solutions ............................ www.streetlinks.com ....................Inside Front Cover

The Warrior Sales Academy .............................. www.warriorondemand.com ................................12

TMS Funding.................................................... www.tmsfunding.com ..........................................31

United Northern Mortgage Bankers Ltd. ............ www.unitednorthern.jobs ............................13 & 39

Veros Real Estate Solutions .............................. www.sapphirebyveros.com ..................................43

Windvest Corporation ...................................... www.windvestcorp.com ........................................23

National Mortgage Professional Magazine

TABLE OF CONTENTSNA

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ORTGAGE PROFESSIONAL

MAGAZINE

NMPNMPOctober 2011 Volume 3, Number 10 Company Web Site Page

A Message From NMP Media Corp.Executive Vice President Andrew T. Berman

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October 2011Volume 3 • Number 10

1220 Wantagh Avenue • Wantagh, NY 11793-2202Phone: (516) 409-5555 / (888) 409-9770

Fax: (516) 409-4600Web site: NationalMortgageProfessional.com

Mortgage PROFESSIONALN A T I O N A L

M A G A Z I N E

Your source for the latest on originations, settlement, and servicing

STAFFEric C. Peck

Editor-in-Chief(516) 409-5555, ext. 312

[email protected]

Andrew T. BermanExecutive Vice President(516) 409-5555, ext. 333

[email protected]

Joey ArendtArt Director

[email protected]

Jon BlakeAdvertising Coordinator(516) 409-5555, ext. 301

[email protected]

Kelsey DominoExecutive Sales Assistant(516) 409-5555, ext. 316

[email protected]

Tara CookBilling Coordinator

(516) 409-5555, ext. [email protected]

ADVERTISINGTo receive any information regarding advertising rates, deadlines and require-ments, please contact Senior National Account Executive Karen Krizman at(516) 409-5555, ext. 326 or e-mail [email protected].

ARTICLE SUBMISSIONS/PRESS RELEASESTo submit any material, including articles and press releases, pleasecontact Editor-in-Chief Eric C. Peck at (516) 409-5555, ext. 312 or [email protected]. The deadline for submissions is the first ofthe month prior to the target issue.

SUBSCRIPTIONSTo receive subscription information, please call (516) 409-5555, ext.301; e-mail [email protected] or visit www.nationalmort-gageprofessional.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 Magazineare the responsibility of the authors alone and do not imply the opinion orendorsement of NMP Media Corp., or the officers or members of NationalAssociation of Mortgage Brokers and its State Affiliates (NAMB), NationalAssociation of Professional Mortgage Women (NAPMW), National CreditReporting Association (NCRA) and/or other state mortgage trade associations.

Participation in NAMB, NAPMW, NCRA, and/or other state mortgagetrade associations events, activities and/or publications is available ona non-discriminatory basis and does not reflect the endorsement of theproduct and/or services by NMP Media Corp., NAMB, NAPMW, NCRA,and other state mortgage trade associations.

National Mortgage Professional Magazine, NAMB, NAPMW, NCRA,and/or other state mortgage trade associations do not make any misrepre-sentations or warranties concerning the regulatory and/or complianceaspects of advertisers, products or services and/or the editorial content con-tained in NMP Media Corp. publications. National Mortgage ProfessionalMagazine and NMP Media Corp. reserve the right to edit, reject and/or post-pone the publication of any articles, information or data.

NATI

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MORTGAGE PROFESSIONAL

MAGAZINE

NMPNMP

A look into the futureOur October 2011 issue’s Special Look at “The Future of Mortgage Banking” starts offwith a piece from Eric Wiley from Pacific Residential Mortgage LLC on page 36 giving hisperspective on the past, present and the future of the mortgage industry. Following Ericis a contribution from BJ Bounds from Calyx on page 37 that’s great for our readers whowork for community banks and credit unions to maximize their efficiencies through uti-lization of the right technology. We are privileged to have Casey Cunningham writeabout finding the next generation MLOs for your mortgage banking operation on page38. Casey knows a lot about this topic as her school, XINNIX, is one of the only non-CE

training schools designed to build strong sales forces, from the MLOs to the top brass. Leif Boyd fromAmerican Pacific Mortgage follows with a piece on page 40 that talks about the current mortgage bankingenvironment and the future opportunities. Later in the section is a piece from David Hardin from BayEquity Home Loans on page 41 bringing up the long standing debate of broker versus banker and whichmodel is best for your situation. Wrapping up the section is a must-read piece from Debra Gaveglio ofActualize Consulting on page 43 about using the SWOT Analysis (Strengths, Weaknesses, Opportunities andThreats) for the purpose of business-planning for your mortgage bank.

Post-closing QC … who needs to do it? When the U.S. Department of Housing & Urban Development (HUD) killed the mini-eagle program andpushed the responsibility of working with mortgage brokers on the fully-endorsed lenders, it created somequestion regarding who handles the post-closing quality control (QC) on Federal Housing Administration(FHA) loans. This month, Tommy A. Duncan, CMT from Quality Mortgage Services LLC shares his expert opin-ion on this matter on page 16 in his piece, “Who is Responsible for Post-Closing QC on FHA Loans?”

Credit repair could do more harm than goodOn page 8, Mike Hall and Greg Holmes of Credit Plus Inc. send a stern warning to mortgage professionalsabout using credit repair services. This includes warnings from the Federal Trade Commission (FTC), as Mikeand Greg provide some ways that you can legally and effectively handle misinformation on a credit report.

How are you preparing for the short sale boom?This month, RealtyTrac’s director of marketing communication, Daren Blomquist, talks about short salesas an ideal alternative for servicers in his article on page 6. Later in the magazine on page 23, short saleexpert Erik Wind of ShortSaleSpeedway provides three reasons why real estate agents should be your bestfriend and what you can do to land their business.

The benefits of “alphabet soup” after your nameLast month, we covered the topics of education and certification, and while it’s nice that we finally have aminimum set of standards established with the SAFE Act in place, industry designations can still take yourlevel of professionalism to a much higher level. In this month’s NAMB Perspective on page 26, NAMB 2011-2012 Certification Committee Chair John L. Stearns, CMC, CRMS provides some great tangible net benefitsyou get when you decide to advance your career and become certified by NAMB.

Your monthly favorites Also in our October issue, Andy W. Harris, CRMS’s “The Elite Performer” series discusses the use of the “F”word in the mortgage industry (no, not that one … read page 4 for details). Dave Hershman’s SecondaryMarket Overview on page 10 discusses the interconnected consumer confidence, jobs and housing num-bers. Jeff Mifsud’s “FHA Insider” on page 19 reminds our readers how to leverage their FHA knowledgeto break into real estate office and win the ears and business of agents. This issue also features anoth-er great installment from mortgage banking consultant to the stars, David Lykken, in this month’s“Lykken on Leadership” on page 24. This is the second part in David’s series that breaks down effectivecommunications for leaders, and this month, he provides crucial tips on how to communicate with dif-ferent types of personalities.

Don’t let new opportunities “fall” out of graspSure, the leaves may be falling and the cold of winter will replace the crisp fall air as the calendar pagesfade from October to November, but it’s no time to pack up and hibernate for the winter. If anything, it’stime to get out and begin renewing and reinventing yourself, positioning your business for success in 2012.The New Year is right around the corner, and it’s never too soon to begin charting your course to successfor the next year.

Until next month ...

Andrew T. Berman, Executive Vice PresidentNMP Media Corp.

National Mortgage Professional Magazineis published monthly by NMP Media Corp.

Copyright © 2011 NMP Media Corp.

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National Credit Reporting Association Inc.125 East Lake Street, Suite 200 � Bloomingdale, IL 60108

Phone #: (630) 539-1525 � Fax #: (630) 539-1526Web site: www.ncrainc.org

The National Association of Mortgage Brokers

2701 West 15th Street, Suite 536 � Plano, TX 75075Phone #: (703) 342-5900 � Fax #: (530) 484-2906

Web site: www.namb.org

President—Michael D’Alonzo, CMCCreative Mortgage Group1126 Horsham Road, Suite DMaple Glen, PA 19002(215) 657-9600 � [email protected]

President-Elect—Donald J. Frommeyer, CRMSAmtrust Mortgage Funding Inc.200 Medical Drive, Suite DCarmel, IN 46032(317) 575-4355 � [email protected]

Vice President—Michael Anderson, CRMSEssential Mortgage3029 S. Sherwood Forest Boulevard, Suite 200Baton Rouge, LA 70816(225) 297-7704 � [email protected]

Treasurer—John Councilman, CMC, CRMSAMC Mortgage Corporation2613 Fallston RoadFallston, MD 21047(410) 557-6400 � [email protected]

Past President—Jim Pair, CMCMortgage Associates Corpus Christi6262 Weber Road, Suite 208Corpus Christi, TX 78413(361) 853-9987 � [email protected]

Fred Arnold, CMCAmerican Family Funding24961 The Old Road, Suite 101Stevenson Ranch, CA 91381(661) 284-1150 � [email protected]

Olga Kucerak, CRMSCrown Lending222 East Houston, Suite 1600San Antonio, TX 78205(210) 828-3384 � [email protected]

Donald Fader, CRMSSMC Home FinanceP.O. Box 1376Kinston, NC 28503-1376(252) 523-5800 � [email protected]

Deb Killian, CRMSGMAC246 Federal Road, Unit C-24Brookfield, CT 06804(203) 778-9999, ext. 103 � [email protected]

Linda McCoyMortgage Team 1 Inc.6336 Picadilly Square DriveMobile, AL 36609(251) 610-0494 � [email protected]

Walter ScottExcalibur Financial Inc.175 Strafford Avenue, Suite 1Wayne, PA 19087(215) 669-3273 � [email protected]

Tom ConwellPresident(800) 445-4922, ext. 1010 [email protected]

Donald J. UngerVice President(303) 670-7993, ext. [email protected]

Daphne LargeTreasurer(901) [email protected]

Marty FlynnEx-Officio(925) 831-3520, ext. [email protected]

William BowerDirector—Tenant Screening Chair(800) [email protected]

Mike BrownDirector—Technology Chair(800) [email protected]

Susan CataldoDirectorEducation & Compliance Chair(404) 303-8656, ext. [email protected]

Janet CurtisDirector—New Membership & Elections Co-Chair (212) [email protected]

Renee EricksonDirector—Tenant Screening Co-Chair(800) 311-1585, ext. [email protected]

Nancy FedichDirector—Conference Chair(908) 813-8555, ext. [email protected]

Judy Ryan Director—New Membership & Elections Chair(800) 929-3400, ext. [email protected]

Tom SwiderDirector—Legislative Co-Chair(856) 787-9005, ext. [email protected]

Terry ClemansExecutive Director(630) [email protected]

Jan Gerber Office Manager/Membership Services(630) [email protected]

PresidentLaurie Abshier, GML, CME, CMI(661) [email protected]

President-ElectCandace Smith, CME(512) [email protected]

Senior Vice PresidentJill Kinsman(206) [email protected]

Vice President-Northwestern RegionNita Cook, GML, CME, CMI(360) [email protected]

Vice President-Western RegionLyman King III, CME, CMI(916) [email protected]

Vice President-Central RegionLisa Puckett, CME(405) [email protected]

Vice President-Eastern RegionChristine Pollard(607) [email protected]

SecretaryKatheryn M. Farrell(509) [email protected]

TreasurerJeanne Evans, CME(918) [email protected]

ParliamentarianHulene Bridgman-Works(800) [email protected]

NAMB Board of Directors

National Association of ProfessionalMortgage Women

P.O. Box 451718 � Garland, TX 75042Phone #: (800) 827-3034 � Fax #: (469) 524-5121

Web site: www.napmw.org

Officers

Directors

2011 Board of Directors & Staff

National Board of Directors 2011-2012

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I have had the pleasure of working with andmeeting all types of interesting people dur-ing my career. As I’ve mentioned in thepast, long-term success is not somethingthat just “happens.” It takes hard work andfocus, especially in our current housingmarket and with constant changes in theindustry. Adapting to change is no longeroptional if you plan to succeed in 2012 andbeyond … it’s a requirement. This shouldbe common sense by now for most of youcareer-minded folks. You must update yoursystems and business plan to not only com-ply with regulatory changes and avoidspeed bumps, but to also make sure youtake advantage of any new opportunitiesthat come your way.

Many of us are succeeding in our mort-gage careers and many are failing. The pri-mary factor I see in dividing these results ishow each person responds to their newchallenges. In other words, how they usethe “F” word. Each morning, you wake upbefore heading to the office you’re filledwith either FEAR or FAITH. Do you havenegative thoughts and fear about the futureof your career or do you have unrelentingoptimism and faith that you’ll succeed inthis new world of opportunities? Alwaysremember that if you strive to be successfulin this industry, you must work hard andhave faith. There is no doubt that we havechallenges in our industry, but when fear-ful thoughts enter your mind, you musteliminate them. Having faith will slowlyuncover the hidden opportunities behindany challenges you face.

Yesterday is gone and it’s not comingback. If something happened in the pastthat caused you concern or distress, justremember that it no longer exists unlessyou voluntarily hold onto it. Focus on thepresent and future with confidence.Uncertainty about the future is a burdenyou were not created to carry. Only the bigman upstairs is built for that burden.Preparing for the future of your career isimportant as long it’s driven by faith andwithout a doubt. Concerns or fears about

the future will do nothing but create anxi-ety and negative thoughts, holding you in aself-constructed prison.

It’s not easy to block out fearful thoughtsor doubts, but always remember, worryingis worthless. Your success relies on yourdecision to live by faith over fear. Challengeyourself each day to see the opportunitybehind any obstacle. Take time each day toreflect on the positive things in your lifesince the negative things tend to stand outon their own. Help others do the same dur-ing these challenging economic times. Justremember … your thoughts are alreadyshaping your future, whether you are awareof it or not. I don’t know about you, but I’llput my money on FAITH.

Tip of the monthFind a calendar that fits your style.Obviously it’s important that we keep anorganized schedule of our personal andbusiness appointments, but the way youremember your appointments is key. Somelike having a schedule they can physicallycarry and manually write-in, while othersmight like an electronic calendar viaOutlook or on their mobile device.Whatever you choose to use, set alerts sothat you don’t forget your appointmentsand meetings!

Andy W. Harris, CRMS is president andowner of Lake Oswego, Ore.-based VantageMortgage Group Inc. and 2010-2011 presi-dent of the Oregon Association of MortgageProfessionals. He may be reached by phoneat (877) 496-0431 or e-mail [email protected] or visitAndyHarrisMortgage.com.

How to Use the “F” Word in the Mortgage Industry

“Therefore do not be anxious abouttomorrow, for tomorrow will be

anxious for itself. Sufficient for theday is its own trouble. Each day has

enough trouble of its own.”—Matthew 6:34

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Success Relationship Dynamic Excellence PositiveAttitude

GREAT STIRRUP CAY

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By Daren Blomquist

Short sales haverarely been the firstchoice of servicersgiven the extra com-plications involved innegotiating a proper-ty sale with at least

two other parties—more if there are sec-ond lien holders and investors involved.Beyond the practical complications liesthe belief that short sales flout one of thefundamental principles of mortgage lend-ing: Those who enter into a legally bind-ing contract to pay off a mortgage should,in fact, be required to pay off that entiremortgage. A short sale violates that princi-ple by, in effect, giving the borrower aprincipal balance reduction.

In the interest of keeping both theprincipal and principle intact, mort-gage servicers have typically favoreddisposing a property through foreclo-sure rather than short sale. RealtyTrac’sforeclosure sales report shows sales offoreclosed and real estate-owned (REO)

properties nationwide have surpassedthe sales of pre-foreclosure properties(in default or scheduled for foreclosureauction, these are typically short sales)in every quarter since the first quarterof 2008. Cumulatively over that timeperiod, a total of 2.3 million REO prop-erties have sold compared to 1.5 mil-lion pre-foreclosure sales.

Short sales spikingBut, we noticed a significant shift in thesecond quarter of this year that indi-cates short sales may be growing on ser-vicers. Overall, REO sales still outpacedpre-foreclosure sales by a wide margin,approximately 60,000. Nevertheless,pre-foreclosure sales spiked 19 percentfrom the previous quarter, while REOsales posted a fractional decrease fromthe previous quarter.

In some of the nation’s biggest realestate markets, it appears that lenders,servicers and investors are pushing pre-foreclosure sales as a means to reducecosts and clear non-performing loans.Some of the states with the biggest quar-

terly increases in pre-foreclosure homesales included Nevada with a 43 percentincrease, Washington with a 39 percentincrease, California with a 38 percentincrease, and Texas with a 34 percentincrease (see Fig. 1). If this trend contin-ues, it could be a solid sign that shortsales are finally becoming more palat-able to servicers, lenders and investors.

Another sign of this trend can befound by looking at foreclosure salesdata at the metro level. In a few bell-wether local markets, pre-foreclosuresales actually topped REO sales in thesecond quarter. For instance, theRealtyTrac report shows 2,755 pre-fore-closure sales in the San Diego metroarea in the second quarter compared to2,393 REO sales during the same period.Across the country in the Cape Coral-Fort Myers, Fla. metro area, anothermarket hard-hit by foreclosures, a totalof 1,358 pre-foreclosure properties soldduring the second quarter compared to1,151 sales of bank-owned propertiesduring the same time period.

Deeper discountsFurthermore, the average discount onpre-foreclosure sales increased in thesecond quarter, indicating servicersmay be more willing to authorize lowerselling prices for short sales. Pre-fore-closures, which are often sold via shortsale, had an average sales price nation-wide of $192,129, a discount of 21 per-cent below the average sales price ofnon-foreclosure homes. That discountwas up from a 17 percent discount inthe previous quarter and a 14 percentdiscount in the second quarter of 2010.

Despite the growing discounts on pre-foreclosures, however, the average dis-count on REO sales continued to be morethan double. Nationally, REOs had anaverage sales price of $145,211 in thesecond quarter, a discount of nearly 40percent below the average sales price ofnon-foreclosure homes. That was upfrom a 36 percent discount in the previ-ous quarter and a 34 percent discount inthe second quarter of 2010.

The bigger discount for REO salesoffers a clear sign that servicers mayoften be able to get a better return on adistressed property by selling via shortsale rather than selling as REO. The big-ger REO discount is undoubtedlyimpacted to a certain extent by the typeof properties and location of propertiesthat tend to make it to REO status, butit’s still reasonable to expect a short saleproperty to be in better sellable condi-tion simply because it is usually occu-pied by a homeowner and not vacant.

Shrinking time to sellApologies to all the real estate punditsand prognosticators out there, but theold reliable quip that there is nothingshort about short sales may not evokeknowing laughs much longer. That’sbecause short sales appear to actuallybe getting shorter, if ever so slowly. Pre-foreclosures sold in the second quartertook an average of 245 days to sell afterreceiving the initial foreclosure notice,down from an average of 256 days in

the first quarter—following threestraight quarters of increases in theaverage time to sell.

Nationwide, it still takes longer to sella short sale than an REO property, butthe time to sell those REOs is headed up.REOs that sold in the second quarter tookan average of 178 days to sell after beingforeclosed on, up from 176 days in thefirst quarter and up from 164 days in thesecond quarter of 2010.

In some states, however, the averagenumber of days to sell a pre-foreclosureis shorter or virtually equal to the aver-age number of days to sell a bank-ownedproperty. In Texas, pre-foreclosures thatsold in the second quarter took an aver-age of 165 days to sell, compared to anaverage of 195 days to sell REOs. Theaverage number of days to sell a pre-foreclosure was also shorter than theaverage number of days to sell an REO inOregon, Washington, Virginia andGeorgia. In California, it was a virtual tie,with pre-foreclosures selling in 169 dayson average, and REOs selling in 165 dayson average (see Fig. 2).

The second quarter jump in pre-fore-closure sales, coupled with bigger dis-counts on pre-foreclosures and a shorteraverage time to sell pre-foreclosures allpoint to a housing market that is startingto focus on more efficiently clearing dis-tressed inventory through more stream-lined short sales—particularly in someareas. This gives distressed homeownerswho do not qualify for loan modificationor refinancing—or who are not interest-ed in those options and want to sell—abetter chance of completing a short saleto avoid foreclosure.

Streamlined short sales give lendersthe opportunity to more pre-emptivelypurge non-performing loans from theirportfolios and avoid the long, costly andincreasingly messy process of foreclosureand the subsequent sale of an REO—which may end up selling for a lowerprice than it would have as a short saleand in the meantime further stressalready overloaded REO departments.

Significant challenges to streamliningthe short sale process remain. It’s no easytask to deal with the complications ofcutting a deal with secondary lien hold-ers and getting approval from investors.But the added foreclosure documenta-tion and processing requirements nowbeing imposed by regulators, legislatorsand judges are making the foreclosureprocess more complex, costly and risky.Even foreclosures done by the book usingtoday’s standards may not measure up tohigher standards imposed in the future,and therefore, might be subject to dis-pute even after the REO has been resoldto a third party.

Certainly short sales will not com-pletely supplant foreclosure as an alter-native to disposing of non-performingloans, but they are starting to look likea much sweeter alternative.

Daren Blomquist is director of marketingcommunications for RealtyTrac. He maybe reached by phone at (949) 502-8300,ext.115 or e-mail [email protected].

Fig. 2

Fig. 1

Short Sales:A Sweetening Alternative for Servicers

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We work to make it happen!

Big enough tomatter.Small enough to care!

In the currentmortgage environment, everyoriginator is looking for a true business partnerwhenworkingwith their wholesale lenders.

Themost important aspect of being a lender intoday’s market is the ability to build andmaintain ameaningful relationship with each customer.

At CBCNational Bank,we understand that thesemeaningful relationships coupledwith competitivepricing and efficient technology are the pillars oftoday’s lending environment.

Whenworking with CBC you have a dedicatedteam that provides you:

• Direct access to all underwriters andmanagement

• Competitive pricing on a variety of loanprograms

• A user-friendly LOS systemwith real-timeloan tracking

• The ability to work closely with your AccountExecutive & designated Loan Coordinator,who together will give you the confidence toknow your target closing date will be met

• Regular communication with all staff membersthrough phone calls, emails, and promptlyreturned voicemails

• Respect and customer service at all times.Service is paramount for a successfulwholesale company like CBC National Bank.

CBC National Bank strives to earn your business and welook forward for the opportunity to show you how much we care!

For more information please contact us at 888-486-4304.

Member FDIC

Anew contagion is now spreadingthrough the consumer creditindustry. Mortgage professionals

will want to be especially vigilant toavoid contact with this disease, whichpromises to bring as much misery tobrokers as it does to the customers whoare its carriers.

The virus is called “Credit Repair,”and it spreads through late night TVcommercials, junk e-mails and yardsigns in low-income neighborhoods.Slick hucksters create the ads, disguis-ing themselves as earnest profession-als promising to magically wipe theblack marks of late payments, default-ed loans and maxed-out credit cardsfrom a consumer’s credit report. Theirprocedures for the “doctoring” ofcredit records can range from merelyuseless to downright fraudulent andmalicious.

While there are many good reasonsfor a mortgage professional to help acustomer improve their credit score, itis important to avoid using the phrase“credit repair” to describe this assis-tance. It is equally important to avoidassociating yourself with firms whouse the phrase to refer to their servic-es. Chief among the reasons: All threeof the major nationwide credit reposi-tories strictly prohibit providers ofcredit repair services from receivingtheir reports or credit scores.Mortgage lenders who associate with acredit repair company similarly run

the risk of losing the ability to accessEquifax, Experian and TransUnion formortgage lending.

The best antidote is to recognizethe critical difference between lawfulassistance in helping a consumer qual-ify for a loan and the unethical activi-ties of a credit repair firm. Some firmscharge hefty fees for services a con-sumer can perform for free. Othercredit repairers are out-and-out fraud-sters, taking advance payments fromdesperate borrowers and skippingtown without providing any servicewhatsoever. The most egregious oper-ators use unscrupulous techniques toartificially manipulate a credit score,jeopardizing the nation’s creditreporting system for the sake of ashort term improvement.

No good, says the FTCAccording to an article atBankrate.com (http://bit.ly/nTeGe0.),the Federal Trade Commission (FTC)has yet to uncover a worthwhile repairoperation. The FTC raises the legiti-mate question: How can bankruptcybe legally removed from a creditreport when, by law, it is supposed toremain on it for 10 years? A key tounderstanding the FTC’s concerns liesin the definition of the phrase “CreditRepair.” Most of the firms that prom-ise to “repair” credit are actually cor-recting errors in a credit record.Consumers can accomplish this task

on their own at no charge. All threerepositories comply with laws thatrequire a do-it-yourself procedure forcorrecting the erroneous data that canlower a consumer’s credit score.Amending the record can often raisescores sufficiently, elevating a previ-ously unqualified borrower to a statuswhere a loan might be possible.

The most troublesome operators inthe credit repair business go beyondmerely selling free services, seeking toartificially improve their clients’ scoresby exploiting loopholes in the federallaws that govern U.S. repositories. Theflood of paperwork creates majorheadaches for administrators atExperian, Equifax and TransUnion,which potentially increases the cost ofcredit reporting for everyone.

Big trouble for mortgage professionalsAssociation with a credit repair opera-tor holds the potential to paralyze amortgage lender’s ability to write newbusiness. Repositories have strict rulesagainst providing credit information tofirms associated with the credit repairindustry. Credit information servicesproviders like Credit Plus must be verycareful to comply with the prohibitionas well. Some credit repair operatorscircumvent the roadblock by partneringwith legitimate lenders, including mort-gage companies, and using them toobtain credit information in exchange

for a commission or business referral.Other mortgage professionals choose tounwittingly assist the repair scammersvoluntarily, based on the misguidedbelief that they are benefitting theirborrowers. The result of partneringwith a credit repair company could be acomplete cutoff of credit reports to thelender or broker, effectively eliminatingthe ability to close new loans.

Fortunately for mortgage profession-als, there are many helpful alternativesto credit repair:

� Self-service: Most borrowers arecapable of fixing errors in theircredit report on their own,although the process requires a bitof effort. The procedure to follow iswell-documented in a comprehen-sive article on the FTC Web site(http://1.usa.gov/19scU7), and feder-al credit laws have been establishedto make the steps as straightforwardas possible. The down side of self-help is the time commonly requiredto make a correction. A completeamendment process can take 30 to60 days, far longer than some eagerborrowers are willing to wait.

