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The Seven Keys to Building Successful Relationships By Louis Tesoriero 32

FHA Insider: Build Relationships Through FHA UpdatesBy Jeff Mifsud 33

Strengthen Relationships With Social Media By John Seroka 34

What Could be Better Than Zero-Cost Marketing? By Adam P. Smith 35

Relationship Speaking: The New Secret Ingredient By Laura Lynn Burke, EA 36

Building Borrower Relationships Through IndustryDesignations By Lance Cassell 37

Value Nation: The Field Appraisal Review is the Trump Card By Charlie W. Elliott, MAI, SRA, ASA 12

The Secondary Market Overview: From Bonds toProduction … Plan for the Year Ahead By Dave Hershman 13

SAFE Smart: Coming to a SAFE Place By Paul Donohue, CRMS 13

The NAMB Perspective 14

Forward on Reverse: FIT for Mortgage Lenders (Part IV)… Funds Usage Matters By Atare E. Agbamu 17

NMP Mortgage Professional of the Month: Greg Schroeder,President, Comergence Compliance Monitoring 18

TrendSpotter: Three Ways to Simplify Your Relationshipsin 2011 By Gibran Nicholas 20

Ask Tommy: Your QC Expert By Tommy A. Duncan, CMT 21

A View From the “C” Suite: Are You Reliable? By Dave Lykken 22

The U.S. Mortgage Crisis: What the Models Missed By Joseph Breeden 24

NMP News Flash 4

Heard on the Street 17

New to Market 29

NMP Calendar of Events 48

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NationalMortgageProfessional.com

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VisitNationalMortgageProfessional.com.

COMPANY WEB SITE PAGE

48 Hour Network ............................................ www.48hn.com ....................................................33

Abacus Mortgage Training and Education .......... www.getyoured.com ....................................13 & 23

ACC Mortgage .................................................. www.weapproveloans.com ....................................39

BankFinancial .................................................. www.bankfinancial.com ......................................19

BlueRoof360.................................................... www.blueroof360.com ........................................17

CallFurst Conferencing...................................... www.callfurst.com ..............................................38

Comergence Compliance Monitoring, LLC .......... www.comergencetrustedmember.com ..................40

Compensation Master ...................................... www.compensationmaster.com ............................25

Elliott and Company Appraisers, Inc................... www.elliottco.com ..............................................34

Envision Direct ................................................ www.envisiondirect.net/catalog/mortgage.htm ......30

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

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

Frost Mortgage Lending Group .......................... www.frostmortgage.com/nmp ..............................41

GSF Mortgage Corporation ................................ www.gsfprobranch.com ................Inside Front Cover

GSF Funding .................................................... www.gsfsales.com ..................................................9

Guaranteed Home Mortgage.............................. www.joinguaranteed.com ....................................43

HVCC Appraisal Ordering .................................. www.hvccappraisalordering.com ..........................31

MBA-NJ/NJAMB ................................................ www.mbanj.com ..................................................42

Mortgage Concepts .......................................... www.mortgageconcepts.com ..................................5

Mortgage Investors Corporation ........................ [email protected] ....................................6

NAPMW .......................................................... www.napmw.org ..................................................29

Nationwide Equities Corp. ................................ www.nwecorp.com ..............................................10

NMLF, Inc. ...................................................... www.nmlf.us ......................................................30

Paramount Residential Mortgage Group, Inc....... [email protected] ....................................................25

PB Financial Group Corp. .................................. pbfinancialgrp.com ..............................................37

ProClose .......................................................... www.proclose.com ..............................................28

Quality Mortgage Services ................................ www.qcmortgage.com ..................................21 & 35

REMN (Real Estate Mortgage Network)................ www.remnwholesale.com ......................................7

StreetLinks National Appraisal Services .............. www.streetlinks.com/SCORe ..................................11

Terrace Mortgage Company .............................. www.terracemortgage.com ....................................4

United Northern Mortgage Bankers Ltd. ............ www.unitednorthern.jobs .............................. 8 & 33

United Wholesale Mortgage .............................. www.uwmco.com ................................................26

Windvest Corporation ...................................... www.windvestcorp.com ........................................27

Xetus Mortgage Corporation.............................. www.xetus.com ....................................................6

National Mortgage Professional Magazine

TABLE OF CONTENTSNA

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MAGAZINE

NMPNMPSpecial Focus on“Building Relationships”

Features

Columns

December 2010 Volume 2, Number 12

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

As 2010 wraps up and we look forward to 2011, let us stop and take a minute to review thepast year. We have seen a lot of changes on the regulatory and legislative front that haveadversely impacted the industry (i.e. the impacts of LO compensation—see the bottom ofthe page for some insights), yet we still stand. Kudos to you all. And as we segue into anoth-er year, this month we hope to provide you with some tool and ideas that could take yourbusiness to the next level in our “Special Focus on Building Relationships.” We have assem-bled a group of authors who will share with you, their messages on how to grow your refer-ral base and attract new clientele through simple everyday methods.

In our “get it done in under 140 characters world,” we sometimes lose sight of the sim-plicity involved in building up these relationships. This section starts off with a piece from Louis Tesoierorevealing his “Seven Keys to Building Successful Relationships,” where he breaks down how to better constructyour relationships and how to apply them to the mortgage industry. This is followed by Jeff Mifsud guidingyou on how to build relationships through sharing your knowledge in his article “Build Relationships ThroughFHA Updates.” Personally, I feel that the growth of some of my most valued relationships have been fosteredand nurtured by various forms of social media. Along those lines, you’ll want to check out John Seroka’s piece,“Strengthen Relationships With Social Media.” The nice thing about having friends send you business is thatyou help their contacts and you never have to pay for leads. Adam P. Smith discusses having systems in placeto develop those relationships to ensure that your clients are all handled like good friends in his piece, “WhatCould be Better Than Zero-Cost Marketing.” Followed by that is an article from Laura Lynn Burke encourag-ing you to go outside of your comfort zone to build new relationships in “Relationship Speaking: The NewSecret Ingredient.” Our focus concludes with a contribution from Lance Cassell on the importance of indus-try designations to build relationships with borrowers on a firm foundation of authority in his piece, “BuildingBorrower Relationships Through Industry Designations.”

Thank you all for a great year. As we enter our third year of publishing National Mortgage ProfessionalMagazine, we will be looking to build our relationship with you! I want to hear from you on how we cancontinue to make our publication the choice read of the complete mortgage professional. You can alwayse-mail me at [email protected] or call (516) 409-5555, ext. 333 to provide feedback.

Sincerely,

Andrew T. Berman, Executive Vice PresidentNMP Media Corp.

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December 2010Volume 2 • Number 12

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

Fax: (516) 409-4600Web site: www.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]

Domenica TrafficandaArt Director

[email protected]

Karen KrizmanSenior National Account Executive

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

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

[email protected]

Jennifer MoellerBilling 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.

National Mortgage Professional Magazineis published monthly by NMP Media Corp.

Copyright © 2010 NMP Media Corp.

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NMPNMP

New LinkedIn Group Created by David Lykken onLoan Originator Compensation Changes & New RulesNMP editorial contributor and mortgage banking consultant, David Lykken has started a heated conversationabout loan originator compensation. Here's just a sample of some of the posts by the group members.

“One common thread I see is that the majority, if not all, who support the delayed commission idea are from thosepaid on salary. If you would pay the loan officers a higher split, you may get them to do the delayed comp pro-gram, but honestly, what is in it for the originator? Nothing I can see, and since mortgage company managementperformance is less than stellar (based upon my 29 years of experience), I do not trust anyone with my money.”

“Has anyone thought about how they are going to compensate branch managers? In all of the readings and meetingsI have attended, I am hearing that branch managers who also produce loans themselves will either have to becompensated one of two ways: Commission paid on loans they produce, or on profits of the branches, but they cannotbe compensated on both. In our group, a manager typically gets paid a small salary, override on branch production,and profits splits. It is my understanding this will have to change, especially if they produce loans as well.”

—A Senior Loan Officer, SWBC Mortgage

“As a producing branch manager you will need to create a compensation plan for loan origination withyourself. In other words, you will have a split that makes sense for your branch and just like the other loanofficers in your office, those terms need to remain intact, regardless of the profitability of the branch.”

—Ryan Morrow, Loan Officer, Frost Mortgage Lending Group

—Robert W. Gerrard, CEO, One Mortgage LLC

Apply to join the LinkedIn group by way of this URL short-cut: http://goo.gl/2zGNp

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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

11325 Random Hills Road, Suite 360Fairfax, VA 22030

Phone #: (703) 342-5900 � Fax #: (703) 342-5905

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

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

Secretary—Virginia Ferguson, CMCHeritage Valley Mortgage Inc.5700 Stoneridge Mall Road, Suite 225Pleasanton, CA 94588(925) 469-0100 � [email protected]

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

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

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

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

Deb Killian, CRMSCharter Oak Lending Group LLC3 Corporate Drive, P.O. Box 3196Danbury, CT 06813-3196(203) 778-9999, ext. 103 � [email protected]

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

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

Tom ConwellPresident(248) 473-7400 [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]

PresidentGary Tumbiolo, CMI(919) 452-1529 [email protected]

President-ElectLaurie Abshier, GML, CMI(661) 283-1262E-Mail: [email protected]

Senior Vice PresidentCandace Smith, CMI, CME (512) [email protected]

Vice President—Northwestern RegionJill M. Kinsman(206) 344-7827 [email protected]

Vice President—Western RegionTim Courtney(760) [email protected]

Vice President—Central RegionLisa Puckett(405) [email protected]

Vice President—Eastern RegionChristine Pollard(646) [email protected]

SecretaryMurielle Barnes, CME(806) 373-6641 [email protected]

TreasurerHulene Bridgman-Works(972) 494-2788 [email protected]

Parliamentarian Dawn Adams, GML, CMI(607) [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

Directors2011 Board of Directors & Staff

National Board of Directors

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FHA reports to Congress:Capital reserve ratioholds steady

The Federal HousingAdministration (FHA)has released its annu-al report to Congresson the financial statusof its Mutual Mortgage

Insurance (MMI) Fund, FHA’s principalinsurance account that includes all sin-gle-family and reverse mortgage activi-ty. FHA’s study finds that since last year,the capital reserve ratio held steady,insurance claims declined significantly,and the economic value of FHA’s single-family insurance program grew by morethan $1 billion, from $3.6 billion in2009 to $4.7 billion in 2010.

Similar to last year’s report toCongress, this accounting shows thatFHA is sustaining significant losses fromloans insured prior to 2009 and its cap-ital reserve ratio remains below thecongressionally-mandated threshold oftwo percent of all insurance-in-force.However, the report concludes thatunder conservative assumptions offuture growth of home prices, and with-out any new policy actions, FHA’s capi-tal ratio is expected to approach twopercent in 2014 and exceed the statuto-ry requirement in 2015.

“It’s clear that FHA is in a strongerposition today than we were just oneyear ago,” said FHA CommissionerDavid H. Stevens. “While we are not yetcompletely out of the woods, based onthe evidence we’re seeing, FHA isweathering the economic storm whilehelping to create a firm foundation forour nation’s recovery.”

FHA’s capital reserve ratio measuresreserves in excess of those needed tocover projected losses over the next 30years. The independent actuarialreviews of the MMI Fund estimate FHA’scapital reserve ratio to be 0.50 percentof total insurance-in-force this year,falling fractionally from 0.53 percent in2009. The difference is primarily attrib-uted to the use of much more conser-vative assumptions regarding futurehouse price growth than were used lastyear, which also resulted in an $8.5 bil-lion decrease in economic value.However, that decrease was offset by avariety of factors, including an $8.7 bil-lion increase in value due to bettercredit quality, loan performance, and

the premium increase implementedearlier this year.

Due in large part to the performanceof recently originated loans, FHA’s totalcapital resources increased by $1.5 bil-lion since last year, to $33.3 billion, andare at their highest level ever—$5.5 bil-lion greater than predicted last year. Ifthe economy were to suffer a furthersignificant downturn, recovery of thecapital ratio could be delayed beyondthe projected timeframe. However,even in the actuaries’ worst-case stresstest scenario, FHA’s capital resourcesremain sufficient to cover projectedclaim losses and FHA would not requirea taxpayer subsidy, an improvementover last year’s assessment and due tonew loans having higher credit qualitythan had been anticipated.

Due in large part to the performanceof recently originated loans, FHA’s totalcapital resources increased by $1.5 bil-lion since last year, to $33.3 billion, andare at their highest level ever—$5.5 bil-lion greater than predicted last year. Ifthe economy were to suffer a furthersignificant downturn, recovery of thecapital ratio could be delayed beyondthe projected timeframe. However,even in the actuaries’ worst-case stresstest scenario, FHA’s capital resourcesremain sufficient to cover projectedclaim losses and FHA would not requirea taxpayer subsidy, an improvementover last year’s assessment and due tonew loans having higher credit qualitythan had been anticipated.

Loans insured before 2009 areresponsible for 70 percent of the expect-ed single family loan losses. Though theyare now prohibited, so-called “seller-financed down payment assistanceloans” produced $6.6 billion in claimsto-date and may ultimately cost FHA$13.6 billion. Without these seller-financed loans, FHA’s capital ratio wouldbe above the congressionally mandatedtwo percent threshold. Conversely, loansinsured since 2009 earned $4.8 billion ineconomic value to the MMI Fund and areestimated to generate $28.3 billion ineconomic value by 2016. Expected eco-nomic value of FY 2010 and FY 2011loans alone are estimated to reach $11billion.

Insurance claim expenses in FY 2010were 21 percent lower than predicted

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Please send resume to:[email protected] call 877-215-9950

last year. Even before last year’s actuar-ial study, FHA management beganinstituting sweeping reforms tostrengthen the MMI Fund. These poli-cies have improved loan quality,strengthened lender enforcement, andhelped to protect future performance.As a result, the FY 2010 and futurebooks-of-business are expected to gen-erate significant amounts of net capitalresources that will help pay losses onearlier books and rebuild the capitalposition of the MMI Fund.

In addition, FHA eliminatedapproval for loan correspondents andincreased net worth requirements forlenders. FHA introduced a new premi-um structure that is more in line withprivate mortgage insurers’ pricing, andis estimated to provide approximately$300 million per month of additionalcapital to the MMI Fund. Furthermore,FHA has changed its credit score anddown payment requirements to ensurethat FHA provides access to borrowerswho have historically performed well.Specifically, a minimum downpaymentof 10 percent is now required of bor-rowers with credit scores below 580and applicants with credit scores below500 are no longer eligible for FHAinsurance.For more information, visit www.hud.gov.

CSBS makes available allunique state test components for MLOs

The Conference of StateBank Supervisors (CSBS),which operates theNationwide MortgageLicensing System andRegistry (NMLS) on

behalf of state mortgage regulators, hasannounced unique state test componentsare now available for all 50 states and twoterritories—the District of Columbia andthe Virgin Islands. The Secure and FairEnforcement for Mortgage Licensing Act of2008 (SAFE Act) requires mortgage loanoriginators to pass a written qualified testto become licensed through NMLS. TheSAFE Mortgage Loan Originator Test, whichhas been developed by NMLS, consists oftwo components: a National Componentand a Unique State Component. Mortgageloan originators must take and pass theNational Component and a Unique StateComponent for each state in which theyare seeking a license.

“This announcement marks the suc-cessful completion of another require-ment assigned to NMLS by the SAFEAct,” said Bill Matthews, CSBS seniorvice president and president of theState Regulatory Registry, the wholly-owned subsidiary of CSBS that operatesNMLS on behalf of state mortgage reg-ulators. “This is one more illustrationof how state regulators are committedto providing enhanced and efficientsupervision of the regulatory mortgageindustry by their full commitment to

implement the many provisions of theSAFE Act.”

The National Test Component andthe first 11 Unique State TestComponents were launched by NMLSon July 30, 2009. Since that date, NMLShas administered over 332,000 testsacross the nation. For more informa-tion on how to enroll for the SAFEMortgage Loan Originator Test, pleasevisit the Testing Page of the NMLSResource Center.For more information, visit www.csbs.org.

Freddie Mac finds fixed-rateis the predominant choicefor refis

Freddie Mac hasannounced theresults of its

quarterly Product Transition Report thatconcludes in the third quarter of 2010,refinancing borrowers overwhelminglychose fixed-rate loans, regardless ofwhether their original loan was anadjustable-rate mortgage (ARM) or afixed-rate. While 30-year fixed-ratemortgages are still the most preferredproduct chosen for the new loanamong borrowers who previously hadthat product or an ARM, borrowers whopreviously held shorter-term fixed-ratemortgages showed a stronger prefer-ence for staying with a 15-year or 20-year fixed-rate loan than they have inrecent quarters. Overall, fixed-rateloans accounted for more than 95 per-cent of refinance loans.

“Fixed mortgage rates fell through-out the third quarter in Freddie Mac’sPrimary Mortgage Market Survey, with30-year fixed rates dropping to levelswe hadn’t seen since the early 1950s,”said Frank Nothaft, Freddie Mac vicepresident and chief economist. “Weended the second quarter excited thatborrowers could lock in a rate of 4.75percent for 30 years, and we ended thethird quarter with rates at just a touchover 4.25 percent. It’s no wonder bor-rowers are attracted to fixed-rateloans.”

These estimates come from a sampleof properties on which Freddie Mac hasfunded at least two successive loansand the latest loan is for refinancerather than for home purchase. Someloan products, such as one-year ARMsand balloons, are based on a smallnumber of transactions. Year-to-datethrough September, the ARM share ofapplications was six percent in FreddieMac’s monthly ARM survey, whichincludes purchase-money as well asrefinance applications.

“The share of borrowers shorteningtheir amortization terms remainshigh,” said Nothaft. “There is always adiscount for shorter terms but the pay-ments are often about 50 percent high-er than a 30-year amortizing paymentand thus are unaffordable to manyhomeowners. What we’re seeing now is

news flash continued from page 4

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W E A R E R E M N W H O L E S A L E

At REMN, we understand that there’s nothing

ordinary about focusing on what’s important:

our customers. We recognize that continued

business from our satisfied customers is the

lifeblood of our business. We believe that every

application is precious and treat each file with

the respect – and urgency – it deserves.

Even better, at REMN, same-day approvals

are guaranteed. We promise extraordinary

service in an ordinary world.

Real Estate Mortgage Network, Inc. is located at 499 Thornall Street, Second Floor, Edison, NJ 08837. NMLS #6521. This information is for use by mortgage professionals only and should not be distributed to or used by consumers or third parties. Information is accurate as of date of printing and is subject to change without notice.

* Same-day decisions guaranteed if file is received by 11 a.m. EST.

Learn more at www.remnwholesale.com

We’re not afraid to be different.

that the level of the 15-year payment isbecoming more affordable to moreborrowers.”For more information, visit www.fred-diemac.com.

J.D. Power study findsQuicken Loans is tops in primary mortgage origina-tion customer satisfaction

Driven by anincrease in lengthof time from appli-cation to approval,

the average timeline of the mortgage orig-ination process has increased for a thirdconsecutive year, while customer satis-faction has declined, according to theJ.D. Power and Associates 2010 U.S.Primary Mortgage Origination SatisfactionStudy. The study, based on the voice of thecustomer, measures customer satisfactionin four key factors of the mortgage origi-nation experience: The application andapproval process, satisfaction of the loanofficer and/or mortgage broker, the clos-ing experience and contact.

Quicken Loans ranks highest amongprimary mortgage lenders with a scoreof 826, and performs well in all fourfactors. MetLife Home Loans (808) andPNC/National City Mortgage (776) fol-low Quicken Loans in the rankings.

The 2010 U.S. Primary MortgageOrigination Satisfaction Study is basedon responses from 3,401 consumerswho originated new mortgages. Thestudy was fielded between July andAugust 2010.

The study finds that the time fromapplication to approval has increasedto 27.5 days in 2010 from 20 days in2009. As a result, the time frame for theentire origination process has increasedto 52.1 days in 2010 from 46.9 days in2009. Consequently, overall satisfactionhas decreased to 734 (on a 1,000-pointscale) in 2010 from 739 in 2009.

“While the revised Real EstateSettlement Procedures Act (RESPA)guidelines appear to have streamlinedand shortened the time from approvalto closing, the unintended conse-quence is that the application toapproval time frame has lengthenedand become more complicated,” saidDavid Lo, director of financial servicesat J.D. Power and Associates.“Ultimately, this longer timeline has anegative impact on overall satisfaction,although there are specific best prac-tices that may mitigate the negativeperceptions.”

The study finds that the most impor-tant best practices, which are mostclosely associated with high levels ofsatisfaction, are:� Providing proactive updates on the

status of the loan� Providing a welcome acknowledg-

ment after an application is submit-ted

� Avoiding asking for the same infor-mation more than once

� Closing on the promised date� Clearly explaining loan options and

ensuring that the customer under-stands

� Clearly explaining the entire processfrom application to approvalThe study also finds that usage of the

online application channel continues toincrease. Nearly 20 percent of cus-tomers now go online to start the mort-gage application process, up from 14percent in 2009. In comparison, only 29percent of customers start the mortgageapplication process in person, while 33percent did so in 2009. In addition,fewer customers this year say that theymet with their loan officer or mortgagebroker in person during the mortgageorigination process—50 percent, com-pared with 57 percent in 2009.

“Customer preference and, moreimportantly, perceptions, continue toincrease with the online direct chan-

nel,” said Lo. “Online lenders such asQuicken Loans do a very good job ofkeeping their customers informed of theprocess every step of the way by provid-ing periodic status updates and infor-mation pertaining to their loan.”For more information, visit www.quick-enloans.com or www.jdpower.com.

MBA requests moreresources for FHA and theauthority to strengthenthe program

According to a report fromthe Mortgage BankersAssociation (MBA), FederalHousing Administration(FHA) Commissioner David

H. Stevens should be granted the resources

to better manage the agency through thecurrent housing market crisis and to allowthe agency to continue to thrive when themarket recovers. Increasing resources forstaffing and technology are among the 12recommendations to improve the FHAand the Government National MortgageAssociation (Ginnie Mae) by the MBA’sCouncil on the Future of FHA and GinnieMae. Convened in November 2009, theCouncil consists of senior executives from27 companies, representing both largenational lenders and small independentmortgage bankers.

“FHA and Ginnie Mae are corner-stones of the U.S. housing market as theyprovide access to mortgage loans for mil-

continued on page 9

At United Northern, we give you the freedom to originate and succeed with our winning team.