� Credit service agencies can offer avaluable shortcut for borrowerswho seek to correct a report:Credit service agencies can use theirinsider access to amend a report indays rather than weeks, using proof

Credit Repair Scams:

A Disease, Not a CureBy Mike Ha l l & Greg Holmes

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of an error providedby the borrower.Additional assis-tance can advisemortgage profes-sionals on personalf inance changesthat applicants canmake to improvethe possibility ofloan approval.

� Credit advice: Thevast majority of bor-r o w e r s a r e n ’ tapproved becausetheir financial situa-tion truly disqual-i f ies them fromobtaining a loan.A l t h o u g h t h eprocess isn’t imme-diate and painless,the outcome of truec red i t improve -ment can be ulti-mately more satis-f y i n g f o r a l lc o n cerned.

Consideringfacts and feelingsConsumers often turnto credit repair foremotional reasons. Aquick fix seems to bethe perfect antidotefor the shock of beingrejected for a loan.Mortgage profession-als can help byexplaining that restor-ing credit worthiness isa restorative process,like healing a brokenleg. Proper care and

time to convalesceyields a far better out-come than graspingfor a miracle cure.

It is important foreveryone in the mort-gage lending processto maintain a propersense of perspective.We’re all in thist o g e t h e r . C r e d i treporting agencies,lenders, borrowersand the public at-large ultimately wantthe same things: Tohelp individual con-sumers manage theirown credit in the bestway possible, and tomake sure lenderscreate the soundest,most solid loan port-folios. This goal willbe best accomplishedwhen we all worktoward the day whencredit repair joinssmallpox, a scourgewhich once threat-ened but has thank-fully become a thingof the past.

Mike Hall is vice presi-dent of operations andGreg Holmes is nation-al director of salesand marketing forSalisbury Md.-basedCredit Plus Inc., aprovider of credit andmortgage informationservices since 1928.They can be reached [email protected].

Help Customers Spot CreditRepair Rip-Offs

Your mortgage customers would be wise to completely avoid creditrepair operators. If they insist on investigating, offer these helpfulwarning signs drawn from an article on the Federal TradeCommission (FTC) Web site (http://1.usa.gov/19scU7). It should helpthem recognize the first symptoms of potentially crippling creditdamage to come.

� Companies that require payment before credit repair services areperformed (a requirement prohibited under the federal CreditRepair Organizations Act.)

� A pitch that includes no information on the actions individuals cantake on their own at no charge.

� Firms that discourage consumers from contacting any of the threemajor credit repositories directly.

� Promises to remove accurate, current information from a creditreport.

� Recommendations to create a “new credit identity” to improve cred-itworthiness.

� Suggestions to dispute portions of a credit report that are known tobe accurate.

Many federal and state laws govern the activities of credit repairagencies. Consumers who feel they have been victimized are urged tocontact their local consumer affairs office or their state’s AttorneyGeneral.

“While there are manygood reasons for a

mortgage professional tohelp a customer improve

their credit score, it isimportant to avoid usingthe phrase “credit repair”to describe this assistance.”—Mike Hall, VP of operations,

Credit Plus Inc.

“The most troublesomeoperators in the credit

repair business go beyondmerely selling free services, seeking to

artificially improve theirclients’ scores by

exploiting loopholes inthe federal laws that

govern U.S. repositories.”—Greg Holmes, national

director of sales

and marketing,

Credit Plus Inc.

AllRegs and The PriestonGroup Partner onMortgage Industry RiskAssessment Resources

AllRegs and ThePrieston Group Inc.(TPG) have announceda partnership that will

offer risk assessment resources to themortgage industry. Together, the twocompanies will build on existing tools,processes and resources to provide real-time corporate level risk assessment toolsand benchmarks. Research and develop-ment, technology infrastructure, productdevelopment and various other capitalresources will be invested by both organ-izations to create a new suite of riskassessment resources and benchmarks.

“For over 10 years, I have known thegreat work that TPG has been providingto the industry,” says Dan Thoms, execu-tive vice president for AllRegs. “The inno-vative insurance products, statisticalknowledge about risk and performance,and legal resources available through TPGare exceptional. We believe that our com-bined forces, together with our businessintelligence tools, industry distributioncapabilities, and other AllRegs core com-petencies will create a suite of powerfulnew products and services for the mort-gage industry.”

AllRegs, founded in 1989, providesguidelines, federal and state compliance,information, forms, content and businessintelligence for the mortgage lendingindustry. Used by virtually all of the top100 lenders and in various governmentagencies, products include single andmultifamily underwriting and insuringguidelines, as well as federal compliancelaws and regulations, state compliancelaws and regulations with plain-languageanalyses, policy and procedure manualtemplates, training opportunities, con-tract publishing services and a library ofhistorical guidelines.

“For 22 years AllRegs has providedextraordinary tools and resources to themortgage industry, and we at TPG areexcited to begin a valuable and meaning-ful relationship with such an innovativecompany,” said Arthur Prieston, chair-man of TPG. “We are excited to bringtogether our resources and provide themortgage industry with risk assessmenttools that will impact the way business isconducted in the future.”

The Prieston Group Inc. (TPG) wasfounded in 1986 by Arthur J. Prieston,

one of the country’s foremost experts onmortgage fraud. TPG was the first U.S.company to offer insurance coveringrepurchase losses due to mortgage fraudand material financial inaccuracy; todate, it has written fraud-insurance cov-erage on more than one million loans.The company also provides training andconsulting services designed to minimizefraud risk and uses a patented lender-rat-ing system to quantify the risk embeddedin a lender’s underwriting, quality controland review practices. The AmericanMortgage Law Group PC (AMLG), a mort-gage law practice founded in 1981, is aTPG affiliate.

Bay Equity PushesNationwide Broker toBanker Initiative

Bay Equity HomeL o a n s h a s

announced that it is initiating an aggres-sive effort to expand its roster of branchoffices by encouraging mortgage brokersto transition into the mortgage financingindustry. Veteran mortgage broker andbanker Dave Hardin, director of retailoperations for Bay Equity, has beencharged with overseeing the growth andmarketing of Bay Equity’s current team ofretail branches across the Western regionof the country.

“Dave Hardin has built an exceptional-ly successful 25-year career as a mortgagebroker and banker,” said CaseyMcGovern, managing director in chargeof production for Bay Equity Home Loans.“He has proven himself as a sound finan-cial leader. Dave knows how to grow busi-ness, and under his leadership we antici-pate strong and consistent growth in ourretail branches.”

In addition to his role with Bay Equity,Hardin also serves as chief executive offi-cer of Covenant Mortgage, which hefounded in 2003. Covenant is one ofmany mortgage brokerage firms to moveinto a banking relationship with BayEquity in recent years to take advantageof the bank’s corporate infrastructure,offer more products and services, andbetter navigate the recent changes infederal regulations governing the mort-gage industry.

“I’m excited to join Casey McGovernand the management team at BayEquity,” Hardin said. “They have donean outstanding job building a solid

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Want to know when the housing slumpwill end? Forget about measuring shad-ow inventory against the pace of sales… start measuring job creation. If thejob market turned strong tomorrow,instead of four years to clear shadowinventory, it would take half that time.Of course, jobs will not return untilhousing gets stronger. The housing sec-tor is a very important component ofthe labor force. Sound like a Catch-22to you? It certainly is. Unemploymentdepresses housing and housingdepresses employment. That is avicious cycle. The question is … howcan we move to a virtuous cycle inwhich both support each other?

Here is where we insert the mostimportant word: Confidence. Companiesare currently flush with cash and theycould hire if they felt the need. Butcompanies will not hire unless theyhave the confidence that the consumerwill be purchasing. Thus far, consumerspending has heldup during the softpatch the econo-my has encoun-tered this year,but businesses arewor r ied aboutc o n s u m e r sretrenching.

Take the Presi-dent’s job package.Even before it was officially proposed,it was being assailed by conservativesas being another stimulus giveawayand by the media as being too small tomake a difference. Here is an excerptfrom an article in CNN/Money whichappeared the day before the packagewas proposed:

Economists say the package won’t beenough to change the struggling econo-my’s trajectory.

“The kick to growth is going to bepretty small. It will add substantiallyless than one percent to GDP growth in2012,” said Nigel Gault, the chief U.S.economist at IHS Global Insight. “If we’retalking about whether the package is bigenough to start making a dent, it’s prob-ably going to fall short of that goal,” saidGary Burtless, a labor economist at theBrookings Institution.

These analyses fall short because theydon’t address the importance of confi-dence. Americans need to be confidentthat their government is going to help.When Federal Reserve Board ChairmanBen Bernanke goes out and says, theFed stands ready to help and Americansbelieve that there are more bullets leftin the gun, it makes a big difference.Speaking of Bernanke, even he weighedin on the issue of confidence, accordingto The New York Times:

Households have tightened up spendingand are behaving in a way as if theeconomy was even worse than it actual-ly is, say economists. Economic growthcontinues to fall short of expectationsand Federal Reserve Chairman BenBernanke, speaking at a luncheon inMinneapolis, suggested that it may par-tially be because the public is depressed.Americans are facing high levels of unem-ployment, slow gains in wages for the

employed, fallinghome prices, anddebt burdens.However, “even tak-ing into account themany financial pres-sures they face,households seem

exceptionally cautious,” Bernanke said atthe luncheon.

So if the President’s “teensy, little”$400 billion jobs package does not domuch, it does not matter. It matterswhether it has the ability to lift confi-dence which will make a difference… all the difference in the world. I willtell you this … the prolonged hagglingover the budget and other proposals byCongress and the President does notinstill confidence. It makes mattersworse. Solidarity and teamwork by ourpoliticians sure would be a welcomesign. I am afraid that this teamworkwould be harder to achieve than clear-ing out the shadow inventory.

Overall, the economy is in a muchbetter place than it was two years ago.Two years ago, we were losing hun-dreds of thousands of jobs. Now we are

The Confidence-Jobs-HousingConnection

“Unemployment depresses housing and housing

depresses employment. That is a vicious cycle.”

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CoreLogic Study FindsNearly One Fourth of AllResidential PropertiesAre Underwater

CoreLogic hasreleased its sec-ond quarter neg-ative equity datashowing that10.9 million, or22.5 percent, of

all residential properties with a mort-gage were in negative equity at the endof the second quarter of 2011, downvery slightly from 22.7 percent in thefirst quarter. An additional 2.4 millionborrowers had less than five percentequity, referred to as near-negativeequity, in the second quarter. Together,

negative equity and near-negative equi-ty mortgages, or what is commonlyknown as an underwater mortgage,accounted for 27.5 percent of all resi-dential properties with a mortgagenationwide. The new report also showsthat nearly three-quarters of homeown-ers in negative equity situations arealso paying higher, above-market inter-est on their mortgages. Negative equitycan occur because of a decline in value,an increase in mortgage debt or a com-bination of both.

Nevada had the highest negativeequity percentage with 60 percent of allof its mortgaged properties underwa-ter, followed by Arizona (49 percent),


GSFUSDA.com

MBA to Manage MISMOBeginning Dec.1, 2011, theMortgage Bank-

ers Association (MBA) and MERSCORP Inc.(the parent company of MortgageElectronic Registration Systems Inc. orMERS) have jointly announced thatmanagement o f the Mor tgageIndustry Standards MaintenanceOrganization Inc. (MISMO) will trans-fer to the MBA beginning Thursday,Dec. 1, 2011.

“MERSCORP successfully managedMISMO during an important period oftechnical and technological develop-ment for MISMO, and a period of sig-nificant change for our industry,” saidDavid H. Stevens, president and CEO ofthe MBA. “With the successful launchof the MISMO 3.0 reference model,MISMO can now shift to focus effortson regulatory implementation andadvocating for broader adoptionthroughout the industry. The MBA andMERSCORP came to the conclusionthat with this shift in focus, manage-ment should return to MBA, whereMISMO adoption efforts can be syn-chronized with MBA advocacy. Weappreciate the commitment of MER-SCORP, which will continue to play animportant role in influencing the workof MISMO.”

Bill Beckmann, president and CEOof MERSCORP, agreed that the timewas right for MISMO to return to MBA,stating, “We are one of the largestadopters of the MISMO Standards andwe’ll continue to work closely withMISMO to encourage adoption of stan-dards that, along with the mission ofMERSCORP, promote efficiency inmortgage transactions.”

“Due to changes in the regulatoryenvironment over the last two years,the benefit of implementing datastandards across the real estatefinance industry has never beengreater,” said Stevens. “Significantnew reporting requirements highlightthe need for a common vocabularyand data exchange mechanism. Thecontinued enhancement of data stan-dards and transparency are critical tothe return of investor confidence andliquidity in our marketplace. MBA willcontinue to encourage regulators toadopt MISMO standards for regulatoryreporting. The utilization of a single,consensus industry standard willgreatly reduce compliance costs forthe mortgage industry. To continuethe development of world class stan-

dards, I would like to encourage MBAmembers and the regulatory commu-nity to become more active in thedevelopment and support of industrystandards.”

OCTOBER 2011

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Mortgage Marketing Classics:Direct Mail and Networking

By Joy Gendusa

You can’t battle adown market withpassivity … it willeat you alive, with aside of green beans.You need to get outthere and claw for

business. The good thing is that if you dojust that, the business is still out there.

Often when things get bad, business-es react by cutting their marketingbudget. You can see why: It savesmoney, people won’t respond anyway,etc. The problem with that theory is, ifyou market, people will respond andactually in higher numbers than if theeconomy was wonderful but why? Whenyou don’t slash your marketing budget,you’ll be one of the few, and you’ll getmore bang for your buck because thereis less competition.

But enough about why … let’s lookat how you grow your mortgage firmand get more clients. I’m going to out-line three important strategies you canimplement immediately to get movingin the right direction. First, you need tomake sure you’ve covered the basics …the old stand-bys: Direct mail and net-working. They may not be flashy, butthese classic marketing techniques areproven to work—and “if it ain’t broke”… you know the rest. The key to successhere is diligence, so be ready to com-mit. Single serving efforts in these areasare a waste of time and money. By thesame token, if you apply them in a con-sistent schedule, they just flat out work.

Direct mailThere are many options these days inthe direct mail industry, but the mosteffective one for raising awareness ofyour business and growing name recog-nition is postcards. Because there is noenvelope to open and the designs are,or at least should be, eye-catching, youare guaranteed your prospect at leastviews your message, even if the cardeventually ends up in the trash. Whenstuck to, a postcard campaign goes along way towards solidifying your credi-bility in the community.

As a mortgage professional, however,there are times that may call for full-size letters with envelopes. If you areinviting prospects to a seminar, theseare definitely the way to go. Classy, pro-fessional invitations work better in thiscase because you are projecting yourprofessionalism to the recipient.

The fact is 79 percent of householdsread or skim direct mail advertisingaccording to the 2010 DMA StatisticalFact Book. When you send out post-cards, you will boost your visibility. It isa necessary byproduct of an effectivecampaign. Send out invitations throughthe mail, and just about 80 percent of

your prospects give you the chance towoo them. With a quality invite andcompelling copy, you will see a greatresponse.

It’s important to choose the rightfirm to handle your direct mail cam-paign. Be sure to find one that is willingto share previous samples of their work.Also, ask if they work with you on thedesign (i.e. give you free revisions, lis-ten to suggestions, etc.). It is often help-ful to select a firm that handles printingand mailing in-house. They can saveyou money on postage.

NetworkingHere is another great form of market-ing, especially in the financial industry.It may be intimidating for some people,but you don’t have to be crazy about it.The simple act of having lunch with afew real estate agents can be a hugeboost to your business.

No amount of direct mail or Web sitedesign can fully convey who you are toyour prospects. There is somethingabout your physical presence that lendscredibility and trust—so be real, notpitching sales.

Search for mortgage professionalgroups and look over the events theyhave in your area. Some of the bestways to establish contacts in the com-munity can be found through theseevents. While you’re at it, read KeithFerrazzi’s book on networking, NeverEat Alone: And Other Secrets to Success,One Relationship at a Time. Keith is apower networker, but even the timidcan gain valuable lessons from hisinsights.

Remember, there is no more pow-erful form of marketing than word-of-mouth. People trust their peersfar more than they trust advertisers.Networking gets people talkingabout you.

If you are disinclined to put your-self out there in this way, try to strate-gize. Who will make the biggestimpact for your business? Select twoor three individuals in your area whoare well-connected to the real estateindustry and introduce yourself tothem. Invite them to lunch and tellthem about yourself and your busi-ness. If all goes well, you could see asignificant difference in traffic justbased on these individuals’ recom-mendations. That’s not too scary, is it?

So direct mail and networking are

“Remember, there is no more powerful form of marketing than

word-of-mouth. People trust their peers far more than they

trust advertisers.”


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United Northern Mortgage Bankers, Ltd. Corporate NMLS ID# 7230 New York State Dept. - Licensed Mortgage Banker - License #100724 New Jersey Dept. of Banking and Insurance - Mortgage Lender - License #L0046623 Pennsylvania Dept. of Banking - Mortgage Lender - License #20887 Connecticut Dept. of Banking - Mortgage Lender - License #20372 Massachusetts Div. of Banks and Loan Agencies - Mortgage Lender & Mortgage Broker - License #MC5070 North Carolina Commissioner of Banks - Mortgage Lender - License #L140365 South Carolina State Board of Financial Institutions - Supervised Lender - License #S7, 461 Florida Dept. of Financial Institutions - Mortgage Lender - License #ML0700679 Senior Security Home Advantage is a lending area of United Northern Mortgage Bankers, Ltd. Direct FHA Endorsed Lender

Investing in communities

MEMBER

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the secondary market overview continued from page 10

NMLS

National Education

National Training

National Networking

NAPMW is a community of nearly 2,000 professionals across the Country who engage in the mortgage / banking industry. Men and women from all backgrounds have joined NAPMW because they want to excel at what they do. Employers who want excel-lence from their employees engage with NAPMW for up-to-date education. Both professionals and employers have found there is a place for them in NAPMW.

To Join NAPMW visit:

www.napmw.org

or call: 1-800-827-3034

Have Questions? Please

feel free to e-mail us at:

[email protected]

Organized for the purpose of providing education to profession-als in all phases of the mortgage industry, NAPMW offers educa-tion via many venues – seminars and workshops held around the country, on-line, and at its National Education Conference held each May.

NAPMW membership gives you exclusive access to timely educa-tion regarding the regulations affecting your career such as a FREE TO MEMBERS monthly webinar on industry updates AND our 8 hour NMLS continuing education class offering (NMLS Provider # 1400309)

If you believe in helping to elevate the educational standards of this industry, or assisting in developing the most competent industry work force, then you believe in NAPMW.

NAPMW is not a women’s organization. But since women make up the majority of professionals in the mortgage/banking profes-sion, our purpose is to help them advance in business, personal, and leadership development.

Coast to Coast Associations

Discounted Services

Industry Updates

Education

Networking

Leadership

Why NAPMW?Three Simple Reasons

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not creating enough jobs to replace theones we lost, let alone fuel future growth.Consumers are spending, the service sectoris expanding and exports are growing. It ishousing and jobs which are lagging, whichbrings us back to confidence.

We need leaders … leaders who willhelp lift up our economy. It is time westop looking to Washington, D.C. to pro-vide that confidence. We need to look atourselves. Are you selling with confi-dence? Do you have the confidence thatreal estate is still the best investmentanyone can make in the long run? Areyou growing your company?

We need every company in Americato start hiring. Again, the big ones havethe cash, but they are waiting for con-sumers. Instead, they need to be lead-ing consumers. As soon as we lead thepublic forward, the vicious cycle breaks

and the virtuous cycle begins. Are youtired of hearing about negatives andreacting negatively? We live in a greatcountry in which there is opportunityto make your own fortune. We evenhave the opportunity to get rid ofpoliticians without a revolution. It istime we remembered this.

Dave Hershman is a leading author forthe mortgage industry with eight booksand several hundred articles to his cred-it. He is also a top industry speaker. Ifyou would like to stay ahead of what ishappening in the markets, visitwww.ratelink.originationpro.com for afree trial. Dave’s OriginationProMarketing System can be found atOriginationPro.com and he may bereached by e-mail at [email protected].

Elvis and The Beatles. They are the clas-sics, but what is the next big thing? Youwon’t find it in the Cavern Club. Well,you might, but it won’t be on stage—it’ll be on the computers and everysmartphone in the building. It’s socialmedia, and for the more timid network-ers among us, online social networkingis a dream come true. It’s also effective,which is nice bonus.

Social mediaSocial media is great for posting funnypictures and interesting anecdotes fromyour day, but is it really a viable growthstrategy for expanding your business?Quite simply … absolutely! Accordingto the 2009 Realtor Technology Survey,84 percent of real estate agents engagein social media to some extent. If youwant their business you go where theyare, and for the vast majority of themit’s social media.

Two social media sites to utilize fortargeting real estate agents areFacebook and LinkedIn. Facebookwins the popular vote, according tothe same study, with 78 percent ofrespondents saying they use theInternet colossus. LinkedIn, a busi-ness networking site, comes in at avery respectable 58 percent.

Registering for these sites is free,and using them is actually quite sim-ple. Register for an account and take afew minutes to familiarize yourselfwith the site and you will immediate-ly be more comfortable with it.

For Facebook, you want to create aFan Page for your business to give realestate agents the opportunity to con-nect to you. Also, search for groupsthat may contain prospects. For exam-ple, “Real Estate Agents Dallas” might

turn up a networking group of pro-fessionals for the Dallas area, and itwould be a great place to meetpotential clients.

On LinkedIn it’s even easier tomake business connections, becausethat’s the whole point of its exis-tence! It allows you to build connec-tions with other professionals andalso get recommendations from pastclients to build your credibility. Useit to post news and articles aboutyour business.

Remember, nobody likes blatantadvertising on social media. If youwant to succeed you need to offervaluable content that subtly pro-motes your business. This is especial-ly true for Facebook; less so forLinkedIn. Informative articles, facts,trivia questions and contests aregreat ways to involve people andmarket your business.

Dedicate yourself to executingthese growth strategies, and yourbusiness will grow. Of course, youcould always just keep treading waterand hope things work out—but youdo so at your own risk. Don’t say Ididn’t warn you!

Joy Gendusa is chief executive officerand founder of PostcardMania. Shebegan PostcardMania in 1998 withnothing but a phone and a computerand zero investment capital. By 2008,revenues reached nearly $19 million andthe company now employs more than150 people, prints four million andmails two million postcards each weekrepresenting more than 40,000 cus-tomers in over 350 industries. For moreinformation, call (800) 628-1804, ext.342 or visit www.postcardmania.com.

mortgage marketing classics continued from page 12

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By Tommy A.Duncan, CMT

Since the FederalHousing Admini-s t ra t ion ( FHA )changed the waycorrespondents andmortgagees are

approved with their agency, there hasalways been confusion at both the bro-ker and lender level on who performsthe post-closing quality control (QC)audits. Since that initial change in FHAapproval, the broker’s interpretationhas been “My sponsor is going to do theQC for me.” Of course when we calledthe lenders and large banks to validatethis information last year, theirresponse was generally, “We have notcommunicated such information norhave we approved such communicationto our account executives.”

In order to clear up any misinterpre-tations in the previous MortgageeLetters, the FHA has provided morespecifics on what and how post-closingQC should be performed.

The U.S. Department of Housing &Urban Development (HUD) issuedMortgagee Letter 2011-02 on Jan. 5,2011, made efforts to further clarifypost-closing QC efforts and quality con-trol plans. We’re now halfway through2011 and many lenders are still not infull compliance. Here is a step-by-stepview into what HUD is requiring:

� The procedures used to review andmonitor sponsored third-party origi-nations (STPOs) must be included ina mortgagee’s FHA-approved QCPlan. It’s not enough for the lenderto start performing this review …they also must work it into their QCPlan and get it approved by FHA.

� All FHA-approved mortgagees,including those in a sponsored rela-tionship, must have a QC Plan thatrequires the review of loans that areoriginated or underwritten.Interpretation: It’s not just the spon-soring lender that needs a plan, butalso all STPOs.

� For those mortgagees who haveSTPOs, the QC Plan must require thereview of loans originated and soldto the mortgagee by each of itsSTPOs. Mortgagees must determinethe appropriate sample amount ofeach STPO’s loans to review based onvolume, past experience, and otherfactors.Interpretation: The sponsoringmortgagee will articulate, in its QCPlan, how it will test and sample filesfrom each STPO. This will be expen-sive to the sponsoring mortgagee,especially if the STPO’s volume is

very low. This means that thesponsoring mortgagee could possi-bly be performing more than 10percent sampling post-closing QCresulting in more files being audit-ed whether the QC is performed in-house or outsourced. The nextquestion is, “What technique willthe sponsoring mortgagee use toensure that each STPO’s files aresampled correctly?”

� In addition, sponsors must docu-ment the methodology used toreview STPOs, the result of eachreview, and any corrective actiontaken of their review findings. Areport of the QC review and follow-up that included the review findingsand actions taken, and the proce-dural information (such as the per-centage of loans reviewed, basis forselecting loans, and who performedthe review), must be retained by themortgagee for a period of two years.Interpretation: Articulate themethodology used to review STPOsin the QC Plan.

� In addition to the loans selected forroutine QC reviews, sponsoring mort-gagees must review all loans that areoriginated or underwritten by theircompany and that are originated bytheir STPO that go into default withinthe first six payments (referred to asearly payment defaults).

� In order to ensure that sponsoringmortgagees’ operations are in compli-ance with fair lending regulations,HUD requires that rejected applica-tions must be reviewed within 90 daysfrom the end of the month in whichthe decision was made.

The clearer this issue becomes, themore onerous it appears to be for FHAlenders. With FHA taking on moreresponsibility for insuring loans forAmerica’s riskiest home loan borrow-ers, HUD will take whatever steps itdeems necessary to mitigate risk andprotect the program. The real questionis whether lenders will be able to com-ply with the resources they have, out-source QC effectively or move awayfrom FHA lending altogether.

Tommy A. Duncan, CMT, is president ofQuality Mortgage Services LLC, aprovider of mortgage quality assuranceand mortgage compliance solutions. Hewas instrumental in developing thefirm’s QA/QC software currently in use bymortgage bankers/lenders. Tommy maybe reached by phone at (615) 591-2528,ext. 124 or e-mail [email protected]. You may also visit QualityMortgage Services LLC on the Web atwww.qualitymortgageservices.com.

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Florida (45 percent), Michigan (36 per-cent) and California (30 percent).

The negative equity share in thehardest hit states has improved. Overthe past year, the average negativeequity share for the top five states hasdeclined from 41 percent to 38 percent.Nevada had the largest decline over thelast year, with the negative equity sharedropping from 68 percent to 60 per-cent. The reason for the Nevada declineis the high number of foreclosures thatled to lower numbers of remaining neg-ative equity borrowers.