About working with United Northern Mortgage Bankers• Ongoing training and consultation with top industry executives

• Access to in-house marketing services

• Pricing support desk to ensure maximum profitability on eachloan, while maintaining a competitive advantage over the street

• Proven leading-edge technology (built on Encompass 360technology)

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• Licensing and regulatory compliance services

• An in-house team to monitor SAFE Act compliance

• In-house underwriting

• Most loans underwritten in 24 to 48 hours

• Multiple valuation tools to research value

• In-house valuation desk to help ensure accurate values and responsive turnaround time

• Multiple established warehouse lines

Limited room available for established Team Leaders andLicensed Mortgage Originators. Become part of an

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888-600-8808, ext. 1 or by e-mailing [email protected].

United Northern Mortgage Bankers, Ltd. Corporate NMLS ID# 7230 New York State Banking Dept. - Licensed Mortgage Banker – License #100724 New Jersey Dept. of Banking and Insurance – Mortgage Lender – License #L0046623 Penn-sylvania 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 #MC5070North 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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Originating and closing loans these days can be very challenging. Lengthy turn times, inexperienced underwriters, and high costs can contribute to fewer closed loans.

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lions of first-time, and low- and moder-ate-income homebuyers,” said MBAImmediate Past Chairman Robert E. StoryJr., CMB. “MBA members support both ofthese institutions. MBA has long advocat-ed for changes that will help guarantee astrong FHA and Ginnie Mae.”

For FHA, the report recommendsthat:� Congress give FHA and Ginnie Mae

appropriations to hire and trainnew staff.

� Congress provide FHA with appro-priations to develop and implementmodern information technology (IT)systems and processes, includinganti-fraud tools. FHA should alsorefine its TOTAL Scorecard.

� FHA’s mission be updated and rede-fined, including a re-examination ofthe current FHA loan limits.

� FHA strengthen its reverse mortgageproduct (Home Equity ConversionMortgage (HECM)).

� Congress provide FHA with the expand-ed authority to increase premiums.

� Congress give the FHA Commissionerthe authority, with the concurrence ofthe HUD Secretary, General Counseland Ginnie Mae president, to tem-porarily suspend problem lenders.

� FHA balance its proposed multifami-ly risk management protocol againstthe backdrop of rising affordable

housing needs, declining incomesand the ongoing credit crisis.

� FHA should examine the existingHomeownership Center and Hubstructure.The paper also recommends that

Ginnie Mae:� Examine appropriate staff levels.� Maintain its exemption from the

Credit Reform Act of 1990.� Modify its policy regarding advance

funding facilities.� Clarify its Home Equity Conversion

Mortgage MBS issuer criteria.The paper, “The Future of the

Federal Housing Administration (FHA)and the Government National MortgageAssociation (Ginnie Mae),” also offersobservations on the recent past andfuture of FHA (including the HomeEquity Conversion Mortgage [HECM]and multifamily programs), and GinnieMae products and programs.For more information, visit www.mort-gagebankers.org.

HOPE NOW reports:120,000 proprietary loanmods closed in September

HOPE NOW, the pri-vate sector allianceof mortgage ser-vicers, investors,mortgage insurers

and non-profit counselors released itsSeptember 2010 survey data, whichestimates the industry completed closeto 150,000 permanent loan modifica-tions for the month. The reported datafor September shows that mortgageservicers completed approximately120,000 proprietary loan modificationsfor homeowners and 27,840 HomeAffordable Modification Program(HAMP) modifications (as reported byU.S. Department of the Treasury), foran estimated total of 147,000.

The total number of loan modifica-tions with principal and interest pay-ment reductions declined slightly forthe month of September (93,000 com-pared to 105,000 in August), but 78percent of the total proprietary modifi-cations completed in September pro-vide a reduced monthly payment forhomeowners.

HOPE NOW is currently reportingadditional metrics on types of propri-etary modifications being offered todistressed homeowners in order to bet-ter assess sustainability.

Since June 2010, HOPE Now esti-mates that loan modifications that pro-vide homeowners with reduced princi-pal and interest payments of 10 per-cent or more have accounted for 53percent (255,000) of proprietary loanmodifications in 2010.

Additionally, it is estimated thatloan modifications with a fixed rateperiod of five or more years account for80 percent (381,000) of all proprietarymodifications done this year by mort-

gage servicers. This is significant whenassessing the affordability and viabilityof loan modifications currently beingprovided by the mortgage industry.

According to these latest estimates,mortgage servicers have completed 1.4million loan modifications in 2010.

“The most important take away fromHOPE NOW’s September data is that wenow have good metrics on the sustain-ability of proprietary loan modifica-tions being done by our servicer mem-bers,” said Faith Schwartz, senior advis-er for HOPE NOW. “While HAMP hasprovided a road map for other solu-tions, and is still the first line of defensefor a delinquent homeowner, if theborrower is not eligible for a HAMPmodification, a proprietary modifica-tion is able to fill the gap and offer aviable and sustainable solution to avoidforeclosure, enabling the borrower tostay in their home.”For more information, visitwww.hopenow.com.

Hawaii becomes the finalstate to join the NMLS

Less than 34 monthsafter its official launch,all 50 states havejoined the NationwideMortgage Licensing

System and Registry (NMLS). Hawaiibecame the last state to join the NMLS,thereby ensuring improved supervisionof non-depository mortgage lenders, bro-


continued on page 10

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kers, and mortgage loan originators main-taining licensure through a single systemshared by all state mortgage regulators.

“NMLS was built to be the foundationof a coordinated and transparent systemof mortgage supervision implemented bystate regulators,” said Neil Milner, CSBSpresident and chief executive officer.“Having all 50 states on the System pro-vides greater transparency within themortgage industry and makes informationavailable to consumers as they obtainmortgages from state-licensed entities.”

“This milestone is a testament to thehard work and commitment of state mort-

gage regulators,” said Gavin Gee, Director ofthe Idaho Department of Finance andChairman of the State Regulatory RegistryLLC (SRR). A limited liability company estab-lished by CSBS and the AmericanAssociation of Residential MortgageRegulators (AARMR), SRR operates NMLS onbehalf of state regulators. “State regulatorshave demonstrated their ability to coordi-nate on an unprecedented level toenhance supervision of the residentialmortgage industry and protect consumers.”

Launched in January 2008 with sevenstates (Idaho, Iowa, Kentucky, Maine,Nebraska, New York and Rhode Island),

NMLS now includes 58 state agenciesfrom all 50 states, the District ofColumbia, and the territories of PuertoRico and the U.S. Virgin Islands. NMLScurrently tracks nearly 16,000 mortgagecompanies holding over 30,000 licensesand over 126,000 mortgage loan origi-nators holding over 207,000 licenses.For more information, visit www.mort-gage.nationwidelicensingsystem.org.

TransUnion study findsmortgage delinquency“roll rates” peaked insummer of 2009

The number ofconsumers “rolling”their delinquency

status on mortgage payments from 30- to

60 and 60- to 90 days past due peaked inJuly 2009, according to a new study fromTransUnion. Approximately 24.4 percentof consumers who were 30 days past dueon their mortgage payments in June 2009became 60 days past due in July 2009, andnearly 37.6 percent of consumers 60 daysdelinquent on their mortgage paymentsbecame 90 days late in that same time.

“Consumers who are past due ontheir mortgages are always susceptibleto going into more severe stages ofdelinquency. We found that this vulner-ability was exacerbated during the reces-sion as housing prices declined andunemployment increased,” said FJGuarrera, vice president in TransUnion’sfinancial services business unit and oneof the authors of the study.“Coincidentally, we noted that roll ratesobserved in the study reached their apexone month after the end of the recessionas officially determined by the NationalBureau of Economic Research. This tim-ing is a clear illustration of how creditdynamics can lag economic dynamics:although we may have left the worst ofthe recession behind as we enteredrecovery economically, from a creditperspective we were just hitting thetoughest period for consumer default.”

One of the interesting insightsgained from the TransUnion study wasthe relationship between consumerswith home equity loans or lines of cred-it and increased mortgage delinquencythrough the recession. The study indi-cated that, under certain circumstances,the presence of one of these loans maycontribute to higher roll rates duringtrying economic times. In March 2006,the national 30-60 mortgage roll ratewas 12.56 percent for borrowers withhome equity loans/lines and 17.16 per-cent for those without. However, byMarch 2009 the 30-60 roll rate had sky-rocketed to 26.55 percent for borrowerswith home equity loans/lines, whileincreasing to only 22.66 percent forthose borrowers without.

Not surprisingly, the effect of homeequity loans or lines of credit on rollrates was more pronounced in stateswith the most severe recessionaryeffects. In California during that sametime period, 30-60 mortgage roll ratesfor borrowers with home equity loansjumped from 12.99 percent to 39.42percent. California borrowers withouthome equity loans/lines experienced asmaller increase from 17.00 percent to32.24 percent.

“This is yet another example of thedynamic nature of the lending markets,and how consumers react to differenteconomic, financial and social forces.The presence of a home equity lineused to be an indicator that a consumerhad ‘deeper pockets,’ i.e. more equityand greater financial resources. Now ithas become a red flag for higher riskdue to over-leveraging,” Guarrera said.

The study confirmed previous find-ings that mortgage delinquency rollrates were correlated to falling housingprices and rising unemployment over



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the course of the recession. Median exist-ing home prices decreased 18.1 percent(from $207,700 to $170,200) from12/2007 through 06/2009, while 30-60and 60-90 mortgage roll rates increased42.4 percent and 29.6 percent, respective-ly. The national 30-60 mortgage roll ratehad been 17.12 percent in December2007 and moved up to 24.38 percent byJune 2009. The 60-90 mortgage roll rateincreased from 29.00 percent to 37.59percent in that same timeframe.For more information, visit www.tran-sunion.com/business.

Report finds sharp spikein mortgages 90-plusdays delinquent

The Center for HousingPolicy, the Local InitiativesSupport Corporation (LISC)and the Urban Institute

have compiled and released the firstdata on seriously delinquent mortgagesfor all 366 U.S. metro areas. “Seriouslydelinquent” mortgages are those thatare delinquent 90 days or more or are inthe foreclosure process. An analysis ofthese data for the nation’s 100 largestmetropolitan areas reveals a 32 percentincrease over a one-year period in theshare of mortgages that are seriouslydelinquent. In March 2010, more thanone in 10 mortgages (10.2 percent) in the100 largest metropolitan areas was seri-ously delinquent— up from one in 13mortgages (7.7 percent) in March 2009.

“These new delinquency data confirmthat the number of foreclosures is likely tocontinue to rise,” said Jeffrey Lubell, exec-utive director of the Center for HousingPolicy, the research affiliate of theNational Housing Conference. “By provid-ing the first available information on fore-closure and delinquency rates for all 366U.S. metropolitan areas, the Foreclosure-Response.org team hopes to raise aware-ness of the continuing challenge of mort-gage foreclosures and encourage policy-makers and practitioners to use bothtime-tested and innovative solutions tohelp address this challenge.” The studyranks metropolitan areas by foreclosureand delinquency rates.

The severity and the trajectory of theproblem vary dramatically across thenation. Among the 100 largest metropoli-tan areas, the Austin metro area had thelowest share of seriously delinquent mort-gages in March 2010 (4.4 percent) while, atthe other extreme, 26 percent of mort-gages in the Miami metro area were seri-ously delinquent. Over the preceding year,the share of mortgages that were serious-ly delinquent in the Austin metro areaincreased by just 1.3 percentage points, ascompared to an increase of 6.6 percentagepoints in the Miami metro area.

“The most rapid increases in mort-gage delinquency occurred in metroareas where home prices are muchhigher than local incomes can afford,”said Tom Kingsley, senior fellow at the

Urban Institute. “The other factorsassociated with rising delinquencieswere declining employment, plunginghome prices and higher densities ofsub-prime lending in the peak periodfrom 2004 to 2006.”

According to a background paper pre-pared by Kingsley and Chris Walker of LISC,when the foreclosure crisis began, metroareas in California were the hardest hit,with Florida, Arizona and Nevada closebehind. Now, five of the six metro areaswith the highest serious delinquency ratesare in Florida (Miami, Orlando, Lakeland,Tampa and Bradenton). On average, morethan one in five mortgages was seriouslydelinquent (21.2 percent) in these fiveFlorida metro areas in March 2010, up fivepercentage points from the previous year.The top five California metro areas(Riverside, Stockton, Modesto, Bakersfieldand Fresno) have an average delinquencyrate of 16.6 percent, but their rate ofincrease has slowed considerably, up only2.3 points over the year. The paper focuseson serious delinquencies in the 100 largestmetropolitan areas.

Among the 100 largest metro areas,eight of the 10 metro areas with thelowest rates of serious delinquency inMarch 2010 were in the nation’s mid-section—Austin, Madison, Omaha, DesMoines, San Antonio, Colorado Springs,Wichita and Tulsa; the other two wereRaleigh and Lancaster. Rates for these10 ranged from 4.4 to 6.5 percent andannual increases were also muchsmaller, ranging from 1.3 to 1.9 points.

“It is worth noting that even these lev-els are seriously problematic when consid-ered in relation to decades of much lowerdelinquency rates prior to the start of themortgage crisis in 2007,” said Kingsley.

“The data show the full extent of theforeclosure problem in metro areas nation-wide,” said Chris Walker, research directorof LISC, which calculated the informationmade public on the Foreclosure-Response.org Web site. “This study ranksmetropolitan areas by the overall rate ofseriously delinquent mortgages, providinga better indicator of housing market stresssince it looks at the full extent of the prob-lem rather than just the number of foreclo-sures entering the pipeline,” said Walker.For more information, visit www.fore-closure-response.org.

Your turnNational Mortgage Professional Magazineinvites you to submit any information onregulatory changes, legislative updates,human interest stories or any othernewsworthy items pertaining to themortgage industry to the attention of:

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

E-mail: [email protected]

Note: Submissions sent via e-mail are pre-ferred. The deadline for submissions is the1st of the month prior to the target issue.

The Field Appraisal Review is the Trump Card

This is the third of three columns that Iam writing to bring attention to andextol the virtues of the three most com-monly used appraisal review reports asquality control tools. These tools are:

� The Electronic Appraisal Review;� The Desk Review; and� The Field Review.

They are listed in theorder of the least com-prehensive to the mostcomprehensive, and thecolumn is designed toassist the reader in mak-ing the proper decisionas to which review tool isbest for a given situation.

Of all of the appraisalreview products availableto the lender, the FieldReview is the trump card.It is the method ofreviewing an appraisalthat will typically yieldthe most accurate andcredible analysis of theappraisal that is underreview. It consumesmore resources thaneither of its less-compre-hensive cousins, becauseit is more time-consuming, requiresmore research, requires travel, includesa property inspection of the subjectproperty at a minimum, and in manycases, requires an inspection of thecomparable sales used in the analysis.Therefore, it costs more. The appraiser,through this additional effort, hasmuch more information from which tobase his or her opinion and to renderthe most creditable results.

The Field Review, unlike some of theother reports, will typically provide areview appraiser’s opinion, whichagrees with that of the original apprais-er or offers a dissenting opinion, com-plete with additional comparable salesand a different final opinion of value.

While the Field Review will typically bereported on a standard review form, itis much more like preparing a com-pletely new appraisal. The reviewer notonly has seen the subject property, usu-ally from the curb, but he or she mostlikely has inspected the comparable salesused in the appraisal, as well as othercompeting comparable sales. He is morelikely to have in-depth knowledge of the

subject neighborhood, aswell as a feel for the over-all market in which thesubject is located.

The Field Review, likethe Desk Review, is cov-ered in Uniform Standardsof Professional Practice(USPAP) and the revieweris required to meet certainstandards. Under USPAP,when the reviewer pro-vides a reviewer valueopinion he or she muststate and/or identify theclient, the users, the pur-pose of the review, thework under review, thedate of the work underreview, the effective dateof the opinions and con-clusions, the name of theappraiser performing the

appraisal, the effective date of theappraisal review, all extraordinaryassumptions and hypothetical condi-tions and how these assumptions andconditions affect the results, scope ofthe work, reviewer opinions and conclu-sions. The appraiser must also include asigned certification, state the reviewer’sopinion of value, state information,analysis and opinions accepted as cred-itable, and summarize any additionalinformation relied upon in the review-ers value opinion.

Even though it is the granddaddy ofthe Appraisal Reviews, the Field Reviewdoes have its shortcomings. First, it

By Charlie W. Elliott Jr., MAI, SRA, ASA

“… where there is reason to question the

appraisal from theonset, a Field Review

may be ordered upfrontto save time and

money and to get a comprehensive review.”


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Coming to a SAFE PlaceWe are standing on a new playing field, two years from the credit crisis of 2008 andthe SAFE Act. The old stadium has been replaced. We are charging out of new lockerrooms, with new rules, brighter lines and tougher officiating. It’s a whole new game.A new league of mortgage professionals is emerging across the industry.

In the wake of the unprecedented financial crisis, it is reasonable to expecta period of unprecedented reaction. We are in a time of legislative mania. Reg-ulatory activism and economic realities are driving a top to bottom reforma-tion of the mortgage industry.

The old safety and soundness lending principles that were once solely the domainof the depository institutions are being pushed down into the non-bank channel,right onto the shoulders of the licensed loan originator. Mortgage loan originator(MLO) licensure is meant to create a family friendly environment where consumersand investors alike can come to a SAFE place to enter a mortgage contract.

A SAFE FoundationThe intent of Congress in passing the SAFE Act was to lay a new foundation forour industry that protects consumers, stabilizes the credit markets and pro-vides for better oversight.

1) Consumer Safety is primary. The SAFE Act requires MLOs to act in the best in-terest of the borrower and provides consumers free access to the employmentstatus and disciplinary actions against an originator.

2) Capital Safety is the objective. By requiring minimum competency standardsand forcing responsible lending practices into the non-bank lending channel,we will again demonstrate to the capital markets our ability to produce in-vestment grade product.

3) Accountability and Oversight is the methodology. The Nationwide MortgageLicensing System & Registry (NMLS&R) database provides for uniform reporting,improves the flow of information amongst regulators and tracks MLO activityacross state lines.

It’s our industry that was at the epicenter of the nation’s financial crisis. Itis our responsibility to restore the lost confidence and credibility. The SAFE Acthas elevated the playing field. It will be up to us to play by the rules. Compe-tency, responsible lending and accountability comprise the new stadium wherewe will compete.

Profit Profit is good. Profit builds the roads, the schools and it secures our family andmeasures our value. Profit inspires excellence, improves service and motivates usto be our best. The free market is brutally honest. Every day you compete foryour share, and each month, your profits validate your work. Profit is good.

On the new professional field, a higher level of competition has been set.The good news is that you’ll no longer be playing against shortsighted oppor-tunists with no commitment to professionalism. Those days are gone forever.It’s a better time; you’ll look back five years from now and see that we’ve builta safer place for borrowers to come to you.

ProsperityAs you close the books on this year, as you draw your friends and family near,celebrate all the good things you have done. To you and yours, I wish goodhealth, peace and prosperity in the New Year.

Paul Donohue, CRMS is a 23-year industry professional and founder of Abacus MortgageTraining and Education. Paul served on two NMLS working groups, establishing the newnational education protocols. Go to AbacusMortgageTraining.com to find out moreabout your obligations for testing, education and licensure, or call (888) 341-7767.

It has never been more important fororiginators to plan for an upcoming yearas we approach 2011. That is why thefocus of this month’s edition of NationalMortgage Professional Magazine is ofutmost importance as we look at build-ing relationships. We have been subject-ed to more changes in the past threeyears than the industry has seen in theprevious two decades, and no part of theindustry has been untouched:

� Program changes;� The tightening of credit;� Record low rates;� Falling home prices;� Changes in laws and regulations;� The demise of the sub-prime industry;� The rebirth of the Federal Housing

Administration (FHA);� The government takeover of Fannie

Mae and Freddie Mac;� Skyrocketing foreclosures; and� A documentation crisis …

Need I continue?So, how could next year become even

more interesting? Those who have survivedthe carnage of the past few years could facea whole new series of challenges. For one,we have compensation requirementschanging effective April 1 of next year.Secondly, we all know that these recordlow rates will not last forever. At somepoint, we must convert to a more balancedindustry comprised of purchases and refi-nances. Finally, financial services legisla-tion will bring another level of regulationbeyond the focus upon compensation.

Many of your competitors have leftthe industry. However, new competitorswill appear just as quickly, especially asthe purchase market recovers. Thoughthe broker industry has been decimatedas far as numbers are concerned, don’tcount this segment out. As banks haveleft the wholesale business, there will bemany players waiting to take their place.

So … where do we go from here?This column, though secondary-based,is not about predicting the future. Yet,there is no doubt that the secondarymarkets will play an important part inthe near-term future.

Sales training will tell you that youshould not be selling “rates.”I agree with the point that we should

be focusing upon value and differenti-ating ourselves from those who are sell-ing rates. On the other hand, keep inmind the direction of rates will deter-mine what direction the markets willtake next year. If rates stay low, refi-nances will continue. If rates begincreeping up, this could indicate that thepurchase market is awakening. Eitherway, there will be an opportunity.However, you will have to implement amarketing plan that can take advantageof either scenario. It is too late to makechanges in your plan after the turn hasoccurred.

You will be called upon to have a dis-cernable pricing policy within thenew compensation regulations.This policy must be adhered to, regard-less of the changes in the secondarymarkets. This will be a challenge formany loan officers, especially if themarkets continue to be volatile.

So, what does it take to plan aheadin such a variable environment? I hopereading through this edition of NationalMortgage Professional Magazine willprovide you with some ideas; however,I would like to offer my own perspectiveon this … planning should be a system-atic process. This process should lead todefinitive actions that will help us meetour objectives. In other words, we don’tplan for the sake of planning. We planin order to change our actions.

We should start by outlining ourshort-term, intermediate-term andlong-term objectives:

� Long-term objectives tell us wherewe are heading. What do you wantto accomplish in your career andbeyond?

� Intermediate-term objectives. Whatcan you do in order to meet yourgoals in the next year that will helpyou move towards your loan-termobjectives? It is here that we decidewhat we would like our income tobe next year, as well as a host ofother factors.

� Short-term objectives include oureveryday actions that will help usachieve what we want to accomplish

Plan for the Year Ahead


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For more information on the National Association of Mortgage Brokers, visit www.namb.org.

Scenes From NAMB/WEST 2010December 4-6, 2010 at the MGM Grand in Las Vegas

New NAMB President Mike D’Alonzoreceives the NAMB Presidential Pinfrom Past President Jim Pair duringNAMB/WEST 2010

April Slizewski and Greg Tracy ofBlueRoof360 were on hand in Las Vegas todiscuss their Web site offerings

John Myler, Raymond Bartreau andCody Bennett from Best Rate Referralspause for a photo on the exhibit hallfloor of the MGM Grand

Attendees take part in the “Speed Dating:Mortgage Style” session matching mortgageprofessionals with a wide variety of vendorsin a “speed dating” environment

NAMB Vice PresidentDonald J. Frommeyerdiscusses NAMB’saccomplishments overthe past year

Greg Frost delivershis session on the“Principles ofEthical Influence” toa packed house

Cindy Broaddus, Terri Duncan, Eric Weisbrod,Joe Spangenberg and Diana Bryson-Dikes fromParamount Residential Mortgage Group Inc.(PRMG) were on hand to explain their productofferings

Mike Gulitz from MortgagePlannerCRMshares his business managementstrategies during the session, “DARTS:Five Strategies to Get a Zero Inbox”

NAMB Government AffairsCommittee Chair Mike Andersondiscusses the latest happenings inWashington, D.C. with attendees

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Steve Richman from GenworthMortgage Insurance discussesdiversifying your approach tomarketing in his discussion, “TheMarket Has Changed and theBorrowers Have Changed … HaveYou?”

Dave Luna, president of Mortgage Educators, discusses SAFEAct education during his session

Greg Frost Jr. and Greg Frost from FrostMortgage Lending Group on the exhibithall floor of the MGM Grand in Las Vegas

Denise Leonard sits in on the NAMBGovernment Affairs PanelDiscussion in Las Vegas

Greg Tracy of BlueRoof360 discusses Web sitedevelopment with NAMB Treasurer JohnCouncilman during the “Speed Dating:Mortgage Style” session

Brian Stevens fromThink Big WorkSmall discussesvideo marketingwith NAMB/WEST2010 attendees

Doug Change and Tate Kesner from CalyxSoftware were on hand to demonstrate thelatest version of the company’s Pointsoftware solution

Geoff Ninno, David Exner, Suzanne Perez and RichardTheiss from Kinecta Federal Credit Union smile for aphoto

Lori Viera, Lisa Schrieber and Mark Karanovichfrom NetMore America were on hand to assistNAMB/WEST 2010 attendees

Graham Montigny from HondrosLearning discusses pre- and post-licensure requirements formortgage professionals

Steve Smith and Lance Siegal from HVCCAppraisal Ordering on the exhibit hall floorduring NAMB/WEST 2010

NAMB Lobbyist Roy DeLoach fields questionsduring the Government Affairs Panel Discussion

Orawin Velz fromFannie Mae presents hereconomic outlook for2011 during her session,“Are We Out of theWoods Yet?”

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costs much more than the other reviewproducts available to the lender. WhileElectronic Reviews may cost less than$50 each and Desk Reviews are normal-ly priced between $100-$200, a recentsurvey indicated that the Field Reviewcosts about the same as an appraisaland, if things get complicated, it cancost more. The estimated cost of a FieldReview, for most properties in mostlocalities, ranges from $300-$400. TheField Review also takes more time thanmost competing appraisal review tools.While Electronic Reviews are availableat warp speed or usually in less than 30min. and Desk Reviews can be per-formed usually within one day, FieldReviews, like appraisals, can take fouror five days to complete, sometimesmore. One last drawback to the FieldReview is that not all appraisers arecompetent to perform them and manydo not like to do them. Therefore, find-ing an appraiser interested in perform-ing them can sometimes be a challenge.

The decision to select the FieldReview should be one of what is the besttool for the job. Most lenders do notorder Field Reviews unless there is a rea-son to suspect that there are seriousproblems with an appraisal. This is usu-ally the case, due to the additional costassociated with it, not to mention theadditional time. Time is especially anissue with new originations, where clos-ing dates are set and there is often littleadditional time to spend on evaluations,requiring up top a week to complete. Inorder to conserve resources, I recom-mend a triage-type method of determin-ing the review tool to use. This methodbegins with an Electronic Review of theappraisal. Upon getting the results andhaving them evaluated by a quality con-trol officer, the lender decides whetherto accept the appraisal or to order a

value nation continued from page 12

more comprehensive appraisal. If amore comprehensive evaluation isneeded, usually a Desk Review isordered. If the Desk Review indicatesthat an inspection of the property is nec-essary or that some other issue requiresa closer look, a Field Review is ordered.In other cases, where there is reason toquestion the appraisal from the onset, aField Review may be ordered upfront tosave time and money and to get a com-prehensive review.

In summary, the Field Review is themost comprehensive and thoroughappraisal review tool available to thelender in evaluating an appraisal. It isalso the most expensive and time-con-suming. Due to the resources consumedby the Field Review, sometimes lesserproducts can do the job quicker andcheaper, while providing adequatequality control. The decision as to whatlevel of review to order should not betaken lightly. It should be made basedupon the evidence at hand, some ofwhich may have been gleaned fromother appraisal review tools. Lendersnot having qualified quality control offi-cers on staff may consider hiring some-one in this capacity to make decisionsas to which review tool best serves aparticular need. Outsourcing of qualitycontrol and appraisal review supervi-sion may be an option for some institu-tions. Whatever tool is chosen, if thereis a question about which tool shouldbe used, the Field Review is the bestreview tool in the toolbox given theresources to acquire it.

Charlie W. Elliott Jr., MAI, SRA, is president ofElliott & Company Appraisers, a nationalreal estate appraisal company. He can bereached at (800) 854-5889, e-mail [email protected] or visit his company’s Website, www.appraisalsanywhere.com.

tomorrow, next week and nextmonth. If you want to make $100,000next year, what must you do to devel-op the referrals sources you need?

Of course, the development of yourgoals is only the first step. We must alsogo through an “evaluation phase” ofplanning. This phase will help us look atthe effectiveness of our present activi-

ties. We don’t want to eliminate thoseactivities that are effective. However,we must minimize, change or eliminatethose that are ineffective. If we don’t dothat, there is no way of implementingnew activities.

Dave Hershman is a leading author for themortgage industry with eight books and sev-eral hundred articles to his credit. He is alsohead of OriginationPro Mortgage School anda top industry speaker. Dave’s NewsletterProMarketing System can be found atwww.webinars.originationpro.com. If youwould like to stay ahead of what is happen-ing in the markets, visit ratelink.origination-pro.com for a free trial or [email protected].

the secondary market overview continued from page 13

“Many of your competitors haveleft the industry. However, newcompetitors will appear just as

quickly, especially as the purchasemarket recovers.”

Headlines and breaking news from NationalMortgageProfessional.com.

Headlines and blogs from around the web.

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“Not all that can be counted counts”wrote the physicist Albert Einstein, “andnot all that counts can be counted.”

Reverse mortgage funds-usage countsin judging whether a senior can live athome and benefit from loan funds.

The first “yellow flag” of the FinancialInterview Tool (FIT) looks at funds-usage.Home equity conversion mortgage (HECM)counselors must ask whether seniors planto buy financial or insurance productswith cash from their reverse mortgageloan. Then, they are to bring up reality-testing issues, such as double costs, therisk of running out of cash to pay olderfolks’ higher premiums, the risk of burn-ing through cash they need to live on, andthe risk of losing their home should theyfail to meet home maintenance, taxes andhome insurance obligations.

To do their own funds-usage riskassessment, lenders must find ways todiscuss this issue with seniors at the loaninterview. How they do this without invit-

ing nasty “none-of-your-business” looksand offending seniors will test their peo-ple skills.

It comes down to one strong ques-tion to begin the conversation. Yourtypical “yes-no” questions about annu-ities and insurance in loan applicationdisclosures will not suffice as they aretoo narrow, too close-ended and toocold-blooded.

Originators need to compose artfully-framed questions to spark a warm con-versation inn order to obtain the infor-mation and insights they need withoutdispleasing their customers and startingtheir relationships off on the wrong foot-ing. How to frame the questions willdepend on an originator’s question-ask-ing abilities and the dynamics of theirinteraction with seniors during the loaninterview. For illustration, I suggest thefollowing:

� “Mrs. Akuna, if your loan applicationgoes through and you get all of thecash you need and more, what otherfinancial, investment or insuranceproducts would you like to have?*

� Then, listen. Listen and ask, “Why?”Then, listen more.

FIT for Reverse Mortgage Lenders:Part IV

“In the ‘numbers-driven’ world oflending, asking more questionsand talking a little longer with

customers to better understand alltheir needs may not be ‘efficient.’”

Funds Usage Matters


StreetLinks completes itsacquisition of Corvisa

StreetLinks NationalAppraisal Serviceshas announced

that it has acquired majority ownershipin Corvisa LLC, a mortgage software andappraisal management technologyfirm. Terms of the acquisition were notdisclosed.

“StreetLinks is continuing to experi-ence tremendous growth having devel-oped a reputation for the best service,quality and technology in the fullappraisal management space. Corvisabrings industry-leading self-manage-ment technology to the mix. Together,we can address the appraisal fulfillmentneeds of any lender’s business model,”said Corvisa President Matt Lautz.

“The synergy between StreetLinksand Corvisa positions us as a ‘one stop’appraisal management provider,” saidStreetLinks Chief Executive Officer SteveHaslam. “Lenders can choose from acomprehensive and full-service apprais-al management solution, a self-man-aged software solution, or a hybridsolution tailored to match any lender’sspecific business and complianceneeds. In addition to appraisal manage-ment solutions, StreetLinks and Corvisaare already in the process of developinga full suite of new and innovative valu-ation products that will be releasedthroughout 2011.”

Tony Ebeyer, StreetLinks’ chief oper-ating officer, said, “The combination ofour talents, experience and outstandingtechnical teams will allow us to acceler-ate our product diversification strate-gies. Our objective is to bring to marketa host of pre and post origination prod-ucts and services that greatly elevatewhat is currently available to mortgageprofessionals.”For more information, visitwww.corvisa.com or www.streetlinks.com.

NetMore America joinsEllie Mae’s Encompass360

Select programEllie Mae and NetMoreAmerica have jointlyannounced that NetMorehas been added to EllieMae’s Encompass360 Select

program, which is accessible to preferredcustomers of Encompass360. As part of theEncompass360 Select program, NetMoreAmerica will be seamlessly integrated

into Encompass360. This integrationenables NetMore America to engage ina two-way communication providingreal-time pricing information to pre-ferred Encompass360 users who areapproved to do business with NetMore.

Once the borrower’s information isinput into the Encompass360 system, itis matched against NetMore’s pre-determined loan criteria and pricingresults are automatically presented onthe user’s Encompass360 screen. Usersare then presented with the options tolearn more about NetMore’s loan pro-grams and upload the borrower’s infor-mation directly from Encompass360into NetMore’s loan origination system.Once a loan is in process with NetMore,users may also upload documents intoNetMore’s system, directly from theirEncompass360 eFolder.

“It is invaluable to be able to commu-nicate with loan originators while they’reactually originating loans,” says NetMoreAmerica Chief Strategy Officer LisaSchreiber. “As part of Encompass360Select, we can reach more originatorsregardless of geographic location. This isa great way to enhance our wholesalebrokers’ businesses and help grow ourbusiness as well.”

“Getting accurate pricing deliveredinstantaneously and automatically isn’tjust convenient, it’s also a more compli-ant, more efficient way of doing busi-ness,” says Ellie Mae Chief StrategyOfficer Jonathan Corr. “Our customersappreciate the proactive way theEncompass360 Select program respondsto information and helps them transactmore and better quality loans. We’rehappy to welcome them to theEncompass360 Select program.”For more information, visit www.net-moreamerica.com or www.elliemae.com.

PRMG taps MDA DataQuickfor quality control andunderwriting solutions

MDA DataQuick, adivision of MDALending Solutions

and an independent provider of prop-erty data to real estate and mortgage pro-fessionals, has announced that Corona,Calif.-based Paramount ResidentialMortgage Group (PRMG) has selected MDADataQuick’s PropertyFinder 2G for prop-erty information verification. According


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Each month, National Mortgage ProfessionalMagazine will focus on one of the industry’stop players in our “Mortgage Professional ofthe Month” feature. Our readers are encour-aged to contact us by e-mail at [email protected] for considera-tion in being featured in a future “MortgageProfessional of the Month” column.

This month, we had a chance to chatwith Greg Schroeder, president ofComergence Compliance Monitoring inOrange, Calif. A 23-year veteran of themortgage industry, Greg has spent 15years in executive management posi-tions with large, national wholesalelenders. He has a strong foundation inoperations, business development, salesmanagement and marketing with anexpertise in broker due diligence.

Comergence Compliance Monitoring isa provider of third-party originator (TPO)risk management solutions and compli-ance surveillance. Comergence conducts arobust background check of brokers asthey apply to do business with a lender.Their check includes a 50 state license sta-tus and derogatory reviews, industrysanctions reviews, Social Security Numberverification for authorized principals,civil and criminal convictions, and more.

How did you first get involved in themortgage industry? I entered the business as a result of mybrother. I’m sure this is common for most

Greg Schroeder, PresidentComergence Compliance Monitoring

people in any business. My brother wasworking as a wholesale account executivefor a lender, Westates Mortgage in SantaAna, Calif., and in talking to him, I wasstruck by the excitement in his voice atwhat he was doing. I asked him if theyneeded help as this sounded like some-thing I was interested in. Six months later,he called and said they had an opening, soI moved my family to Southern Californiaand started my journey in this business.My first day in the mortgage business wasBlack Monday in October of 1987. I had nofoggy idea as to what was happening inthe stock market that day which was prob-ably a good thing! I didn’t even know whata mortgage was and couldn’t spell it evenif you spotted me the two “g’s!” But Ilearned quickly, was honest with the peo-ple I worked with and they came to counton my word. Most of all, I showed up andcalled people back quickly—two traitsthat have served me well.

One of the common statements amongstyour former employees and co-workersis how much of a creative and visionaryperson you are. Given that your careerspans multiple decades back to a timewhen advertising for financial productswas bland at best, how were you able towork in this environment?Back in 1987, you didn’t have the luxu-ry of a marketing department to helpyou. You had to create your own flyersand learn how to market yourself oryour career was over. My co-workersliked the materials I was creating for myown use, and all of them asked me tomake flyers for them. I guess you couldsay that started my career in marketingat the lenders I subsequently went towork for. I had a passion to support thesales departments with a strong mar-keting effort. Most lenders didn’t seethe need to market or were reluctant tospend the money, and I believe this iswhy so many struggled or were never a

competitive factor. I was very fortunatethat the owners of New CenturyMortgage believed in me and my abilityto pull a team together that ultimatelybecame one of the most powerful mar-keting forces ever seen in this industry.The environment we are in todayreminds me of 1987 when you were onyour own to market yourself, as budg-ets today have squeezed or most mar-keting departments at lenders havebeen eliminated entirely.

Since you worked for some of theoriginal sub-prime lenders, I won-dered what your opinion was onwhere it all went wrong. Sub-primewasn’t always a dirty word.In my opinion, there was a confluence ofproblems that culminated in the collapseof the sub-prime market. This was a verylarge industry that had many issues. Icouldn’t possibly describe for you whathappened from a secondary market’s per-spective (see my second point). On thelender side, there were many issues too,but to me, there was always this one glar-ing problem in our industry that certainlycontributed to the problem:

First, the mortgage business has anincredibly low barrier to cross to get intothis business. I’ll sum it up this way … ifyou wanted to sell a Roth IRA to a cus-tomer, you had to be licensed, pass avery difficult examination, be tracked,have any consumer complaints andindustry sanctions reported publicly andregularly subject yourself to an invasivebackground check … just to earn a $25commission! Our industry had no suchrequirements. In most states, wholesale

account executives and most loan offi-cers were never subjected to theserequirements and yet made six andseven figure incomes with little or noexperience. It was indeed frightening. Ibelieve this industry needs to matureand be regulated similar to the securi-ties industry if we are to be taken seri-ously. That includes loan officers for anyentity, including banks.

Secondly, as for the WallStreet/investor side of the problem, readthe book, The Big Short by Michael Lewis.He nailed it. It is a very scary read.

In retrospect, is there anything thatservices like Comergence could havedone to mitigate the collapse of themortgage market?No, I don’t believe we could have stoppedthis from happening. However, as theindustry goes through its inevitable cycle,what we can do is raise the bar of profes-sionalism going forward by giving therelationship between lender and TPOreview a much greater level of trans-parency. Yes, there were bad actors in thisbusiness and it is our singular focus toweed them out and to keep them out ofthis profession. We have successfullyraised the bar in this area and lenders aretaking notice. Lenders who do not careabout who they are doing business withare playing with fire and ultimately hurt-ing others, especially borrowers. We arefirmly committed that we have a duty topolice ourselves as an industry and to notrely on the government to do it.

With the implementation of theSecure and Fair Enforcement forMortgage Licensing Act (SAFE Act) tofilter out the “bad actors,” does thatdiminish the value of industry certifi-cations programs?Not at all. In my opinion, the NationalMortgage Licensing System (NMLS) doesnot go far enough. I applaud the testing,

“We are firmly committed that wehave a duty to police ourselves asan industry and to not rely on the

government to do it.”

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� Let’s say she says, “I’d like to have anannuity. My daughter, a teacher,says they are good.”

� Using a technique called “mirror-ing,” you might respond by restatingher words: “You like annuitiesbecause your daughter, the teacher,says they are good?” Before long, youhave a conversation about annuities(assuming you know what you aretalking about), their advantages anddisadvantages, and other funds-usage issues.

The budget analysis piece aside, FIT isabout asking questions and talking withseniors to understand their near-termand long-term needs. As NCOA’s BarbaraStucki puts it, “FIT is a way of getting peo-ple, whose judgment may be clouded byimmediate needs, to think long-termabout how they plan on staying at homeso that they can get the full value of thisloan.”

In the “numbers-driven” world oflending, asking more questions andtalking a little longer with customers tobetter understand all their needs maynot be “efficient.” It may not even be asneat as calculating maximum claimamounts and principal limits, but itmatters because lenders will know sen-

iors better, and help them make moreprudent decisions.*Note: Please give me your feedback onthe strengths and weaknesses of thisquestion as well as your suggestions forimprovement. You may post your com-ments or send me an e-mail [email protected].

Atare E. Agbamu is author of ThinkReverse! and more than 140 articles onreverse mortgages. Since 2002, he writesthe nationally-distributed column,“Forward on Reverse.” A former directorof reverse mortgages at Minneapolis-based AdvisorNet Mortgage LLC, Agbamuhas years of hands-on experience market-ing and originating reverse mortgages.Through his advisory, ThinkReverse LLC,Agbamu advises financial professionals,institutions and regulators across thecountry. In a 2007 national report onreverse mortgages, AARP cited Agbamu’swork. He can be reached by phone at(612) 203-9434 and e-mail [email protected].

Visit author Atare E.Agbamu’s blog at thinkre-verse.com for his thoughts

and insights on the reversemortgage marketplace.

forward on reverse continued from page 17

are the easy six- or seven-figure incomes.The playing field is more level now thanever. For example, fees are going to beregulated, which means that if all thingsare equal now, you have to stand out insome other meaningful way. The bestservice providers, and those with the righttraining and industry designations or cer-tifications, will be in a better position toprofit from these changes.

What are your biggest influences ormentors?There have been several influences in mylife. I have learned everything I knowfrom various mentors, but the ones whostick out in my mind are my Pop Warnerfootball coach. Coach had this drill wewould do at the end of every practicecalled the “Five Minute Drill.” I won’tbore you with details, but suffice it to saythat drill taught me how to muster upthe strength and conviction you need toget the job done when you are exhaustedand thinking of throwing in the towel.

Another mentor was this one retailstore manager who was my boss. Hetaught me an amazing work ethic—that the boss must be willing to workharder and longer than any employee.You simply couldn’t outwork this man!I have never forgotten his lessons—thatyou must lead by example … period.Reading business books or attendingcollege didn’t mean a thing if youcouldn’t, or didn’t, know how to putthis knowledge to use.

One of my current partners has alsobeen a tremendous mentor to me, andhe probably doesn’t even know it! I’venever met anyone smarter than thisman. He earned his bachelor’s degreeat two different colleges, attendingboth Berkely and Stanford at the sametime! He as taught me to challengeevery thought, every idea and everyprocess.

“Cancer” is a word that got my atten-tion two and a half years ago.Thankfully, with a miracle from God, itwas caught at an early stage and I’mfine today. But it taught me the value ofwhat little time I have here and howimportant relationships are to me. I’msure you’ve heard all the clichés, butthey’re true. Having a disease as seriousas cancer causes you to slow down andtake notice of the people and thingsyou’ve ignored while climbing your wayto the top. Don’t wait to hear thosewords from your doctor. Find some-thing nice to do for someone less fortu-nate than you and pay it forward. Godwill be pleased.

“Lenders who do not care about whothey are doing business with areplaying with fire and ultimately

hurting others, especially borrowers.”

tracking and the transparency it pro-vides for licensing and license applica-tions, but that’s as far as it goes. TheNMLS is nothing more than a clearinghouse for licensing which made it easierfor the originator to apply to multiplestates by eliminating redundancy. A testof knowledge is now required, but bor-rowers should assume you know whatyou are doing! It’s just the minimumthreshold for every originator now.Certification programs, however, willtake consumer confidence to the nextlevel. Having a certification from one ofthe several associations or companieslike ours relays much needed confi-dence to the consumer that you are acut above, a mortgage professional. Avalid certification, like Comergence’sTrusted Mortgage Professional (TMP)designation, cannot be bought. Youmust pass our rigid background check,agree to submit yourself to our surveil-lance and meet experience require-ments. If I was an average consumer,that’s who I’d want working on my loan.Merely passing your license exam getsyou entry into the game, but continuingyour education and subjecting yourselfto the scrutiny at the level of a licensedsecurities broker or our TMP certifica-tion is what’s needed now.

Sure it’s nice to have a certificationon your resume, however, how doesa mortgage professional really lever-age their certifications in terms oftheir relationships with lenders,referral partners and borrowers?The single most important change amortgage broker can make is to weaveany designation they have into everyconversation with a client or prospect.Too often I simply see brokers simplydisplay various logos. We know whatthey are, but the prospect/client has noidea what your designation logo means.Simply explain to the client that you arecertified, what this means to them andwhy it’s important that you are.Ultimately, you are trying to convey tothe borrower that you are a cut above,or better than another broker that theymay be dealing with that doesn’t haveyour certification. You need to createconfidence and doubt. Confidence thatyou can be trusted and doubt aboutanyone else they talk to that has no suchdesignation. These designations andcertifications can be a powerful tool ifused regularly in your conversations.