“High negative equity is holdingback refinancing and sales activity andis a major impediment to the housingmarket recovery. The hardest hit mar-kets have improved over the last year,primarily as a result of foreclosures. Butnationally, the level of mortgage debtremains high relative to home prices,”said Mark Fleming, chief economistwith CoreLogic.

Negative equity significantly limitsthe ability of borrowers to capture thebenefit of the low-rate environment.There are nearly 28 million outstandingmortgages that have above marketrates and are in theory refinanceable.Twenty million borrowers with positiveequity, or 53 percent of all above-waterborrowers, have above market rates.Eight million borrowers with negativeequity, or nearly 75 percent of allunderwater borrowers, have abovemarket rates. The disparity is evengreater for those with severe negativeequity. More than 40 percent of bor-rowers with 125 percent or higher loan-to-value (LTV) ratios have mortgageswith rates at six percent or above, com-pared to only 17 percent for borrowerswith positive equity.

Negative equity not only restrictsrefinancing, but also sales. Since the2005 sales peak, non-distressed sales inzip codes with low negative equity havefallen 61 percent, compared to an 83percent sales decline in high negativeequity zip codes. The typical seasonalchanges in sales volume in high nega-tive equity zip codes is very muted,which indicates that non-distressedsales are being heavily impacted by thehigh levels of negative equity in theirneighborhood, even if sellers haveequity.

The federal homebuyer tax creditthat expired last year contributed to aspike in high LTV loans. As the housingmarket collapsed, underwriting beganto tighten in 2008 and the share of highLTV loans (90 percent to 100 percentLTV) began to decline. However, thefederal homebuyer tax credit helpedpropel home sales in 2009 and 2010and led to minor spikes in high LTV FHAlending centered near the expiration ofthe tax credit initially in November2009, which was then then extended toApril 2010. In the span of six months in2009, the high LTV share increased

from 13 percent to 18 percent, which islarge given such a small time period.

Revamped Ginnie MaeBuyout Policy to EnhanceLoan Mod Performance

G i n n i e M a e h a sannounced that it ise x p a n d i n g t h eparameters regard-ing loans eligible forrepurchase f rom

Ginnie Mae Mortgage-Backed Securities(MBS). Under the new policy, any modi-

fied loan may be repurchased after suc-cessfully completing a three-month trialpayment period, if a trial period isrequired. This change aligns GinnieMae’s repurchase policy for the FederalHousing Administration (FHA) non-Home Affordable Modification Program(HAMP) high-risk loans with the currentpolicy for FHA-HAMP loans.

Ginnie Mae’s updated loan repur-chase policy is designed to accommo-date the recently expanded FHA trialpayment requirement for modifiedloans. The FHA policy now requires thathigh-risk non-HAMP loans complete athree-month trial period before a mod-ification becomes permanent. Loansthat have completed the requiredthree-month trial payment program

will be eligible to be repurchased fromGinnie Mae pools. Additionally, thenewly-modified loan can be re-pooledinto MBS by Issuers.

“This is one of our most importantefforts this year,” said Ginnie MaePresident Ted Tozer. “FHA loan per-formance data shows that many modi-fied borrowers are at risk of a re-default. By requiring that high-risk non-HAMP borrowers undergo a trial pay-ment period on the modified loanterms in order to test the borrower’sability to repay, we hope to avoid thepattern of high re-defaults on modifiedloans. Given the investor concernsabout pre-payment speeds, working


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Get Set For The Home Stretchby Mary Beth Doyle, Founder

With only a couple months remaining in 2011, there’s

still time to make a decision that will substantially impact

your closed loan production. Do yourself a favor and

take the opportunity to identify & implement fundamental

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do that is to discover how today’s leaders of the

mortgage industry succeed. The answer is by working

with LoyaltyExpress.

LoyaltyExpress is the company that top-producing

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LoyaltyExpress consistently automates high-impact

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Take the time to recognize the value that LoyaltyExpress

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LoyaltyExpress customizes, automates and manages retention marketing programs that yield

extraordinary value. For more information: call 877.938.1175

or visit www.loyaltyexpress.com.

Maximizing the OrderModule in a ValuationManagement Platform

By David Rasmussen

As the use of valuation management platforms bylenders grows in the industry, mortgage professionalsare taking advantage of their ability to automate prod-uct ordering and processing. As I mentioned in the pre-vious ValueNation column (September 2011, page 18),a valuation management platform is a critical tool forthose wanting to stay competitive and compliant in

today’s evolving lending environment. The platform should be com-prised of several components that work seamlessly together to promotethe accuracy and efficiency of the valuation process. In this column, I willfocus on the logistics of the order module. Additional components will beaddressed in subsequent columns.

A premium order module will be an effortless interface for placing sin-gle or batch orders and connecting users to valuation providers, be it AVM,BPO or appraisal. It should allow users to effectively manage the valuationordering process across the entire spectrum of products. Traditionally,many departments review valuation types individually by looking at onereport type for a specific need, due in part to limited resources. Recently,regulations and guidance from government bodies have recommended uti-lizing multiple valuation models to verify loan decisions.

With accountability for both objectivity and competence measured atthe individual assignment level, an order module must be dynamicallyscalable for regulatory compliance. The re-issued Interagency Appraisal& Evaluation Guidelines cite the importance of appraiser independenceand objectivity in appraiser selection, as well as appraiser competence.Appraisers are expected to be selected for individual assignments basedon their competency to perform an appraisal. Whether managing anappraiser panel internally or with vendor managers, the responsibilityfor ensuring appraiser independence and compliance rests with the reg-ulated institution. An order module that only employs a straight “round-robin” method falls short of regulatory requirements.

Valuation management platforms provide the ability for users to com-prehensively manage a set of vendors and deliver assignments only tothose most qualified. Additionally, users can easily see which vendorsconsistently uphold the appropriate standards of quality in theirreturned valuation.

The benefits of a well-tuned order module include: � Order automation and objectivity� Business efficiencies in processing� Increased quality control (QC) and consistent decision-making� Easy scalability

In an order module, users should have the ability to effectively organ-ize all active and newly completed orders, of which they can be searched

SPONSORED EDITORIAL


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For a free demo, contact Erik Wind, at (800) 262-3783, ext. 701 or visit

shortsalespeedway.com/freedemo

Why Is It Easy to Trap Real Estate Agents with ShortSaleSpeedway™?

Many real estate agents shy away from short sales because of the complexityinvolved in doing it themselves. When they refer the work to an attorney or thirdparty negotiator, they risk losing a great chunk of their commission.

ShortSaleSpeedway™ automates the short sale process, by creating all ofthe documents a real estate agent needs to create the superior short saleproposal exactly how banks want to see them.

How Can ShortSaleSpeedway™ Help YOU Trap Real Estate Agents?

Your company can have your very own, private labeled version ofShortSaleSpeedway™ that you offer at no cost to your real estate agents.They will now have the tools provided by your company to be a true short salesspecialist. Now they can negotiate short sales with ease and not have to giveaway their commission to someone else. You’re providing them with a tool thatputs more money in their pocket.

What Do We Provide You?When you have your own ShortSaleSpeedway™, we provide you with the

following:Your own customized private labeled ShortSaleSpeedway™ siteAccess to reporting on all borrowers being put into the systemTraining for you, your real estate agents and a dedicated support teamMarketing materials to promote your ShortSaleSpeedway™ to real estateagentsIn many cases, the setup for the private labeled site costs you nothing!

Take a quick study of any sales profes-sion, and you will find that the top pro-ducers are experts in their field and theones with the most referral relation-ships. You could be one of the bestmortgage loan originators (MLOs) in thecountry, but without relationships thatcreate a stream of potential clients, youare doomed to an ongoing struggle tostay in the business, fighting self-defeating thoughts and the feeling thatyou’re underachieving.

Zig Ziglar teaches that “you have togo out and see the people.” There weretimes in my career during which Iwould spend more time at the officethan not, struggling to reach produc-tion goals. During those spells, Zig’swords would always ring in my ears.Going out and “see-ing the people” is ahabit that needs tobe cultivated, nur-tured and main-tained. It needs to be a part of who youare as an MLO. It is, hands down, thebest way to assure that you will alwayshave clients.

As you enter the fourth quarter of2011, you may be giving some thoughtto your business plan for 2012.Speaking from experience, it’s too easyfor MLOs to get caught up in the processof planning. Planning and goal-settingis, without question, very important, ifnot critical. However, it’s importantthat you not get “paralysis of the analy-sis,” getting caught in a trap of procras-tination, coupled with the delusionthat you are doing something to bringin business while you pore over andperfect your “plans” … all the while,buyers are out there purchasing homeswithout you! As you plan new ways toattract business, remember that youwill always need referral relationshipsto create a viable, long-term and mean-ingful business. While it’s true thatthere are MLOs that pay for Internetleads, and they can certainly do well ifthey have the capital invest, strongrelationships are not developed fromthis business model.

So how does doing Federal HousingAdministration (FHA) loans get you “inthe door?” FHA is such a critical loan for

real estate agents, and many guidelinechanges affect their business! Given thisfact, you can provide educational FHApresentations to agents in real estateoffices, making them aware of how FHAaffects them and their clients. By edu-cating the agents, you increase theirprofessionalism and help them providebetter service to their clients. One of thebiggest challenges real estate brokershave is providing affordable and usefultraining to their agents. You canbecome the FHA resource for numerousoffices in your area, thereby developingthe relationships that will provide youwith the loans you need to meet yourproduction goals. Relationships helpyou win in any market.

Have you become pretty good at pro-cessing FHA loans,but wonder how togenerate more FHAbusiness? Beenb e a t e n u p i n

underwriting enough to know how toput together the tough FHA deals? Youknow by now that if you want tobecome a serious FHA originator andget more FHA loans, then you need tofirst become an expert, and then brandyourself as an FHA expert. And youknow that if FHA real estate agentsdon’t see you as an FHA expert, you willnot be the one they think of when theyhave their next FHA buyer.

But expertise and branding alonewon’t get you in the door. You need aplan to make that happen. I suggest youtake The 360° Challenge. This is a wayfor you to turn your business around360 degrees by committing to buildingrelationships in a structured, deliberateway. Specifically, you are to devotethree, 60-min. sessions each week tobuilding new relationships (thisincludes scheduling FHA presentationsfor real estate offices) and rekindlingagents you’ve worked with in the past. Ifthat feels overwhelming, then start withone session a week, and before long,move to twice a week. Hold steady onceyou get to three times a week.

While it may be challenging at first,you will find that, before long, it will

Need More Realtors?FHA Gets You in the Door!


“Relationships help you win in any market.”

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become second nature. Performingresults-oriented actions is what helpsyou achieve your goals, and that’s thepremise of the 360° Challenge. If you havethe desire but not the material,TheFHAOriginator.com can help. This is aservice I created for FHA loan specialists,providing access to ready-made, easy-to-use FHA presentations at an extremelyaffordable rate per office. If you seriouslyapply yourself to The 360° Challenge, youcan significantly change your productionlevels and enjoy the fruits of your commit-

ment! Don’t wait until January to imple-ment this strategy … get a jump start on2012 and start the 360° Challenge today!

Go FHA!

Jeff Mifsud is founder of Michigan-basedMortgage Seminars LLC, a former FHAunderwriter with 15-plus years of experienceoriginating FHA loans, an FHA expert forLoanToolbox.com and creator of The FHAOriginator, a monthly FHA newsletter. Jeffmay be reached by phone at (248) 403-8181or visit www.MortgageSeminars.com.

fha insider continued from page 19

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� Average loan balances remainedrelatively constant at $197,039 inthe second quarter of 2011, from$196,456 in the first quarter of2011. However, on a repeater-com-pany basis, average loan balancesdropped to $195,347 in the secondquarter from $198,590 in the firstquarter.

� Measured in basis points, second-ary marketing gains increased to210 basis points in the secondquarter of 2011, compared to 201basis points in the first quarter of2011. Secondary marketing gainsrose to $4,006 per loan in the sec-ond quarter of 2011, from $3,827per loan in the first quarter of2011.

� Personnel expense slightly de-creased to $3,561 per loan in thesecond quarter of 2011, comparedto $3,640 per loan in the first quar-ter of 2011.

� Total production operating expens-es—commissions, compensation,occupancy and equipment andother production expenses and cor-porate allocations—dropped to$5,644 per loan in the second quar-ter of 2011, compared to $5,837per loan in the first quarter of2011.”

� The “net cost to originate” slightlydecreased to $3,513 per loan in thesecond quarter of 2011, from$3,540 per loan in the first quarterof 2011. The “net cost to originate”includes all production operatingexpenses and commissions minusall fee income, but excludes sec-ondary marketing gains, capital-ized servicing, servicing releasedpremiums and warehouse interestspread.

� Seventy percent of the firms in thestudy posted pre-tax net financialprofits in the second quarter of2011, compared to 63 percent inthe first quarter of 2011.

Fannie Mae AnnouncesFirst Half STAR ProgramServicer Results

Fannie Maehas announced

its Servicer Total Achievement andRewards (STAR) Program results for the

first half of 2011, measuring the per-formance of servicers in helpinghomeowners avoid foreclosure.Announced in February 2011, STARprovides clear expectations and spe-cific, consistent measurements to helpFannie Mae servicers increase theirfocus on areas of critical importanceto Fannie Mae. The program isdesigned to encourage improvementsin customer service and foreclosureprevention outcomes for homeownersby rating servicers on their perform-ance in these areas.

“We are committed to helpingstabilize the housing market byrequiring servicers to prevent fore-closure whenever possible,” saidLeslie Peeler, VP for ServicerPortfolio Management at FannieMae. “The STAR program helps usevaluate and hold servicers account-able for measurable, consistentresults in preventing foreclosure.Servicers who achieve the highestratings are leading the way in pro-viding assistance to homeownerswho are having difficulty makingtheir mortgage payments.”

As of the end of the second quar-ter, the following servicers in PeerGroups One and Two are on track toachieve at least a 3 STAR rating for2011:� Peer Group 1 (consists of a total of

11 servicers): GMAC Mortgage LLC(Ally Bank), CitiMortgage, EverhomeMortgage, Wells Fargo

� Peer Group 2 (consists of a total of10 servicers): Fifth Third Bank, TheHuntington National Bank, HSBCMortgage Corporation (USA),Aurora, Regions Bank and CentralMortgage Company.

� Peer Group 3 (consists of a total of13 servicers): Results for this peergroup will be released in the next30 days.These results indicate that the ser-

vicers referenced above are producingbetter results than their peers on theSTAR Performance Scorecard. Full yearresults will incorporate the results ofthe operational assessments.

STAR ratings are based on a 5 STARscale. Servicers have achieved an over-


with FHA to create this trial modifica-tion initiative was clearly in the bestinterest of borrowers, issuers, andinvestors.”

FHA loan data shows that modifiedhigh-risk borrowers were responsiblefor more than half of re-defaults inFiscal Year 2010. The majority of loandefaults occurred within threemonths on modified loans without atrial payment period. This newrequirement for a trial payment peri-od on high-risk mortgage loans priorto the permanent loan modificationmeans that the loans most likely todefault at an early stage will not beplaced into Ginnie Mae MBS.

The Ginnie Mae policy also appliesto loans insured or guaranteed by theU.S. Department of Veterans Affairs(VA), Rural Development (RD), and theOffice of Public and Indian Housing(PIH) when the agencies require trialpayment periods for permanent loanmodifications.

Mortgage Bankers ProfitsPer Loan Rise to $575 inSecond Quarter

Independent mort-gage banks and sub-sidiaries made anaverage profit of$575 on each loan

they originated in the second quarter of2011, up from $346 per loan in the firstquarter of 2011, according to theMortgage Bankers Association’s (MBA)Second Quarter 2011 Mortgage BankersPerformance Report.

“Contrary to overall MBA industrydata in which estimated productionvolume declined, the average firm inour study of independents and sub-sidiaries experienced volume growth.The firms in our study were able tomore quickly adjust to a purchase-focused mortgage market environ-ment after a significantly refi-heavyfourth quarter of 2010,” said MarinaWalsh, associate vice president ofindustry analysis at the MortgageBankers Association (MBA). “At the

same time, secondary marketing gainsimproved as spreads between 10-yearTreasuries and 30-year mortgage ratesbegan to widen towards the end ofthe second quarter.”

MBA’s Mortgage BankersPerformance Report series offers avariety of performance measures onthe mortgage banking industry and isintended as a financial and opera-tional benchmark for independentmortgage companies, bank sub-sidiaries and other non-depositoryinstitutions. More than 71 percent ofthe 310 companies that reported pro-duction data for the second quarterreport were independent mortgagecompanies.

Highlights of the report include:� Average production volume was

$174 million per company in thesecond quarter of 2011, up from$164 million per company in thefirst quarter of 2011. The MBA esti-mate for overall quarterly industryorigination volume was $290 bil-lion in the second quarter of 2011,down from $302 billion in the firstquarter of 2011.

� The refinance share of total origi-nations, by dollar volume, for thissample of independent mortgagebanks and subsidiaries was 36percent in the second quarter of2011, compared to 50 percent inthe first quarter of 2011. The MBAestimate for overall industry refi-nancing share was 62 percent inthe second quarter of 2011, downfrom 65 percent in the first quar-ter of 2011.

� The government share of totaloriginations, by dollar volume, forthis sample of independent mort-gage banks and subsidiaries was41 percent in the second quarterof 2011, compared to 37 percentin the first quarter of 2011.Average borrower FICO scoresdropped to 729 in the secondquarter of 2011 from 733 in thefirst quarter of 2011 and 737 inthe fourth quarter of 2010.

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Saturday, December 310:000 a.m.-5:000 p.m. ........Registrationn Open

10:000 a.m.-Noon ..............Committeee MeetingsSome or all of the following NAMB Committees could meet during these times … ad-ditional details will be posted at a later date: The Government Affairs Committee,Membership Committee, Ethics Committee, By-Laws and Education Committee, Com-munications Committee and the Finance Committee.

1:000 p.m.-4:000 p.m. ..........NAMBB Delegatee Councill Meeting

4:000 p.m.-6:000 p.m. ..........Networkingg Event

Sunday, December 48:000 a.m.-6:300 p.m. ..........Registrationn Open

8:300 a.m.-9:300 a.m. ..........NMLS—FHAA (Onee Hour)FHA course to be instructed by David Luna of Mortgage Educators.

9:300 a.m.-9:455 a.m. ..........Break

9:455 a.m.-12:455 p.m. ........NMLS—Federall Laww (Threee Hours)Federal Law course to be instructed by David Luna of Mortgage Educators.

12:455 p.m.-2:000 p.m. ........Networkingg Lunch

2:000 p.m.-6:000 p.m. ..........Expoo Halll Openn && Networkingg Reception

Monday, December 58:000 a.m.-4:000 p.m. ..........Registrationn Open

8:300 a.m.-10:300 a.m. ........NMLS—Reversee Mortgagee (Twoo Hours)Reverse Mortgage course to be instructed by David Luna of Mortgage Educators.

10:300 a.m.-10:455 a.m. ......Break

10:455 a.m.-12:455 p.m. ......NMLS—Ethicss (22 Hours)Ethics course to be instructed by David Luna of Mortgage Educators.

12:455 p.m.-2:000 p.m. ........Networkingg Lunch

2:000 p.m.-3:000 p.m. ..........Presentationn Fromm Suee Woodardd && Jimm McMahan,Mortgagee Successs Source

3:000 p.m.-3:155 p.m. ..........Break

3:155 p.m.-4:155 p.m. ..........Presentationn Fromm Suee Woodardd && Jimm McMahan,Mortgagee Successs Sourcee (continued)

4:155 p.m.-4:300 p.m. ..........Grandd Prizee Drawingg forr aa Tripp too Hawaii

4:300 p.m.-6:300 p.m. ..........NAMBB Boardd Meeting

NAMB/WEST 2011 Loan Originator ConferenceFriday-Monday, December 3-5

MGM Grand Las Vegas • 3799 Las Vegas Boulevard South • Las Vegas

New in 2011!Attendees of the 2011 NAMB/WEST Conference will receive a Passport for the Ex-hibit Hall on Sunday, Dec. 4. Passports will need to be validated by each ex-hibitor in order to be eligible for drawings. The grand prize drawing, a trip toHawaii, will be held at the conclusion of the conference on Monday, Dec. 5. At-tendees must be present to win. As a bonus, attendees who book their hotelwith the group rate before Wednesday, Nov. 9 will receive an extra Passport.

Agenda at a glance(Subject to change)

Hotel informationNAMB/WEST has discounted rates for conference attendees at the MGM Grand LasVegas, located at 3799 Las Vegas Boulevard South in Las Vegas (www.mgm-grand.com). Any attendee who books their reservations under the NAMB GroupRate will be eligible to receive an extra Passport. The extra Passport will increaseyour chances to win prizes at the conference.

Group ratesFriday, December 2........................$110Saturday, December 3....................$110Sunday, December 4........................$80Monday, December 5 ......................$80Room rates are subject to state and local taxes. The group rate will be offered untilWednesday, Nov. 9.

Reservations can be madeby calling (877) 313-5757 or(702) 891-7777, or visitinghttp://goo.gl/kjd3b. In orderto secure the NAMB GroupRate, you must identify your-self as part of the National As-sociation of Mortgage Brokers(NAMB) Conference.

Check in for the MGMGrand is 3:00 p.m. and checkout is at 11:00 a.m. For your convenience, MGM Grand offers room regis-tration at McCarran Airport. There is an Airport Registration Desk located inthe south baggage claim area, near the bottom of the escalators descend-ing from the C and D gates, next to carousel #1 and #2. Shuttle service isavailable from 9:00 a.m.-11:00 p.m. Porterage service is available 9:00 a.m.-5:00 p.m. only.

Conference feesMember Registration FeeAccess to all conference events. You must be an NAMB member in good stand-ing by Friday, Nov. 18 to obtain the member rates. If you are not a member ingood standing by this date you will be charged additional fees upon arrival to theconference. To check the status of your membership, go to www.namb.org.Early fees (on or before 11/09/11)—$200Regular fees (11/10/11 or later)—$250

Non-Member Registration FeeAccess to all conference events.Early fees (on or before 11/09/11)—$350Regular fees (11/10/11 or later)—$450

Visit Exhibit Hall OnlyThis is for mortgage originators only.Early fees (on or before 11/09/11)—$100Regular fees (11/10/11 or later)—$100

Cancellation and refund policy: Notice of cancellation must be made in writing(no exceptions) and sent to [email protected] or faxed to (303)798-3668. Cancellations received by 5:00 p.m. EST on Wednesday, Nov. 9 will be re-funded 50 percent of the registration fee that was paid. Any cancellation receivedafter that date will receive no refund.

For more information on the

NAMB/WEST 2011 Loan Originator

Conference, contact Kinsley at (303) 798-3664,

e-mail [email protected]

or visit www.nambwest.com.

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By Erik Wind

We’ve all been there.We helped our bor-rower through themortgage process,the appraisal camein and the value isright. The seller is

ready, willing and motivated. aTheonly problem … “it’s a short sale.”Those four words can make any sea-soned originator cry. So then whyam I suggesting that you focus onadding more short sale real estateagents to your referral network? Ihave three good reasons and theyall lead to increasing your business.

Short sales are on the rise like never before.As heavily reported in the press, thebanks have the foreclosure engine ingear and are ready to roll. After atemporary delay questioning thelegality of many foreclosures, bankswere forced to re-examine their fore-closures processes. The good news isthis made the short sale processmove along faster than ever before.The number of real estate agents whonow realize they can charge a highercommission on a short sale is grow-ing. You should plan now to capital-ize on this, capture those agents andhave them as key components ofyour network.

Many are predicting that in 2012, 50percent of all homes will be underwa-ter. Short sale agents are preparing forthis and will be an ongoing source formortgage originations for months, ifnot years, to come.

You will become an indispensable resource to real estate agents.One of the most important compo-nents to a successful short sale is acomprehensive, properly-preparedand well-executed short sale propos-al. Unfortunately for most agents,paperwork is not their strong point.To compensate for this, agents referthis part of the transaction to attor-neys or negotiators, reducing theiroverall gross commission earned(GCE).

A properly-prepared and executedshort sale proposal includes morethan just the buyer’s qualifications.It also requires a detailed incomeand expense worksheet from the sell-er to demonstrate how they cannotafford their mortgage, a financialanalysis showing that a short sale isin the bank’s best interest over fore-

closure, a HUD-1, BPO and numerousother documents.

Do you think you can help writethese documents? Why not, many ofthe documents associated with ashort sale proposal are just like theones you complete for a regular mort-gage. In fact, there is software outthere you can share with the agent tomake writing this proposal even easi-er. When you empower a real estateagent to negotiate their own shortsales, you increase their gross com-mission earned, and of course, youposition yourself as the point personfor the mortgages their buyers willneed.

Every short sale listing can lead to seven transactions!It sounds crazy, but it makes perfectsense. Phil Tesoriero is a short saleexpert based on Long Island, N.Y. Hereports that because his short salelistings are priced to market, theyappear as a bargain in comparison tothe higher priced listings placed bysellers with unrealistic expectations.

“Due to the fact that my listingsare usually priced less than compet-ing listings”, said Tesoriero, “I getquite a few calls from buyers.Whether or not they buy that listing,my team is qualifying these buyerswith my mortgage person, and we’reshowing them other properties in theneighborhood. That one listing canyield me seven transactions. Workingshort sales pays dividends.”

Phil’s mortgage originator greatlybenefits from those dividends, ashe’s qualifying buyers for not justshort sales, but all other kinds oftransactions.

With trends as they are, shortsales aren’t going anywhere. In fact,they’re getting more mainstreamevery day. Don’t wait until they area part of someone else’s business.Make it part of your business today!If you start taking steps to workwith short sale agents now, you’llhave a giant head start on yourcompetition.

Erik Wind i s co- founder of Short-SaleSpeedway. He may be reached byphone at (516) 882-6930 or e-mail [email protected].

Three Reasons Why Short SaleReal Estate Agents Should beYour Best Friend

“One of the most important components to a successful short

sale is a comprehensive, properly-prepared and

well-executed short sale proposal.”

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By David Lykken

Communication and leadership are sointertwined that you cannot talk aboutone without talking about the other. Asimplied by the words “Part II” in thetitle above, this month’s article is a con-tinuation of last month’s article oncommunication, which again, is thesixth “C” (characteristic) in the 7-Cs ofLeadership.