What do you feel is the future of themortgage broker? I believe this is the greatest time ever formortgage brokers to enter or thrive inthis business, but you have to changehow you conduct your business and yourexpectations of an income. Gone are theloans falling from the sky. Gone are theirrational loan programs that allowed toomany people access to borrowing. Gone

$200 per month by refinancing or usingLoan Strategy A vs. Loan Strategy B,what does that $200 per month meanto their life? Are they struggling withstarting a college fund for little Suzyand Johnny? If so, that $200 per monthcould spell the difference betweensending their kids to college and tellingtheir kids that they cannot afford tohelp them with college expenses. Whatif the client is struggling with mom anddad’s aging issues? Perhaps the $200per month can be used to help fund anassisted living arrangement.

You will simplify the decision forclients and simplify your relationshipwith them if you focus on these typeslife issues during the client conversa-tion. Some procrastinating borrowersmight want to complicate your relation-ship by talking about $100 in closing

costs here or an eighth ofa point in interest ratethere. You, on the otherhand, can simplify therelationship and makethe mortgage decisioncrystal clear and very easyfor the borrower byalways taking the conver-sation back to the rootissue: How your uniquemortgage strategy helpsthe borrower live the lifethat they want to live.

#3. Systemizeyour follow-upwith an easy-to-follow processThe importance of the sys-tematic follow-up can beillustrated by a recent

event involving Warren Buffet. The worldwas shocked when he announced recent-ly that Todd Combs, an obscure moneymanager from Florida, won the job to benext in line for leadership of Buffett’s$100 billion Berkshire Hathaway empire.Here are three lessons mortgage origina-tors can learn from Mr. Combs:

1. Show up. Mr. Combs replied to a“help wanted” request that Mr. Buffettmade in 2007. Most people would havebeen too intimidated to apply for thejob to begin with. After all, WarrenBuffett is one of the world’s wealthiestmen. Why would he give the top job tosomeone he’d never even met or heardof before? Yet, Mr. Combs showed up.2. Follow up. Recently (three years

later), Mr. Combs followed up withBerkshire Vice Chairman Charles Mungerto schedule a meeting. Most peoplewould have given up after three years ofno results. Yet, Mr. Combs followed up. 3. Be unique. Mr. Combs evidently hadsomething unique to offer the BerkshireHathaway team. According to a WallStreet Journal interview, Mr. Munger saidthat he gets “hundreds” of meetingrequests each year, but “something in[Mr. Combs’] request piqued my interest.”

Mr. Combs became the successor andright hand man to America’s wealthiestindividual by showing up, following upand being unique. As a mortgage origi-nator, you can take inspiration from Mr.Combs and use his very simple threestep system to do business with the top-producing Realtors and financial profes-sionals in your market. All you need todo is show up, follow up and be unique.

Be sure to offer some unique valuewith no strings attached whenever you fol-low up with borrowers and referral part-ners. Nobody wants to be hounded by apest. That complicates relationships andturns people off. On the other hand, mostpeople would welcome some type ofvalue-added article or update that is rele-vant to their life and situation. This sim-plifies the prospect’s decision to like youand trust you because you are giving valuewithout asking for anything in return.

Remember, complicated relationshipscomplicate your life. Simplify your relation-ships in 2011, and you will simplify your life.

Gibran Nicholas is the founder and chair-man of the CMPS Institute(CMPSInstitute.org—NMLS Provider ID#1400384). The CMPS Institute administersthe Certified Mortgage Planning Specialist(CMPS) designation and has enrolled morethan 5,500 members since 2005. ThroughCMPS, Gibran empowers mortgage profes-sionals with confidence, unique knowl-edge, and dynamic marketing resources tosimplify compliance, increase their com-petitive advantage, and generate morebusiness. Visit Gibran’s blog and Web siteat http://gibrannicholas.com.

Visit author GibranNicholas’s blog athttp://gibrannicholas.com

where he shares his insightson economics, real estate and finan-cial issues, including the currentmortgage and credit crises.

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Life is complex because relationshipsare complicated. Simplify relationshipsand you simplify your life. Here arethree strategies to do just that.

#1. Simplify your mes-sage and create a solid foundationIf you want to simplify your relationships,you need to first examine the way youbring clients and referral partners in thedoor. If your initial message is focused onthe wrong thing(s), you will end up havingthe wrong types of conversations with thewrong types of prospects. For instance, ifyour marketing messages to borrowersand referral partners focus on how youoffer great mortgage deals, then you willattract rate shoppers and people who arevery focused on price. A borrower wouldbe more likely to drop you or give you ahard time if the competition offers alower price in the middle of the loanprocess, because the very reason the bor-rower is using you in the first place is nolonger valid. This complicates the rela-tionship. Remember, complicated rela-tionships complicate your life. You don’twant that.

On the other hand, what if youchanged your initial message and builtthe relationship on a foundation that isnot focused on price? For example,here are three unique messages thatare not focused on price:

� Your unique message to Realtors: Iam a housing and mortgage strate-gist, and I specialize in helpingRealtors differentiate their listings,attract more buyers and sellers, andavoid buyer fallout.

� Your unique message to borrow-ers: I am a mortgage and cash flowstrategist, and I specialize in helpingborrowers like yourself improvecash flow, get out of debt sooner,and avoid the dangerous pitfalls oftoday’s mortgage market.

� Your unique message to CPAs andfinancial advisors: I am a financialstrategist and I specialize in helpingfinancial advisors finance Roth IRAconversions and other unique strate-

gies, and also solve the negative equi-ty problem that many homeownersare facing right now.

Your initial message needs to reachinto your target audience’s world, strikea chord, and set up the expectationsupon which they can judge your per-formance and the relationship. If the ini-tial message is about price, it will reachinto the world of price-conscious shop-pers, and they will judge the success ofthe relationship based on your ability todeliver a low price. If your initial messageis about value, it will reach into theworld of value-consciousindividuals, and they willjudge the success of therelationship based on yourability to deliver value.

Also, your messageshouldn’t be about youand what you can do forpeople. It needs to beabout people and whatthey need from you. Itcannot be long, generaland all over the place. Itneeds to be short, specif-ic and focused on justone or two areas. In orderto simplify your message,you should find out theone unique value thatyou provide to your tar-get audience that no oneelse provides. Then, youshould communicate that one uniquevalue in a way that sets up future con-versations and the future relationshipfor success.

#2. Discipline your conversations and focuson the real issuesWhy do people want to save money onclosing costs and get a low interest rateon their mortgage? Because they wouldrather do something else with thatmoney! Your mission is figure out whatelse would they rather do, and thenhelp them do it. You see, people arenot motivated by dollars and cents.They are motivated by what those dol-lars and cents mean to their life.

For example, if someone is saving

BY GIBRAN NICHOLAS, CMPS

Three Ways to Simplify YourRelationships in 2011

“If your initial messageis focused on the wrongthing(s), you will endup having the wrongtypes of conversations

with the wrong types ofprospects.”

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How long does it take to perform a post-closingaudit and what is analyzed?

I get that question quite often, and I usually reply, “Your audit is based on whatyou are willing to invest in it.”

Most lenders and brokers do not want to invest in a thorough audit andonly want to hit on the minimum to show that they are doing something. Ifyou had an employee who only did the minimum standards in tasks assigned,how long would that employee continue to work for you? I would say not forlong because the perception from other employees of that worker and prob-lems with oversight and gaps that are discovered along the way will createmore work for someone else to correct. Then, that below-par employee willcome up with a number of excuses or place blame for their oversights andflaws instead of taking ownership and responsibility. This is what I often seein post-closing quality control. The lender or broker only wants a lower qual-ity audit, then something happens later and there is finger-pointing every-where and the lender or broker is faced with the expense and headache ofdamage control. Is it worth it in the end? Why not eliminate any potential is-sues right at the beginning?

For Quality Mortgage Services to perform a thorough post-closing review oraudit, it takes at a minimum of four hours. If you want the quick and easy ver-sion, it may take 90 min. to two hours. Think about what it takes to originate,process, perform pre-funding quality control, underwrite and fund the loan.Well, basically you want me to validate information, analyze the creditworthinessand collateral, re-verify income, assets, funds, gift letters, occupancy, re-calculateannual percentage rates (APRs), validate that HUD-1 disbursements were doneproperly, make sure there were no federal laws violated and write up everythingfound wrong in a report. Basically, perform every function in the entire loanprocess and validating, certifying, and affirming that the actions in the loanprocess are correct.

Just like when a city needs to cut spending … what department(s) are theygoing to cut? The police department, fire department, education department …I ask the same thing, what do you want me to cut? Appraisals, federal regulatorycompliance, APRs, re-verifications, etc.?

The “Quick and Easy” lenders and brokers … your time has arrived. In-vestors are pushing repurchase claims down to the lenders, and the lenderswant to share the expense of the put back with the brokers and third-partyoriginators (TPOs). Now is it worth it? Is Russian Roulette the game you wantto play with your quality control program? The best thing to do is not to playthe game at all.

Quality Mortgage Services wants to help you be successful by indentifyinggaps in your pre-funding QC process. The Mortgage Analysis Review Softwarepost-closing quality control report empowers the QC manager with the tools tomeasure the effectiveness of pre-funding quality control and correct gaps left inthe loan process.

By Tommy A. Duncan, CMT

Sponsored by

Tommy A. Duncan, CMT is executive vice president of Quality Mortgage Serv-ices LLC. For answers to your QC and FHA questions, please contact Tommy at(615) 591-2528 or e-mail [email protected]. You may also visit Qual-ity Mortgage Services LLC on the Web at www.qualitymortgageservices.com.

heard on the street continued from page 17

to PRMG chief operating officer RobertHolliday, the mortgage group usesPropertyFinder 2G to support its thoroughunderwriting and quality control process-es, including adherence to new RealEstate Settlement Procedures Act (RESPA)guidelines. The property information ver-ification tool from MDA DataQuick alsovalidates and determines ownershipinformation and square footage.

“With the new challenges we face inthe current mortgage lending market, atool like PropertyFinder 2G is a boon,”said Holliday.

The software helps PRMG discoverpotential “buy and bail” homebuyers—borrowers who own a distressed home,which they are letting go into foreclo-sure, and are attempting to buy anotherhome. Buy and bail loans cannot be soldto the secondary market or to investors,and lenders are often asked to repur-chase them. Using PropertyFinder 2G,officials at PRMG can look up the loanhistory on a property, get an estimate ofits value and look for distressed proper-ty flags, catching “buy and bail” threatsbefore approving the loan.

“Risk management is more impor-tant than ever, so we need to be able toreview properties quickly and easilyand see immediately if there is a prob-lem,” said Holliday. “PropertyFinder 2Greally improves and streamlines ourquality control process.”

MDA DataQuick’s PropertyFinder 2Ggives real estate professionals access to anationwide database of detailed andcomprehensive property and ownershipinformation, including property profiles,property history, documents, demo-graphic information and nearby schoolsand businesses, verifying them on aninteractive map. Within the interface,users search single or multiple proper-ties using “find as you type” technologythat presents a list of search options asthe user begins to type. The software’sdistressed property flag feature quicklyidentifies properties in a distressedstate, such as recent short sales, foreclo-sures and real estate-owned (REO), insearch results and reports.

“PropertyFinder 2G meets the increas-ingly more diverse and complicatedproperty search and reporting needs ofreal estate professionals today,” said JohnWalsh, president of MDA DataQuick. “Welook forward to working with lenders’quality assurance and underwritingdepartments in order to provide a sensi-ble risk management solution that helpsour customers become more successful.”For more information, visitwww.prmg.net or www.dataquick.com.

Fairway enters the TPOmarketplace

Fairway IndependentMortgage Corporationhas announced that it

will start offering Federal HousingAdministration (FHA) loan origination

services and sponsor mortgage brokersand other third parties who initiateFHA-insured mortgages for borrowers.The step follows the company’s recentmoves into the wholesale lending andfulfillment services markets, as well asthe recent decisions by several largelenders to abandon or limit their busi-ness through third party originators.

Fairway offers four fulfillmentoptions depending on a specific origi-nator’s needs, whether they need asource of funds or outsourcing loan ful-fillment on a scalable basis: FairwayTraditional: A traditional broker/third-party originator relationship; FairwayAdvantage: A scalable fulfillment offer-ing; Fairway Direct: A referral program;and Fairway Correspondent: A closedloan purchase program

“Although the mortgage brokerageindustry has gone through unprecedent-ed changes, we strongly believe in bro-kers and smaller correspondents as anorigination channel and are looking for-ward to filling the void being created bylarger institutions,” said Howard Hoyt,sales manager for Fairway WholesaleLending, a division of FairwayIndependent Mortgage Corporation.“Independent brokers continue to playan important role in our industry byproviding competition and consumerchoice. They need assistance to thrive,though. With Fairway’s infrastructure,FHA expertise, and capital resources,brokers can get the help many of themdesperately need to keep their customercommitments and grow their business.We can also help them stay compliantwith new regulations such as thoseunder the Dodd-Frank Wall StreetReform and Consumer Protection Act.”For more information, visit www.fair-wayindependentmc.com.

Former Ginnie Mae andFHA heads to leadCollingwood Group’s newmortgage banking division

The CollingwoodGroup announcedthat it has launched

a new mortgage banking practice to beled by former Ginnie Mae President JoeMurin and former Federal HousingAdministration (FHA) CommissionerBrian Montgomery. The practice willserve mortgage bankers by customizingstrategies in business operations, regu-latory compliance, capital planningand risk management.

“The Collingwood Group’s new mort-gage banking practice allows clients toleverage our experience in the privateand government sectors,” Murin said.“Our team is uniquely qualified to helpmortgage banking firms navigate theuncertainty that defines the currentmarket environment.”

Montgomery and Murin co-founded


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If I asked you, “How well do you think you relate to others?,” I would anticipate thatmost of you would say, “Well truthfully, I recognize that I relate to some better thanothers.” In reality, this is true of all of us. We just seem to “click” better with somepeople than we do with others. Why is that? The answer will be the subject of thismonth’s article.

Let me set you up for where I am going with a couple of other questions:

� If I could show you how to develop skills to relate well or more effectively to a greaternumber of people, do you believe your chances for success would increase?

� Would more or less doors of opportunity open up for you?

While those may seem like rhetorical questions as you sit there and logicallyread this article, how to be more relatable is not something that most peoplespend much time thinking about.

So let me pose the question that frames this article again?: “How ‘relatable’ areyou?”

If there is ever an industry where having goodinterpersonal relationship skills is important, it isthe mortgage industry! While I’m sure it can be saidof other industries as well, it certainly could be saidof the mortgage industry that it is a relationship-dri-ven business. A person’s ability to relate well to oth-ers has a direct correlation to their ability to suc-ceed in this industry.

The reason why “being more relatable” is soimportant in the mortgage business is the very thenature of what our industry is about … financingthe biggest transaction of most every individual’slife at least at that point in time. Whether you aredealing with a first-time homebuyer or an experi-enced homeowner, the transaction is the biggestfinancial transaction of their lives. Every Realtor andbuilder I know want only to trust their business tothose individuals who have the greatest relationshipskills. Having strong relationship skills trumps allthe other important skills needed to be successful inthe mortgage industry. I’ve heard it said that beingsuccessful in the mortgage industry is like being a suc-cessful guillotine operator … keeping your head whenall others about you are losing theirs. In a perverse

way, stress is one of those “binding emotions” that keep many of us in this sometimescrazy, frenetic industry for years. We all have plenty of stories to share to give testi-mony to this fact. However, those of us who and have the greatest ability to relate toothers are the ones who seem to prosper the most and for the longest time in themortgage business. So, how can you beat more relatable … that is, what the rest ofthis article is about.

It is important to point out (and may be already obvious) that I am not a behav-ioral scientist or even a psychology major … not even close. The authority andexperience by which I write this article and present the following suggestions isonly this … I have and continue to enjoy more than 37 years in the mortgageindustry and have discovered important keys and practical tools that have helpedme relate and connect with more people than I thought possible. And now I havethe privilege of helping many industry professionals like yourself relate and con-nect with a greater number of people than they ever thought possible and there-fore significantly increase their potential for success.

Becoming more relatable goes well beyond behavioral “mirroring” where some-one merely matches, imitates or mimics another person’s external nature whileinvolved in some level of social interaction. I hesitate using phrases like “develop-ing strong interpersonal skills” which involves heuristics, because I find people get-ting stuck in a cerebral ditch and missing the more simplistic truths that are at thecore of the keys that most of us instinctively and intuitively experientially know.

We’ve all heard the expression, “that person speaks my language.” Another wayof saying that is, “I really relate to what that person said.” Is it “what” that personsaid or a combination of what and “how” they said what they did that made themmore relatable to you? When we start plumbing the depths of this, we are beginningto gain insights and understanding into what makes some “tic” … understandinghow they are wired so to speak. Speaking someone’s language goes way beyond “lin-guistics.” It is getting into something that is commonly referred to as “personalitytypes” or “temperaments” and you don’t need to have a psychology degree to beskilled at reading and responding to the various personality types/temperaments ofwhich there are four. Nor do you have to do an extensive study into “temperamenttheory” and it’s “four humours” with its possible ancient Egyptian roots or the bet-ter known writings of the Greek physician Hippocrates. All you have to do is acceptthe well-understood notion that there are four basic personality types, the labels ofwhich were established by Hippocrates. They are choleric, melancholic, phlegmaticand sanguine. The following is a very basic description of each.

� The “choleric type” is goal-oriented, ambitious, very self-confident in what theybelieves the facts to be, wants info in bullets “short and to the point,” can be acontrol freak … has a very dominate personality. Think of an army drill sergeant.

� The “melancholic type” is someone who is a more selfless, kind, tender-heart-ed, quieter, sensitive, takes on the causes of others and is more concernedabout right and wrong. Think of a bleeding heart social worker type of person.

� The “phlegmatic type” is a person who thinks things through, is calm, unemo-tional, consistent/even temperament, rational, curious and observant, makingthem good administrators and diplomats. Think of an analytical accountingtype of person.

� The “sanguine type” is someone who generally is light-hearted, fun loving, apeople person, loves to entertain, spontaneous, confident and can be more self-ish. They can lack focus and be impulsive. Think of cheerleader type of person.

Let me add some “color” to these personality types and some additional waysfor you to relate to each “type.”

When I am teaching on this topic in my leadership seminars, I will play musicin the background to help communicate my description for each of these per-sonality types. When I use music, the attendees that are the Sanguine andMelancholic types find the music a creative and fun way to learn and generally

By David Lykken

For the purpose ofbeing professionallymore relatable, it is

important to identifythe type of person

you are in your professional/publiclife when dealing

with others.

Are You Relatable?


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The Collingwood Group in 2009 withthree other partners who have exten-sive backgrounds in mortgage finance,capital markets, government-spon-sored enterprises (GSEs) and the federalsector. The firm provides businessinvestment and advisory services toclients in banking, housing and themortgage industry.

“What we now provide through thisnew practice is the opportunity fortoday’s mortgage banker to have abusiness advisor and partner inWashington,” said Montgomery.For more information, visit www.colling-woodllc.com.

Wells Fargo to beginoffering Pick-A-Pay relief

Wells Fargo hasannounced thatbeginning Dec.

18, 2010, through June 30, 2013, at-riskWachovia Pick-a-Payment customersmay be eligible to earn principal for-giveness by making on-time mortgagepayments. The company also will con-tribute about $24 million to eightstates to enlist help in customer out-reach, and to prevent or mitigate theimpacts of foreclosures in these com-munities. The terms of this agreementhave been contemplated in the compa-ny’s financial projections, and are

expected to have no impact on third-quarter financial results.

The program is part of an agreementwith attorneys general in Arizona,Colorado, Florida, Illinois, Nevada, NewJersey, Texas and Washington whoexpressed concerns about the manner inwhich pay-option mortgages were origi-nally marketed by World Savings Bankand Wachovia, who originated theseloans prior to merging with Wells Fargoin late 2008. The agreement expands onWells Fargo’s existing home preservationefforts. Through August 2010, at-riskWachovia Pick-a-Payment customersalready had been given almost $3.4 bil-lion in principal forgiveness.

“In light of the unprecedentedchanges in our economy, Wells Fargowill continue to work with leaders acrossthe nation on steps to help stabilizecommunities,” said Mike Heid, co-presi-dent of Wells Fargo Home Mortgage.

“We are pleased that Wells Fargo hasstepped forward and agreed to workwith us in avoiding another wave offoreclosures in our states,” said ArizonaAttorney General Terry Goddard, theattorney general who led the eight-state effort. “Their willingness to add totheir existing principal forgiveness pro-gram is important to help consumersfacing hardships who are deeply under-water in their homes.”

By Dec. 18, 2010, the company willcontact customers likely to be eligiblefor the new program via letters, andwill maintain a dedicated helpline—including Spanish-speaking special-ists—to assist borrowers. Borrowerswho already have received a modifica-tion will not be eligible for the newprogram. Wells Fargo customers whooriginally took out mortgages throughWachovia or Golden West who are look-ing for information about the loanmodification program can call (888)565-1422.For more information, visit www.wells-fargo.com.

a la mode’s MercuryNetwork hits 10,000appraisal transactionsper day mark

a la mode inc. hasannounced that itsMercury Network

cloud-based appraisal vendor manage-ment platform has reached its first majorvolume target of 10,000 transactions aday sustained over a full month. a lamode’s Mercury Network allowslenders and appraisal managementcompanies (AMCs) to manage theirentire appraisal workflow while beingcompliant with all appraisal independ-ence standards and banking securityregulations. Mercury combines a cloud-based SaaS core with a robust apprais-er desktop plug-in architecture thatautomates the appraiser’s data flow toand from clients.

“Getting to a consistent level of10,000 transactions a day would be anachievement under any circumstances,but doing it in such a slow overall mort-gage market and during one of theworst seasonal periods is a reflection ofthe strength of the Mercury brand andthe superiority of our technology plat-form,” said Dave Biggers, a la mode’sfounder and chairman. “I’m very proudof the team here for creating such ahigh-growth product.”

Mercury’s permission-based desktopsoftware plug-ins work with appraisalfiles from a la mode’s WinTOTAL soft-ware, as well as the offerings fromother software vendors, making it aone-stop shop for automating apprais-al workflow. The plug-ins not onlydeliver order data and manage statusupdates and quality control rules, butalso supply the appraiser’s originaldata file back to the client as “first-gen-eration XML,” eliminating the commonalternative of error-prone OCR extrac-tion. Data is returned in both TOTALXML and MISMO XML format along withthe original appraiser-signed desktopPDF file.

Providing MISMO XML straight fromthe appraiser allows lenders and AMCsto fully comply with Federal HousingFinance Agency’s (FHFA’s) newly man-dated Uniform Mortgage Data Program(UMDP), and to submit appraisalreports to the UMDP’s “front-end,”called the Uniform Collateral Data


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Portal (UCDP), without fear of rejectiondue to OCR or data entry errors.For more information, visit www.mer-curyvmp.com.