As I said in last month’s article, thedefinition of communication (theexchange of information) sounds sim-ple enough, but for most of us, it onlytakes listening to a few arguments torealize that it is about as complicatedof a topic as any on the planet. And fur-ther complicating communicationsthese days are the new technologies outthere such as texting and social mediaposts. Again, there are various forms ofcommunication available to us today,but things get crazy when you considerthe amount of new methods available.In spite of all these new various formsand methods of communication, stud-ies indicate that we are doing a worsejob of communicating effectively thanever before. How can this be? Theanswer is that we are finding it moredifficult to “relate” and “connect” witheach other in spite of all the forms andmethods of communicating that wehave at our disposal. While a bookcould be written about this, the bottomline all of this is that it is having a pro-found impact on our business dealingsand has alarming implications as a soci-ety unless we turn this around.

So, how can we turn this trendaround and improve our ability to com-municate with each other more effec-tively? The answer starts with how wellwe “relate” to each other. The degree towhich we can successfully relate toeach other is the same degree to whichwe will succeed (or fail) at whatever we,collectively as a company, set out to do.

What I have found most effective inhelping people learn how to relate bet-ter to each other is to start with an over-all understanding of the four personali-ty types … the melancholic “socialworker” type, the sanguine “cheer-leader” type, the phlegmatic “accoun-tant-engineer” type or the choleric“army general” type. Take a moment tolook over the diagram to the right.

Most of us have a dominant person-ality type and a sub-dominant. For me,my dominant personality type is san-guine and my sub-dominant is choleric.The dominant type is who or how youare most of the time and the sub-domi-nant is where you go in times of stressor if you are feeling pressure. Somefolks live their entire professional livesand their sub-dominant personalitytype because they feel they need tomake an adjustment for the positionthey have found themselves. This couldpossibly explain why there are so manysuccessful people not experiencing jobsatisfaction that they otherwise could.As the saying goes, “Find a job doingwhat you love to do (that which alignswith your personality type) and you’llnever work another day of your life.”For those who might think this topic istoo much of an oversimplification on anotherwise complicated topic, I’d merelycountered by saying that we have tostart somewhere and a great place tostart is understanding who we are andhow we were act and respond to others.

If you agree, I recommend you startby doing two things:

First, I want you to identify the person-ality type that you most closely identifywith. For some of us, we can almostimmediately relate more to one personal-ity style or another. If you struggle withidentifying your personality type, then Iwould recommend you ask those close toyou—family or friends—to help you.

Second, take a moment and think ofsomeone with whom you find it a strug-gle to relate to. Another way to say it isto ask you this question: Is there some-one who you work with that drives youup the wall or seems to be from anoth-er planet For most of us, someonecomes to mind almost immediately.However, if that doesn’t work, consideryour spouse. As the expression goes,“opposites attract.” That certainly is thecase with my wife and I as we are polaropposites. I’m a classic sanguine per-sonality type and my wife is more of aphlegmatic personality type. At times, it

seemed like a fatal attraction. We jok-ingly say that in the early days of ourmarriage, we had our marriage coun-selor on our speed dial … that is untilwe began to grow in our understandingof how to communicate based uponwhat was important to each other withrespect to each other’s personality type.

While the level of relationship andcommitment is different in marriage,there are similarities to a cohesive andwell-managed company. It starts andends with how well two or more peoplerelate to each other and how they han-dle conflict. Consider for a moment the

Communication and Leadership (Part II)A Melancholic personis a someone who is amore self-less, kind,tender hearted, quieter,sensitive, takes oncauses of others andmore concerned aboutright & wrong.

A Sanguine person isgenerally light-hearted,fun-loving, a peopleperson, loves toentertain, spontaneous,confident and can bemore selfish. They canlack focus and beimpulsive.

A Choleric is a goal-oriented, ambitious, veryself-confident in what hebelieves the facts to be,wants info in bullets “short& to the point”, can be acontrol freak... has a verydominate personality.

A Phlegmatic person thinksthings through, is calm,unemotional, consistent/eventemperment, rational,curious, and observant,making them goodadministrators anddiplomats.

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personality type that is most commonamongst sales/loan originators. While thisis not an absolute, it is far more commonto find the sanguine personality typespopulating the sales ranks of most com-panies. They are highly relational,extraverted and fun to be around. Notsurprisingly, the personality type that ismost commonly found amongst loanprocessors, underwriters and funders isthat of the phlegmatic personality type.They are more process-oriented, analyti-cal and logical. Again, I would refer youto the diagram, and without soundingtoo stereotypical, we see more cholericcommand-and-control personality typesrunning companies or in managementpositions. Choleric types are uniquelypositioned in the diagram to relate wellto both the sanguine and phlegmatictypes at least in theory. That being said,let me emphatically say that you DONOT have to be a choleric personalitytype to be an effective leader. If youstudy leadership, you will find that thereare successful leaders in every personal-ity group. While it’s important to under-stand your personality style, it is equallyor possibly more important that youunderstand the personality type of otherand develop skills to relate to them gen-uinely and effectively.

The hardest people to relate to arethose who are confused about who theyare. I would refer you back to what I saidabout those who operate in their sub-dominant personality type without realiz-ing. This might explain why some peopleproject themselves to have one personal-ity type publicly, but in reality, have acompletely different personality type.That is why I recommend using a higher-end personality assessment tool to deter-mine who you really are. There are manythat exist, but the one I like the best is theBirkman Method … more on this in aminute.

Keep in mind that this article andthis series of articles (The 7-Cs [charac-teristics] of Leadership) focuses on lead-ership and leadership development.Therefore, it is essential that we incor-porate a thorough understanding ofthese four personality types if we everhope to improve our own leadershipskills or develop ourselves to be thefuture leaders of tomorrow. Again, thedegree to which you become familiarwith other personality types is the samedegree to which you have a betterchance of relating to a greater numberof people.

There is someone I want you to meet… his name is Dr. Roger Birkman, a manwho is in his 90s and is still an active con-sultant. He is an inspiration to me formany reasons, one of which is that he stillconsults on social and interpersonalinteractions involving people in the work-place. The basis for his life’s work beganwhen he piloted a B-17 bomber in WorldWar II. While on bombing missions, heobserved how the group of men flyingwith him on each mission all observedthe same battle scenario at the same timeand yet each arrived at a completely dif-ferent conclusion. “How can this be?” Dr.Birkman thought.

After the war, he dedicated himself tostudying this phenomenon which he laterapplied to people in the workplace. Sidenote to all you “Hook’em Horns” fans outthere, Dr. Birkman completed his doctor-al dissertation at the University of Texasby writing his “Test of SocialComprehension” that later becameknown as The Birkman Method. Dr.Birkman’s company, Birkman &Associates, is the provider of the industry-leading personality assessment that facili-tates team building, executive coaching,leadership development, career and tal-ent management and interpersonal con-flict resolution. I would encourage you tolearn more by visiting his Web site,Birkman.com.

The beginning of strong leadership isto develop an understanding of these fourpersonality types and then study each forthe purpose of learning how to relatemore effectively to the other personalitytypes. For example, if you’re a cholericpersonality type explaining the benefits ofsome new loan program, you are intro-ducing to a group of sanguine loan offi-cers (LOs), you will have better success ifyou communicate in an upbeat and posi-tive manner, telling them about how“everyone” is using this program andmaking a lot of money with it. Conversely,a sanguine personality type LO who isabout to meet with a phlegmatic typeunderwriter would do well to slow downand present their case with a more sub-dued and even temperament, presentingthe facts in a more rational and analyticalmanner. Again, if you read and study eachof the four personality types you quicklybegin to create your own scenarios of howyou need to adjust to better relate to thatother personality style.

If you are one of the ones reading thisthat is pooh-poohing this concept, consid-er this. There is a company in Austin,Texas that has developed technology usedby large call centers. This technology pre-dicts the personality type of an inboundcaller within milliseconds of the callerspeaking their first words. This same tech-

nology then routes the caller to someonewith a similar personality type. In otherwords, it routes a sanguine and callerwith a sanguine customer service repre-sentative at the call center. In this way,a caller getting routed to someone likethemselves increases the probability ofa successful outcome, regardless of thesituation.

Can you begin to see how muchmore effective a company could be iftheir personnel at all levels weretrained in how to quickly recognizeanother’s personality and make adjust-ments to the way they interact withthat person? This will only happen ifthe leaders of each company embracethis personally, and then push itthroughout their entire organization.

If you e-mail me, I will send you anelectronic copy of the “Understandingthe Four Personality Types” diagram.Also, please direct all questions and/orcomments to [email protected] look forward to hearing from you.

David Lykken is president of mortgagestrategies and managing partner withMortgage Banking Solutions. He has morethan 35 years of industry experience andhas garnered a national reputation, andhas become a frequent guest on FOXBusiness News with Neil Cavuto, StuartVarney, Liz Claman and Dave Asmanwith additional guest appearances onthe CBS Evening News, Bloomberg TVand radio. He may be reached by phoneat (512) 977-9900, ext. 10, or [email protected] or [email protected].

To listen to author David Lykken’s onlineradio show, “Lykken on Lending,” log onto www.lykkenonlending.com.

valuenation continued from page 18

based on specific criteria to review theirstatus, as well as to reassign, cancel ormodify as appropriate. One of themost powerful features available inselect systems is an order dashboard.It gives a high-level view of all theactivities surrounding order place-ment and order management.Including the initiation, processingassignment and delivery of individualand batch valuation orders, the dash-board should also provide download-able charts and graphs of data.

As valuation providers feel the trick-le-down from the secondary market, itis increasingly important to quicklycomply with investor and governmentregulations and prepare operations foradditional changes that will come down

the road. Benefits of a valuation man-agement platform for mortgage profes-sionals in this regard are immense.Users are able to streamline businessoperations by automating cumbersomevaluation processes, as well as maintainquick access to data that will help toincrease efficiency of processing andcompleting orders for clients.Organizations that do not embracetechnology and find the right tools to fittheir business are going to fall behindand not be able to effectively competein the current environment.

David Rasmussen is senior vice presidentof operations at Veros Real EstateSolutions. For more information, call(714) 415-6300 or visit Veros.com.

By John L. Stearns, CMC, CRMS

Iam often asked by mortgage profes-sionals, “Why should I becomeNAMB-certified?” and “What does

becoming certified do for me?” Let meexplain the reasons why the CertifiedMortgage Consultant (CMC), CertifiedResidential Mortgage Specialist (CRMS),and the General Mortgage Associate(GMA) programs were developed andwhy many of your colleagues have ledthe way to becoming certified by theNational Association of MortgageBrokers.

Many years ago (and before we expe-rienced the industry problems we facetoday), NAMB and its leaders deter-mined that the association needed todevelop a program that encouragedmortgage professionals to meet thehighest level of professional knowl-edge. With extensive research by indus-try professionals, the CMC, CRMS andGMA designations were developed forindividuals who wanted to stand outfrom their peers and prove their dedi-cation to the industry.

To obtain a CMC and CRMS certifica-tion, a mortgage professional mustmeet certain requirements of experi-ence and knowledge to practice mort-gage brokering, as well as pass a writ-ten exam. In order to gain a GMA certi-fication, no prior work experience orcourse work is required. However, theapplicant must have a high schooldiploma or GED and pass a written GMAexam.

Attaining an NAMB certification isnot easy, but with hard work and deter-mination it can pay off. In fact, accord-ing to a recent survey of industry pro-fessionals, earning power of mortgageprofessionals who have an NAMB certi-fication is significantly greater thanthose who are not certified! Mortgageprofessionals have also shared with methe following reasons that they receivea NAMB certification:

1. To differentiate themselves fromother mortgage professionals.� Once you become NAMB-certified,

inform your clients and peers of thisgreat accomplishment and encouragethem to choose you over the rest ofyour competition.

2. To promote my accomplishmentswithin the industry and my clients.� NAMB provides certified professionals

with various promotional and market-ing materials including, certificates,lapel pins, press release templates,logos and much more.

3. To take advantage of the manybenefits NAMB offers. � In addition to receiving materials,

NAMB-certified professionals receivediscounts to NAMB conferences andevents and are featured in the “Find aBroker” section of the NAMB Web site,NAMB.org.

4. To exemplify professionalism.� To maintain your certification, you

must participate in 30 hours of con-tinuing education courses over athree-year period. These requirementsensure that NAMB-certified profes-sionals continues to keep up with theever-changing mortgage industry.

5. To network with other certifiedprofessionals.� After you gain certification with

NAMB, you have access to new pro-fessional relationships. Thisallows you to refer your valuedcustomers to other dedicatedmortgage professionals andvice-versa.

6. To be identified as aleader.� The CMC, CRMS, or GMA

certification shows thatyou are a leader and youstrive to be the best inyour industry.

It is now more importantthan ever for mortgage pro-fessionals to demonstratetheir commitment totheir profession. By

meeting certain requirements and adher-ing to a strict code of ethics as well as bestbusiness practices, NAMB-certified pro-fessionals represent hard work and pres-tige. Show your colleagues and yourclients just how much you value yourindustry by becoming NAMB-certifiedtoday! For more information on NAMB’scertification programs, contact [email protected].

John L. Stearns, CMC, CRMS is a seniormortgage banker with American FidelityMortgage located in Mequon, Wis. andhas been in the residential mortgagebusiness since 1993. John also serves as2011-2012 Chair of the NAMBCertification Committee. He may bereached by phone at (262) 478-1154 or e-mail [email protected].

“… according to a recentsurvey of industry

professionals, the earningpower of mortgage

professionals who have anNAMB certification is

significantly greater thanthose who are not certified!”

The Value of Becoming NAMB-Certified

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Change to... Ability to bank your loans in house or broker them #1 USDA Rural Development lender in multiple states Nationally recognized for our quality in FHA/VA lending World-class, back-room service with direct access to your underwriter Keeping your professional identity by using a DBA (subject to state rules) Branching for grown-ups

If you are a seasoned professional ready for a change and desire more information, call us at 616-667-9000, or send an e-mail to:[email protected] www.PolarisHFC.com/TimeForaChange

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all satisfactory rating on operationalassessments by achieving a 3 STAR rat-ing or above:� Three STARs indicates that a ser-

vicer has accomplished at leastmedian performance relative topeers.

� Four STARs signifies the servicer ison track to meet Fannie Mae tar-gets and is performing above medi-an performance.

� Five STARs represents superior per-formance wherein the servicer ismeeting or exceeding Fannie Mae’stargets.Servicers are categorized into three

peer groups based on the number ofFannie Mae loans they service. Eachservicer is scored within their peergroup using the Servicer PerformanceScorecard, which provides monthly per-formance snapshots and trends for 10key performance indicators. Those indi-cators are heavily weighted towardmeasuring the servicer’s impact onhelping distressed homeowners bydelivering sustainable solutions.

Under the STAR Program, FannieMae is also conducting operationalassessments across key businessprocesses performed by the servicer.The outcomes from the operationalassessments conducted thus far and theservicer’s results on the ServicerPerformance Scorecard will drive theoverall annual STAR rating. Under theprogram, servicers that do not performat a median level OR that do notreceive satisfactory results on opera-tional assessments do not receive aSTAR rating.

Delinquencies See 8.44Percent Quarter OverQuarter Rise

The delinquencyrate for mortgageloans on one- tofour-unit residen-tial propertiesincreased to a sea-sonally adjusted

rate of 8.44 percent of all loans out-standing as of the end of the secondquarter of 2011, an increase of 12 basispoints from the first quarter of 2011,and a decrease of 141 basis pointsfrom one year ago, according to theMortgage Bankers Association’s (MBA)National Delinquency Survey. Thenon-seasonally adjusted delinquencyrate increased 32 basis points to 8.11percent this quarter from 7.79 percentlast quarter.

The percentage of loans on whichforeclosure actions were started dur-ing the second quarter was 0.96 per-cent, down 12 basis points from lastquarter and down 15 basis pointsfrom one year ago. The delinquencyrate includes loans that are at leastone payment past due but does notinclude loans in the process of fore-

closure. The percentage of loans inthe foreclosure process at the end ofthe second quarter was 4.43 percent,down nine basis points from the firstquarter and 14 basis points lowerthan one year ago. The serious delin-quency rate, the percentage of loansthat are 90 days or more past due orin the process of foreclosure, was7.85 percent, a decrease of 25 basispoints from last quarter, and adecrease of 126 basis points from thesecond quarter of last year.

The combined percentage of loansin foreclosure or at least one pay-ment past due was 12.54 percent ona non-seasonally adjusted basis, a 23basis point increase from last quar-ter, but was 143 basis points lowerthan a year ago.

“While overall mortgage delin-quencies increased only slightlybetween the first and second quar-ters of this year, it is clear that thedownward trend we saw throughmost of 2010 has stopped. Mortgagedelinquencies are no longer improv-ing and are now showing some signsof worsening,” said Jay Brinkmann,chief economist of the MBA. “Thegood news is the continued declinein long-term delinquencies, thosemortgages that are three paymentsor more past due. The bad news isthat drop is offset by an increase innewly delinquent loans one paymentpast due.”

On a seasonally adjusted basis, theoverall delinquency rate increasedfor all loan types. The seasonallyadjusted delinquency rate increased15 basis points to 4.74 percent forprime fixed loans and increased 51basis points to 11.76 percent forprime adjustable-rate mortgage(ARM) loans. For sub-prime loans, thedelinquency rate increased 58 basispoints to 22.62 percent for subprimefixed loans and increased 87 basispoints to 27.18 percent for sub-primeARM loans. FHA and VA loans alsosaw increases, with the delinquencyrate increasing 59 basis points to12.62 percent for FHA loans andincreasing 12 basis points to 7.05percent for VA loans.

The percentage of loans in foreclo-sure, also known as the foreclosureinventory rate, decreased nine basispoints overall to 4.43 percent. Theforeclosure inventory rate for primefixed loans decreased three basispoints to 2.56 percent. The rate forprime ARM loans decreased 37 basispoints from last quarter to 9.16 per-cent. The rate for sub-prime ARMloans decreased three basis points to22.23 percent and the rate for VAloans decreased nine basis points to2.30 percent. The rate for FHA loansdecreased 11 basis points to 3.24 per-cent. Sub-prime fixed loans saw anincrease of 48 basis points to 11.01

percent, which sets a record high inthe survey for three straight quarters.

The non-seasonally adjusted fore-closure starts rate decreased six basispoints for prime fixed loans to 0.62percent, 14 basis points for primeARM loans to 1.82 percent, 12 basispoints for sub-prime fixed to 2.44percent and five basis points for sub-prime ARMs to 3.62 percent. Theforeclosure starts rate decreased 20basis points for FHA loans to 0.73percent and 18 basis points for VAloans to 0.55 percent.

“Mortgage loans that are one pay-ment, or 30 days, past due are verymuch driven by changes in the labormarket, and the increase in thesedelinquencies clearly reflects thedeterioration we saw in the labormarket during the second quarter,”said Brinkmann. “Weekly first-timeclaims for unemployment insurancestarted the quarter at 385,000 butfinished the quarter at 432,000. Theunemployment rate started the quar-ter at 8.8 percent but climbed to 9.2percent by the end of the quarter.”

Given the challenges in interpretingthe true seasonal effects in these datawhen comparing quarter to quarterchanges, it is important to highlightthe year over year changes of the non-seasonally adjusted results.

Compared with the second quarterof 2010, the foreclosure inventory rateincreased 20 basis points for primefixed loans and increased 211 basispoints for sub-prime fixed loans, whilethe foreclosure inventory ratedecreased 100 basis points for primeARM loans, 76 basis points for sub-prime ARM loans, 38 basis points forFHA loans, and 20 basis points for VAloans.

Over the past year, the non-season-ally adjusted foreclosure starts ratedecreased nine basis points for primefixed loans, 14 basis points for primeARM loans, 29 basis points for FHAloans and 15 basis points for VA loans.The foreclosure starts rate increased14 basis points for subprime fixedloans and increased 23 basis points forsub-prime ARM loans.

Wells Fargo TopsCommercial ServicersWith $442.9 Billion inLoans Serviced in theFirst Half of 2011

The Mortgage Bankers Association(MBA) has released its mid-year rank-ing of commercial and multifamilymortgage servicers as of June 30,2011. On top of the list of firms isWells Fargo with $442.9 billion inU.S. master and primary servicing,followed by PNC Real Estate/MidlandLoan Services with $346.5 billion,Berkadia Commercial Mortgage with$184.2 billion, Bank of AmericaMerrill Lynch with $123.7 billion andKeyBank Real Estate Capital with

$107.7 billion.PNC Real Estate/Midland Loan

Services serviced the most loans inthe first half of 2011, with a whop-ping 84,359 loans currently beingserviced, followed by Wells Fargowith 39,613 loans serviced, andBerkadia with 24,804 loans serviced.

Wells Fargo, PNC/Midland,Berkadia, Bank of America MerrillLynch and KeyBank are the largestmaster and primary servicers ofcommercial/multifamily loans inU.S. CMBS, CDO and other ABS;PNC/Midland, MetLife, GEMSA LoanServices, Prudential Asset Resources,and Northwestern Mutual are thelargest servicers for life companies;and PNC/Midland, Wells Fargo,Berkadia and Deutsche BankCommercial Real are the largestFannie Mae and Freddie Mac ser-vicers.

PNC/Midland ranks as the topmaster and primary servicer of com-mercial bank and savings institutionloans; GEMSA the top servicer ofcredit company, pension funds,REITs, and investment funds loans;PNC/Midland the top FHA and GinnieMae loan servicer; Wells Fargo thetop servicer for loans held in ware-house facilities; and Berkadia thetop servicer for other investor typeloans.

The MBA also asked firms to pro-vide information about loans onwhich they are the “named specialservicer,” where the firm standsready to service the loan should spe-cial problems develop, such as delin-quency. The leading named specialservicers were LNR Partners Inc.,CWCapital LLC & CWCapital AssetManagement and C-III AssetManagement LLC.

T h e M B A ’ s M i d - Y e a r Commer-cial/Multifamily Mortgage ServicerRankings also collected servicing vol-umes for loans on commercial/multi-family properties located outside theUnited States. Hatfield PhilipsInternational, an LNR PropertyCompany, ranks as the largest masterand primary servicer of non-U.S.commercial/multifamily mortgages,followed by Deutsche Bank,PNC/Midland, GEMSA and ManulifeFinancial/John Hancock.

Your turnNational Mortgage Professional Magazineinvites you to submit any informationon regulatory changes, legislativeupdates, human interest stories orany other newsworthy items pertain-ing to the mortgage industry to theattention of:

NMP News Flash columnPhone #: (516) 409-5555

E-mail:[email protected]

Note: Submissions sent via e-mail arepreferred. The deadline for submissionsis the 1st of the month prior to the tar-get issue.

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heard on the street continued from page 9

business model in a challenging econo-my. As a veteran of the mortgage bro-kerage industry I understand the bene-fits of transitioning from being a mort-gage broker to banking – and in light ofnew federal financial regulations thetime to make that switch has neverbeen better.”

Prior to launching Covenant,Hardin spent a decade at HawthorneFinancial where he served as EVP andchief banking officer for HawthorneSavings, and president and CEO ofHFS Financial Services. Hardin is alsoa member of the board of PacificPremier Bank. At HawthorneFinancial, Hardin’s responsibilitiesincluded income property, construc-tion, residential, community andcommercial lending. He also wasinvolved in marketing, appraisal,loan servicing, and was a member ofthe executive loan committee.

Lenders ComplianceGroup Joins Forces WithLeading National LawFirm

Lenders Comp-liance Group Inc.(LCG) and AbramsGarfinkel MargolisBergson LLP(AGMB) haveannounced a

strategic alliance to offer mortgagerisk management guidance to themortgage industry. Together, LCG andAGMB will build on existing tools,processes, risk assessment analyticals,and resources to provide a “best prac-tices” approach to residential mort-gage compliance. Both firms offerregulatory guidance to members ofthe real estate and banking indus-tries. LCG provides a suite of servicesfor all areas of mortgage banking,such as loan audit analytics,research, regulatory complianceguidance, loan origination channeland product development, mortgagequality control (QC), and due dili-gence reviews.

“Abrams Garfinkel is a well-respect-ed leader in providing legal and regu-latory counsel,” said Jonathan Foxx,president and managing director ofLCG. “The mortgage banking andmortgage brokerage industries haveneeded appropriate, affordableresources to implement compliancesolutions that reflect reliable andaccurate best practices. So this kind ofalliance is somewhat unique to mort-gage banking and mortgage broker-age. It offers a ‘best practices’approach for our respective clients:top legal talent at AGMB who areexperienced in mortgage banking andmortgage brokerage combined withtop risk management professionals atLCG who are experienced in all areasof regulatory and mortgage banking

compliance. Our suite of auditing anddue diligence services further supportsthese cost-effective efforts.”

Neil Garfinkel, named partner ofAbrams Garfinkel Margolis BergsonLLP (AGMB) and the head of its realestate and banking practices, andMichael G. Barone, head of regulatorycompliance for AGMB, have acceptedpositions as directors of LendersCompliance Group Inc. (LCG).

“After working with Jonathan Foxxon a variety of matters through theyears it is clear that Jonathan and LCG

provide a wealth of information andunprecedented access to mortgagerisk management support within themortgage banking and mortgage bro-kerage industries,” said Garfinkel.“The procedures and requirements fororiginating residential mortgage loansare experiencing enormous changesand will continue to do so for manyyears to come. This alliance ensuresthat AGMB and its clients are wellversed and represented, with respectto all regulatory compliance issuesaffecting their businesses. We areexcited to bring together ourresources and provide the mortgageindustry with ‘best practices’ solutionsthat strengthen our clients and theindustry.”

Byte Software FormsCompliance PartnershipWith Docu Prep

Docu Prep, a nation-wide closing docu-ment, initial disclo-sure, and electronic

delivery services company, hasannounced a partnership with ByteSoftware, a provider of loan originationsoftware (LOS) for banks, credit unionsand mortgage bankers and brokers,offering their services to Byte Software’scustomers. This completed integrationis available now allowing for easyaccess to Docu Prep from withinBytePro Standard or BytePro Enterprise,


Photo credit: Bananastock

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the hosted or non-hosted version.Byte Software users can order initial

disclosures or closing documents; aswell as other business solutions thatDocu Prep offers. They have a vast arrayof products to make the mortgage pro-fessional’s loan process more stream-lined by providing secure electronicdelivery tools, loan analysis testing,bar-coding and dynamic selection ofdocuments.

BytePro Enterprise has a fully SQLdatabase offering comprehensive in-depth mortgage calculations built intothe program. The software is ready “outof the box” or it can be fully customiz-able including automation to meet theunique mortgage business processes ofvarious companies. It includes a backoffice module for lenders to sell loanson the secondary market for either bestefforts or mandatory delivery.

“We are very excited about this inte-gration,” said Docu Prep SeniorProgrammer Brian Ashton. “It will allowByte customers the ability to useBytePro as their single source databaseeliminating the need for gap screens,document selection, or additional inputwhich will make them more efficientend-to-end saving them time andmoney throughout the process.”

Docu Prep and Byte Software eachhave more than 20 years of experienceworking closely with mortgage industryleaders. This partnership provides com-pliant documents nationwide andadvanced productivity LOS featuresenabling clients to close more loans inless time.

“Because our documents are dynam-ically generated we can customize anypackage on the fly which allowsBytePro customers a fully customizedsolution to fit their exact needs,” saidDorothy Urborm, Docu Prep’s seniordocument analyst.

Residential LenderPlatinum Home MortgageLaunches NewCorrespondent LendingDivision

R e s i d e n t i a lmortgage lenderPlatinum HomeMortgage Corp-o r a t i o n h a s

announced the launch of its new corre-spondent lending division that will spe-cialize in renovation lending. Led bydivision vice president Jane C. King andassistant vice president and operationsmanager Michael Young, the Albany,N.Y.-based correspondent lending divi-sion will serve retail mortgage lendersin the contiguous 48 states.

Platinum Home’s correspondentlending division will specialize in gov-ernment and conventional renovationfinancing programs with specialemphasis on FHA 203(k) and FHA203(k) Streamlined programs. They

also offer the Fannie Mae HomePathMortgage and HomePath RenovationMortgage, along with a more tradi-tional product menu.

“Our correspondent lending divisionis designed as a resource for our resi-dential lending partners to add moredelivery options and to open the doorsto more production,” said William W.Giambrone, chairman and chief execu-tive officer of Platinum HomeMortgage.

Prior to joining Platinum HomeMortgage, King and Young served insimilar capacities at FreedomRenovation, a division of FreedomMortgage. King comes to PlatinumHome Mortgage with more than threedecades of renovation lending industryexperience. Young has more than 20years of experience.

REO Allegiance and AtlasREO Partner onDistressed PropertyProduct

REO Allegiance hasannounced that it hasbeen chosen as a pre-mier inspection serv-ice provider for AtlasREO Services. The new

program goes well beyond the servicestraditionally offered by asset manage-ment firms.

“Using third-party field inspectioncompanies is a part of our comprehen-sive national field inspection program,”said Brian Devlin, property operationsmanager at Atlas REO. “REO Allegiancehas been engaged to perform servicesfor some time. When we needed a newprocess for field inspections, they wereeager to help us develop the new pro-gram. The company is very willing totake on new challenges and its execu-tives have an amazing ability to adaptto the needs of the changing market.”

Under the new program, Atlas REOregularly orders comprehensive inspec-tions on a representative sample ofproperties that they are contracted tosell in markets across the country forservicers or investors. Firms like REOAllegiance then investigate and reporton the property condition, includingclient specific requirements, propertyupkeep, curb appeal, and a range ofmarketability and compliance areas. Bystreamlining this process, quickly pro-cessing results and relaying that infor-mation back to its agents and preserva-tion partners, the company has foundthat it can move properties back intothe market more quickly, saving its cus-tomers time and money.

“Atlas’s field inspection program isexceptional,” said Lisa Sadaoui, presi-dent and chief executive officer of REOAllegiance. “Consistent inspectionshead off potential problems and ensurethat all client specific guidelines havebeen met and that the property is in

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show-ready condition, which helps todrive sales. By being proactive, AtlasREO consistently achieves high scoresfrom their clients on property conditionand maintenance. We’re proud to bepart of a process that is dedicated toproviding clients with added value.”

New Equifax andInterthinx PartnershipProvides IncreasedUnderwritingTransparency

Equifax andInterthinx haveannounced anexpansion oftheir existingrelationship togive financial

institutions unprecedented visibilityinto the underwriting process. Now,Interthinx clients can seamlessly accessThe Work Number’s fully automatedsolution for verified employmentand income (VOE/VOI ) throughFraudGUARD to reduce lenders’ expo-sure by delivering timely andincreased transparency into a borrow-er’s true current employment statusand ability (capacity) to pay.

“Obtaining current, independentlyverified income information can be achallenge, and one that presents a cer-tain level of uncertainty that a lendermay not want to accept,” said CraigCrabtree, senior vice president of mort-gage services for Equifax. “Given today’svolatile market conditions, havingtimely and increased transparency intoa borrower’s true current employmentstatus and ability (capacity) to pay ismore important than ever, and inte-grating The Work Number’s incomeand employment verifications intoFraudGUARD enables lenders to effec-tively outsource this critical function ofloan production with assurance.”

This integration of VOE/VOI intoFraudGUARD expands upon Equifax’sexisting relationship with Interthinx. InMarch, Equifax announced the integra-tion of Undisclosed Debt Monitoring—a system of monitoring and notifyingfinancial institutions of new accountsand borrower activity initiated duringthe “quiet period,” which spans fromthe application date to the mortgageclosing—within FraudGUARD. A solu-tion that is “always on,” UndisclosedDebt Monitoring alerts lenders of bor-rower activity that may represent riskassociated with mortgage loans intheir pipelines. The Work Number’sVOE/VOI is now integrated into theconfidence score FraudGUARD deliv-ers to lenders.

“Interthinx remains committed tohelping lenders mitigate risk, eradicatefraud and support compliance, andadding VOE/VOI to our solution furthersthis commitment,” said Mike Zwerner,senior vice president of business devel-opment for Interthinx. “Together withThe Work Number, we are poised todeliver automated verifications thatfurther streamline the risk mitigationprocess for lenders.”

Direct to ConsumerForeclosure MediationPortal Launched inMaryland

HOPE LoanPort hasannounced that it willpartner with the stateof Maryland and mort-gage servicer GMACMortgage (GMACM) ona direct-to-consumer

foreclosure mediation portal. GMACM isfunding development of the portal andwill be the first mortgage servicer to useit. The portal, scheduled to go live inOctober 2011, will be the first statewideprogram in the nation to allow home-owners and servicers to exchange docu-ments electronically prior to foreclosure

mediation. Maryland state law provideshomeowners who receive a notice offoreclosure the opportunity to meetwith their servicer and a mediator todiscuss alternatives to foreclosure. Ahomeowner has 25 days after receivinga notice of foreclosure to “opt-in” toforeclosure mediation.

HOPE LoanPort has also partneredwith the state of Maryland to provide aWeb-based portal for Maryland home-owners working with housing coun-selors to apply for unemployment assis-tance through Maryland’s EmergencyMortgage Assistance (EMA) program.

“We are thrilled that both GMACMortgage and the state of Maryland aregoing to use HOPE LoanPort for thisimportant initiative,” said Larry

Gilmore, president and chief executiveofficer of HOPE LoanPort. “For the firsttime, at-risk homeowners will be ableto upload all of the documents neces-sary for foreclosure mediation withoutlost paperwork and with improvedcommunication.”

By developing a Web-based media-tion solution for both the state ofMaryland and mortgage servicers suchas GMACM, HOPE LoanPort will offer thefollowing benefits to homeowners:� Easier document exchange with

mortgage servicers.� Electronic submission of all neces-

sary documents for mediation.� Faster access to assistance from

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housing counselors and/or pro-bonoattorneys.

� Sends reminders about mediationdate and location.

� Allows servicer to obtain all theinformation it needs to fully evalu-ate and make decisions on foreclo-sure alternatives.“Foreclosure mediation is an impor-

tant tool for homeowners who want toensure the best possible outcome fromdealing with their lenders,” saidRaymond A. Skinner, MarylandSecretary of Housing and CommunityDevelopment. “The HOPE LoanPort,direct-to-consumer foreclosure media-tion portal will make it easier for us totrack the progress of those in media-tion. It is a way for us to provide moreefficient service for our customers.”

eLynx and DocumentExpress AnnouncePartnership

eLynx, a portfoliocompany of Ameri-can Capital, hasannounced that

Document Express, a provider of mort-gage loan document preparation, willpartner with eLynx to offer DocumentExpress customers electronic delivery,signature, and print-and-mail fulfill-ment services using the eLynx Expediteplatform.

“eLynx is the right partner for usbecause it has a comprehensive suite ofservices and a solid reputation in theindustry for quality products and excel-lent customer service,” said LoriJohnson, president of DocumentExpress. “Partnering with eLynx gives usthe confidence to expand our offeringsto the lenders we serve and that willmake all of us more successful.”

Document Express services are fullyintegrated with the eLynx platform. Theextension of services allows DocumentExpress customers to prepare loan doc-uments and then deliver those docu-ments electronically to borrowers andclosing agents, including electronicconsent and signatures, without abreak in their loan-processing work-flow. To ensure compliance, documentsthat cannot be delivered electronicallyare automatically sent to recipientsusing one of eLynx’s two secure print-and-mail centers.

“Through this partnership,Document Express offers its lendercustomers the connectivity and serv-ices they need to fulfill the loan pro-duction process in an efficient yetcompliant manner,” said SharonMatthews, president and chief execu-tive officer of eLynx. “Their customerswill save money and time throughincreased automation, documenttracking, and auditing capabilities forcompliance. As a result, our partnerwill see higher levels of customer sat-isfaction and retention.”

Top Mortgage ProcessingServices Firm to beAcquired by Accenture

A c c e n t u r ehas agreedto acquireZenta, a

provider of residential and commercialmortgage processing services in theUnited States. The acquisition will sig-nificantly expand Accenture’s ability tohelp lenders, servicers and real estateinvestment trusts (REITS) retool andstreamline their operations, enhancethe customer experience, and improveprofitability in response to new marketconditions, while enhancingAccenture’s BPO portfolio. Terms of thetransaction were not disclosed.

In conjunction with the agreement,Accenture is launching AccentureCredit Services, a full-service consult-ing, technology and BPO capability thatwill expand its support for institutionsin the residential mortgage, commer-cial real estate, leasing and automotivefinance industries. Zenta’s mortgageprocessing capabilities will be a keycomponent of the service.

“The wave of regulations and achanging credit environment areredefining the competitive landscapeof the mortgage industry,” said TerryMoore, global managing director ofAccenture Credit Services. “In the resi-dential mortgage business, low cus-tomer satisfaction, rising fulfillmentcosts, and falling pull-through rates—coupled with slower refinancing andpurchase activity—are undercuttingprofitability. On the servicing side, reg-ulatory changes are forcing operationaltransformation.”

Headquartered in Dallas, Texas,Zenta is one of the top three providersof mortgage processing services in theU.S., serving four of the five largest U.S.banks. Zenta’s approximately 3,700employees are expected to joinAccenture. Its services include residen-tial and commercial mortgage origina-tion and servicing, default manage-ment, real estate portfolio manage-ment, and accounts receivable man-agement. Zenta is also among thelargest providers of real estate account-ing and capital market analytics to U.S.REITS, institutional investment man-agers, owners and operators, andinvestment banks. The company alsoprovides a variety of other credit relat-ed services.

“As part of Accenture, we can offerour clients greater scale, a broaderrange of services and world leadingbusiness process expertise to help themmeet new market demands,” saidHenry Hortenstine, chief executive offi-cer of Zenta. “We share a common goalof providing the highest quality serviceand measurable business value toclients, which makes this an idealmatch.”

Accenture Credit Services offersconsulting, process reengineering,systems integration and management,and business process outsourcingservices for residential mortgage,commercial real estate, leasing andautomotive finance lenders and ser-vicers looking to transform and indus-trialize their operations. The servicesare designed to bring significant cus-tomer service, efficiency, quality, andprofitability improvements toAccenture’s clients’ lending business.Accenture Credit Services serves morethan 80 major lending institutionsworldwide.

Mortgage Master Looks to Take a Bite Out of theBig Apple’s Market

M o r t g a g eMaster Inc.has opened

an office in Manhattan to serve thecity’s housing market. The new office,which is licensed in New York,Connecticut and New Jersey, will han-dle the purchase and refinancingneeds for thousands of residents in theTri-State area.

“The Manhattan housing markethas been remarkably resilient,” saidMarc Kunen, head of MortgageMaster’s Manhattan office and a vet-eran mortgage specialist. “Establishinga foothold in the city will allow us tocompete as one of the lowest costproviders and avail those savings toour customers.”

Based in Walpole, Mass., MortgageMaster Inc. continues to see strongdemand as low mortgage rates spurhomeowners to refinance and reno-vate their homes. Kunen also expectsto see more customers take out newloans as housing prices in the Tri-State area begin to firm. The compa-ny, which is licensed in more than 20states with branches in nine of thosestates, funded approximately $6 bil-lion in 2010 and continues to expandits reach in the mortgage market.

“Our company has been successfulbecause we open offices in marketslike Manhattan where we know weare dealing with a stable, reliablecommunity of borrowers,” saidMortgage Master’s Chief ExecutiveOfficer Leif Thomsen. “The housingmarket is growing in theMetropolitan area, and we want tocontribute to that growth by offeringlow cost loans to the community.”

Prior to joining Mortgage Masterto open the Manhattan office, Kunenwas with GFI Mortgage Bankers Inc.as a managing director where hebuilt their Manhattan branch into a$200 million residential mortgagedivision. He also worked forPreferred Empire Mortgage Companyas a senior loan officer. He holds anMBA from NYU’s Stern School ofBusiness and graduated with a B.S. inBusiness from SUNY Buffalo. Marc isa native New Yorker, and is familiarwith the local real estate market andits financing nuances.

Mortgage Professionals to Watch� Ellie Mae has announced the hiring

of Lisa Schreiber as vice president oflender business development.

� John Courson, former president andchief executive officer of theMortgage Bankers Association(MBA), has been named a senioradvisor at Treliant Risk Advisors.

� Mortgage technology providerBlueberry Solutions has namedDominick Marchetti its new execu-tive vice president.

� CCG Catalyst has named Lee A.Kidder as its new practice groupmanager and senior consultant.

� Brent Stokes has joined SperlongaData & Analytics as the company’snew senior vice president.

� Real Estate Mortgage Network Inc.(REMN) has announced the additionof Angie Gora and Todd Greak asmanagers in the state of Georgiareporting to REMN SoutheastRegional Manager Greg Janicki.

� The Mortgage Bankers Association(MBA) has announced the hiring ofJeffrey M. Schummer as vice presi-dent of education.

� HOPE LoanPort has named CamilloMelchiorre, former senior VP of lossmanagement at Radian GuarantyInc., as its new president and chiefexecutive officer.


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Be a Mortgage Hero! This recognition is free to Certified Military Housing Spe-

cialists. Take the FREE Certified Military Housing Specialist course offered online

by USA Cares and tell us how you are “Helping those who defend our homes, pre-

serve their own.” Please contact Program Manager Beverly Frase at

[email protected] to join our national team and be our next Mortgage

Hero. We want to recognize you!

USA Cares Mortgage HerosTraci Ramirez, President

Tri-County Mortgage, Russellville, Ark.

“I grew up military and traveled the country and overseas, so I un-derstand the joys and hardships of military life. I am very patrioticand try my best to help all of our veterans obtain financing to pur-chase their dream homes.”—Traci Ramirez, President, Tri-County Mortgage, Russellville, Ark.

Unsung mortgage heroes are in every community, though it can be a tough search tofind one. They are not often found in the spotlight, but the difference they make in themilitary lives they touch can be huge. Thus, I go panning for those nuggets of golden loanoriginators each month, and wish that loan originators everywhere would copy what theydo. In typical modest fashion, this month’s Mortgage Hero, Traci Ramirez, president ofTri-County Mortgage in Russellville, Ark., fears she would fall very short, compared towhat others are doing. But just ask the military folks who own homes today because ofTraci’s commitment to persevere, no matter the obstacle, and you’d get a different an-swer. To each of those families, she is a hero.

“As a one-person office” said Traci, “I pride myself on taking all the time necessaryfor my clients so they understand the loan process and what it takes to get approvedto purchase a home in this very volatile and changing market.”

Many military members think they qualify for a U.S. Department of Veterans Affairs(VA) loan, simply because they were discharged and have their DD214. Traci educatesthem that the VA doesn’t provide financing, they guarantee the loan, and qualifying fora VA loan can often be more difficult than other programs. In her area, the USDA RuralDevelopment loan is a good 100 percent financing option.

“If they qualify for both,” said Traci, “I show them the difference between interestrates and closing costs. This is very important when you have veterans using the enti-tlement for subsequent purchase. Several clients have come back to me to refinancetheir VA loan into the VA Interest Rate Reduction Refinance Loan or ‘IRRRL,’ which is awonderful benefit for the veterans.

“For many years, I have helped Arkansans realize their homeownership goals,” saidTraci. “I know the value of honesty, integrity and experience. One of my clients was 100percent disabled and trying to get a VA loan, but a top federal credit union denied hishome loan request due to credit issues. Together, we worked them through, and hewas able to purchase his home as he’d hoped, through a VA loan program. I once hada VA client purchasing a home while still serving in Iraq, and because of time changeand his duty, we were only able to speak on the phone at 10:00 p.m. We went over allof his loan documents and requirements late at night, and we did it! His wife and kidswere able to move into their new home and have it waiting for him when he got home.”

Traci’s father retired from the Air Force after putting in 20 years, her husband wasin the Army for six and her stepson has just completed four tours in Iraq.

“There have been many tears of sadness and pride,” she said, “but there are lots ofus out there who still have American pride in our always faithful and fearless troops!”

Non-Agency ProgramNow Available From NewPenn for UnderservedReal Estate Investors

New Penn Financial LLC, a nationwidelender, has expanded its non-agencyloan program with broader guidelinesfor investment properties. Theenhanced investment property loanprogram provides greater flexibilityfor seasoned real estate investors andenables more investors to enter themarketplace and finance their proj-ects. New Penn’s investment propertyprogram offers the following parame-ters: Up to 65 percent loan-to-value(LTV) for purchases and cash out refi-nance; up to 50 percent debt-to-income (DTI) with additional reserves;the ability to have up to 20 otherproperties financed; the option toclose in the name of an LLC; and a sixpercent seller assist.

In addition, qualified borrowerscan purchase properties with adeferred maintenance and repairsfeature, which is perfect for investorswho buy foreclosed properties inneed of repairs.

With loan amounts of up to$650,000 per property, borrowers cantake advantage of today’s real estatemarket and purchase a wide varietyof properties. Investors, even if self-employed, can qualify with a mini-mum FICO score down to 640.

“The market is missing tremendousopportunities today” said Bob Wexler,vice president of New Penn FinancialLLC’s Services Division. “Our platformprovides a niche to our wholesale andcorrespondent customers that exceedAgency guidelines in almost everyway. The expanded guidelines fornon-owner-occupied properties willallow us to capture many investmentquality loans that are currentlyexcluded from the market.”

Kinecta Offers WholesaleProgram as Alternative to Assist High Balance Borrowers

Kinecta Federal CreditUnion has launched anew Asset UtilizationLoan Program for its

mortgage lending division. Tailored toKinecta’s 5/1, 7/1 or 10/1 Jumbo ARM,the new program enables high net-worth borrowers with significant liquidassets, including self-employed andretired individuals, to use a percentageof those assets as income for qualifyingpurposes.

“This is a valuable niche and agreat opportunity for both our retailmembers and our wholesale busi-ness partners who have clients withstrong credit histories and financialbackgrounds, but are hampered bycomplex income situations,” saidTodd Helmerson, director of whole-sale loan production for KinectaFederal Credit Union.

Considered as eligible assets forthe new loan program are checking,savings, CDs, stocks, bonds, 401K,IRAs, and insurance policy surrendervalues. All must be fully documentedand held in U.S. financial institu-tions. Annuities, trust funds andhedge funds also may be used aslong as there is evidence that thefunds are available to the borrower.Available for loan amounts from$417,001 to $3 million, Kinecta’sAsset Utilization Loan Program takesits place alongside several other spe-cialized offerings from Kinecta,including Fannie Mae HomePathmortgages and mortgage insurance-insured jumbo loans with high loan-to-value (LTV) ratios and aboveFederal Housing Finance Agency(FHFA) loan limits.

CoreLogic IntegrationWith 4506-T Direct Stamps Out MortgageApplicant Fraud

CoreLogic, a providerof information, ana-lytics and busi-ness services, hasannounced that it

has integrated a tax return income verifi-cation solution—4506-T Direct—with itsMortgage Builder Software. The inte-gration allows Mortgage Builder usersto verify applicant income directlythrough the Internal Revenue Service(IRS), satisfy fraud detection require-ments such as Fannie Mae’s require-ment for third-party income verifica-


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new to market continued from page 33

tion, and detect inaccuracies in bor-rower-supplied tax information—directly from the Mortgage Builderloan origination system.

The CoreLogic optimized data sub-mission process helps deliver taxreturn information to the IRS faster,so Mortgage Builder users can obtainquicker, more efficient income verifi-cation results. The 4506-T Directproduct searches up to four years ofIRS verified data on the borrower(s);provides automated, timely postingof transcripts; and is backed byproven quality controls to maximizeIRS acceptance.

“The integration of 4506-T Directsignificantly enhances our continuedpartnership with CoreLogic,” said KevenSmith, president and chief executiveofficer of Mortgage Builder Software.“This expanded product offering,accessed directly and easily from theMortgage Builder platform, supportsour objective for setting a new standardin convenient, single-source access toadvanced data solutions that helpstreamline the loan origination processfor our customers.”

Commerce VelocityUpgrade Maintains GSECompliance

Commerce Velocity, a member of theFidelity National Financial (FNF) fam-ily of companies and a provider ofdefault technology has enhancedtheir Optimizer solution to helpachieve the new requirements forFannie Mae’s Quality Right PartyContact (QRPC) initiative. The newenhancements are designed to armservicers with technology to docu-ment, as required by QRPC, the variedforms of communication to the bor-rower regarding the resolution oftheir delinquent mortgage. It alsomaps all of the required notices, let-ters, and forms required by FannieMae to be in a servicer’s defaultprocesses by the Oct. 1, 2011 dead-line.

“QRPC has raised the bar for ser-vicers to prove they have been dili-gent to build rapport with the bor-rower, understand their financial cir-cumstances and intent, educate theborrower on foreclosure alternatives,and obtain a commitment from theborrower on the resolution pathgoing forward,” said Umesh Verma,president of Commerce Velocity.“Complicating matters is balancingQRPC with the Fair Debt CollectionsPractices Act, the United StatesBankruptcy Code, and applicablestate laws. It’s unreasonable to expectworkout specialists to manage all ofthese compliance risks without tech-nological guidance. Meeting the

guidelines and achieving the QRPCbenchmarks for compliance willrequire the support of technologythat not only can manage the tasksbut also document the communica-tion attempts, document the tasksand requirements completed, andprove deadlines were met through-out all default stages.”

The Optimizer enhancementsenable servicers to define collectioncalls as tasks, including follow-ups,which can be managed systematicallywhile the ability to add notes andcomments by default stage can aid indocumenting the servicing file asrequired by QRPC. Similar enhance-ments enable servicers to manageproperty inspection orders and theforwarding of notices and letters tothe borrower in a timely manner.

“The Optimizer audit trail providesconfidence to our servicers thatdefault stages and requirements arecompleted according to QRPC,” saidVerma. “The ability to document andtimestamp default activities will notonly help servicers achieve the QRPCbenchmark requirements but alsohelp monitor the timeliness of bor-rower communication which webelieve is critical to improved mort-gage resolution rates.”

LPS Releases New AVM and BPO Product

Lender ProcessingServices Inc. (LPS),a provider of inte-grated technolo-gy, data and ana-

lytics to the mortgage and real estateindustries, has announced that itsLPS Applied Analytics division hasreleased a new product to providedefault servicers with an alternativeto broker price opinions (BPOs) forevaluating residential real estate intheir portfolios.

LPS’ Distressed Asset Review willcombine the accuracy and consisten-cy of an automated valuation model(AVM) with property condition infor-mation. Traditionally, AVMs have notaccounted for property condition,which is why BPOs have become thevaluation tool of choice amongdefault servicers. Conversely, whileBPOs evaluate property condition,the inherent subjectivity and incon-sistency in these valuations can pres-ent challenges for default servicers.

“This new product gives defaultservicers the best of both worlds—values that take into account proper-ty condition and an AVM that is notsubject to the inconsistencies inher-ent in BPOs over the distressed prop-erty’s lifecycle,” said Robert Walker,managing director of LPS AppliedAnalytics. “In this market, we knowclients are eager for this more reli-able data about underlying assets’

values, so they can make critical lossmitigation decisions.”

LPS Distressed Asset Review tapsthe LPS ValueSure AVM and incorpo-rates a real estate professional’sproperty condition report to producea more reliable value that also meetsboth the letter and the spirit of thefederal Treasury Department’s newInteragency Appraisal and EvaluationGuidelines, resulting in a single, com-prehensive, easy-to-read report thatutilizes AVM intelligence and factorsin property condition.

“Default servicers now have analternative to BPOs. Research hasshown that servicers may order threeor more BPOs throughout the lifecy-cle of a non-performing asset,” saidWalker. “Replacing one of these withLPS Distressed Asset Review is a cost-effective way to obtain a reliable andaccurate value, and to give a higherdegree of confidence in BPO results.”

LPS’ Distressed Asset Review alsoprovides detailed market analysis onforeclosure and real estate-owned(REO) activity in each subject proper-ty’s neighborhood down to the ZIPcode level. It includes both currentanalysis and forecasts market trendsover the next 12 months.

DocuSign Takes e-Signatures to the Clouds

DocuSign has announced the latestversion of DocuSign for Salesforce,giving customers the freedom to“Close it in the Cloud,” anytime, any-where, on any device. The latestrelease of DocuSign for Salesforce isintegrated directly into SalesforceCRM to generate dynamic documentson the fly, helping sales organizationsto shorten the sales cycle, reducecosts, and see real-time pipelineupdates in Salesforce Chatter.

“With eight of 10 electronic signa-tures in the cloud DocuSigned, morebusinesses have standardized onDocuSign than all other electronicsignature solutions combined,” saidKeith Krach, chairman and chiefexecutive officer at DocuSign.“DocuSign is excited to further ourpartnership with salesforce.com asthe pioneer and leader in cloud com-puting. Our deep integration makes itpossible for sales organizations, likesalesforce.com who uses DocuSign astheir exclusive eSignature solution, toquickly and easily ‘Close it in theCloud.’”