LPS’ ClosingStreambecomes first marketsolution to e-Sign HAMPloan mod

Lender ProcessingServices Inc. (LPS)has announced thatits ClosingStream 2.0

eSigning technology has been used tocomplete the first eSigned loan modifi-cation under Fannie Mae’s HomeAffordable Mortgage Program (HAMP).Using LPS’ ClosingStream 2.0, a Web-based, consumer-friendly workflowapplication with eSignature capabilities,the servicer was able to electronicallycreate and send the borrower modifica-tion documents for review. The borrow-er was then able to review, sign, andreturn the modified loan documents tothe servicer in only four hours. Thesame process, administered manually,can take as long as two weeks.

“We are very pleased thatClosingStream 2.0 is helping financialinstitutions successfully complete loanmodifications and keep people in theirhomes,” said Al Verkuylen, senior vicepresident, LPS Title, Closing andVerification Solutions. “Not only doesClosingStream 2.0 enable an efficient,secure process for borrowers to reviewand sign their loan modification agree-ments, it also reduces the time andeffort that is required since paper iseliminated from the process.”

ClosingStream 2.0 complies with theU.S. Treasury’s business requirementsfor HAMP Electronic Signature Solutions(eHAMP). The system delivers the neces-sary functionality for eHAMP, includinggenerating the documents necessary forthe modification, electronically present-ing those documents to the borrowerand providing eSigning capabilities forfinal execution of the documents. Byfacilitating an end-to-end, easy-to-trackapproach for loan modifications,ClosingStream 2.0 users can significant-ly reduce document execution anddelivery errors, lower postage andresource costs, and increase modifica-tion pull-through rates.

ClosingStream has also been used forthe past several years to facilitateeSigning of refinances and non-govern-ment loan modifications. According toan LPS report, 88 percent of all modifi-cation orders placed are eSigned and 77percent of all orders are executed with-in two days, reducing cycle time from anaverage of 10 days for traditional paperprocesses.

According to the company,ClosingStream 2.0 currently supportstraditional and proprietary loan modifi-cation programs, the end-to-end HAMPloan modification process (pre-qualifi-

cation, trial plan notice and final modi-fication agreement), FHA/VA loan modi-fication programs and the HomeSaverAdvance eNote.For more information, visit www.lpsvcs.com.

Kirchmeyer, Real Infoand Valligent partner onappraisal product offering

Credit: Creatas Images

Kirchmeyer & Associates,a national appraisal,database and real estate

appraisal consulting company andValligent, a provider of collateral valu-ation and risk management solutionshave announced the release ofParcelView, a collateral valuation prod-uct for appraising vacant residentialland across the country. The partner-ship between Kirchmeyer & Associates,Real Info and Valligent has enabled thecompanies to combine their valuationintelligence providing a single valua-tion resource for lenders, loan ser-vicers, mortgage insurers and second-ary market participants.

As one of a variety of valuation prod-ucts offered through the partnership,ParcelView was brought to market tocontribute to a range of services thatvaluate residential parcels of land,which would replace or enhance alender’s valuation tools for residentialland collateral assessment. ParcelViewis the first product of its kind to providethe most accurate valuation and analy-sis on vast areas of land versus a tradi-tional land appraisal or broker priceopinion (BPO), providing lenders withthe most accurate data and resourceinformation they require for residentiallot assessments.

ParcelView can save lenders up to 50percent compared to traditional landappraisals. Lender interest has beenfocused on improving upon current“non-traditional” valuation products, andParcelView offers lenders and servicers areplacement or enhancement to theirexisting collateral valuation options.ParcelView reports are produced by expe-rienced and certified/licensed residentialappraisers and inspections are complet-ed by trained local analysts. Appraisersverify zoning, determine availability ofutilities, and provide a preliminary evalu-ation of the feasibility of residential con-struction and marketability. Appraisersalso pool resources from the technolo-gy platform to evaluate complex factorssuch as zoning, utilities, lot characteris-tics, utilizing often very limited compa-rable data. Comparable data isresearched and displayed along withconcise narrative support for the valueconclusion.

“Kirchmeyer & Associates andValligent are dedicated to the commit-ment of providing the most up-to-date,accurate and efficient valuation tech-


sive growth targets, but it had an unin-tended consequence. Many factors beyondcredit score and loan-to-value can drivecredit risk. Because managers’ bonuseswere often tied to growth targets, theinstructions could be translated as, “Grow40 percent year-over-year by defeating ourcredit scores.”

All of this can be seen in the data. At theonset of the crisis, portfolio managers

commonly pointed to flatorigination scores as proofthat underwriting standardshad not been lowered. Atthe same time, volumesoared for sub-prime loans,negative amortizationloans, option arms, andadjustable-rate mortgages(ARMs) with unsustainablylow teaser rates.

Here is where most dis-cussions of the mortgagecrisis end. However, wehave additional informa-tion that doesn’t fit thissimple pattern. Usingsophisticated analyticalmethods, we can normal-ize the default rate data forchanges in the economy to

measure the intrinsic credit risk of eachmonth’s originations. That analysis con-firms that credit quality was deteriorat-ing, as described in step zero, but it alsoshows that the problem began earlier.Credit quality began to deteriorate in late2003, before the dramatic increases insub-prime and unconventional mort-gages in 2005 and 2006. Furthermore,when we studied auto loans, credit cards,and student loans, all showed deteriora-tion in credit quality with the same tim-ing as observed in the mortgage industry,only with less severe swings.

Further analysis of long historical timeseries has led us to the conclusion that therewas actually another step (minus one),“macroeconomic adverse selection.”Normally, we think of adverse selection asarising from the competition betweenlenders. If a lender’s pricing is too high or toolow relative to the marketplace, the appli-cants for its loans will not be what the mod-els expect, because “normal” consumers willbe shopping the middle market.

Macroeconomic adverse selectionapplies a similar concept through time.Consumer appetite for new debt will varyover time. When debt is cheaper, lower-risk consumers are drawn into the mar-ket. Falling interest rates and low homeprices appeal to the value shoppers inthe population. Conversely, rising inter-est rates and rising home prices willinterest only those who are forced intothe market, are not financially savvy or

We’re still experiencing the aftershocksof the U.S. mortgage crisis. Conventionalwisdom tells us that we know how thecrisis happened: A fall in house pricesnationwide (step one) triggered a waveof losses in the mortgage industry (steptwo). The losses shut down the mort-gage-backed securities (MBS) market(step three) as traders lost confidence intheir ability to value those assets. Thatled to a liquidity crisis forthe banking industry (stepfour) that triggered a gen-eral recession (step five).

That’s the quick andsimple explanation. Buthow exactly does a dropin housing prices initiatesuch a drastic economicmeltdown? The ultimateanswer is: It does not.When housing prices flat-ten or show a modestdrop, no increase shouldoccur in the number ofdefaulted loans. Rather,banks face a severe prob-lem in which foreclosedhomes cannot be sold torecover the outstandingloan balance. Only whenthe drop in home prices becomessevere would we expect to see anincrease in the number of defaults, assome consumers choose a “strategicdefault” or walk away from their prop-erty even though they have the abilityto continue paying their mortgage.

Not until July 2008 did home prices fall20 percent below their 2006 peak—thelevel at which strategic default begins tomake financial sense, according to theCase-Shiller Index. That drop was well intothe crisis and certainly not an initial cause.Likewise, default severity would havecaused problems for some lenders—butnot a true crisis—if the number of default-ing loans had remained unchanged. Theanswer, which has also been pointed out,was that the loans were not normal.

We need to include an initial step (stepzero) in the sequence of events. Before adrop in housing prices, we experiencedan extended period of time where mort-gage lenders were aggressively loweringtheir lending standards in a “rush to thebottom.” Because the loans could besecuritized, less attention was given tounderwriting. The focus, instead, was onvolume growth. In 2005, the standardplanning scenario by mortgage lendersfor 2006 was: We want to grow our mort-gage originations by 40 percent year-over-year, but not drop our cut-off scores.

That last phrase is critical. Establishingminimum acceptable levels for creditscores and loan-to-value ratios was thestandard in risk management for a decade.The clause was meant to soften the aggres-

The U.S. Mortgage Crisis: What the Models Missed

By Joseph Breeden


“… how exactly does adrop in housing pricesinitiate such a drasticeconomic meltdown?The ultimate answer

is: It does not.”

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There are numerous examples I use inmy seminars that I would love to share withyou, but time and space simply do notallow. If you will begin to study the matrixshown previously in this article, albeit verybasic, it will serve as a great starter to getyou down the path to being more relatableand making more money in 2011.

David Lykken is president of mortgage strate-gies and managing partner with MortgageBanking Solutions. He has more than 35 yearsof industry experience and has garnered anational reputation, and has become a fre-

a view from the “c” suite continued from page 22

say it was helpful, humorous and enter-taining, and overall positive experience.However, for the attendees who are theCholeric and Phlegmatic types, they mayfind the music somewhat helpful, butare more tuned into the facts and logic.A serious Choleric type may just find themusic “superfluous fluff” and tolerate itfor the sake of the more emotionaltypes. With me being a pure unadulter-ated Sanguine type, “this really floats myboat” and helps me more effectivelyrelate what I am teaching to the atten-dees. I bring that up because, as youread further down, it is important thatyou know who YOU are and identifywith others from that perspective but doso in a way that relates to the greatestnumber of people. Just in case you areinterested, here’s a sampling of themusic I use. What I have found is thatthe songs that relate to the greatest agesrange are those timeless “oldie butgoodie” songs, some of which have beenwonderfully redone. Here they are …

� For the drill sergeant “choleric type”songs like “Duke of Earl” by GeneChandler usually drives home thepoint.

� For the social worker “melancholictype” songs like Percy Faith’s“Theme From a Summer Place” gen-tly sets the mood to describe thistype of person.

� Then for the more logical “phleg-matic type,” the song, “Why Do FoolsFall in Love” by Frankie Lymon getsa good laugh.

� But then, for the party animal cheerleader “sanguine type,” songs likeRitchie Valens’ “La Bamba” or BillHaley’s “Rock Around the Clock” getseveryone up and dancing around …well, at least the sanguine types do.

I believe that a good number ofyou reading this article are saying toyourself, “There’s something to this …I believe it can help me.” And for oth-ers, you are saying to yourself, “Youknow what, I have heard this before,and I know I could increase my busi-ness by being more relatable.” I fur-ther believe that many reading thishave a new or renewed desire toincrease their ability to relate to morepeople. If that describes you, you willfind yourself drawn back to this arti-cle. You will find yourself compelledto read and re-read it over and over. Ibelieve you will find yourself study-ing, pondering and mulling it over inyour mind how you can apply thisknowledge and put it to practical usefor yourself. So, let me help you getstarted. There is so much to learnabout all this, and I would love tohave the opportunity to teach it all toyou, but for the sake of time andspace, I would recommend you getstarted with the following actionssteps.

1. First and foremost,identify which type ofperson best describeswho you are.Discover and determine which of the fourpersonality types best represents ordescribes you. Keep it simple. I am awarethat to one degree or another, we all are“posers.” By that, I mean a fair percentageof the population “projects” a public per-sona that might be different from whothey believe they really are privately. Forthe purpose of being professionally morerelatable, it is important to identify thetype of person you are in your profession-al/public life when dealing with others. Ifyou struggle with this first step or if youfind yourself confused because you identi-fy with more than one personality type,then ask your family and/or friends fortheir input. Another method is to take asimple, sometimes free, online personalityprofile assessment. To select the one that’sbest for you, I would recommend doing aGoogle search for “Online TemperamentAssessment.” Personally, the assessmentthat I recommend to my clients is theBirkman assessment which can be foundat www.birkman.com. However, it is notcheap, but highly effective. I’ve taken everyother kind of assessment that seems toexist and have had the greatest insightsinto who I am with the Birkman Method.

2. While studying whoyou are, also start considering the otherthree personality types.I recommend that you find others whoeither already know their personalitytype or share an interest in discover-ing/determining what their personalitytype is. Ideally, they would be willing towork with you as you begin to explorehow to relate to them. Once you haveidentified at least one or two individu-als that find their identity in one of theother personality types, spend sometime getting to know them and findingout what makes them tick. Make a listof the things that draws them to othersand get specific. Even more important-ly, find out what repels them fromwanting to do business with someone.Begin to discover ways in which you canget beyond yourself to relate to this per-son without losing sight of who you are.

3. Begin to write scriptsfor yourself to followwhen interacting with andrelating to each of theother personality types.Begin to discipline yourself to followthose scripts while interacting withthose of the various personalitygroups. Ask for feedback as you beginto try and relate. Identify key wordsthat are “reactors” that stir people upin a negative way and may even causefor some toxic feelings to rise andcause them to retract from engaging inconversation with you.

quent guest on FOX Business News with NeilCavuto, Stuart Varney, Liz Claman and DaveAsman with additional guest appearances onthe CBS Evening News, Bloomberg TV andradio. He may be reached by phone at (512)977-9900, ext. 101 or e-mail [email protected].

To listen to author DavidLykken’s online radio show,log on to www.blogtalkra-

dio.com and type in “Lykkenon Lending” in the “Search” box onthe right-hand side of the page.

PROFESSIONAL .TVMORTGAGE

Coming in 2011!

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Closing Both PurchasesAnd RefinancesIn Less Than

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nology tools to the mortgage industry,”said Jim Kirchmeyer, founder and chiefexecutive officer of Kirchmeyer &Associates. “Our partnership withValligent solidifies our commitment tothe industry as we continue to createcost saving strategies to fit each client’sneeds at each stage of the loan lifecycle. Together, we are the total valua-tion solution.”

End users have access to a wealth ofsolutions that are compliant with theHome Valuation Code of Conduct (HVCC),Uniform Standards of ProfessionalAppraisal Practice (USPAP), FHA guide-lines, Fannie Mae’s electronic appraisaldelivery standards and other industryguidelines and standards.For more information, visit www.valli-gent.com or www.kirchmeyer.com.

Gleacher & Company tolaunch residential mortgagebanking initiative

Photo Credit: Digital Vision

Gleacher & CompanyInc. has announcedthat it intends to

launch a residential mortgage bankinginitiative. In connection with that ini-tiative, it has agreed to acquire,through its newly formed subsidiary,Descap Mortgage Funding LLC, all ofthe shares of common stock ofClearPoint Funding Inc. from GregO’Connor, the founder and chief execu-tive officer of ClearPoint Funding. Theacquisition is subject to various regula-tory approvals and customary closingconditions.

ClearPoint Funding is a residential,non-depository mortgage lender basedin Marlborough, Mass. and is currentlylicensed as an independent mortgagelender in 13 states and Washington,D.C. ClearPoint Funding is a U.S.Department of Housing & UrbanDevelopment (HUD) Direct EndorsedLender, and currently employs approx-imately 100 employees.

Mark Pappas, who heads the mort-gage finance initiative at Gleacher &Company and is president of the newsubsidiary, will be responsible for over-seeing Gleacher & Company’s interestin ClearPoint Funding after the acquisi-tion is consummated. Prior to joiningGleacher & Company earlier this year,Pappas was one of the originalfounders of MortgageIT Inc., a wholly-owned mortgage banking subsidiary ofMortgageIT Holdings Inc., a publiccompany that was purchased byDeutsche Bank in 2007. As president ofMortgageIT, Pappas helped to build thecompany and was also a member of itsboard of directors from its inception.The acquisition of ClearPoint Fundingwill reunite Pappas with several seniorprofessionals with whom he workedwith at MortgageIT. O’Connor willremain with ClearPoint Funding afterthe consummation of the acquisition

by Gleacher & Company and will leadthe overall operations effort of themortgage lender.

“Launching this new initiative is ameaningful step in our overall growthstrategy and an important addition toour mortgage platform,” said EricGleacher, chief executive officer ofGleacher & Company. “I am pleasedthat someone of Mark’s experience andproven track record in the mortgageorigination business will be leading oureffort.”For more information, visitwww.gleacher.com.

Emphasys Softwareacquires software assetsfrom LSSI

Emphasys Softwarehas announced thatit has completedthe acquisition of

all related assets from Lending SupportServices Inc. (LSSI). Emphasys Software’sServicer3D and Docs3D offer solutionsfor managing mortgage and loan serv-icing, as well as mortgage documenta-tion preparation. LSSI is a provider ofservicing and documentation tools forthe mortgage industry.

“Emphasys is excited to expand itsintegrated offerings into the mortgageindustry with such a great collection ofemployees, clients and products” saidMike Byrne, Emphasys chief executiveofficer. “Our focus on products thatbring together the combination of realestate, financial and compliance madethe mortgage industry a natural nextstep for us as we look to offer ourclients great solutions that help themdrive their business.”

“Although the lending industry hashad its challenges, we have beenresilient due to our superior technolo-gy and stellar levels of customer serviceas performed by our employees,” saidCary Burch, chairman and chief execu-tive officer of LSSI. “I am confident thatEmphasys is uniquely positioned tobuild upon our technology platformand continue to serve our loyal cus-tomer base well into the future.”For more information, visitwww.emphasys-software.com.

UrbanAmerica Advisors andGreen River Capital formnew REO joint venture

UrbanAmer i caAdvisors and GreenRiver Capital (GRC)

have announced that they have created ajoint venture minority business enterprise(MBE) called UrbanAmerica Res Services. Thenew company combines UrbanAmericaAdvisors’ national infrastructure andextensive local community developmentrelationships with GRC’s industry-leadingservices for management of real estate-owned (REO) properties and short salesnationwide.

the u.s. mortgage crisis continued from page 24

are betting on prices to continue risingsuch that they can refinance later. All arerisk-taking behaviors that are not con-ducive to sound lending.

An analysis of data back to 1990 showsthree distinct reversals from good-credit-risk mortgage origination to poor-qualityorigination: 1994, 1999 and 2003. In eachof those years, mortgage interest ratesswitched from falling to rising, and homeprices began increasing rapidly.

Macroeconomic adverse selectioncontributed significantly to the U.S.mortgage crisis, because the aggressivegrowth goals of 2005 and 2006 werebased on the low industry delinquencyrates observed up to that point. Evenhigh-risk mortgages do not defaultimmediately. The peak delinquencyusually occurs two to four years afterorigination. Thus, in 2005, the weaken-ing originations from 2004 were not yetapparent in simple reports, but the con-servative, low-credit-risk consumerswere rapidly pulling out of the market,leaving only risky consumers to meetthe aggressive growth targets of lenders.

The data makes it clear that mortgagedelinquency shocks are cyclical: 1991,1996, 2002 and 2006-2010. In an attemptto prevent future crises, underwritingstandards, leverage ratios and securitiza-tion are experiencing many modifica-tions. However, none of the changesaddress cyclicality in consumer appetitefor credit. All of the mortgage lendermodels and policies assume that the sameprospective borrowers will be availableover time. In fact, the pool of availableborrowers changes dramatically throughtime, and lenders and their models mustadapt if we are to soften future cycles.

In the modern age of retail lending,good decision-making starts with soundmodels and informative reports. Poormodels and inadequate reporting canassume significant blame for the crisis.The workhorse models in retail lendinghave always been credit scores and rollrates. For trading mortgage-backed (MBS)and asset-backed securities (ABS), thefocus has been on valuation models thattake those model outputs as inputs orpure trading models that try to predicttrends in market prices. Unfortunately,neither method can predict turningpoints in consumer appetite, underwrit-ing standards or macroeconomic condi-tions that were key to the last crisis.

The industry response to the problemshas largely been to focus on loan-levelmodels and include more factors.

Certainly, refreshed house prices, com-bined loan-to-value ratio (CLTV), andrefreshed credit scores can improve theperformance of failed models. Using loan-level models is beneficial if the goal is totrade individual loans. Even traders havebegun to realize that market-based pric-ing models are only as smart as the mar-ket, and we have seen that the MBS/ABSmarket did not have access to or ignoredmany critical factors for efficient pricing.

Even with these changes, the modelswill only be as good as the factors theyinclude. At present, none of those factorscan capture macroeconomic adverseselection or creative changes to under-writing standards. Nevertheless, properlystructured non-linear decompositionmodels, such as dual-time dynamics andsurvival models, can analyze the earlyperformance of loans to detect changesto credit quality. Dual-time dynamicssuccessfully predicted the mortgage crisisas early as December of 2005.

But even if we improve the models, wemust ultimately fix the reporting anddecision-making process. We often hearthat the outputs of a model must bereduced to a simple roll-rate or score dis-tribution report “for the executives”because executives are accustomed tothose technologies. Unfortunately, roll-rate and score distribution reports hideimportant information that explain why acrisis is imminent and can inform man-agement on how to respond. As long aswe keep producing the same outdatedreports, we will continue making thesame flawed decisions that led to the cur-rent crisis—and may create the next.

As for where we go from here, we haveseen that macroeconomic adverse selectionleads every mortgage delinquency cycle.Although we’re only starting to quantify andpredict this effect, we can be certain thatwhen interest rates begin to rise and homeprices increase again, we must look critical-ly at the quality of the loans being booked.Who wants a loan when both the price ofthe home and the mortgage are expensive?

Joseph Breeden is chief executive officer ofStrategic Analytics, a provider of credit riskand capital management solutions to con-sumer and mortgage lenders. As part of theInterthinx business unit of Verisk Analytics,Strategic Analytics provides advanced solu-tions and professional services critical toloss forecasting and the stability of the U.S.residential mortgage market. For moreinformation, call (505) 995-4755 or visitwww.strategicanalytics.com.

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www.windvestcorp.com

UrbanAmerica Res Services, head-quartered in Dallas with offices in SaltLake City, Atlanta and New York City,brings together a network of 7,000 dealsourcing, loss mitigation, asset man-agement and valuation professionals. Italso takes advantage of GRC’s existingscalable technology platform. Throughthe company’s affiliates, UrbanAmericaRes Services has offices in 22 locationsthroughout the U.S.

“We’ve observed that there is insuffi-cient participation throughout thisservices sector by minority owned com-panies and real estate brokers. Theseare the very people who can mosteffectively impart solutions in the com-munities disproportionately affectedby the crisis,” said Richmond S. McCoy,co-founder and chairman ofUrbanAmerica Res Services.

McCoy is an industry veteran with 30years of real estate experience. Seeingan opportunity for investors to provideservices in the under-served urban core,McCoy, co-founded UrbanAmerica in1998. Through McCoy’s deep and broadrelationships in industry, government,local community development organi-zations, faith-based organizations andthe institutional investment communi-ty, he has led equity-raising effortstotaling $520 million as well as thedeployment of that capital into morethan $2 billion of assets over the last 12years.