Accessible from any browser,including mobile devices, DocuSignfor Salesforce allows recipients toenter data, initial, date, and sign con-tracts online within minutes whileautomatically updating Salesforceaccount data. DocuSign for Salesforcesupports virtually any document type,and provides for identity manage-ment/user authentication, forms/datacollection, workflow automation,

storage and more. With support forcomplex routing rules and dynamiccollaboration tools, DocuSign makessending documents electronically foreSignature as easy as sending an e-mail from Salesforce.

New a la mode ProductStreamlines UADFormatted Appraisals

a la mode inc. has announced therelease of its UAD Reader product, afree desktop tool which allows any-one to open, view, error-check, andmanage appraisals in the new UADMISMO 2.6 XML format. It works withany Uniform Appraisal Dataset(UAD)-formatted appraisal, regard-less of which software was originallyused to create the report. UAD is theappraisal format designed andrequired by the government-spon-sored enterprises (GSEs), Fannie Maeand Freddie Mac, and adopted by theFederal Housing Administration(FHA) as well. All GSE-destinedappraisals as of Sept. 1, 2011 must bein strict UAD format. FHA hasannounced it will require UAD afterJan. 1, 2012. UAD Reader is a freedownload, available atalamode.com/UADReader.

The UAD specification standardiz-es both the technical XML file struc-ture, as well as the particular words,number formats, and abbreviationsthat appraisers are allowed to use inthe report. Some industry memberswill find UAD appraisals to be hardto read and understand as a result ofthe new terminology, but first theyhave to be able to view the reportson screen at all, which is harder thanit seems.

“Appraisals are now delivered as‘.XML’ files, not as ‘.PDF’ files, so any-one in the entire workflow chain willstart encountering documents theycan’t open, or which look like gib-berish on screen”, said Dustin Moore,president of a la mode’s Real EstateSolutions Division. “UAD Readersolves that problem, plus others.”

Through a la mode’s UAD Reader,anyone double-clicking a UAD XMLfile gets the embedded PDF onscreen just as they’re used to seeing,along with a variety of appraisal doc-ument review and management fea-tures. It not only allows the user tosave the PDF out separately, it alsoshows the XML appraisal data in ahandy visual “split screen” mode.

Beyond the visual display of theappraisal, the UAD Reader also veri-fies that the appraisal file passes theGSE’s tightly defined rules. Any errorsflagged are hyperlinked to the actualGSE descriptions of what the formfield should contain, and the offend-ing data is also clearly highlighted onthe form. For lenders or AMCs, thismakes it easy to request revisionsfrom the appraiser. For the apprais-er, it allows errors to be caught

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Visit www.hometownbranch.com to read our testimonials!

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before sending to the client in thefirst place.

LOS Provider SaMSolutions US BeginsDemos of New Software

SaM Solutions US,the developer ofEngage, a soft-ware as a service(SaaS) offering

that delivers a cutting-edge mortgageloan origination and processing system,has begun to demonstrate the system tomid-sized banks, community banks, cred-it unions and brokers. “Too many lendershave to work around or for their loanorigination systems,” said Aaron Cope,head of operations at SaM Solutions US.“In contrast, Engage is configured to letlenders work through it, and neveraround or for the system. Lenders thatfind themselves in that situation, or thathave outgrown their LOS, I am interestedin providing with a demonstration of oursystem.”

Every lender receives an Engage “carteblanche” license that entitles them to useevery module, without a limitation of anykind, for a price that is modest enough tomake the decision to try Engage a risk-lesstransaction.

“Our clients receive the same low priceand there is no Silver, Gold or Platinumimplementation types,” said Cope. “That’s

because everyone is treated as a Platinumclient, and there are no additional costs,for instance, to use the imaging or anyother module.”

Because Engage is a SaaS offering, SaMSolutions is able to deliver a robust, cut-ting-edge system for the lowest cost in theindustry and create easy access to servicesthat lenders require.

“For instance, Document Express hasembedded its document preparationsolution, DX Elite Series, within Engage,”said Cope. “The deal combines the best ofbreed in terms of document managementand cutting-edge loan origination sys-tems.”

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 arepreferred. The deadline for submissions isthe 1st of the month prior to the targetissue.


� Chris Knox has joined KinectaFederal Credit Union as northeastregional manager of Kinecta’swholesale/correspondent mortgagelending operations.

� The Conference of State BankingSupervisors (CSBS) has named JohnW. Ryan president and CEO and theCSBS has also announced thatMichael L. Stevens has been promot-ed to the position of senior execu-tive vice president.

� LenderLive Settlement Services hasnamed Kimberly Joyce as nationalsales manager and Brad Noblit asregional account manager.

� Curtis Brunton has joinedPrudential Mortgage CapitalCompany as a principal in the firm’swestern region.

� John Alarcon has joined AkleroRisk Analytics Inc. as chief finan-cial officer.

� Doug Walker has been named vice

president of sales support forChurchill Mortgage Corporation.

Your turnNational Mortgage ProfessionalMagazine invites its readers to submitany information, events, passages, pro-motions, personal or professionaloccurrences that seem appropriateand/or other pertinent data to theattention of:

Heard on theStreet/Mortgage

Professionals to Watchcolumn

Phone #: (516) 409-5555E-mail:

[email protected]

Note: Submissions sent via e-mail arepreferred. The deadline for submissionsis the 1st of the month prior to the tar-get issue.

• Daily updated mortgage industry news

• Industry blogs• Write your own blog

• Find loan programs• Discover local and

national events• Get access to video

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Capturing Opportunity in theNew Mortgage Marketplace

By Eric Wiley

I have been fortunate to experiencemany sides of the mortgage industry.My past 16 years have included posi-tions as an originator, sales manager,operations manager, and for the pastseven years, co-owner of a successfulmulti-state mortgage bank/brokeringfirm. I have also been a participatingmember with industry trade associa-tions and have worked on legislativeefforts. From these experiences, I haveseen change, as we all have. And I seeopportunity.

As all of us in the mortgage indus-try know, the past four to five yearshave been, at the very least, “hang-on-by-the–seat-of-your-pants” inter-esting. Most of you would probablyagree that we aren’t yet done with thiswild ride, despite a widespread desirefor things to return to normal. In myview, getting back to “normal” issomething we ought not to hold ourbreath for. Normal was not the 2000s.Normal was my first three years in thebusiness, before automated under-writing engines. So rather than lookback, we need to look forward andrecognize that there is a new normalin place in the mortgage industry thatboth individuals and companies needto embrace if they are to capture theopportunities that lie ahead.

As housing markets have cooledoff, the number of mortgage industryparticipants has fallen. Unless ratesdrop yet again, I would estimate thatwe will continue to see industry num-bers fall throughout this coming win-ter and well into 2012. There will befewer loans to be had and potentiallyeven fewer participants to originatethose loans. Order-takers beware: Youare on the short road to extinction.Either your company better be reallygood at cost-effectively originatingloans for you or you had better getout of your (dis)comfort zone andstart originating business with a rede-fined sense of purpose.

I have seen success follow individu-als who view being in our industry asa true and honorable profession. Ihave also seen failure engulf thosewho lacked foresight to plan for

change in the mortgage climate. Asindustry professionals, we simply can-not do things the way we have in thepast because that past no longerexists. We each need to evolve if weare to make it going forward. To illus-trate that point, if you are a “refiexpert,” I would suggest you are atthe end of your line unless you haveidentified a strong niche of opportu-nity to focus on when interest ratesrise. Our current rates hoveringaround the four percent range arenot, by any standard, normal andthey will increase sometime in thenear future.

I have also seen negative individ-ual traits that lead to poor results inour industry. Most of the time, thosewho possess these traits do not recog-nize the dark cloud they are placingright above their own head. Sadly,they are the “walking dead” of ourbusiness. Negative traits include seek-ing out the highest compensation tothe detriment of more valuable orcomprehensive factors. Another nega-tive individual trait includes switch-ing employers frequently. This istough on past client and referralrelationships, ultimately leading tothe conclusion that the real problemis in the mirror, not the companyaffiliation. Equally negative traitsinclude thinking loan-by-loan versusmanaging a vibrant pipeline (don’tthink commission, think relation-ships and long-term volume), blam-ing underwriting instead of poorpackaging/application-taking, andgenerally taking negative news as anegative on your own business.Individuals make up this industry andnegative traits can bring down theindividuals in it.

When I step back and compare myown company with other successfuloperations out there, I can see that sizedoesn’t necessarily matter. Rather,there are a handful of traits that seemto be a common thread for success atany sized firm, including:

� Work ethic � Continual industry-related education

� Surrounding peoplewith other successfulpeople

� Meeting and dealingwith individuals on aface-to-face basis,which includes referralsources, as well asclients and even indus-try peers

� Staying in touch withpast clients

� Putting on a smilewhen you show up inthe morning

Again, the quality andstrength of a mortgagecompany doesn’t relate tosize or business channel.Others may say so, butdon’t listen to them asthey are operating out offear. A strong manage-ment team will be able to see the for-est through the trees and successfullyguide those who make their livingoriginating loans for the company.The key is staff engagement. If you area manager, are you engaging yourstaff and challenging them to grow orare you just a “good times” manager(like an order-taker in a refi boom)? Ifyou are on a team, is your teamdiverse and can your team divide andconquer? If you are an originator, doyou feel your manager/managementis capable or are they flounderingright now? In asking these questions,be serious in your analysis becauseyour own success is most likely on theline, if not right now, for sure in thenear future. Make the company’senvironment work for you, or get anew environment.

The mortgage industry is unique toother businesses, even service-relatedbusinesses. We don’t have any inven-tory on our shelves (at least, we hopewe don’t … think buybacks). As origi-nators, we don’t really have a lastingclient relationship (although main-taining a post-transaction relation-ship is always good marketing, espe-cially for referrals).

We don’t invest funds for clients sowe are not advising them over any peri-od of time. We do not insure theirhomes, and consequently, we don’t col-lect a new check once a year. Bottomline: Whether we like it or not, we areproviders during a limited period oftime of a financial product that is a lia-

bility to our customers.Adding to that is the factthat consumers and largeinstitutions have beentrying to commoditizewhat we do during thislow rate, post-housingboom reset period. All ofthese considerationsmake us, and what wedo, truly unique and thatcan create opportunitiesbased on how effectivelywe distinguish ourselvesand/or our organization.

Granted, the past fewyears for our industryhave posed challenges toboth individuals andorganizations, but from itall comes great potentialfor those who recognizethat innovation andchange are good and

essential. When is the last time youand/or your organization assessed yourstanding in our current environment?What are you doing differently todayfrom what you did yesterday? Now isthe time to refresh or create, for thefirst time, a business plan thatincludes a “back-to-basics” approach.Whether you originate referred busi-ness or leads-based business, youand/or your team should be sharpen-ing your sales and management skillsalong with your knowledge of ourmortgage industry.

One other benefit from my 16 yearsin this business is that of perspective.In drawing upon it, a simple fact isclear: What we have done in the pastdoesn’t work anymore. My perspec-tive also tells me that opportunities inthe mortgage industry are still tocome. The housing market isn’t goingaway and neither is our industry—both are evolving and both will sur-vive. The opportunity for all of us isgrounded on how effectively weevolve within today’s new mortgagemarketplace.

Eric Wiley is chief operating officerand co-founder of Pacific ResidentialMortgage LLC. He has served on theboard of the Oregon Association ofMortgage Professionals (OAMP) and isan active member of the OregonMortgage Lenders Association (OMLA).He may be reached by phone at (503)905-4902 or e-mail [email protected].

“As industry professionals,

we simply cannot dothings the way wehave in the past

because that past no longer exists. We each need to

evolve if we are to makeit going forward.”

All That You Can BeOptimizing efficiency in your bank’s mortgage division

By BJ Bounds

In the past several years, we have seenmany modern day advances developin the banking arena. As consumers,we are thrilled to be able to bankonline, get text alerts or check bal-ances on our smartphones, and westill revel in drive-through conven-ience. As bankers, technologicaladvances help streamline yourprocesses and allow you to accomplishmore with fewer resources.

If your advances include your mort-gage division, you probably alreadyemploy a loan origination system (LOS)to originate, process and close mort-gage loans with total compliance toregulatory mandates. As an invest-ment and a tool, your LOS can makeyour division fast, efficient and cus-tomer-friendly. Optimizing the effi-ciency in your mortgage divisioninvolves using all of the brilliant fea-tures of your LOS that you may notknow exist.

Secure your futureSecurity in your mortgage divisionencompasses the most basic of accesscontrols, as well as the more complexsecurity of business processesthrough configurable and integratedbusiness rules. Security within yourmortgage platform is no less impor-tant than within your core bankingsystems.

Beginning with access to your mostsensitive data, security must berobust, and it must be functional.Access controls based on individualusers or user groups form the basis ofa platform with flexibility that helpsyou manage your business the wayyou want to, while eliminating the riskof losing data integrity.

Flexible and customizable, businessrules seamlessly meld loan workflowwith your established businessprocesses. Action-based rules withconfigurable hard and soft stops pro-vide workflow direction through thepipeline to best suit your businessand comply with industry regula-tions. Field-based rules ensure thatincomplete files can be properlyprocessed before moving through the

pipeline. The control and oversightyou have over your complete loanflow is indispensable to the securityof your division.

All in one placeOf course, oversight is much easierwhen all of your loan data is securelylocated in one place. When your LOS isaccessible from the Internet, yoursoftware and data are more likelystored on a server. Twenty-four-houraccess to your loan files is importantfor instant reporting and auditingpurposes. Additionally, having yourloan files all in one place eliminatesthe risk of losing sensitive data due tocomputer crashes, theft or naturaldisasters.

Electronic document managementnot only enhances the security of yourLOS, it also enables much greater effi-ciency in storing, handling and ship-ping documents. Customizable stack-ing orders for different groups meansyou can separate, package and shipdocuments for your specific needs.Drag and drop capabilities make iteasy to move e-mail documents fromyour e-mail window directly into yourdocument manager.

Additionally, you can securely e-mail your specially-prepared docu-ment packages directly from your sys-tem. Your electronic managementsystem also helps keep you and yourdivision on track with automatic datelogging of all documents. You willalways know when your documentswere shipped, who shipped them andwhere they went. Being able to peekinto your pipeline and know instantlywhat’s going on with each loan file isimportant to maintaining a stream-lined and compliant workflow.

Insider advantageAnother important aspect of organi-zational efficiency is limiting thenumber of errors from the constantre-keying of data to order documentsand services. Re-keying data isextremely time-consuming andincreases your overall loan processingtime. Using your LOS to order services

is fast, easy and willgreatly increase yourdivision’s efficiency.

With the proliferationof vendor interfaces,you never need to gooutside to order docu-ments and services. Youcan do everything youneed from within yourLOS platform withoutre-entering data, andwithout having to faxdocuments back andforth. As with everythingelse, visibility into yourthird-party orders isimportant.

Using your vendormanagement tools fromwithin your LOS, youalways know when your documentsand services were ordered. In addi-tion to internal status tracking,ordering services directly from yourplatform also has another advan-tage: Documents ordered from yourvendors are returned directly intothe electronic loan file from whichthey were ordered—safe and secure.It’s this data-protected, full-circleadvantage that will get your divisionhumming!

A well-oiled machineBanks strive to be on the cutting-edge of technology when it comes totheir core banking systems. If yourmortgage division is struggling withefficiency, you may not be using yourLOS platform to its fullest potential.

LOS platforms have alsokept up with technolog-ical advances through-out the years in orderto meet not only feder-al requirements, butalso those of customerswho require more func-tionality to close moreloans quickly, withoutadding additionalresources.

If you want to bemore efficient, you haveinvested in the righttool. LOS platforms haveprogressed for bankinginstitutions and canmeet your division’sloan processing needsbetter than ever.

Supporting you with functional over-sight of your pipeline, advanced secu-rity, business rules that help youmanage your workflow, and elec-tronic management of all documentsand vendor services, your LOS canoptimize your mortgage division andmake it all that it can be!

BJ Bounds is senior marketing communi-cations specialist for Calyx Software. Inaddition to media relations and copy-writing, BJ is a contributing author tothe Calyx Software blog, CalyxCorner.She has more than 10 years of experi-ence in sales and corporate marketingwith a focus on technology that spansseveral industries. She may be reachedby phone at (800) 362-2599 or visitwww.calyxsoftware.com.

“Optimizing the efficiency in yourmortgage division

involves using all ofthe brilliant featuresof your LOS that youmay not know exist.”

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e-mail: [email protected]: www.calyxsoftware.com

The Next Generation of Mortgage Loan Originator

By Casey Cunningham

The number of mortgage loan origina-tions has shrunk in both number ofunits and overall dollar volume sinceits peak in 2003. Without saying, thisdecline spilled over and sharplydepleted the number of loan origina-tors (LOs) able to withstand the stormthat has enveloped the industry. Yetthe average age of an LO is higher thaneven five years ago. As the generalpopulation of LOs continues to age,the next challenge facing mortgagelenders will be to replenish the ranks.In the past, the practice has been torecruit the traditional LO from com-petitors; however, the impendingshortage of LOs will force the industryto find alternative methods of supply-ing the next generation.

Lenders who focus effectively onrecruiting and developing sales teamsfrom outside the mortgage industry willhave a marked advantage in the mar-ketplace. To be successful in thisendeavor, they must have a clearunderstanding of their company’s valueproposition and how they will leveragekey managers within their organization.

They must have a plan to replace theirexisting sales force.

There are countless lenders whohave attempted to hire and train theirown with little or no success.Organically growing a new segment ofyour sales force requires effectiveimplementation via a tactical modelthat blends mortgage strategies andbest practices. The new sales profes-sional model need not be an all ornone proposition. Each companymust determine the desired ratio ofexperienced LOs to the new genera-tion LOs balancing the need for astrong stable sales team to generateimmediate growth and a team prop-erly positioned and poised for longterm sustainable growth.

While there are many factors to con-sider, there are some simple steps tofollow to ensure a successful new salesforce. Consider these “10 Steps forBuilding the Sales Force of Tomorrow.”

1. Corporate hiring goalA company should begin by determin-ing the allocation headcount of new

LOs it plans to recruit,hire and train. As part ofthis initial step, it isimportant as well toidentify the first and sec-ond year annual produc-tion goals for these newhires. Remember, thesenew hires are not“exposed” to the tradi-tional knowledge of yourcurrent LOs. It is highlyrecommended you sethigher expectations forthese new sales profes-sionals as they will workto achieve your mini-mums with little knowl-edge of the industrynorms.

2. Job descriptionand benchmarks/metricsOnce your corporate hiring goals areset, it is time to identify the job descrip-tion of the new LO. Upon hiring, willthey fulfill the traditional model of anLO or will they be an assistant or juniorLO for a specified period of time or per-manent assistant to a top LO? As youestablish benchmarks/metrics for thenew position, remember that your cor-porate hiring goal is impacted. Thesemetrics/benchmarks should be givenserious consideration as these are yoursuccess indicators in your new LO pro-

gram. Items to include inthe job description:Number of units and dol-lars in production, num-ber of sales calls orincrease in referralsources/production fortop LO, etc. These bench-marks should be deter-mined with expectationsfor the first threemonths, increasing fromthe third to the sixthmonth, sixth monththrough the 12th monthand again after year one.

3. CompensationOnce the job descriptionis complete, it is time tocreate a compelling com-pensation plan to sup-

port the acquisition of new talent. Aneffective recruiting campaign willposition you to compete for the sametalent as other Fortune 500 compa-nies. Your compensation plan is obvi-ously a huge component of the over-all strategy. Create a compensationplan that meets the financial needs ofyour company and make sure that ithas incentives to attract the highly-qualified talent you seek.

4. Ideal new candidate profileUpon completion of the compensationplan and job description, your knowl-edge of what is “ideal” in a new recruitis imperative to the success of your ini-tiative. There are known key indicatorsof future success for new LO candidates.A careful examination of previous workhistory and a well-prepared interviewguide will assist in uncovering desirablepatterns of behavior, as well as obsta-cles or warning signs that wouldimpede success. Consider the followingtraits and determine the “must haves”you will require in developing the nextgeneration of your team:

� Direct sales experience with a trackrecord of success to include ademonstrable and stable work histo-ry, direct sales experience, andexcellent verbal communicationskills

� An ability to build long-term rela-tionships with referral sources,including but not limited to, real-tors, builders, financial planners,CPAs and attorneys

“Lenders who focuseffectively on

recruiting and developing sales teams

from outside themortgage industrywill have a marked

advantage in the marketplace.”

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� Candidate should possess a need forachievement in highly-competitiveenvironments

� The ability to connect with cus-tomers for repeat business

� The ability to creatively marketthemselves and prior employers

� Be self-disciplined with fairly strongorganizational skills

� Be a team player (many high pro-ducing LOs have participated incompetitive sports)

� Demonstrate an ability to thrivewhen dealing with adversity andhigh stress situations

� Possess an existing referral database—a quality “sphere of influence” withpeople in their community

5. Training and assimilation planOutside of the corporate culture andrequisite on-boarding of new hires,internal training teams must be pre-pared to deliver immediate compre-hensive mortgage industry essentialsand advanced mortgage skills or deter-mine the outsource provider of suchtraining. Mortgage 101 and beyondshould be implemented jointly with aneffective assimilation plan encompass-ing, in-field mentoring, daily businesspractices, prospecting activities, weeklyaccountability meetings, business plan-ning and other responsibilities withinthe scope of the job description. Thetraining plan and assimilation planshould include a thorough training ofthe managers/mentors as well.

6. Manager/mentor qualificationsThe manager/mentor of each new hireis an integral part of the overall successof the new LO. Select company “cham-pions” who strongly support the compa-ny mission/vision and are role modelsfor your new LOs. The manager/mentorselected to fulfill this role must possessoutstanding technical skills, industryknowledge and proper utilization andefficiencies of the company’s technolo-gy. They must have demonstrated theability to motivate and inspire their cur-rent team or fellow loan officers viaexcellent coaching skills and/or previ-ous success with rookies. The qualifiedmanager/mentor does not need to pos-sess the manager title, but must be anexceptional mentor.

7. Recruiting planThe key to locating qualified exception-

al candidates is to take advantage ofand optimize the numerous sourcingoptions available to you. From yourexisting database to current LOs (askyour team) branch out to other pro-fessions, including stock brokers,financial planners, insurance agents,finance managers or sales profession-als representing the auto industry,restaurant management and realestate agents. Recruiting from thesevarious sources will allow for a large,highly talented candidate pool.Remember, the best candidates willwant to hear a clearly defined valueproposition. The effective recruiter willbe able to communicate compellingreasons to work for your company,what you offer and the company vision.

8. Initiate the recruiting planIt is imperative that all components arein place before you initiate your planand it is also important that you haveestablished benchmarks by which youwill measure the success of your recruit-ing. How many recruits yielded onequality hire? What marketing was mosteffective? Did one professional sectorprovide the most viable candidates?Was the set aside capital requirementssufficient?

9. Hire and trainAs the new hires arrive, the on-boarding and training programshould clearly explain the expecta-tions for professionalism, ethics andexecution. The communication tothe leadership team on the overallmeasures of the program is an inte-gral part for the future planningprocess of new hires as well.

10. Assimilation processConducted in tandem with the estab-lished training schedule, a great startfor a LO begins by shadowing sales callswith the assigned manager/mentor fora period of 60 to 90 days. A proba-tionary period follows where the newhire will, in turn, lead the sales callaccompanied by the manager/men-tor. Depending on the job descriptionand responsibilities, the LO assistantor junior LO receives a separate butequally defined skill set they are hon-ing. Providing immediate feedbackthrough effective one-on-one meet-ings is crucial to avoid sales pitfallsand to acknowledge and reinforcepositive sales and/or other skills. The

more success a new hire experiencesimmediately, the higher probability oflong-term success.

The time to start is nowIt’s time to consider this strategy forthe overall growth and health of ourindustry. All of the other financialindustries (financial planners, stockbrokers, insurance agents, CPAs, etc.)have attracted great talent andrequire comprehensive training andknowledge to have the privilege ofreaching, serving and retainingclients. For so long, we have recruit-ed and committed to hiring onlythose with previous mortgage experi-ence and success believing it willtransfer with the LO into a new cor-porate environment. The truth is,hiring is risky and experience, knowl-edge or pipelines do not guarantee

success. We have clearly overlookedthe benefits of “growing” our own.Our industry is ready and needs thenext generation of LOs as they bringwith them the following wonderfultraits: Enthusiasm, new energy, anopen mindset, motivation, loyaltyand most importantly, unlimitedproduction. We will no longer bebeholden to the limited recruitingpool currently available. Recruit andtrain new LOs and you have openedyour company up for ultimate suc-cess in the long-term.

Casey Cunningham is president ofAtlanta based XINNIX, a provider ofinteractive online training for mortgagesales and leadership development pro-grams. She may be reached by phone at(678) 325-3501 or e-mail [email protected].

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United Northern Mortgage Bankers, Ltd. Corporate NMLS ID# 7230 New York State Dept. - Licensed Mortgage Banker - License #100724 New Jersey Dept. of Banking and Insurance - Mortgage Lender - License #L0046623 Pennsylvania Dept. of Banking - Mortgage Lender - License #20887 Connecticut Dept. of Banking - Mortgage Lender - License #20372 Massachusetts Div. of Banks and Loan Agencies - Mortgage Lender & Mortgage Broker - License #MC5070 North Carolina Commissioner of Banks - Mortgage Lender - License #L140365 South Carolina State Board of Financial Institutions - Supervised Lender - License #S7, 461 Florida Dept. of Financial Institutions - Mortgage Lender - License #ML0700679 Senior Security Home Advantage is a lending area of United Northern Mortgage Bankers, Ltd. Direct FHA Endorsed Lender

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Facing the Challenges of theCurrent Mortgage Banking Landscape

By Leif Boyd

As we look at the current industry andwhere it will likely head over the nextfew years, many brokers have morequestions than answers. Companies,brokers and loan officers are still figur-ing out how loan originator (LO) com-pensation reform will impact their bal-ance sheets and wallets. As the govern-ment and banks have continued to addmore requirements to get loansapproved, it has become harder foronce-qualified individuals to get loans.A few large companies seem to controla large share of the market.

State of the industryLarge, nationwide banks are still domi-nant players in the mortgage bankingindustry. However, most of these bankshave begun consolidating their retailbranches and have refrained fromopening additional brick and mortaroffices across the nation. The big banksappear to be satisfied with their currentvolume and customers. They originate asatisfactory number of loans, and at thesame time, they can offer their cus-tomers a variety of ancillary servicesfrom free checking to savings andinvestment accounts. This keeps thelarger banks busy and profitable.