“We expect our partnership withUrbanAmerica to enhance and extendthe value that both companies offer tothe financial industry,” said ChristopherWest, president and chief executive offi-cer of GRC. “UrbanAmerica Res Servicesis ideally positioned to maximize valuefor investors while providing a solutionin situations where connecting withborrowers can be difficult, and to createoutcomes that will aggregate the effortstowards neighborhood stabilization.”

West has more than 22 years ofexperience in the REO and mortgageservicing industries and is a foundingpartner of UrbanAmerica Res Services.West provided the leadership thatenabled the growth of GRC into a com-pany of more than 200 employees.For more information, visitwww.uaresservices.com.

MRG partners with XeroxMortgage to offerDataGlyph technology

MRG DocumentTechnologies (MRG)has announced thatit has partnered

with Xerox Mortgage Services to providetheir common customers with DataGlyphstechnology, enabling the automaticclassification of scanned and uploadeddocuments into the BlitzDocs collabora-tion suite. MRG is a provider of mortgagedocument preparation software andcompliance technology to banks, creditunions and other lenders nationwide.

With Xerox’s patented technology,MRG’s customers can embed mortgageloan information on a document usingDataGlyphs, a sophisticated form of a

barcode that acts as a portable data-base. The process offers increased secu-rity, redundancy and encryption capa-bilities throughout the course of theloan. Now, when documents are print-ed and signed by the borrower, they canbe uploaded directly into BlitzDocswithout manual classification or insert-ing cover pages.

“DataGlyphs enable MRG’s customersto easily classify documents in BlitzDocsand benefit from technology that sim-ple barcoding lacks—automating andaccelerating the mortgage lendingprocess,” said Todd Moncrief, vice pres-ident of business development at XeroxMortgage Services. “With our customersdelivering tens of thousands of loansinto the secondary market usingBlitzDocs, we are committed to enhanc-ing our solution with advanced technol-ogy that streamlines document man-agement processes and reduces costs.”

Unlike most barcode systems,DataGlyphs can vary in size and shapeand store significantly more data.Information can also be recovered if theDataGlyph is damaged.

“MRG seeks to provide our cus-tomers with the latest technology, bothin our own services and those we canprovide through partnerships,” saidKathleen Mantych, senior marketingdirector with MRG. “Xerox’s DataGlyphscan cut the printing of barcoded coversheets by up to 90 percent andimprove on the document classifica-tion accuracy with the redundancyinherent in the technology.”

MRG offers a browser-based systemfor the preparation and delivery of com-pliant document packages, electronicdisclosures, loan modifications andother services for mortgage lenders,banks and credit unions nationwide.MRG guarantees that its products are incompliance with the most recent leg-islative and regulatory changes.For more information, visitwww.mrgdocs.com.

Wipro Gallagher Solutionspartners withComplianceEase

Wipro GallagherSolutions (WGS),a provider ofcost-effective,

end-to-end loan origination technologyand services for financial organizations,has announced it has entered into astrategic partnership with San Francisco-based ComplianceEase, an automatedcompliance and risk managementprovider to the financial services indus-try. The partnership creates a seamlessintegration of mortgage lending compli-ance audits from ComplianceEase intothe WGS fully automated loan origina-tion system (LOS), NetOxygen.

The partnership enables customers totake advantage of NetOxygen’s robustfunctionality for lead management andworkflow management while relying onComplianceEase’s ComplianceAnalyzerfor real-time compliance audits thatimmediately identify loans with poten-tial compliance issues and allow users toreview detailed analysis and explana-tions of failures. This partnership savesNetOxygen users time and helps them toreduce risk by enabling seamless preda-tory lending and license-based con-sumer credit compliance checks at anypoint in the lending process without theneed to rely on manual processes thatcan be prone to human error.

WGS’ Web-based NetOxygen system isfully automated and guides lendersthrough every step of the lendingprocess. NetOxygen enables lenders totake advantage of a streamlined serv-ice to enter, monitor and maintainloans through a scalable platformhosted by WGS or set up at a location ofchoice. ComplianceAnalyzer provideshosted, enterprise mortgage compli-ance audits that run at multiple pointsin the mortgage process for compre-hensive yet cost-effective compliancerisk management.

In addition, mortgage regulatorsacross the United States useComplianceAnalyzer to examine thelending operations of state-regulatedlenders. This partnership allowsNetOxygen clients to perform the sameseamless predatory lending and con-sumer credit compliance checks as reg-ulators, at any point in the lendingprocess.For more information, visit www.compli-anceease.com or www.gogallagher.com.

Sun West Mortgage andCapital Markets Cooperativeform strategic alliance

Capital MarketsC o o p e r a t i v e(CMC), in part-

nership with WL Ross & Company LLC,has announced a new strategic alliancewith Sun West Mortgage Company(SWMC) where CMC lenders will haveaccess to Sun West’s full suite of mort-gage products that include FHA 203(b)mortgages, 203(k) rehab and 203(k)streamline, conventional and homeequity mortgages, VA and multifamilyand the FHA HECM reverse mortgageproduct. Through this alliance, CMCpatrons will enjoy premier pricing andservices, as well as advanced trainingand marketing programs gearedtowards CMC’s member clients.

“We’re very pleased to partnerwith Sun West Mortgage Company.The firm’s approach to offering addi-tional mortgage solutions and long-standing Ginnie Mae direct issuer sta-tus brings new competitively pricedoptions to our membership,” saidTom Millon, president and founderof CMC.

“We are proud to partner withCapital Markets Cooperative and mem-ber firms,” said Pavan Agarwal, execu-tive vice president of Sun WestMortgage Company. “CMC’s ground-


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Compliant closing documents and software for

Residential Mortgage Lending� Exceptional service, training and support� Extensive compliance coverage with ComplianceEase®

integration� Customizable software, loan packages and forms� ProMerge® - automated MERS® Registration� Closing docs accommodate multiple non-applicants,

POAs and Trusts

Learn more at www.ProClose.com.Contact us at 800-783-2283 or

[email protected].


breaking approach to mortgage bank-ing fits with Sun West’s philosophy ofhelping our clients increases CMC’sproduct offerings which, in turn, bene-fits local borrowers.”For more information, visitwww.capmkts.org or www.swmc.com.

Walter InvestmentManagement completespurchase of MarixServicing

Credit: Creatas Images

Walter InvestmentM a n a g e m e n t

Corporation has announced that it hascompleted the purchase of MarixServicing LLC, a mortgage servicer.Marix, based in Phoenix, Ariz., isfocused on default management, bor-rower outreach, loss mitigation, liqui-dation strategies and component andspecialty servicing.

“We are pleased to have finalizedthe purchase of Marix,” said Mark J.O’Brien, Walter Investment’s chairmanand chief executive officer. “We believeMarix is uniquely positioned as a well-capitalized, specialty servicer withavailable capacity, leading technology,experienced management and superi-or performance.”

With the close of the transaction,Marix becomes a significant compo-nent of the Walter Investment high-touch asset management and servicingplatform, allowing the company toexpand its portfolio acquisition andrevenue growth opportunities.For more information, visit www.marixser-vicing.com or www.walterinvestment.com.

Mortgage Professionalsto Watch� Guaranteed Home Mortgage has

announced the hiring of RussPfeffer as sales team manager andMatt Sharp as market manager.

� The Mortgage Bankers Association(MBA) has announced the election ofthe following as 2011 officers of theassociation: Michael D. Berman,CMB, chief executive officer of

CWCapital as chairman; Michael W.Young, chairman of the board forCenlar FSB as chairman-elect; andDebra W. Still, CMB, president andchief executive officer of PulteMortgage LLC as vice chairman. TheMBA has also announced the addi-tion of Richard J. Hill as associatevice president of industry technologyand Barbara Van Allen as seniorvice president of communicationsand marketing.

� Bliss Sawyer has joined FairwayIndependent Mortgage as a seniorloan consultant.

� Landon V. Taylor has joined DoradoCorporation as senior vice presidentof business development.

� J.I. Kislak Mortgage LLC has appoint-ed Thomas Wind managing director.

� Matt McLean has joined a la mode’sMortgage Solutions Division asnational sales director for the southcentral region.

� Julia Davey has joined Pro TeckValuation Services as senior nation-al sales director.

� Wolters Kluwer Financial Serviceshas announced the hiring of J. PhillipHough Jr. as commercial real estaterelationship manager and Carol A.

Bruno as commercial real estateportfolio manager.

� ICBA Mortgage Solutions hasnamed Scott Hall president andElizabeth Deal as its new executivevice president of marketing.

� Tom Schilling has been namedexecutive vice president and chieffinancial officer of LenderProcessing Services Inc. (LPS).

� XINNIX has announced the forma-tion of a nine-person leadershipadvisory board consisting of:Rodney Anderson, executive direc-tor of Supreme Lending; Bill Bent,senior vice president of AcademyMortgage, Hank Cunningham, pres-ident of Cunningham and Company;Sterling Edmunds, president andchief executive officer of SunTrustMortgage; Marty Garrity, seniorvice president and director of FifthThird Mortgage; Tom Gough, vicepresident and area manager of FirstMariner Mortgage; Terry Mott, vicepresident of production at RepublicMortgage; Dan Slade, senior vicepresident of United Guaranty

Corporation; and Karyn Wilson,divisional sales executive at Bank ofAmerica.

� The National Foundation for CreditCounseling (NFCC) has appointedDebbie Bianucci, president andchief executive officer of BAI, aschair of the NFCC Advisory Council.

Your turnNational Mortgage Professional Magazineinvites its readers to submit any infor-mation, events, passages, promotions,personal or professional occurrencesthat seem appropriate and/or other per-tinent data to the attention of:

Heard on theStreet/Mortgage

Professionals to Watchcolumn

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

[email protected]

Note: Submissions sent via e-mail are pre-ferred. The deadline for submissions is the1st of the month prior to the target issue.

Bliss Sawyer

Landon TaylorNational Mortgage Professional Magazine

recognizes the support of those Mortgage Professionals who have stepped up to pay tribute

to the men and women who have fought topreserve freedom for our great country.

We will be featuring these Mortgage Professionals inour Mortgage Heroes feature in National MortgageProfessional Magazine.

We want to hear from you if you:

�Make significant donations to any veteran's organizations

�Hosts or sponsors events recognizing and paying tributeto veterans

�Provides support for the families of veterans

�Any other noteworthy assistance to help improve thelives of veterans and their loved ones

To be considered for Mortgage Heroes, visit

NMPMag.com/mortgageheroes.

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SaM Solutions US unveilsnew LOS

SaM Solutions UShas released Engage,a loan originationand processing sys-

tem designed for community banks, bro-kers, credit unions and midsized banksthat they can deploy from the initialapplication to the funding stage of amortgage. SaM Solutions has more than15 years experience in building, releasingand maintaining software solutions forthe mortgage and financial industries.

“This system provides users with atechnologically sophisticated, elegant,seamless, and intuitive loan originationsystem,” said Aaron Cope, director ofbusiness development for SaMSolutions. “We think this system repre-sents the next generation, one thatbrings a level of sophistication that did-n’t previously exist in the marketplace.”

The LOS was designed to be cus-tomizable to fit the needs and work-flows of clients. “We designed this sys-tem to be adaptable and that meantthat we made it easy to customize andinexpensive to do so,” said Cope.

Engage Loan Origination System is asolution for origination and processingmortgages, covering the originationprocess from the application to whenthe loan is approved and funded.

Engage User and Client Managementhelps users manage the system, includ-ing creating new accounts, grantingpermission to view activity reports andestablishing a permissions policy. Infact, administrators are able to defineaccess levels through an applicationthat walks them through each step ofthe process.

Engage Business Rules Engine pro-vides an intuitive, powerful method forsetting up business practices such asorigination and underwriting guide-lines, price and rate adjustments, anddefault loan fees separately by client,state and product. Each product optioncan be setup in the rules engine.For more information, visit www.sam-solutions.com.

FICO 8 Mortgage Score nowavailable from top threecredit reporting agencies

FICO has announcedthat its latest creditscoring product, theFICO 8 Mortgage

Score, is now available from all three

major U.S. credit reporting agencies.Mortgage lenders now have access to moreprecise risk assessment tailored for the realestate market, which can help supportmarket stability and reduce borrower,lender and investor risk.

The FICO 8 Mortgage Score was builtspecifically to help mortgage lendersbetter predict mortgage performanceand improve credit decisions for bothcurrent and prospective homeowners.The score analyzes the full credit histo-ry on file to deliver significantly sharperassessment of mortgage repaymentrisk, and aids servicers in earlier identi-fication of borrowers at risk so they canmitigate the incidence and high cost offoreclosure.

“The FICO 8 Mortgage Score’s broadavailability means that all U.S. lendersand servicers can now easily access scoresthat are fine-tuned for mortgage per-formance,” said Jordan Graham, execu-tive vice president of scores and presi-dent of consumer services at FICO.“Moreover, by combining this superiorpredictive performance with the FICOEconomic Impact Service, lenders areable to adjust policies and strategiesquickly based upon forward-lookingeconomic modeling. This is what wemean by the FICO analytic advantage:the ability to use the most advancedpredictive analytics to compete and winin this highly challenging environment.”

The FICO 8 Mortgage Score retainsthe same 300-850 scoring range, mini-mum scoring criteria, authorized userand inquiry treatment as the general-risk FICO 8 Score. To achieve its signifi-cant increase in predictive strength,FICO Mortgage Score assesses severaladditional data variables from con-sumer credit files to specifically predictmortgage repayment risk. Accordingly,FICO Mortgage Score includes addition-al score reason codes compliant withthe Fair Credit Reporting Act that helplenders understand and explain thescores to applicants.For more information, visitwww.myfico.com.

Calyx announces thereleases of Point andPointCentral Version 7.3

Calyx Software hasannounced therelease of Point

and PointCentral 7.3. Point combines


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Frank “Paco” Torch, CRMS, CITRMS,of “Paco Speaks” Founder, NMLF• 12 Years of Experience as NAMB Certified Instructor

[email protected] 1400038

NMLF, a non-profit educational foundation, provides licensing and continuing educationtraining, was the first education provider to be approved by NMLS to teach SAFE-Act

classes in Georgia. Our students’ high rate of success has resulted in mortgagecompanies outside Georgia inviting NMLF to travel and train.

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new to market continued from page 29

the latest technology with the function-ality that mortgage professionalsrequire for loan marketing, prequalifi-cation, origination, and processing.PointCentral’s server platform unitesPoint with business rules, remoteaccess, and consolidated data storage.Version 7.3 simplifies compliance forusers with intuitive fees worksheetsand synchronization of important dataand includes support for users utilizingterminal services.

Point 7.3 offers updated compliancerequirements including improvedGood Faith Estimate (GFE) and Truth-in-Lending (TIL) screens along with anew HUD-1 screen and form. The GFEProvider List has been enhanced toprint either with or without feesshown. Point 7.3 also allows users tocopy fees from either the FeesWorksheet or the Fees & Impoundsscreen into initial or final disclosureforms, either as a group or individual-ly. This feature gives Point usersgreater flexibility in a more functional,yet easier, disclosure process. Point hasalso been improved to facilitate docu-ment management throughout theloan process with document stackingand packaging capabilities.

The enhancements to the server-based PointCentral 7.3 are also dedicat-

ed to compliance and flexibility. With14 pre-built and customizable compli-ance rules, PointCentral gives users theability to implement compliance poli-cies that best suit their company proce-dures. A new action-based rule forprinting allows administrators to con-trol printing by user or user group.

“7.3 was developed out of a need tomake compliance easier for our userswith the functionality they need tomanage their business processes” saidDoug Chang, president of CalyxSoftware. “As regulations grow morenumerous and complicated, we listento our users and respond as quickly aspossible with products that make apositive difference for them.”For more information, visit www.calyx-software.com.

Byte announces therelease of ByteProVersion 5.0

Byte Software, aprovider of mortgagesoftware for banks,credit unions, mort-gage bankers and

mortgage brokers has announced therelease of BytePro Version 5.0. This newversion focuses on back-office mortgagebanking features with support for under-

writing, secondary marketing, closing,funding and shipping.

In addition, BytePro 5.0 containsnew automation features, the revisedTruth-in-Lending (TIL) disclosure,enhanced document managementcapabilities and new service providers.BytePro’s new mortgage banking fea-tures enable mortgage lenders to sellloans on the secondary market viamandatory or “best efforts” commit-ments. The new lock desk allows origi-nators to request locks for approval bysecondary marketing. All lock deskactivity is automatically logged, provid-ing a history of accepted locks, reject-ed locks, re-locks and lock extensions.The new secondary marketing screentracks buy-side and sell-side pricing,net margins, and final pricing from thepurchase advice. Additional screensare provided for funding, closing andshipping.

“BytePro has always been a power-ful tool for mortgage originators,” saidJoe Herb, Byte’s general manager. “Ourlatest 5.0 release takes a significantstep forward, enabling mortgagelenders to use BytePro as an end-to-end mortgage lending solution for theentire process from originationthrough investor delivery. It managesthe workflow of the back office allow-ing lenders to track, monitor, reportand set business rules to meet theirunique business requirements.”

BytePro 5.0 also contains the revisedTruth-in-Lending disclosure (TIL) that isfederally-mandated for all loans origi-nated on or after Jan. 30, 2011. BytePro5.0 allows mortgage companies to con-tinue to use the old TIL prior to Jan. 30,2011 and roll out the new TIL whenthey are ready. Electronic documentmanagement in BytePro has beenenhanced in version 5.0 with the abili-ty to automatically store documentsevery time they are printed, saved as aPDF or e-mailed. This auditing featureallows management to determine notonly which disclosures were providedto borrowers, but also the exact con-tents of those disclosures.

In addition, two existing interfaceshave been updated: The CBC Floodinterface now imports HMDA censustract information, and the MRG docu-ment preparation interface now linksto MRG’s compliance center forupdates and state-specific regulatorychanges.For more information, visit www.byte-software.com.

Lenders One developslead deployment strategyfor its members

Lenders OneM o r t g a g eCooperative,a national

alliance of community mortgagebankers, correspondent lenders andsuppliers of mortgage products andservices, has announced that AltisourcePortfolio Solutions, the parent ofLenders One’s management company,has developed a lead deployment strat-

egy to provide Lenders One memberswith viable pre-approved borrowers intheir respective markets.

“This strategy aligns with our com-pany’s mission to help our members tomaximize their revenues, minimizetheir expenses and expand their mar-ket share. We are very pleased that thisnew strategy will help our members toclose more loans,” said Scott Stern,Lenders One chief executive officer.“Providing strong qualified leadsthrough Altisource is an obvious divi-dend to our members, and the capabil-ity validates the power of being part ofthe Altisource family to the overall ful-fillment of our mission.”

“While Lenders One already providesits members with professional training,national marketing campaigns andmany other products and services tomeet the goals of its mission,” Sternsaid, “It was paramount to also offer asuccessful lead generation program toexpand the services the company offersmembers. Not only will our lead gener-ation activities benefit our members,who will close more loans and ordermore products, but our other partners,including our preferred investors andvendors, will benefit as well.”

Through the lead generation strate-gy, Lenders One members pre-qualifyor pre-approve potential homebuyerswho apply through a Web site,GoHoming.com, owned by Altisource.

Each potential homebuyer is direct-ed to a specific Lenders One memberwith an office in the homebuyer’s localmarket. Working with GoHoming.com’snational presence, Lenders One, withmore than 180 members across theU.S., can now refer a homebuyer to alocal lender in every major and mid-major market in the country. This ven-ture helps Altisource identify potentialnew homeowners as well as reach thegoal of touching the span of the mort-gage process.For more information, visit www.lender-sone.com or www.altisource.com.

RATA announces therelease of HMDA/CRAdata analysis tool

RATA Associates,a provider ofHome MortgageDisclosure (HMDA),

Community Reinvestment Act (CRA) andFair Lending compliance software andgeocoding services for financial institu-tions, announced availability of the 2009HMDA/CRA Data for its Comply Peer-2-Peer. Comply Peer-2-Peer is a Web-based tool designed to help institutionsgauge how their lending activities com-pare and rank with competitive institu-tions. Built on the same .NET technolo-gy platform as the RATA Comply Suite,Comply Peer-2-Peer offers institutionsthe power and flexibility needed toanalyze HMDA/CRA data released eachyear by the Federal FinancialInstitutions Examination Council(FFIEC). With the recent release of the2009 data, institutions using Peer-2-Peer can now evaluate and compare

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last year’s lending activity with otherinstitutions’.

“Each year, lenders spend animmense amount of time collectingand submitting HMDA and CRA data tomaintain regulatory compliance,” saidJohn A. Woloshen, executive vice presi-dent and chief operating officer forRATA. “Generally an arduous task, thedata collected can significantlyimprove marketing efforts and busi-ness operations if used properly.Lenders that take advantage of thisdata are better positioned in the mar-ketplace, but having the right tools inplace can impact how quickly and effi-ciently strategic changes are made.With Comply Peer-2-Peer, institutionscan easily analyze data to identify areasof weakness and potential growth.Knowing this information immediatelyis critical to successfully building orchanging a marketing plan.”

Using Comply Peer-2-Peer, institu-tions can analyze HMDA/CRA data usingvarious criteria, including geographiclocation or loan volume. Lenders canalso directly compare themselves withspecific competitive institutions.Comply Peer-2-Peer can generate dif-ferent types of reports based on theinstitution’s needs, including top peers,ranking, market share, pricing, spatialassessment, etc. Furthermore, becausethis product is web-based, it is a costeffective solution with no huge data-base to load or programs to constantlyupdate.For more information, visit www.rataas-sociates.com.

ICBA and LenderLiveannounce the launch ofICBA Mortgage Solutions

The IndependentCommunity Bankersof America (ICBA)and LenderLive

Network Inc. have announced thelaunch of ICBA Mortgage Solutions, amulti-functional suite of mortgageservices designed to help ICBA membercommunity banks continue to origi-nate, process, close, fund and sell resi-dential loans.

“Main Street community banks arerelationship lenders that continue toserve the needs of their local customersnationwide by providing common-sensemortgage loans that they can afford andafford to keep,” said Ron Haynie, presi-dent and chief executive officer of ICBAMortgage Corporation, the mortgageservices subsidiary of ICBA. “ICBAMortgage Solutions is a testament to ourdedication to offering value-added serv-ices to our member community banksas it will provide them with greateraccess to high-quality mortgage prod-ucts, easy-to-use technology and thenecessary tools to manage risk.”

To bring this platform to the market,ICBA Mortgage has partnered withLenderLive Network Inc., a provider ofmortgage technology and loan fulfill-ment services. Based in Denver,LenderLive is the engine for ICBAMortgage Solutions.

“As a community banker, I have nodoubt that ICBA Mortgage Solutionswill heighten the ability of communitybanks across the nation to offer theircustomers residential loans while stick-ing to the common-sense lending prin-cipals that have always been the hall-mark of community banks,” said TerryJorde, chairman of ICBA Mortgage andpresident and chief executive officer ofCountryBank USA in Cando, N.D.

“We are extremely excited about thelaunch of ICBA Mortgage Solutions andour partnership with ICBA Mortgage tobring this offering to communitybanks,” said Rick Seehausen, presidentand chief executive officer ofLenderLive. “We feel strongly that therecent changes in the mortgage indus-try represent a tremendous opportuni-ty for community banks to grow marketshare in mortgage lending and stabilizethe primary origination market withhigh-quality loan originations.”For more information, visitwww.icbams.com.

LPS Property Tax Solutionsunveils new non-escrowtax functionality

Lender ProcessingServices Inc. (LPS)has announced therelease of Version2.0 of the LPS

Desktop Tax Management application.This release incorporates new non-escrow functionality that will enableservicers to electronically load andmatch non-escrowed tax search results,track delinquency letter cycles, paydelinquent taxes and build tax lines forescrow collection.

Investors are increasingly concernedwith ensuring that servicers are effec-tively managing their non-escrow port-folios to minimize losses and penaltiesrelated to delinquent taxes. In the past,these tasks not only involved a highlevel of manual work, but also requiredtax staff to access multiple systems tocomplete their non-escrow cycle pro-cessing. LPS Desktop Tax Managementbrings all of the non-escrowed tax tasksinto a single system using customizedbusiness rules to automate a large por-tion of the processing. The systemleverages integrations with LPSDesktop, tax vendor systems and theLPS MSP system to create a seamlessflow of data between applications—resulting in higher efficiency, increaseddata accuracy, accelerated processingtimelines and reduced risk of tax-relat-ed financial losses on the part of thelender/investor.

“After our initial success withautomating tax processing onescrowed loans with LPS Desktop TaxManagement, we realized that byenabling servicers to use the sameprinciples to automate the processingof non-escrowed taxes, lenders couldachieve significant savings, reduce riskand attain a much broader under-standing of the tax status on non-escrowed loans in their portfolios,”said Ray Ferrarin, managing director

of LPS Property Tax Solutions Inc. “Webelieve that by using LPS Desktop TaxManagement, clients will increase effi-ciency when processing loans withdelinquent taxes, which will helpclients reduce tax-related losses andimprove portfolio performance, bothof which are critical to their futuresuccess.”For more information, visitwww.lpsvcs.com.

SigniaDocs announceseWarehouse lending solution to track mortgage notes

S ign iaDocs , anational eMortgageand documentsolutions provider,

has announced that it has provided anautomated system to address one of thebiggest challenges in the eMortgagelandscape—the warehouse lendingprocess. SigniaDocs’ platform wasrecently utilized by one of the first non-depository mortgage lenders to closean eNote and have it funded by awarehouse lender.

“Warehouse lending in the paperworld has certainly been reduced dueto the financial crisis of the past fewyears. Warehouse lenders are under-standably risk-averse by nature, andthe ‘wet funds’ advance required forclosing under today’s slow paperprocess just adds to their concerns.Being able to shorten a 24-48 hourprocess down to seconds will certainlyprovide new comfort,” said PaulAnselmo, chief executive of SigniaDocs.

SigniaDocs’ eVaulting and eClosingsystem for originating lenders solvesthe technical side of this business chal-lenge with an open solution that caninterface with any warehouse lender’seVault, using MISMO standards and theMERS eRegistry and eDelivery systems.

“During the closing process, as soonas the eNote is signed, our eVault auto-matically performs a series of steps:The eNote is registered on the MERSeRegistry on behalf of the lender, acopy of the eNote is delivered to thewarehouse lender’s eVault, and thelender transfers Control andLocation—the equivalent of ownershipin the paper world—to the warehouse

lender,” said Harry Gardner, chief strat-egy officer of SigniaDocs. “All of thishappens within seconds, under auto-mated control. We worked closely withour partners at Cooper River Financialand CMG to provide them with aneWarehouse solution with maximumassurance and minimum risk.”

The automated solution greatlyincreases the velocity of the warehouselending process. Instead of waiting forthe original paper note to be shippedto the warehouse lender after closing,and then shipping the note to theinvestor under bailee letter, the ware-house lender receives the eNote a fewseconds after it’s signed and can imme-diately eDeliver it to the investor toexamine for purchase. As soon as theinvestor is ready, the warehouse lendercan transfer Control and Location tothem. The entire warehouse lendingprocess, from origination to investorpurchase and replenish of the ware-house line, is complete within a coupleof days. To cover all of the legal bases,the lender, warehouse lender andinvestor also typically create a “tri-party” agreement among them.For more information, visitwww.SigniaDocs.com.

Mortgage Builderannounces LOS upgrade

Mortgage BuilderSoftware, a providerof loan origination

systems (LOS) technology, hasannounced a major upgrade to the elec-tronic document management (EDM)capabilities of its award-winning plat-form. The new, digital imaging andpaperless functionality is completelyintegrated into Mortgage Builder’srenowned origination system, bringingnew levels of efficiency and sophistica-tion to the company’s users withinlending institutions of all sizes.

This new Mortgage Builder technol-ogy represents a complete and fullyintegrated digital alternative to usingpaper in the lending process. The ben-efits for lenders in having the capabili-ties seamlessly integrated into the LOSrather than as a third-party add-on areimmediately evident. Users save time


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The Seven Keys to BuildingSuccessful Relationships

Despite all of the books and articles writ-ten on building successful business rela-tionships, every author expresses essen-tially the same message by focusing onseven key characteristics. This articleaddresses them as they relate to themortgage industry, but they are found inall successful business relationships.

Of course, no list can claim to be all-encompassing, yet seven clearly distinguish-able traits show up again and again, and byenumerating them clearly with comple-mentary action, this article will help youachieve key goals in an easy-to-follow approach. In fact,all of our relationships canbe deconstructed into thesekey characteristics andimproved through tangibleand simple suggestions.

Business relationshipshave become more impor-tant now than ever beforeand can be easily cultivatedbecause people are sharingand helping each other dur-ing these difficult economictimes. In the past threeyears, the growth of socialnetworking Web sites suchas LinkedIn, Facebook andTwitter have led to morebusiness relationships thanduring any other time dur-ing my 12 years as a mortgage professional.

In addition to social networking, arenewed enthusiasm for traditionalnetworking has emerged, and technol-ogy has facilitated the initiation, devel-opment and maintenance of manyrelationships. A renewed energy forinterpersonal activity has taken hold inour industry, and, if you are commit-ted, you can build great relationships.With the challenges of increased regu-lation, mortgage professionals need tocooperate to survive; thus, competitionhas diminished amid the necessity forprofessional relationships.

The mortgage industry has been sub-jected to tremendous change, and thefrequency and accuracy of internalcommunications has grown according-

ly. In addition, mortgage professionalsoften represent the only source for peo-ple outside the industry to gain anunderstanding of relevant proceduresand expected outcomes. In fact, profes-sionals of all industries seem more will-ing than ever before to introduce theirclients and business partners to estab-lished mortgage professionals.

1. CommitmentCommitment undergirds all successfulrelationships. Developing relationships

takes time, energy anddedication. You shouldschedule follow-ups withothers, as well as on yourown calendar, and try tomaintain weekly commu-nications with your key col-leagues and clients. A sim-ple phone call to say hello,dropping a letter in the mailor a quick e-mail will yieldsignificant dividends. Youshould avoid taking yourrelationships for granted.

Of course, all relation-ships will undergo cyclicalpeaks and valleys, perhapsdue to a challenging trans-action or a difficult busi-ness cycle. However, if youremain vigilant and try to

foster mutual commitments, the impactof changing circumstances will be dimin-ished and any stress on your relation-ships will decrease.

2. AuthenticityAuthenticity provides a key indicator oflong-term success for mortgage and anysales professional. You must constantlyremind yourself to be real and sincere.Working with people you enjoy helpingwill result in mutual success. Avoidfalse friendships and alliances simply tomake a quick sale or get what youwant. Authentic people will see rightthrough you. Everyone wants to workwith authentic people because youalways know where you stand and thusa more productive relationship ensues.

3. Add valueAdding value gives people a reason toassociate with you. You should alwaysoffer to give more than you expect toreceive, without any consideration of whatyou may get in return. Offer your expertise;contribute to someone else’s success.Boost their marketing efforts; write a guestcolumn for their blog or newsletter. Applyto become a guest speaker at their nextsales meeting or networking event; shareyour industry perspective as a subject mat-ter expert without self-promotion.

The more value you provide, thestronger your relationships will become.Your industry knowledge will serve as avaluable resource for business partnersand clients alike. Providing leads repre-sents one of the most powerful actionsyou can take, and by introducing othersto people in your network, you can winlong-term allies. This strategy hasbecome essential to the success ofLinkedIn and can take you a long way.Sometimes, your network may repre-sent your greatest resource.

4. Think long-termThink long-term; forget about the sale; itwill come. If you try to move too fast, youwill look desperate. Relationships taketime to develop as you need to developtrust and mutual respect. Often, relation-ships lead to more relationships and a sin-gle relationship may open up an entirelynew network. You never know how a rela-tionship will impact your business.Remember, ongoing opportunities to offeryour services trump achieving a single sale.

5. ConfidenceInstill a sense of confidence in yourself.Be proud of what you do despite the neg-ative publicity about the mortgageindustry. We provide an essential serviceby helping homeowners and investorsreach their goals. Share your industryknowledge with enthusiasm and convic-tion. Keep current with industry changes;stay sharp: Knowledge and preparednesscontribute to your confidence as a pro-fessional. You will receive more referralsand introductions if you proceed in aconfident manner because your relation-ships will, in turn, feel more confidentabout introducing you to their network.

6. ProfessionalismProfessionalism and consistency build rela-tionships because they testify to your abilityto get the job done. Be considerate of oth-

ers’ time, interests and needs. Be deliberate;explain exactly how you can help peoplegrow their business and how they can helpyou grow yours. A mutually-beneficially rela-tionship is the best kind. Be on time andprepared for meetings. Be honest, set realis-tic expectations and deliver informationwith integrity. Communicate good news andbad news in a timely manner. Approachconflicts and challenges head on; addresspertinent issues and offer simple solutions.

7. MaintenanceOnce you have initiated a relationship,you must nurture it and make it flourish.All relationships require maintenance,and this brings us back full circle to ourfirst item, commitment. You must com-mit to staying in contact and to constant-ly add value. Relationships must berefreshed with new ideas and ways tohelp each other grow. Stay committed tomaking new introductions to your exitingrelationships. Maintenance separates theprofessional from the amateur. An abun-dance of technology can help you stayconnected. Invest in a CRM tool and use itto maintain contacts and consistent com-munications. Follow due diligence wheninvesting in technology because compli-cated tools may generate more work thanthey save. Try to keep your enthusiasmlevel high in order to maintain relevance.

ConclusionRemember, relationships often fail to pro-vide measurable value, but you shouldconsider each relationship an opportunityto practice and improve your relationship-building skills. Sometimes, you must giveto receive, and relationships can lead topowerful introductions. Of course, youshould always treat everyone with respect,and keep in mind that you will reach yourgoals when you help others reach theirs.

Relationships will fade if you neglectto stay in touch and can take more timeto rebuild than to create if you mustrepair damage. Relationships requirecommitment and take time. Always begenuine and deliver value withoutexpecting an immediate payoff.

Surround yourself with profession-als, and their success and expertise willcontinue to enrich your life.

Louis Tesoriero is business developmentmanager for Guaranteed HomeMortgage Company. He may be reachedby phone at (914) 696-3400 or e-mail [email protected].

By Louis Tesoriero

“Relationships requirecommitment and taketime. Always be gen-

uine and deliver valuewithout expecting animmediate payoff.”

relationship-building opportunities.Please note that I used the word“habit,” because when lead generatingactions become habitual, then youknow it will get done on a consistentbasis. The greatest challenge of an MLO(or any salesperson, for that matter) isto make the most productive behaviorshabitual. How much time is wasteddoing what I call “spin tasks,” that don’tdo anything to move you closer to yourgoal? For example, how much time do

you spend checkingunnecessary e-mails orvisiting Web sites that aretime-killers? The mostvaluable thing you haveis time, so how do youuse it?

The 30-day challengeOver the next 30 days,make a commitment toprepare a recent FHAupdate that is relevant toreal estate agents. Give thepresentation a catchy titlelike “How FHA Has BecomeEven More Affordable forYour Clients and MoreProfitable for Realtors” andpromote the presentationuntil you get appointments

with 10 real estate offices. You’ll likelyneed to make about five calls to get oneappointment, so be prepared to make atotal of 50 calls. Make sure you speak withauthority and passion about the topic inorder to get them excited about bringingthe information to their agents. Now youare ready to present. The goal of yourpresentation is not only to give them thevaluable information, but to present yourcontent in a way that engages them andelicits questions from the audience. I rec-ommend just using a simple flyer as thepresentation tool, since this will force youto connect with the audience. As a publicspeaker, I have to work much harder toengage the audience when I use aPowerPoint presentation, because peoplesit and watch the screen, creating a barri-er between you and the audience.

At the time of the presentation, besure to have everyone sign a registrationform that collects their e-mail address-es, and let them know that you willkeep them updated on news that affectstheir business (make sure you respectthis and do not spam them). After the

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FHA Insider: Build RelationshipsThrough FHA Updates

One of the most common questionsloan officers ask is, “How do I get infront of more Realtors?”

One answer in today’s market is bydoing Federal Housing Administration(FHA) presentations. According to aMortgage Bankers Association (MBA)survey conducted this past October,FHA mortgage applications jumped17.2 percent, and given the changes toour industry, FHA is likely to remain asignificant percentage of loan produc-tion in the coming years.

In the last three yearsalone, there have beenapproximately 650 changesto FHA programs. It’s hardenough for mortgage loanoriginators (MLOs) to keepup with the changes, soyou can imagine howmuch real estate agentsactually know about FHA.And yet, many of these FHAchanges are really impor-tant for real estate agentsto know about. This createsa wonderful opportunityfor you to take this infor-mation into real estateoffices throughout yourarea!

One of the greatestchallenges a real estatebroker has is providing quality trainingto their agents. I have always foundgreat success in getting into real estateoffices and putting myself in front ofmany agents to generate loans. When Ithink of why I was able to get in frontof more agents than your average MLO,I think it comes down to two funda-mental reasons: Knowledge and pas-sion. It’s one thing to have the knowl-edge, but if the passion is not present,you will not be able to inspire others totake action.

The “Three P Strategy”Over the course of my career as anMLO, I developed a simple strategy thatI have used to build great relationshipswith real estate agents through shortFHA presentations. I call it “The Three PStrategy,” which stands for “Prepare,Promote, and Present” (FHA guidelinescan be really boring so I make these lit-tle strategies to give more meaning towhat I do). Use this strategy as a meansto get yourself in the habit of takingFHA updates and turning them into

By Jeff Mifsud

“The greatest challenge of an MLO(or any salesperson,for that matter) is to

make the most productive behaviors

habitual.”

presentation, stick around to answerquestions and build rapport with theagents. During this time, you will con-nect to certain agents and it’s theseagents with whom you will want tomake follow-up appointments to get toknow them better and establish a moremeaningful personal relationship. Afterabout 10 presentations, you shouldhave increased your core of solidpotential referral sources by at least 15agents. From here on out, you have tomaintain the relationship and grow it;new referral sources take time to devel-op. A goal of closing two transactionsper year with each of these agents willgive you an extra 30 loans per year. Ifyour average commission is $1,000 perloan, that’s an extra $30,000 from a

simple FHA update. Prepare, Promoteand Present, and make it a habit.

Go FHA!

Jeff Mifsud is founder of Michigan-basedMortgage Seminars LLC, a former FHAunderwriter with 15-plus years of experi-ence originating FHA loans, an FHAexpert for LoanToolbox.com and creatorof The FHA Originator, a monthly FHAnewsletter. Jeff may be reached byphone at (248) 403-8181 or visitwww.MortgageSeminars.com.

Visit author Jeff Mifsud’s Website at http://mseminars.comfor tips and information on

FHA loans and details fromsome of the nation’s top FHA specialists.

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Web: www.appraisalsanywhere.com

The social media phenomenon has cer-tainly produced its share of dizzyingstatistics. There’s the one that notesthat if Facebook were a sovereignnation, its 500 million users wouldmake it the third-largest country in theworld. There’s the fact that one busi-ness executive sets up anew LinkedIn accountevery second. And howabout the two billiontimes that people log in towatch YouTube videosevery day?

Given these astronomi-cal levels of popularity, it’sonly natural that mortgageprofessionals would beinterested in ways to lever-age social media in theirmarketing. They under-stand that tapping into thepopularity of user-generat-ed content can help themestablish and maintainrelationships with currentand potential customers.

So they get on LinkedIn,set up a Facebook page,and maybe even Tweet afew times on Twitter. Thequestion is … what hap-pens next?

That depends on you.Anyone can set up anaccount, but to utilize social mediaeffectively, you need to grasp the waysthat it is changing marketing right

before our eyes. It’s a fundamental shiftfrom the way mortgage marketing wasdone even as recently as five years ago.

A new way of marketingMortgage professionals traditionally havedirected their marketing efforts to two

audiences: Consumers andreal estate professionals.This marketing is designedto build awareness of whoyou are and what you offerso that when consumersare ready for a mortgage,your name comes to mind.A range of advertising,marketing and public rela-tions messages are used toreach both groups.

Traditional mediaallows you to reach a massaudience with your mes-sage, but it also is limitedbecause it is strictly one-way messaging. And anymass media message, nomatter how targeted, willend up going to a largenumber of consumers whoare either not ready or notinterested in receiving it.

In contrast, social mediaenables lets you engage intwo-way conversations withconsumers who are already

interested in the mortgage products andcustomer service that you offer. Postinginformation on Facebook, a personal blog,

“Consider that arecent survey foundthat 78 percent of

consumers trust thepeer recommenda-

tions they see onsocial media sites.

That’s more than fivetimes as many as

those who say theytrust what they see in

an advertisement.”

Strengthen Relationships With Social Media

By John Seroka

Facebook also lets you build rela-tionships with potential customersand increase brand recognition orsales through targeted advertising. OnFacebook, you can segment youraudience in any number of ways: Byage, gender, location, language, hob-bies and interests, and more. Havingso many options allows you to testyour target list along with the adver-tising offer and the creativity of theimage and text. As with YouTube, youcan set the ads’ parameters so that itspecifically targets consumers andreal estate agents living in your city orregion.

Facebook offers two paymentoptions to advertisers: Cost per clickand cost per thousand impressions. Ifyou are interested in simply raisingbrand awareness, then cost per thou-sand impressions will be a better value.If the purpose of your ad is strictly togenerate direct responses and driveimmediate business, then cost per clickis the best option. When clicked, thehyperlinked ad can direct a consumerto a Facebook page or to a websitelanding page.

Nurture relationshipsSpeaking of company Web sites, yoursshould engage consumers and encour-age them to make use of your services.As with other vehicles like Facebookand blogs, this means inviting theminto a conversation where they can askquestions and get answers on mort-gage-related topics. Continue to nur-ture relationships by asking past cus-tomers, particularly repeat customersand those who have provided referrals,to write a brief testimonial about thehigh quality of service they receivedfrom you. Give testimonials a promi-nent place on your Web site, include a“Reviews” tab on your Facebook page,and ask for a recommendation onLinkedIn.

Constantly be looking for ways toconnect with other professionals andestablish profitable partnerships. Thereare many options for staying proactive,like sending a Tweet congratulating areal estate broker on a recently closeddeal or linking to an agent’s newYouTube posting. Ask them to do thesame for you.

While you always want to be pro-fessional in your presentation and inthe quality of information you pro-vide, remember that these new mediarepresent a seismic shift in ourapproach to marketing. Steer clear ofhard sells, industry jargon and busi-ness-speak. Instead, use a morerelaxed tone that focuses on honestanswers to real questions. Let con-sumers know you are ready and will-

or on YouTube allows you to position your-self as a friendly, knowledgeable expertwho can provide valuable information tointerested consumers. It also invites thoseconsumers into a conversation where theycan ask you questions, contribute ideas ortestimonials, offer praise or criticism, andshare the information with their friends.

How important is that? Consider thata recent survey found that 78 percent ofconsumers trust the peer recommenda-tions they see on social media sites.That’s more than five times as many asthose who say they trust what they seein an advertisement.

As the numbers cited at the begin-ning of this article reflect, consumersare turning to social media with moreand more frequency. Internet userswho participated in another recentstudy said that on average, they arelogging into social networking sitestwice every day. (Parents of teenagersand young adults will doubtless findthat number laughably low.)

The bottom line is social networkingis a convenient and cost-effective wayto get people interested in you, talkingabout what you do, and spreading theword to others.

Target your messageYou might choose to start by writing reg-ular blog or Facebook updates thatinclude tips for consumers or post aseries of educational videos on YouTube.These videos could spotlight industrytrends like changing credit score require-ments, loan guidelines and documenta-tion requirements. Address common cus-tomer questions like what can affect theircredit report, where interest rates areheading or when is the right time to refi-nance. You also can offer people aglimpse into a slice of your day, such aswhen a question came up about anappraisal, or how you responded to apotentially deal-breaking situation in away that made everyone a winner.

Don’t be afraid to be specific—itshows the public that you’re in theknow (of course, while being mindfulof the confidentiality of your cus-tomers). Consumers who read thesemessages or view the videos can thenfollow up with you with their own par-ticular questions. They’ll start to viewyou as a trusted authority they can turnto with confidence.

Another benefit of social media isthat it allows you to categorize yourpostings for greater relevance. Forexample, YouTube allows you to tagyour videos so that viewers can easilysearch for what they’re looking for. Thatmeans you can target potential cus-tomers by location as well as subjectmatter, attracting those consumers whoare most likely to do business with you.

Making profitable connections is easier than ever before

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The bottom line still is that people dobusiness with people they know andlike.

So, what does work? What aboutyour contact database management?Are you gathering contacts? Are you

building that database?He who has the most

friends wins and every sin-gle person you come intocontact with is a potentialclient, advocate or referralsource. Your neighbor hasa friend who wants to refi-nance. Or perhaps a pastclient refers a prospectivenew one. Every social gath-ering and networkingevent has tremendouspotential. Charity eventsare key because all atten-dees share a commonground or interest. Don’tforget to strike up a con-versation with the guy sit-ting next to you at a foot-ball or baseball game, orthe man sipping a beer

next to you at a bar. Unless you are livingin a cave, you have limitless potential ifyou just look around.