This situation also leaves room forsmaller mortgage banks to reach cus-tomers in ways the big banks are nolonger doing as aggressively as in thepast. Meanwhile, customers who maybe skeptical of the larger banks or maynot need the gamut of services offeredare likely to choose smaller mortgagebanks for their loans.

Banking versus brokersToday’s environment is decidedly morefavorable for mortgage bankers.Brokers are increasingly marginal-ized by the big banks and mortgagebankers who now control approxi-mately 93 percent of the mortgageindustry. As risk has increased andgovernment reforms have been putinto place, the entire industry hasshifted. In this climate, directlenders, both big and small, have adistinct advantage over individualbrokers.

While the pendulum may well swingback in favor of brokers and smallerbankers in the future, today, the con-sumer, real estate agent, asset managers,investors and warehouse lenders all preferto deal with banks and mortgage bankerswith solid balance sheets and proven busi-ness practices. In an industry already over-loaded with excessive hurdles, remaining abroker today seems an unnecessary hurdleto leave in place.

Today’s added challengesImplementing LO compensation reformin April of this year was a difficult chal-lenge to overcome for many mortgagecompanies, brokers and loan officers.As the dust continues to settle fromthose regulatory changes, the industryfaces two large hurdles.

First, originators, underwriters andconsumers are bearing more of a bur-den. The underwriting process hasbecome increasingly more laboriousand has made gathering the necessarypaperwork for a loan more difficult. Asthe big banks add overlays to alreadystronger regulations, the processbecomes more difficult for consumers.This sometimes results in once-quali-fied consumers not being approved fora loan. Ultimately, the big banks areoverruling Fannie Mae and Freddie Macas they look to minimize mortgage riskon their balance sheets.

The second issue stems from thelack of a viable secondary market formortgages. In the past, Wall Streetinvestors would buy up loans frombanks to help mitigate risk for thebank. Now, although investors arebuying loans, they are sold back tothe banks if the investor defaults. Aviable secondary mortgage market isunlikely to emerge until the end of2014. In the meantime, mortgageswill continue to be written conserva-tively and analyzed thoroughlybefore they are approved. Thesemortgages are so safe that they havesome of the lowest interest rates inhistory and, when sold to investors,they do not offer a high return-on-investment (ROI). With low interestrates, investors are more likely to

place their money inother parts of the mar-ket where there is a high-er ROI.

Taking all of that intoconsideration, the stockmarket is still fickle andhas seen recent swings of100-plus points per day.Even if the market stabi-lizes, mortgages may beseen as one of the saferplaces to invest money.Mortgage-backed securi-ties (MBS) that includefully-documented andscrubbed mortgages arejust as safe as a treasurybond. Despite the lowROI, some investors maysee mortgages as a safe,quality way to invest.

Think back to 1993 and the Jack inthe Box E. coli outbreak. In themonths after the outbreak, Jack in theBox was probably one of the safest fastfood restaurants, as they were underthe watchful eye of the public andenacted some of the toughest foodsafety procedures in the industry.Now, with government rules and regu-lations in place and banks addingtheir own layer of rules and regula-tions, mortgage-backed securities areone of the safest options available.

Tomorrow’s opportunitiesAlthough the big banks seem to reignover the entire industry and have a lotof leverage when it comes to getting aloan, there are several opportunities forsmaller mortgage banks. Smaller mort-gage banks that can consistentlyapprove mortgages within a standardtimeframe will succeed and be prof-itable. This does not base success onvolume for volume’s sake, but instead,relies on a wide customer base for over-all health, whereas the big banks relyon selling a wide variety of services to alimited number of customers. Servicingis becoming increasingly attractive andfeasible for smaller mortgage banks andcan be a great way to diversify a com-pany’s revenue.

Beyond selling mortgages, the cul-ture within a mortgage bank is highlyimportant to its current and future suc-cess. A successful company culture isone that encourages employees to helpothers and creates a willingness amongemployees to do what is best.Companies with strong corporate cul-

tures are also more likelyto have higher staffretention rates. In today’scompetitive mortgagemarketplace, every highperforming LO is a high-ly sought-after prize.Wi th compensa t ionreform changes now inplace, compensationalone is not enough todraw talented LOs to anew company. Having areputable culture of serv-ice and success, however,can go a long way to keephigh-quality employeesor attract high-perform-ing LOs.

Part of doing businessthe right way means cre-ating a positive working

environment for employees and giv-ing LOs the tools they need to suc-ceed. This will keep customers happyand lead mortgage banks to successand profitability. Small mortgagebanks can also stand out by teachingbasic and effective sales techniquesto their LOs. These techniquesinclude:

� Providing excellent customer service� Researching and prospecting the

right potential customers� Listening to prospective customers’

needs and meeting those needs� Adding value to customers’ business-

es by providing customers withinformation to help them succeed

Big banks do not always have torule the mortgage industry. As theeconomy recovers and the secondarymortgage market re-emerges, smallernational and regional mortgagebanks are likely to become moredominant players within the indus-try. In the meantime, showing a com-mitment to core business principles,employees and customers is a sureway to stand out.

Leif Boyd is senior vice president ofproduction for American PacificMortgage. Since joining AmericanPacific Mortgage, Leif has taken anactive role in overseeing all aspects ofmortgage origination, including theoversight of the production depart-ment and 114-plus branches. He maybe reached by phone at (916) 960-1325or e-mail [email protected].

“Brokers are increasingly

marginalized by the big banks andmortgage bankers who now controlapproximately

93 percent of themortgage industry.”

Banker to Broker:The Advantages to Mortgage Brokers

By David Hardin

Change.Few words in the English language

evoke such equal and opposite feel-ings—of both dread and excitement.

Rapid and relentless, everydaychange is precisely what mortgage bro-kers face, and I’m not referring to mort-gage rates. For the past two years,waves of federal legislation and regula-tion have been transforming andchanging the home financing and lend-ing landscape. Any mortgage broker stillin business must consider a fundamen-tal change: Should they remain a bro-ker or join a banker?

This is no small change. We can-not do much about new rules, pro-grams and guidelines—they repre-sent the hand we are dealt. Havingbeen dealt such a hand, many of ourcolleagues have abandoned theirvocation mid-career, choosing tochange industries or perhaps takethe initiative to start a new venture.But there is another option: We canadapt our business to survive andthrive in this new world.

First let’s take a look at the key devel-opments originating from Congress andthe Federal Reserve Board (FRB). There’sno question that regulatory changesimposed on our industry over the pastthree years have had a profoundly neg-ative impact on both mortgage brokersand consumers.

The reason these regulations havefailed is simple: Faulty aim. They’vebeen applied to the industry and thebusinesses that make up the industryand not to the real problem: Bad mort-gage products, such as sub-prime andstated-income loans.

Perhaps the most significant nega-tive, at least in terms of compensationand earning potential for mortgage bro-kers, is that, under the new rules, mort-gage broker businesses can no longerbe paid by both the lender and the bor-rower in a loan transaction. They mustchoose. (For more on the impact ofrecent Congressional and FederalReserve Board regulations, see theaccompanying sidebar on page 42.)

As a result of these and otherchanges, mortgage brokers are increas-

ingly—not yet in droves but certainlyin bunches—electing to join mort-gage banking operations as employ-ees and run their branches as profitcenters of the bank. In addition toallowing one to remain in a businessthey probably love, doing so hasmany advantages.

When you broker a loan, there is apreset margin that you must earn,and in many cases, you cannot legit-imately credit the client as much asyou might like. In some cases thismay make the loan undoable for theclient or may result in you losing theloan to a competitor with a lowermargin. When you become a bankbranch you sell off of a rate sheetthat allows greater flexibility when itcomes to how much credit you cangive the client towards costs.

Segueing from broker to bankerhas several inherent positives. Forinstance, the GFE (Good FaithEstimate) disclosure is cleaner andless confusing to the client. You dis-close only what the client is actuallybeing charged and you do not haveto show a charge and then show acredit. It makes the closing less con-fusing and is a much easier sell.

Your process also becomes greatlysimplified. You no longer have toworry about the submission require-ments for multiple lenders. This is anarea that is often overlooked, but asimplified process translates to bet-ter customer service and the abilityto close loans faster and with greateraccuracy.

When you team up with the rightmortgage bank, you become part ofan organization with the resources inplace to ensure you remain in com-pliance with new laws and the never-ending changes in programs andcompliance issues. Most mortgagebanks provide accounting, humanresources and other administrativesupport that most small business canonly hope for. You become part of alarger entity that generally hasresources to help you grow yourbusiness, such as marketing pro-grams, collateral and greater access

to technology and legalsources to help you cre-ate business arrange-ments with your targetclients that can prove tobe very profitable.

The resistance of manybrokers to convert theiremployees to a W-2 statushas proven costly and if ithasn’t invoked an auditby the state yet, it certain-ly is a risky way to contin-ue to do business. Thepayroll services that mostmortgage banks provideis the first step in ensur-ing you are doing thingsproperly.

Many mortgage banksnow offer the ability tobroker loans to fill thegaps in product that their

banking products mayhave that your clientsneed. This can beextremely importantwhen, as a broker, yourclients are accustomed toyou having a wide arrayof products available.

So how do you decideif a conversion from bro-ker to banker is right foryou? First and foremost,you have to assess theneeds and goals of yourbusiness. What are itsmost important needs?You also need to know ifyour company has thewherewithal to competeand remain in compli-ance. Finally, considerhow you would ratherspend your time: grow-

“… mortgage brokersare increasingly—

not yet in droves butcertainly in bunches—

electing to join mortgagebanking operations

as employees and runtheir branches as profit centers of

the bank.”

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ing your business or administering yourbusiness?

The decision to change from broker tobanker should not be taken lightly—itcould be the single most important deci-sion a broker makes in his or her career. InJanuary 2010, I took a mortgage brokerageoperation that had been independent forsince its inception in 2004 and transformedit to a mortgage bank with a growing bank-ing firm. The transition was motivated bychanges in the licensing laws and in theRESPA changes. The transition allowed myfirm to remain in strict compliance andbecome a more efficient, profitable busi-ness, fully prepared to deal with the con-stant changes over the past 20 months. It isnot without hard work, but like mostthings where hard work is required it hadgreat rewards.

If and when you decide to pull the trig-ger and switch from broker to banker, hereare a few of the things you should look for:

From the Congressional Testimony of Mike Anderson, vice president andchairman of the Government Affairs Committee, National Association ofMortgage Brokers (NAMB). “Mortgage Origination: The Impact of RecentChanges on Homeowners and Businesses,” before the Subcommittee onInsurance, Housing & Community Opportunity Committee on FinancialServices, United States House of Representatives, July 13, 2011:

� On faulty regulatory aim: “The primary reason why recent regulatory changeshave done more harm than good for both businesses and consumers is thatthese regulations, by design or through implementation, disproportionatelytarget individuals, entities, and the disclosure of information rather thanaddressing specific issues related to faulty products or bad behavior.”

� On the impact on the mortgage industry: “Because of these regulations, thelivelihood of individuals and the survival (of) many entities, large and small,within our industry is being severely threatened. Consumers too are already suf-fering, as competition continues to deteriorate and the mortgage marketplacebecomes increasingly dominated by only a few of the industry’s largest entities.”

� On the impact on consumers: “Consumer fees have increased substantial-ly as lender and originator expenses per-loan are estimated to have risenby nearly $1,000 from the fourth quarter of 2010 to the first quarter of2011. Additionally, many consumers are not receiving the time and atten-tion they deserve from their loan originator, particularly if the consumeris seeking a smaller loan amount because such smaller loans have becomeincreasingly unprofitable for the originators and their employers.”

� On mortgage business performance: “Across the board, entities in the mort-gage origination business have seen their profits-per-loan drop by an estimat-ed 66 percent, and individual loan originators have seen their compensationcut by 33 percent or more in some areas. According to a recent survey con-ducted by the Mortgage Bankers Association, the average per-loan profit for anentity in the first quarter of 2011 was just $346, which was down from a $1,082in the previous quarter, and down from $608 just one year earlier. The surveyalso found that 63 percent of the 329 responding firms posted pre-tax profitsfor the first quarter of 2011, compared to 84 percent in the quarter prior.”

� On the current business climate for mortgage brokers: “NAMB is gravelyconcerned that the recent changes promulgated by the Federal ReserveBoard and Congress have done little to address the significant root causes ofour mortgage and housing crisis, facilitate a recovery in the market, or cre-ate a more consumer-friendly mortgage lending environment. In the fewshort months since the Federal Reserve Board’s rule on loan originator com-pensation was implemented, mortgage broker businesses have suffered sig-nificant and irreparable harm as a result of these new requirements.”

� On the problematic definition: “The primary flaw in the rule that is causing theharm … is the Federal Reserve Board’s definition of the term ‘loan originator.’The Board has defined ‘loan originator’ to include mortgage broker businesses,as well as the individual loan originator employees working for those business-es. However, the Board has chosen to exempt mortgage lending businesses (i.e.,‘creditors’) from this definition, even though their individual loan originatoremployees are also covered by the definition of ‘loan originator’ in the rule. Thisdisparity in the treatment of mortgage broker businesses and mortgage lendingbusinesses has placed mortgage brokers at a considerable competitive disad-vantage in relation to their competition in two primary respects. First, a mort-gage broker is prohibited from ever adjusting its price, up or down, to benefit aconsumer or secure a transaction, while a mortgage lender remains free toadjust its pricing for any reason as circumstances may warrant. Additionally, amortgage broker is prohibited from compensating its employee loan originatorson a commission basis, which remains the most economically viable means fora small business mortgage originator to compensate its individual loan officers.”

� Is the management team one I seemyself working with on a daily basis?

� How are their rates on the key productsI sell?

� What is the breadth of product offer-ing?

� What level of accounting, compliance,human resources, payroll and market-ing support do they offer?

� What is the financial structure?� Am I ready for a change?

David Hardin is director of retail operationsfor Bay Equity Homes Loans, one of the SanFrancisco area’s most respected and success-ful mortgage lending institutions. David is incharge of expanding the bank’s team ofretail branches across the western UnitedStates by encouraging mortgage brokers totransition into the mortgage financingindustry. He can be reached at (415) 820-4512 or (949) 701-0804, or [email protected].

Leading Mortgage Bankers Out of Chaos:Utilization of SWOT Analysis (Strengths,Weaknesses, Opportunities and Threats)

By Debra Gaveglio

The new world order of mortgage bank-ing requires the flexibility to adapt toevolving conditions and the ability toreinvent yourself as market conditionsdictate. In assessing the sustainablehealth of the mortgage banking indus-try, it makes sense to employ certaintools such as a SWOT (Strengths,Weaknesses, Opportunities and Threats)analysis. The relatively simplistic SWOTmatrix was utilized in the 1960s and1970s by Albert Humphrey atCalifornia’s Stanford Research Institute.SWOT provides valuable intelligence forthe planning of business transformationstrategies. The book Leading Change byJohn P. Kotter adds value to the assess-ment with an eight-step approach.Kotter describes the guiding principlesto mitigate the risk of change failure asmortgage bankers adapt to the futurestate of the industry. To provide a rele-vant example of a SWOT analysis, fourattributes applicable to the mortgagebanking industry are discussed for eachof the four steps in the SWOT analysis.

StrengthsThe first step in the SWOT is the exami-nation of “Strengths.” Leading Change’seight critical success factors bear aclichéd theme: “Tone at the Top.”Mortgage bankers can utilize thisstraightforward approach methodologyfor business transformation. A key com-ponent in sustainability is adapting tochange. The first step is creating a visionwith an urgently communicated mes-sage communicated from the top down.The second step is to build a guidingcoalition powerful enough to effectchange. The third step is a strategy forchange and the fourth is to communi-cate the change of vision with the coali-tion leading the charge. No mortgagebanking entity will be successful unlessthe masses buy in to the concept—theguys in the trenches doing the work.Action is taken in the fifth step toreduce obstacles that undermine thegoals. The sixth step is short-term wins;grabbing the low-hanging fruit. Short-term obtainable goals foster the buy-in

of the masses when change is visible.The implementation of short gainsenables step seven which is theincrease of business transformation.New projects are considered with astrong core team of change agents.The final step is anchoring changeinto the corporate culture. The suc-cess of sustainable change beginswith the tone set at the top.

The definition of office space is pro-gressing into a virtual world. Successfulmortgage bankers who embrace mobil-ity and virtual office spaces can seek toincrease efficiency and productivity.With a movement away from a tradi-tional physical locality, a flexiblelifestyle and an efficient workplace canseek to meet in the middle.

It makes sense for mortgage bankersto humbly self-identify inefficienciesand gaps in compliance to affectchange. Prudent project managementplans can mitigate the identified risksin the change lifecycle. From my per-spective, a conservative approach toreserving for risk and revenue sharing isthe name of the game.

Mortgage bankers who embracetechnology support an evolutiontowards increased transparency andaccountability. Stakeholders through-out the lifecycle of a mortgage asset canengage in system and data integrationefforts through digital service vendors,“COTS” (Commercial Off The Shelf) andcustomized technology tools. Withincreasing opportunities to share, storeand transport data in the internet“cloud,” a potential for cost reductionin the infrastructure exists. It is neces-sary to note that the security of dataand the protection of privacy in a virtu-al cloud environment is evolving.Mortgage bankers who embrace tech-nology utilize these key business driversto succeed.

WeaknessesThe next step is citing the“Weaknesses.” Inefficient transactionaldue diligence and post-closing qualitycontrol (QC) poses risk throughout the

lifecycle of a mortgageasset. Building a robustprocess for the review ofassets can be a costly andcomplicated process toimplement and maintain.Once a settled asset ispurchased and sold in thesecondary marketplace,the lack of clarity aroundcertain representationsand warranties adds risk.Buy-in from the mortgagebanking industry is neces-sary to support QC planswhich impact the cost ofdoing bus iness . Theabsence of comprehensiveanalysis of significant find-ings must be mitigated.

Without a robustprocess to insure confi-dence in the data trans-mitted throughout thelifecycle of a mortgageasset, systemic risk can-not be prudently mitigated. The con-solidation of “siloed” data throughouta mortgage banking organization’slegacy systems is a complicated task ifnot gathered at the birth of a mort-gage asset and maintained through-out its lifecycle. Lack of clarity withrespect to the liability and identifica-tion of the legal owners of record asassets bought and sold adds risk.

President Barack Obama’s jobsspeech, the debt ceiling extension mat-ter and the Dodd-Frank Act all add riskto the ability to accurately assess theimpact of regulatory requirements.Ambiguity surrounding the legislation

on the proposed “skin inthe game” risk retentionrule (Section 941 of theDodd-Frank Act), forexample, hampers riskmitigation. Proposedchanges to underwritingcriteria for mortgageloans can have a directimpact how the industryreacts. The Dodd-Franklegislation will increaseinvestor risk retentionand regulatory over-sight by governmentalagencies on the finan-cial markets.

The possibility of de-regulat ion versus in-creased regulation willdepend on how govern-ment, government-spon-sored and private mar-ketplace entities respond.These factors are diffi-cult to predict. Histori-

cally, weaknesses in the housingmarket become systematically visi-ble as the industry is stressed.Market movements over time indi-cate the housing market will ebband flow. When the check and bal-ance system is laden with risk, thevolatility can be severe with the axefall point and recovery periodbeing unpredictable. With respect todata transmission and securityrequirements, the assessment forany technology optimization andmodernization should align withcurrent assessments of the regula-tory environment.

“Successful mortgagebankers will adapt tothe President’s jobsplan, debt ceiling

extension issue andproposed Dodd-Franklegislative requirementsby clearly establishing

the roles, responsibilities and

liabilities of the originators, sellers

and servicers.”43


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OpportunitiesThere is tremendous “Opportunity” toaffect change in the mortgage bankingindustry. Successful mortgage bankers willstrive to increase the efficiency of the waythey do business with back to basic princi-ples. Current housing market conditionssupport a conservative and balanced sys-tem of revenue sharing with loss partici-pation in transactional agreements.Establishing a strong foundation of trans-parency and accountability from loanorigination application process to closingand then to the sale of the asset makessense for long-term sustainability.

A transformation project plan for suc-cessful mortgage bankers can capitalize onopportunities by aligning the businessneeds and requirements with the technol-ogy and the trifecta: To incorporate arobust risk and fraud mitigation program.

Successful mortgage bankers will adaptto the President’s jobs plan, debt ceilingextension issue and proposed Dodd-Frank

legislative requirements by clearly estab-lishing the roles, responsibilities and liabil-ities of the originators, sellers and servicers.The opportunity to evolve industry bestpractices in this arena exist, it is the fiduci-ary responsibility of mortgage bankers totake part in solutions going forward.

Modernization through technologybears mentioning one more time. Thesuccessful mortgage banker should alignthe appropriate subject matter expertiseto address the notoriously paper-ladenindustry. This can promote an improvedbest practices approach for the reductionof manual and duplicative processes andfor the quality of data available for analy-sis. These goals should incorporate busi-ness intelligence tools to promote robustreporting capabilities.

ThreatsThe final step is to identify the “Threats” tosuccess. Process snags, human capital andbudget will impact the success of business

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transformation and modernization initia-tives. The success of a mortgage bankingbusiness forward plan can be threatenedby the sustainability of fiscal backing.

The structure of organizational chartsthat exist in financial institutions is unpre-dictable. Volatility in the marketplace, lossof subject matter expertise through naturalattrition, reorganizations, changes to seniormanagement and to the business plan canimpact the success the mortgage banker. Ifthe leadership of a given organization isinconsistent, so is the message which willimpair embedding change in the culture.

Will legacy credit losses ever sunset?The lack of clarity around liability and thecost of time-consuming litigation spentdetermining such liability will continue tostress the industry. If the determination ofwho should bears the credit loss lacks clar-ity, the perpetuation of legacy loss is anongoing threat.

Dodd-Frank calls for establishing thresh-olds of credit risk retention (skin in the

game) and for the modification of under-writing standards that will disqualify certainmortgages from risk retention exemptionsThe proposed levels of five percent will ulti-mately be passed on to the consumer.

In conclusion, the SWOT analysis can bea powerful brainstorming exercise to fos-ter change in the mortgage bankingindustry. The identification of the“Strengths” and “Opportunities” canbecome the foundation for the next step:Establishing a business plan, obtainingstakeholder buy-in, procuring funding,and engaging subject matter expertise todeploy results.

Debra Gaveglio is a senior consultant atActualize Consulting, has managed a varietyof derivative and structured fixed-incomedebt products during her 25 years of experi-ence in the mortgage industry. She may bereached by phone at (267) 760-1396 or e-mail [email protected].

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Mortgage Companies Breaking the 2011 Inc. 500 List

Each year, Inc. magazine releases its list of the top 500 growing companies inthe United States. The prestigious Inc. 500 list is published annually and recog-nizes those private U.S. corporations who have experienced significant expan-sion and growth over the past year. In 2011, a number of mortgage-relatedcompanies populated the list. As many feel the industry is going through a stateof flux at this point in time, the following companies have proven the skepticswrong and have seized their own niche in the market.

Number 22—Valuation Management GroupValuationManagementGroup.comFounded in 2006, Marietta, Ga.-based Valuation Management Group (VMG)has experienced a three-year growth spurt of 7,910 percent. A provider ofnational commercial and residential appraisal management services for com-munity banks, mortgage bankers and brokers, wholesale lenders, and creditunions, VMG earned $25.4 million in total revenue in 2010.

Number 140—Stonegate MortgageStoneGateMTG.comFounded in 2005 and headquartered in Fishers, Ind., Stonegate Mortgage is alender and servicer offering purchase and refinance loans through a variety ofproducts, including government-sponsored or insured programs such as GSE,FHA, VA and USDA loans. In 2007, Stonegate earned $731,845 in revenue, and in2010, saw $15.4 million in earnings, a 2,011 percent rise in growth.

Number 149—LeaderOne FinancialLeader1.comFounded in 1992 by A.W. Pickel III, former president of the NationalAssociation of Mortgage Brokers (NAMB), LeaderOne Financial is a full-servicemortgage banking operation currently underwriting and servicing more than$100 million in conventional and government loans. LeaderOne has seen athree-year rise in annual revenue of 1,882 percent, earning $1.3 million in2007 and $25.6 million in 2010.

Number 205—Urban Lending SolutionsUrban-LS.comFounded in 2002 by current CEO Charlie Sanders, Pittsburgh, Pa.-based UrbanLending Solutions, with offices in Charlotte, N.C. and Broomfield, Colo., is acertified Minority Business Enterprise, providing real estate information prod-ucts to mortgage industry. The company has seen a three-year earningsgrowth of 1,529 percent, earning $127.3 million in total revenue in 2010.

Number 215—Integrity First Financial GroupIntegrityDirectMortgage.comSan Diego, Calif.-based Integrity First Financial Group was founded in 2006 andoffers consumers mortgages with no obligation or upfront cost. In 2007, the com-pany earned $373,862 and in 2010, earned $5.8 million in total revenue, a growthof 1,146 percent.

Number 222—US Appraisal GroupUSAppraisalGroup.comFounded in 2003 and headquartered in Chicago, US Appraisal Group provides realestate appraisal services for lenders, attorneys, relocation companies, homeowners,developers, corporations, and estate and financial planners. In 2010, the companyearned $3 million in total revenue, a rise of 1,432 percent over its earnings in 2007of $194,806.

Number 345—Flat Branch Home LoansFlatBranchHomeLoans.comFlat Branch Home Loans was launched in 2006 in Columbia, Mo. with themission of making the home-buying process easy and efficient with nineoffices throughout the state of Missouri. In 2007, the company earned$380,063 in total revenue, a total which rose to $4.1 million in 2010, a 974percent increase over the span of three years.

Number 347—America’s Mortgage ProfessionalsAMPRefi.comBased in Ft. Lauderdale, Fla., America’s Mortgage Professionals was founded in 2007and specializes in residential mortgages, including FHA, VA, Freddie Mac and FannieMae offerings. The company earned $413,424 in revenue in 2007, and just three yearslater, that total jumped to $4.4 million, a 968 percent rise over the three-year span.

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(866) 557-6959www.nylx.com

(800) 778-4920www.streetlinks.com

(877) 899-3760uhsamerica.com/management_team.html

(570) 325-2818www.urban-ls.com

(714) 415-6300www.veros.com

Get details about LPS’ new LoanQuality Gateway and more—Booth1119.

New multimedia retention programswith online survey and referral form.

Mortgagebot will reveal results fromtheir Benchmarks 2011 Report.

loanQuest—Smart, compliant, easy.

Take control with NewDay Financial’sNEW Correspondent Program!

NYLX LoanDecisions will soon includeMortgage Harmony HarmonyLoan™.

Our customized appraisal solutionsmeet UAD/UCDP compliancestandards!

Condo Project Review—Gerry Glavey,a 37-year HUD veteran heads up theteam.

Industry veteran Mike Forgas joinedthe team as Chief Strategy Officer.

Sapphire: Web-based ordering andreview platform for property valuation.

Proven Expertise. TrustedSolutions.

LoyaltyExpress is the leadingmortgage marketing company.

Leader in Internet-basedmortgage point-of-sale (POS)technology.

mortgageflex provides loanorigination and servicingsoftware.

NewDay Financial is a leadingVA and reverse lender inAmerica.

NYLX LoanDecisionsautomates product eligibilityand loan pricing.

StreetLinks provides a broadand innovative suite of lendingsolutions.

UHS America is comprised ofa highly-specialized team ofprofessionals.

ULS provides residential &commercial mortgageproducts and services.

Veros provides tools forproperty valuation and riskassessment.

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Appraisal Management Company

Branch Recruitment

Appraisal Management Company

Branch Manager

Freedom Mortgage Corporation, The BEST Branch Solution, Period.

Freedom Mortgage [email protected]

800.220.9498

Find out what Guaranteed can do for you. Branch Program for Professionals. It's what we do.

Guaranteed Home Mortgage Company, Inc.108 Corporate Park Drive, Ste 301

White Plains, NY 10604888-329-GHMC • www.joinguaranteed.com

Established in 1993 and headquartered in Waukesha, Wisconsin,Inlanta Mortgage is a multi-state mortgage banking company com-mitted to delivering superior service to our branch clients.For more information, call 262-513-9853 or visit www.inlanta.com.

Inlanta MortgageW229 N1433 Westwood Drive, Suite 103

Waukesha, WI 53186www.inlanta.com • 262-513-9853

RealEstateBestJobs.com ....................201-489-0256Currently working with various bankers & federally chartered banks.Seeking established, new branches & Loan Officers Nationally. Weare a top recruiting firm handling all types of mtg positions.

Church Financing

• Church Purchase & Construction • $100,000 to $2,500,00• Church Refinance & Cash Out • Churches all 50 states

• 75% of Appraised Value • 20 Yr. Fixed Rate

CONCORD CHURCH FINANCENATIONWIDE FINANCING FOR CHURCHES

Pre-qualify Online @ www.Concordchurchfinance.com800-926-0399 • Fax: 858-756-8108

Flagship Mortgage Corporation ........1-800-492-5239Multi-State mortgage bank has management opportunitiesavailable for experienced, successful & ethical professionals.Click/Email: flagshipmortgage.net/[email protected]

StreetLinks Lender Solutions provides an innovative andcomprehensive suite of valuation services and lending technologysolutions used by lenders and appraisers nationwide to improveeveryday business operations.

StreetLinks industry-leading products include LenderPlus™ full-service appraisal management, LenderX™ lender-executedappraisal management software, BPOs, SCORe™ appraisalvalidation reviews and more. Our commitment to quality andservice, embodied by our partnership approach to clients andappraisers, continues to set us apart as the nation’s premierlending solutions partner. For more information, visitwww.streetlinks.com.

StreetLinks Lender Solutions(800) 778-4920

[email protected]

We help you Meet & Exceed UMDP enforced by the GSE’sWe Improve your evaluation of collateral with “REALviewTM” Appraisals submitted in a MISMO/XML or PDF format.We’ve raised the bar for Appraisal Management Services!

HVCC Appraisal OrderingNational Appraisal Management Center

www.HVCCAppraisalOrdering.com Please call 866-396-6260

Accounting and Audit

A full service CPA firm specializing in the needs of the mortgageindustry. Providing monthly bookkeeping services,FHA andfinancial statement audits , corporate tax preparation and con-tract CFO services. Contact us today to learn more.

Branch Manager

iServe offers a complete product mix - aggressively priced, withhassle-free service & turntimes. Branching & Loan Officer opportunities available nationwide. For a change, focus on production, quick closes & a good night's sleep!

iServe Residential Lendingwww.iservelending.com

[email protected]

United Northern Mortgage Bankers......888-600-8808Limited room available for established Team Leaders andLicensed Mortgage Originators. Become part of an established30-year Mortgage Banker with a proven track record and success.

• Mortgage Branch Employment Opportunities

• We work with some of the top mortgage branch companies inthe industry!

• With hundreds of branch employment opportunities out there,making a choice on who to sign up with is not an easy task! Weare here to help!

• Hiring Licensed Mortgage Originators for branch managementand loan origination.

• Bank and Broker status to choose from, multi-State lending andmore...

Visit our site or call us today to speak to one of our representatives.

Mortgage Brokers Network Corp, Inc.1-888-589-7048

The Mortgage Industry’s Matchmakerhttp://mortgagebrokersnetwork

Mark Wilson Certified Public Accountants9455 Ridgehaven Ct, Suite 101 • San Diego, CA 92123

619-649-0712www.markwilsoncpa.com

CENTERED ON YOUR NEEDS - FOCUSED ON YOUR SUCCESS

NO File Fee or Monthly Fees

• Get a BPS payback from our volume incentive that your loanofficers can’t see

• You have the ability to control your loan officers pricing• Create, Customize and Optimize your branch’s compensation

plan• Recruiting Support – Our network of recruiters place producers

in your branch!• Full Eagle Lender and we’re currently looking for high-quality

Producers in TX, GA, AL, TN, FL, MS, and SC

Hometown Lenders(888) 606-8066

[email protected]

Does Advertising in the Resource Registry Work? It just did!Call 888-409-9770 ext. 4 to Register your company.

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Direct Mail

• Specializing in Official Snap Packs for Greater Open Rates• Envelope Mailers, Business Reply, Postcards and Much More• Targeted Mortgage Lists with Many Selects• Complete Design, Printing and Mailing Services

Your Complete Mortgage Marketing Solution.Call Us Today!(800) 922-9860

www.envisiondirect.net/catalog/mortgage.htm

Document Preparation

Document Preparation (SaaS)

ProClose provides compliant closing documents and software forResidential Mortgage Lending. Created with closers in mind, we help make a lender’s staff more efficient and supported.

Mortgage Banking Systems - ProClose1360 Beverly Rd. Ste 200, McLean, VA 22101

800-783-2283 · [email protected]

Mortgage Loan Closing Document Preparation & Compliance ServicesFulfillment Services Including Pre-Funding Review & Post-ClosingInterfaces with Leading Loan Origination Software SystemsForeclosure – Loss Mitigation Services

Robertson | Anschutz800-343-7160

[email protected]/info.html

Mortgage Loan Closing Document Preparation & Compliance SoftwareLoan Documents and Compliance – Web-based/SaaS – Easy to UseIntuitive – Secure and Reliable – Integrates with Leading LOSFree Setup and Support – Extensive Compliance Audits

Docs on Demand800-343-7160

[email protected]

Errors and Omissions Insurance

Doc Management

DocVelocity is an end-to-end paperless solution designed tosimplify the loan origination experience. Imagine having all yourdocuments in the loan process as electronic files, all online, frompre-approval to closing. DocVelocity provides: Fast and easy loandelivery to any lender … Automatic doc sorting, naming and filing… Real-time online document sharing for anyone you choose …Friendly and intuitive user interface … No start-up fees, and freetraining and support. DocVelocity addresses importantcompliance issues while giving your office the competitiveadvantage of being paperless. It streamlines all aspects of themortgage process and most important, it does so in one easy-to-use and inexpensive package. DocVelocity is the flagship productof Paperless Office Solutions, Inc., a wholly owned subsidiary ofFlagstar Bancorp. Visit www.docvelocity.com to find out more.

DocVelocitywww.docvelocity.com

(877) [email protected]

CB Malaga Insurance Services LLC......877-245-5887Insurance broker providing errors & omissions (E&O)insurance to mortgage brokers and bankers. All loan types.Available in 22 states. www.CBspecialty.com

Best Rate Referrals ............................................800-811-1402Mortgage marketing company with decades of combined expe-rience providing quality leads, mailers, lists and dialer products. www.bestratereferrals.com & www.mortgageleads.org

Contact Management/CRM

LoyaltyExpress, the leading mortgage marketing company in thenation, delivers high-impact marketing that substantially increasesproduction levels. Direct mail, e-mail, and intelligent alerts arecombined to deliver unprecedented results. Learn more today.

LoyaltyExpress877.938.1175

[email protected]

Continuing Education

NMLS approved 20 hour Prelicensing EducationNMLS approved Continuing EducationLive Classroom Instruction, Web Delivery and Private EventsThe SAFE-Smart ExamCram, Powerfully Innovative Test Prep

Abacus Mortgage Training and EducationPO Box 780

Summerfield, NC 27358888-341-7767 • www.GetYourEd.com

Time is running out...are you ready?

Pass the S.A.F.E. Act Test, meet your 20 hours of Pre-licensure,and complete the 8 hours of Continuing Education you need

• The Ultimate Test Prep Kit and Test Prep Boot Camps – Covereverything to pass the S.A.F.E. Act Test — on your first try.

• 20-hour Pre-licensure - Packed with everything to successfullycomplete your pre-licensure requirements.

• Continuing Education - Exciting, NMLS approved courses thatmeet your Continuing Education needs and build your business.

MSS Learning Center(800) 963-1900

www.MortgageSuccessSource.comEmail: [email protected]

Events

“The Expo for Real Estate Professionals"For ongoing Networking Events throughout the year please visitwww.nycnetworkgroup.com.

NYC Real Estate Expo LLCAnthony Kazazis - Director

[email protected] • www.nycrealestateexpo.com646.210.2545 • 914.763.8008

FHA Audit and Licensing

First National Compliance Solutions Inc.1-800-400-4134

www.firstnationalcompliance.comBonnie Nachamie & Jonathan Pinard have assembled a team ofexperts to assist Mortgage Brokers, Mortgage Bankers, Federaland State Chartered Banks & Credit Unions with their mortgagecompliance needs.

Hard Money/Private Lending

ACC Mortgage, Inc.932 Hungerford Drive #6 • Rockville, MD 20850

240-314-0399 • 240-314-0336 faxWeApproveLoans.com

We are doing traditional subprime lending, fix & flip lending andhard money lending.

Windvest Corporation ............................877-285-0777Specializing in rehab loans for property investors in So. CA.Up to 60% ARV, 12.99% fixed rate, 3.5-5 points, 1 yr. term.Fast & professional service since '94! Visit windvestcorp.com!

Franchise

LenderCity Home Loans888.880.2489

www.LenderCity.com

LenderCity Home Loans is now offering individual franchises. Thisis perfect for the L.O. who has always wanted to open their ownbrokerage but didn't know how. Benefits include:

• Growing with a recognized brand

• Local and National marketing and advertising

• Online search engine marketing

• More aggressive lender pricing based on volumeincentives

• A proven system that generates more revenue thanaverage broker shops

• Ability to retain your license, existing corporation, andautonomy

• Lead generation

• Processing and closing services also available

Call 888-409-9770 ext 4, to register your company.

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Loan Management Systems

Xetus ....................................................877-GO-XETUSXetusOne is a powerful, easy-to-use loan management systemthat streamlines loan processing. Our affordable SaaS applicationsare lenders #1 choice for origination, subordination & modification.

Leads

Leads

Our network attract over one million visitors per month. Our paidlead program as well as our free lender directory will help you con-nect with targeted new consumer traffic from with high-intent con-sumers searching online for the right mortgage lender.

MortgageLoan.comSM

www.mortgageloan.com • 877-390-4750MortgageLoan.com is the largest online directory

for mortgage professionals and a favorite of consumers shopping for mortgage loans.

AAA Refi Leads.....AAA Refi Leads.....AAA Refi LeadsLearn how I went from failure to success by mailing cheap refiletters from home, closed 71 loans & made $248,954.62 last yr.I’ll show you exactly how I did it. Go to: www.Refi-Leads.NET

Income Verification Services

Advanced Data (800) 537 - 0458

[email protected]

Advanced Data is a leading national provider of data services,streamlining income and employment verification with proprietarysoftware. Clients can submit 4506-T directly through Encompass360.Also ask about our AVM and flood services!

Loanbright helps mortgage companies capture and close morebusiness through its marketing and software tools. An INC. 500awardee, Loanbright has helped thousands of companies since1999 by providing them with well over 3 million qualified sales leads.

Loanbright27902 Meadow Drive, Suite 375

Evergreen,CO 80439866-391-2709 • www.Loanbright.com

Reach affluent and creditworthy consumers who are in-market andready to transact. Bankrate is a consumer direct Web site, NOT alead aggregator. Qualified leads for every sized budget, and payonly for performance. No set up fees! No contracts! No risk!

• Reach self directed, highly qualified consumers that are activelysearching for mortgage loans• Geo-targeting – reach the right consumers in the right markets• Our proprietary Advertiser Portal gives you complete controlover your campaigns, budgets, and performance reports.• YOU determine your daily/weekly/monthly budget• Pay only for consumers who click on your listing• NO cancellation fees

Try us risk-free! Call 561-630-1257or visit www.bankrate.com/cpcprogram/ for more details.

Internet’s Leading Consumer Mortgage MarketplaceAttracting over 8 million unique

consumers every monthwww.Bankrate.com • 561-630-1257

Loan Origination Systems

Calyx Software, the #1 provider of mortgage solutions is dedicatedto offering reliable and affordable software that streamlines, inte-grates and optimizes the loan process. Find out how PointCentralcan streamline your business and create compliant processes today.

Calyx Software 800-362-2599

[email protected] www.calyxsoftware.com

Mortgage Forms

• HUD Settlement Cost Booklets• CHARM Booklets• Uniform Residential Loan Applications• HUD Case Binders

www.LendingForms.comSame Day Shipping (orders placed prior to 3pm et)

24/7 Secure e-Commerce SiteSave 33-50%

Income Verification Services

Platinum Credit Services, Inc.................631-299-2084Tax return vertification (4506 tax transcript done in less than24 hours in most cases). Call Lorenzo Pugliano, Presidentand CEO at 631-299-2084.

Regulatory/Compliance

Comergence Compliance Monitoring is the mortgage industry’s onlyComplete broker desk management software and outsource solutionfor TPO management and monitoring. We can supplement lenders in-house management and monitoring resources departments.

Comergence Compliance Monitoring, LLC630 The City Drive South, Suite 205 • Orange, CA 92868

Office: 714-740-9000 www.ComergenceCompliance.com

Are you a broker/owner or current branch manager looking toexpand your business into Mortgage Banking with FHA capabilities?Then our PARTNER BRANCH ADVANTAGE© program is perfect foryou. We are offering you all the benefits of partnering with an estab-lished lender while still enjoying your independence. US MortgageCorporation is a nationwide FHA Direct Lender with a 16 year longreputation of excellence.

YOUR SUCCESS IS OUR SUCCESS!

For more information contact THOMAS R. SIRICO, VicePresident of Business Development at (917) 923-1472 or emailat [email protected].

We look forward to sharing our services with you!

(800) LOANS-15www.usmortgage.com

Retail Branch

#1 USDA RD lender in multiple states with strong FHA/VA/CONVproduct lines as well. Don't be held hostage by a captive brancharrangement. Bank it or broker it. Have a business name/identityyou don't want to give up? We allow DBAs (subject to state rules).

Polaris Home Funding Corp.616-667-9000

[email protected]/timeforachange

Sign-on weekly at nmpmag.com/lykkenonlending

Wholesale/Residential

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Wholesale/Residential

Wholesale/FHA

Icon Residential, a wholly owned subsidiary of Grand Bank N.A.,is one of the nation’s leading Conforming, Jumbo, FHA and VAwholesale lenders. Our strength, success and longevity isderived from delivering customers service that exceeds ourvalued business partners expectations. With deep industryknowledge, financial stability and innovative technology weprovide the solutions for our business partners to fund loanswhile avoiding risk.

• Direct Access to Underwriters• Competitive Pricing• Innovative Technology• Paperless Solution• Bank Funding

Icon Residential Lenders(888) 247-4207

www.iconwholesale.com

Wholesale Reverse Mortgages

Veros Real Estate Solutions is a premier technology leader in the mort-gage industry and proven leader in enterprise risk management andcollateral valuation services. Veros combines the power of predictivetechnology and data analytics for advanced automated solutions.

Veros Real Estate Solutions2333 North Broadway, Suite 350 • Santa Ana, CA 92706

(866) 458-3767www.veros.com • @verosres (Twitter)

• Arizona • Nevada • Texas • California • New Mexico • Utah• Colorado • Oregon • Washington

88 Kearny Street, 3rd FloorSan Francisco, CA 94108

Phone: (415) 632-5150 • Fax: (925) 226-1938www.bayeq.com

Now Wholesale Lending in:

Wholesale/Correspondent

BankFinancial ..........................................800-894-6900 We have money to lend for apartments, $250M to $2MM, up to75% LTV. We offer competitive rates, fees & terms. We’re com-mitted to helping you and your clients close the deal. Call us.

AMX/Land Home Financial ..................800-349-4172 AMX/Land Home Financial Services Wholesale LendingDivision - Great Rates, Great Programs, Great Service.Offering financing options that work in today's market. • Paperless! Quick and Easy!

• Top Tier Account Executives• Committed to Wholesale• Operations that Earn Your Business

TMSfunding Wholesale Lending326 W Main Street • Milford, Ct. 06460

888.371.2989 • WWW.TMSFUNDING.COMYour Partner in Success!

We offer competitive pricing and fast turn-times for FHA, VA,Conventional, and USDA programs without having a retail pres-ence in the industry. We are a wholesale lender with 22 years ofexperience and believe in exceptional service.

Terrace Mortgage4010 W. Boyscout Blvd., Suite 550

Tampa, FL 33607866-934-4631 • www.terracemortgage.com

CBC National Bank is one of the nation’s fastest growingwholesale lenders offering Conventional, FHA, VA, and USDA.The most important aspect of being a leader in today’s market isthe ability to build and maintain a meaningful relationship witheach customer. We understand that these meaningful relation-ships coupled with competitive pricing and efficient technologyare the pillars of today’s lending environment.

We are now hiring Account Executives in AL, TN, KY, VA, & MD.

Contact Stu Ehrlich in our HR department at

[email protected] for further details.

Big Enough to MATTER…Small Enough to CARE

CBC National Bank3010 Royal Boulevard South, Ste. 230

Alpharetta, GA 30022888-486-4304

If your ad was here, you would be seen by

191,181 MortgageProfessionals looking

for resources to help themin their business.

The Resource Registry is a directory of lenders(wholesaler or retail thatare recruiting), affiliatedservices and resources

that is seen by more than 191,181 active

Professionals.

Call 888-409-9770 ext. 4to register your company.

Bookmark this!Access these listings

online atnmpmag.com/directory_list

Flagstar Wholesale Lending, a division of Flagstar Bank, is one ofthe nation’s largest wholesale and correspondent mortgagelenders, providing the technology, products, service and supportthat independent mortgage brokers, correspondents, and bankersneed in today’s mortgage arena. In the ever-changing environ-ment of mortgage banking, Flagstar takes pride in accommodat-ing the specific needs of each customer. At Flagstar, we under-stand that you need every available advantage to stay ahead ofthe competition. This is why we provide multiple technologyoptions to meet your needs to register, lock, underwrite, close,fund and deliver your loans. Our wholesale website(wholesale.flagstar.com) and the loan processing tool Loantracprovides our customers with the functionality that make it easierand faster to close loans, saving you time and money! Visit whole-sale.flagstar.com to learn more.

Flagstar Wholesale Lendingwww.wholesale.flagstar.com

(866) [email protected]

For Licensed Mortgage Brokers in NY, NJ, CT, PA and FLNo HUD Approval Required – Live Help DeskWill Provide Training at Our Office or Yours48 Hour Underwriting - Get Paid Within 48 Hours of Funding

NATIONWIDE Equities

Nationwide Equities Corporation201-529-1401

www.nwecorp.com

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OCTOBER 2011Sunday-Wednesday, October 9-12Mortgage Bankers Association’s 98th

Annual Convention & ExpoThe Hyatt Regency

151 East Wacker Drive • Chicago, Ill.For more information,

call (800) 793-6222 or visitMortgageBankers.org.

Friday-Saturday, October 14-15National Association of Professional

Mortgage Women NorthwesternRegion Fall Conference

Tukwila Embassy Suites15920 West Valley Highway • Seattle

For more information, call (360) 705-5053 or visit NAPMW.org.

Friday, October 21Kentucky Association of Mortgage

Professionals 2011 AnnualConvention & Trade Show

Four Points Sheraton1938 Stanton Way • Lexington, Ky.

For more information, call (270) 929-2836 or visit KYAMP.net.

Monday-Wednesday, October 24-26

National Reverse Mortgage Lenders Association 2011 Annual Meeting & Expo

Renaissance Boston Waterfront Hotel606 Congress Street • Boston

For more information, call (202) 939-1784

or visit NRMLAOnline.org.

NOVEMBER 2011Tuesday-Thursday, November 1-3Third Annual Northeast Conference

of Mortgage BrokersPresented by the Maryland Associationof Mortgage Professionals (MAMP), the

New Jersey Association of MortgageBrokers (NJAMB) and the PennsylvaniaAssociation of Mortgage Brokers (PAMB)

Trump Taj Mahal Casino Resort1000 Boardwalk at Virginia Avenue

Atlantic City, N.J.For more information, call (732)

596-1619 or visit NJAMB.org.

Wednesday, November 22011 Missouri Association of

Mortgage Professionals Convention& Trade Show

St. Charles Convention Center1 Convention Center Plaza

St. Charles, Mo.For more information,

call (314) 909-9747 or visit MAMB.net.

Thursday, November 32011 Utah Assocation of Mortgage

Brokers Annual ExpoNoah’s

32 West 11000 SouthSouth Jordan, Utah

For more information, call (801) 597-2122 or visit UAMB.org.

Friday-Saturday, November 4-5National Association of Professional

Mortgage Women Western RegionFall Conference

Bahia Resort Hotel998 West Mission Bay Drive

San DiegoFor more information,

call (602) 277-3800 or visit NAPMW.org.

Wednesday-Friday, November 9-11

National Credit ReportingAssociation 19th Annual Conference

Astor Crowne Plaza739 Canal Street

New OrleansFor more information,

call (630) 539-1525 or visit NCRAInc.org.

Thursday-Friday, November 10-112011 Oregon Association of Mortgage Professionals

Annual ConventionMultnomah Athletic Club

1849 Southwest Salmon StreetPortland, Ore.


or visit OAMPOnline.com.

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].

Thursday-Friday, November 10-112011 Eastern Mortgage Summit

Education & ExpoCharlotte Marriott City Center

100 West Trade StreetCharlotte, N.C.

For more information, call (919) 783-0767or visit

www.NCMortgageProfessionals.org.

DECEMBER 2011Sunday-Tuesday, December 3-5

2011 NAMB/WEST Loan Originator Conference

MGM Grand3799 South Las Vegas Boulevard

Las VegasFor more information,

call (303) 798-3664, ext. 15 or visit NAMBWEST.com.

FEBRUARY 2012Sunday-Wednesday, February 5-8

2012 CREF/Multifamily HousingConvention & Expo

Atlanta Marriott Marquis265 Peachtree Center Avenue

AtlantaFor more information,

call (800) 793-6222 or visit MortgageBankers.org.

Tuesday-Friday, February 21-242012 National Mortgage Servicing

Conference & ExpoOrlando World Center Marriott

Orlando, Fla.For more information,


MARCH 2012Sunday-Thursday, March 11-1529th Annual Regional Conference of Mortgage Bankers AssociationsTrump Taj Mahal Casino Resort

1000 Boardwalk at Virginia AvenueAtlantic City, N.J.

For more information, call (732) 596-1619 or visit MBANJ.com.

Thursday, March 29Maryland Association of Mortgage

Professionals 2011 March MortgageMadness ConventionMartin’s Crosswinds

7400 Greenway Center DriveGreenbelt, Md.

For information, call (410) 752-6262, or visit MDMtgPros.org.

APRIL 2012Wednesday-Thursday, April 18-19

2012 National Policy ConferenceHyatt Regency on Capitol Hill

400 New Jersey Avenue NorthwestWashington, D.C.


or visit MortgageBankers.org.

Sunday-Wednesday, April 22-252012 National Technology in Mortgage

Banking Conference & ExpoArizona Biltmore

2400 East Missouri Avenue • PhoenixFor more information, call (800)

793-6222 or visitMortgageBankers.org.

Sunday-Wednesday, April 22-252012 National Fraud Issues

ConferenceArizona Biltmore

2400 East Missouri AvenuePhoenix



MAY 2012Sunday-Wednesday, May 6-9

2012 National Secondary MarketConference & Expo

New York Marriott Marquis1535 BroadwayNew York, N.Y.



Friday-Wednesday, May 18-232012 Mortgage Bankers Association

of Georgia Education Forum & Expo

Sandestin Hilton Golf Resort & Spa4000 South Sandestin Boulevard

Destin, Fla.For more information,

call (478) 743-8612 or visit MBAG.org.

Sunday-Wednesday, May 20-232012 Commercial/Multifamily

Servicing & Technology ConferenceHilton Anatole

2201 North Stemmons FreewayDallas



Sunday-Wednesday, May 20-232012 Legal Issues/Regulatory

Compliance ConferenceLa Quinta Resort & Club49-499 Eisenhower Drive

La Quinta, Calif.For more information,


NATI

ONAL

MORTGAGE PROFESSIONAL

MAGAZINE

NMPNMP

Looking for: TOP PRODUCERSCal l for Detai ls!

T he BEST B ranch Solu t ion, Period.

Nationwide FHA Lender

This information is provided to assist business professionals and is not an advertisement extended to the consumer,as defined by Section 226.2 of Regulation Z. Freedom Mortgage corporate office is located at: 907 Pleasant Valley Ave. Suite 3, Mount Laurel, NJ 08054. Lender NMLS ID: 2767. Licensed by the NJ Department of Banking and Insurance, License #9100861. All Rights Reserved. EOE

www.Fmbranch.com800.220.9498

[email protected]

Some restrictions may apply. All borrowers are subject to credit

approval. Programs subject to change. The information provided

herein is for dissemination to and for the use of real estate and

financial business entities only and is not an advertisement for

the extension of credit to consumers.

© 2011 Flagstar Bank

MTMP_october11

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