What do you do with all of these newcontacts? You only need a customer rela-tionship management (CRM) softwarepackage that controls the three basicnecessities: Contacts, calendar and notes. Ihave used ACT! Gold Mine, and others, butkeep coming back to old faithful, Outlook.Again, you probably already have it and Istress … at no additional cost.

Expanding your contact database justtakes a little practice. Everyone you meetor hear of should go into it. There is

What Could be Better Than Zero-Cost Marketing?

From experience, I can tell you thatbuilding a repeat and referral businesscan be done with virtually no cost andwho wouldn’t want that? Zero is cer-tainly the right price. By using the righttools, you can build a tremendous mar-keting or prospectingbase with virtually noadditional expense exceptgood effort. In these eco-nomic times, you arealmost negligent if you’renot using creative mar-keting ideas.

You probably do yourmarketing now in sometraditional way likethrough flyers, postcards,Internet leads, telemarket-ing or even hard advertis-ing in print or perhaps onthe radio. All of thesemethods certainly havebenefits that lead to highervolume exposure, but theycome at a cost … a veryreal, very simple and oftena very high cost. Passivemarketing doesn’t use your time becauseyou’re not working for it, of course, butyou might get better exposure. Your logobecomes more commonly exposed andfamiliar, and your smiling face meansvisual recognition. Your phone starts ring-ing and your e-mail inbox fills and that’sterrific.

However, these methods are expen-sive from printing costs of flyers andmailings, to buying leads, to telemar-keting and advertising. The results mayyield more cold contacts, where youhave no background or rapport, whichmeans a much tougher sales process.

By Adam P. Smith

ing to help. They are more likely totake you up on that offer if they’re notleery of getting an aggressive salespitch when they contact you.

Experienced public relations andmarketing professionals can helpyou with all of these efforts. Theyunderstand social media vehiclesand know cost effective ways to max-imize your investment for the great-est impact. They also can help youdevelop a strategy that uses socialmedia to complement your tradi-tional advertising and public rela-tions campaigns.

Social media will never be your oneand only marketing vehicle—it wasnever intended to be used that way.But it can be an important part of asuccessful overall strategy to build andfoster relationships with your cus-tomers—past, present, and future.

John Seroka is vice president of Seroka, afull-service branding, advertising, mar-keting and public relations firm. He maybe reached by e-mail [email protected], call (866) 379-0400,online at linkedin.com/in/johnseroka,twitter.com/johnseroka, or on Facebook.

always the “My friend Bob needs a mort-gage” category. All of your family mem-bers, from your twin brother to your long-lost great aunt Tillie, should be in yourdatabase. Any and all former, current orfuture colleagues should in your data-base. How many have gotten out of thebusiness in recent years that still needthese services? Information on old friendscan be easily located via social network-ing Web sites. Many sites offer lookup fea-tures for individuals and public recordsare just that—public—and are availablethrough county assessors’ and recordsWeb sites. You can build a rapport beforeyou ever make a call. Creative thinkingcounts and pays off.

The fact gathering is the easy part.Managing your database takes some workand you need to invest some of your timeinto this task. You have to change the oilin your car, too. Simply run through thedatabase alphabetically when you havethe time. Check your contacts and be surethat no one is falling through the cracks.Keep it current by adding and subtractingevents, always watching for the possiblefuture strike and removing those eventswhere the contacts are stagnant. Keep apersonal calendar for your contacts andcheck it regularly.

The “how” is easier. The devices youtake for granted are your personal gold-mines. Your mobile device containseverything you should need and it shouldbe with you everywhere you go at alltimes. Within that small electronic wiz-ard, you have all your contacts, all yourcalendar entries, all of your importantinformation regarding timelines like thelast time you spoke with a contact, andyou can make calls without your comput-er. That means you can wish Joe Smith ahappy birthday on a Sunday and be verysure you do it every year.

All of that is the upside. The downsideis the work involved. It takes diligenceand a whole lot of it. If you go back to

basics and use that “antiquated” tele-phone you are way ahead. Whether youmake one call a day or a million calls aday, the cost is exactly the same. Scheduletime for calls and believe that many ofthem you may not want to make. Sooneror later, they do pay off. Call in the morn-ing when people are still in a good moodand your time is more productive. Returnevery single call—you never know what’swaiting behind that message and younever want to be known as the personwho doesn’t return their calls. You wantpeople to call you back, don’t you?

Have casual conversations, for youwill make friends before you makeclients. Listen carefully and make notesabout family, occupation, recreationalinterests, education and their dreams.Nothing makes a person feel moreimportant and respected than knowingsomeone is interested in their life.

Pay it forward by connecting your con-tacts to each other. You’ll be a hero. Be ableto apologize if you’ve been so busy you’veneglected someone and let them knowwhy. Give no excuses … just explain. Don’tbe afraid to ask for help, either. It’s alrightto ask if they know anyone who needs yourexpertise. Above all else, listen carefullyand completely and take thorough notes.

It’s hard work. But, it works. You haveno added expense: you are already meet-ing people and networking; you alreadyhave a CRM package; you already have aphone, and you already have email andthe internet. You’ve talked to your leadsbefore or at least a friend or relative andyou have some background information.So, use the tools you already have, don’tspend any more money, and build yourrepeat and referral business.

Adam P. Smith is president of The ColoradoReal Estate Finance Group Inc. He may bereached by phone at (866) 423-0564, [email protected] or visitwww.corefinancegroup.com.

“He who has the mostfriends wins and

every single personyou come into contact

with is a potentialclient, advocate or

referral source.”

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Stepping Stones to Success: “New ven-tures are becoming commonplace intoday’s marketplace. It is not uncom-mon to end one’s career and start oradd a new one. Open new doors. Youare smarter, stronger, less stressed, andmore experienced than you were whenyou first started. Your focus is sharper.Many Americans are planning to workwell into their 60s; some are even keep-ing positions during their 70s. We expe-rience paradigm shifts in the 90s, relat-ing to living and working longer. Wenow have new career paths as we age.”

We have now looked at two uniquelydifferent ways of diversity, by diversify-ing your core networking group, and byadding another complimentary prod-uct. The third way to diversify is reallytwofold.

Diversify your marketing and salesplans. Some synonyms for diversify are:Changing, specialize, broadening yourhorizons and branching out. I will sug-gest you not only adapt new marketingideas and campaigns, but to also diver-sify who you are marketing too.

Utilizing new sales and marketingideas, such as online marketing, the useof e-mail drip campaigns, asking forreferrals from other associates you arein contact with are just a few differingmarketing campaigns. I personally amnot fond of Facebook. In my opinion,Facebook is a social gathering whereoften people tell too much online. Ifyou like it, then use it. For work andprofessional business, I like Linked In. Iam part of the language of luxury LOL, ahigh-end Realtor connection and Plaxo.

This is a good way to connect to busi-ness associates and potential team mem-bers. You can see what they are doing,what they have done. This works well withaccount executives, Realtors, builders,attorneys, insurance agents, tax profes-sionals such as CPAs. It allows you to havea connection, but not be too personal,again, like Facebook. Facebook is for yourfriends and for you to be yourself. I hopeI am not offending any Facebook loversout there, as I am sure there is someoneout there who feels differently and mayhave a great success story to share with us.This is my opinion only.

I am a true believer in a missionstatement. Create your own missionstatement and know it. The worst thingyou can do is stumble when tellingsomeone what you do or even rambleon. It was Dr. Ivan Misner who oncesaid, “Practice it and practice it until itrolls out of your mouth with ease.” Onceyou have this down you can be standingin line to purchase groceries, rent aDVD, see a movie and in minutes (undertwo) you can tell someone what you do.Give them your business card, two to beexact, one they can keep and one they

can give away.As a mortgage professional you

should have a team of other profes-sionals you work with. If not, create ateam. It is okay to have multiple teams,for example. I have three key Realtorsthat send me purchase clients. All threeare in different areas geographically.Each Realtor has an attorney that theychoose to refer business to. I work welland like each one very much; there-fore, when I refer a client not comingfrom the Realtor to a real estate attor-ney, I typically will choose the onelocated closest to the new client, butwill often give them two names tomake a choice from. We all have differ-ent insurance reps we refer, and I haveone builder who knows how to do203Ks and we will use him with allthree. I became friends with oneRealtor from a referral from an attor-ney I work with in taxation. She, inturn, invited me to host an open housefor Realtors. I joined her at the openhouse, bringing in some food neverhurts! But, that is where and how I metthe second Realtor. The second Realtorstarted sending me quite a bit of busi-ness before the first one I had the openhouse with did. Then, the first one withthe open house started referring clientsas well. I think there is plenty of busi-ness to go around. I, in turn, refer eachRealtor clients in their area as I getthem. So this goes back to, “Who’s onyour team?” The more people youknow, the larger your team willbecome.

I hired a someone to help me withmy marketing. She sends out my thankyou cards, and congratulates home-owners on their new home, remindersabout low interest rates, and other per-sonalized “real mail.” My husband is aretired postal worker, and I just wouldhate to see the post office go out ofbusiness, and my clients like the factthat I thought enough to mail themsomething.

You can sign up for an e-mail mar-keting campaign that allows you todesign specific messages and sendthem to specified targeted groups. Youcan set the time and day the e-mail is togo out, how often. This opens a wholecan of worms; however you must havee-mail address permission and opt-inand opt-out rights.

Diversify and multiply!

Laura Lynn Burke, EA is an author, trainer,speaker, loan officer and enrolled agent,“permitted to practice by the IRS.” Burkeworks for Mid-Nation Mortgage Companyas a loan officer, she owns Professional TaxMasters Inc. and Footprints InternationalTraining Company. She may be reached bye-mail at [email protected].

with multiple core individuals believingin you, referring you business. Your busi-ness will explode. Soon, you will haveyour own “private-label” sales team, andall you need to do in return is refer themand be their salesperson. This is where it

gets tricky. You cannot dothis with just anyone, youneed to build a bond, arelationship, create ateam. The creation of theteam will create synergy.

I have spoken in thepast of choosing your part-ners wisely. The peopleyou create bonds with willbecome a reflection ofyou, who you are and howyou operate. This is keywhen building a team.

The second part ofdiversity, is adding a newproduct or service thatcomplements your currentbusiness. This is now some-thing you do rather thanrefer another person. Ichose to become anenrolled agent, a practi-tioner who has technical

expertise in taxation, has successfullypassed three levels of tax exams by the IRSand who is empowered by the U.S.Department of the Treasury to representtaxpayers before all administrative levelsof the Internal Revenue Service for audits,collections, and appeals. Therefore givingyou an-in depth knowledge of tax prepa-ration and business entities.

I choose this field because it was aninterest I had, and a great cross-overbusiness. If you are preparing the taxreturns of your clients, it is easy to sug-gest a refinance to lower their rate, pullcash out for other investments. It alsoflips well as my mortgage clients knowI already have their tax returns, I knowall about them, so why not use me astheir tax professional as well?

This is just one way, as there are amultitude of other ways, marketingrelating products such as a bi-weeklymortgage products, mortgage insur-ance, hardwood flooring, closet organ-izing, house cleaning … the list contin-ues. It is what you have an interest in orprevious knowledge of. If you have aninterest and no previous knowledge,take a class as you can learn and grow.

As excerpt from my new book,

Relationship Speaking: The New Secret Ingredient

“Who’s on your team?” is a phrasecoined by a good friend and fellowassociate of mine, Emily Ferguson.Networking and building relationshipshas been written and spoken about for-ever. I hope this is telling you some-thing, it has told me … itis important and a big keyto success in any businessor endeavor. It has with-held the statue of time.

In today’s fast-paced,Internet-connected socie-ty, you need a team ofpeople working with you.I’m going to throw a newmix in the pot … diversi-ty. Diversify yourself tosuccess. We all know thatdoing the same thingrepeatedly will producethe same results, good orbad. Change what you aredoing and add diversityinto the mixture andvoila, you have the secretingredient.

You know how justthat little “pinch” of salt,sugar or spice can make adish sizzle. That is what diversity willbring to your marketing and relation-ship building skills… sizzle!

Diversity can have multiple mean-ings. Let’s look at the first meaning I amspeaking of. Diversify your core and innernetworking group. Do you meet the samegroup of people day in and day out? Doyou attend the same monthly networkingbreakfast meeting? Do you attend thesame after hours meet and greets? Stepoutside of your comfort circle, and seekout and join a new group, club andorganization. It can even be online.Check out LinkedIn if you are not yetconnected. It is the Facebook for busi-ness professionals. You might want toreach out to a different area or outlet, sodiversify yourself when joining newgroups. Obviously you wouldn’t want tojoin a group you would have no connec-tion or relevance to. But by adding newgroups and new encounters, you arebound to connect with a new person youhave some strong connection with. All ittakes is one core person who aligns withyou, and believes that you are a personof value. When this happens, that personwill become your salesperson. Just imag-ine how your business would change

By Laura Lynn Burke, EA

“Just imagine howyour business wouldchange with multiple

core individualsbelieving in you,

referring you business.Your business will

explode.”

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these designations once industry-specif-ic standards have been met. The mort-gage industry is now at a time to allowits professionals to promote theiraccomplishments. Not only will thesedesignations instill pride in the mort-gage professional, it will add a conversa-tion piece to introductions with borrow-ers, increase credibility and cultivateconfidence in the minds of borrowers.

Various organizations in the mortgageindustry have integrated designations intotheir membership programs, educationprograms and internal corporate advance-ment programs. These designations prove

valuable for segmentedaccomplishments through-out various careers in themortgage industry, butnone are comprehensive.None speak to the mean-ingfulness of the financialand time-intensive invest-ment of meeting the newfederal mortgage licensingstandards.

All industry designationprograms allow for mort-gage professionals to estab-lish relationships and buildupon the initial request orservice. There are, and havebeen, a few successful mort-gage designations, such asthe Certified ResidentialMortgage Specialist (CRMS)and Certified MortgageConsultant (CMC) from theNational Association ofMortgage Brokers (NAMB),

as well as the Certified Mortgage Banker(CMB) with the Mortgage BankersAssociation (MBA). The Consumer MortgageBureau (CMB) takes a comprehensiveapproach to its designations. Designationsare only offered to mortgage professionalswho have a unique identifier with theNMLS, have been approved and listed on

the NMLS, prove successful completion of20 hours of pre-education, prove the pas-sage of the national and state tests, main-tain their licensure through completion ofcontinuing education courses and provideresults of their background check. It is anall-encompassing designation that allowsmortgage professionals to promote theircompliance with the recent federal man-dates. CMB offers two types of designa-tions. The Licensed MortgageProfessional (LMP) is for mortgage loanoriginators who work for non-depositorylenders, mortgage bankers and brokers.The Registered Mortgage Professional(RMP) is for mortgage loan originatorswho are employed by a depository insti-tution regulated by a federal bankingagency, a subsidiary which is owned andcontrolled by a depository institutionand regulated by a federal bankingagency, or an institution regulated bythe Farm Credit Administration.

It is essential to build strong relation-ships quickly and remember to contin-ue to stay “in front” of your clients at alltimes. Clients should know that youknow more about their mortgage thanthey do. They want a reputable, trainedprofessional, who invests in themselvesand their craft. Designations offer anopportunity to stand apart from thecrowd. Use them on business cards, Websites and marketing materials andexplain their significance to potentialborrowers and colleagues. As the mort-gage profession takes the turn to a morerespected, credible and accountableindustry, you should take advantage ofthe accomplishments already achievedand place them strategically in yourmarketing arsenal.

Lance Cassell is the managing director ofthe Consumer Mortgage Bureau (CMB)and vice president of TrainingPro. Formore information, call (410) 845-3640 orvisit www.consumermortgagebureau.org.

Building Borrower RelationshipsThrough Industry Designations

With the intense licensing and educa-tion changes the mortgage industry hasbeen faced with over the past twoyears, it is time for mortgage profes-sionals to take a closer look at howthese changes can positively impacttheir relationships with current andpotential borrowers.

In 2008, the Secure and FairEnforcement for Mortgage Licensing Act(SAFE Act) embedded new licensingrequirements and considerations intoour professional culture. Previouslystate-mandated, these licensing stan-dards are now set and overseen by fed-eral entities through the NationwideMortgage Licensing System (NMLS).Requirements include registering onthe NMLS, completing backgroundchecks, passing national and state tests,and completing pre-education and con-tinuing education courses approved bythe NMLS.

The SAFE Act stems from commend-able efforts to elevate the mortgageindustry from its disastrous downfall,increase borrower confidence and helprestore the financial markets. It’s nowtime for the mortgage professionalswho have complied with these require-ments to sharpen their perspective onnot only what these mandates do forthe industry and the economy, butwhat these mandates do for them.

Mortgage professionals across thecountry are constantly faced with thechallenge of finding new ways to buildbusiness and build relationships withnew borrowers. Referrals, direct mail,advertisements and online promotionhave been staples in marketing strate-gies to help differentiate products andservices from the competition. Theseare all time-tested and solid tech-niques. Now is the time to use recentfederal requirements to their advan-tage and maximize the additional stepsthat have been taken to do business asa mortgage loan originator.

Educated. Tested. Checked. Thesequalities speak to credibility in and ofthemselves and offer an opportunityfor individual promotion that may nothave existed prior to this year.

Licensed mortgage loan originatorshave successfully completed 20 hours ofpre-education, approved by the NMLS.This includes rigorous instruction on fed-eral mortgage laws; ethics, includingfraud; consumer protection and fair lend-

ing; and lending standards for the non-tra-ditional mortgage product marketplace.Education is one of the most valuedaccomplishments throughout every indus-try in our country. Patients, customers, stu-dents, clients and borrowers alike strive towork with and select themost educated counter-parts to help them throughevery transaction they pur-sue in a lifetime. Licensedmortgage professionals arenow more educated andmore prepared to servetheir borrowers so promotethat fact.

Licensed mortgage loanoriginators have also passeda national and state test (atleast one). With nationalaverage pass rates for thesetests hovering around the70 percent mark, passingthese tests is a notable feat.Not only have the licensedindividuals studied the rele-vant course topics, theyhave proved the properapplicability of the contentin a testing environment.

Passing backgroundchecks is another important aspect ofthe new licensing requirements thathas many advantages in the eyes of aborrower. After being inundated withprime-time news stories aboutunscrupulous financial services profes-sionals, borrowers are skittish andskeptical of who supports them in thesefinancial transactions that are, often-times, the most important transactionsof their lifetime.

These incredible and marketableattributes are already in the back pock-ets of each licensed mortgage profes-sional, but the majority of borrowersare not aware of it. Why not capitalizeon the time and money you haveinvested in becoming a licensed mort-gage professional? A borrower wantsand needs to know their mortgage loanoriginator is educated, tested and com-plies with all of the standards set byfederal legislators.

One simple way to do this is throughindustry designations. Designationsflourish in many industries, includingaccounting, financial planning, writers,teachers, doctors and lawyers.Professional societies typically offer

By Lance Cassell

“It is essential to buildstrong relationshipsquickly and remem-

ber to continue to stay‘in front’ of your

clients at all times.Clients should knowthat you know moreabout their mortgage

than they do.”

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CallFURST Video Conferencing supports features such as Video Reservations, videostreaming and the latest technology allowing you to connect with end users regardless oftheir platform or technology. Video conferencing is key to keeping business connected astravel budgets tighten and the time we have to get things done is ever-decreasing. UsingVideo Conferencing, you can be sure you have access to more personal attention andtraining through our team of video experts, the latest in product innovation and provenservice and reliability to ensure your message is successfully communicated.

How mortgage companies are using CallFURST Video Conferencing� Presentations to large groups� Educational programs for branch offices � Software and systems training for employees

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and effort by never having to leave thefamiliar Mortgage Builder environmentand in essence, already know how touse the new leading-edge capabilities.Mortgage Builder was among the firstLOS systems to provide basic electronicdocument management functionality,but the new platform integrates themost advanced digital image and docu-ment handling automation availableanywhere, according to Keven Smith,Mortgage Builder’s chief executive offi-cer and president.

Mortgage Builder is setting anentirely new standard for built-in LOSdocument management,” Smith said.“Users create electronic loan folders inseconds and automatically build thefile with required documents withinthe system, never leaving it. When doc-uments arrive via e-mail, fax oruploads through Mortgage Builder’sprivately-labeled lender portals, theyflow directly into the appropriateloan’s electronic folder and automati-cally enter the loan’s workflow.

Incoming documents are recognizedand classified without requiring sepa-rator sheets or bar codes, a great timesaver all by itself. And they are imme-diately ‘teed up’ for action in the rightperson’s queue. It’s a quantum leap inelectronic document management.”

With investors increasingly requiringelectronic loan delivery in specificstacking orders, electronic documentmanagement is rapidly becoming amust-have for lenders, many of whomare currently using costly third partyservices to deliver electronic files.Paper, famously expensive and easy tomisplace, becomes a thing of the pastand is replaced with greater securityand vastly reduced costs.

“The office supply vendors aren’tgoing to be happy about this,” Smithsaid. “Every digital loan means a reamof paper saved and represents a filethat isn’t going to be repeatedlycopied, moved around the office andultimately stored in a box somewhere.With millions of loans going digitaleach year, entire forests, landfills,watersheds and energy resources willbenefit.”For more information, visit www.mort-gagebuilder.com.

Wolters Kluwer launchesnew OneFile Web-basedsolution

Wolters KluwerFinancial Serviceshas announced

the launch of its Web-based OneFile mort-gage processing solution. OneFile allowslenders to replace the cumbersomepaper-based origination process, helpingthem improve productivity, lower costs,grow their portfolios and improve bor-rowers’ customer experience. A surveyof more than 600 lenders in April 2010by Wolters Kluwer found 76 percentwere still relying on an inefficientpaper-based method to process mort-gages. The top reasons lenders had notimplemented an electronic solutionwere security of borrower data, highimplementation costs and the poten-tial impact to lending workflow.Wolters Kluwer Financial Services’OneFile solution helps lenders over-come all of these obstacles.

Built in conjunction with mortgagelenders, OneFile offers a centralizedsource for loan documents. The solu-tion allows lenders to create a singleelectronic loan file for each borrower,providing everyone involved in theorigination process, including thirdparties, with simultaneous access tothe file and documents wherever andwhenever they need it. It also inte-grates to Wolters Kluwer FinancialServices’ Secure Document Exchange(SDX) solution to help lenders securelyand electronically deliver disclosures toborrowers. All of this helps lendersprocess and underwrite loans morequickly, eliminate printing and mailingcosts, and respond more rapidly to bor-rower questions.

“In today’s volatile marketplace,mortgage lenders are seeking to retaina competitive advantage by reducingcost and making the origination processfaster and easier for their borrower,”said Jason Marx, vice president and gen-eral manager, mortgage, WoltersKluwer Financial Services. “OneFileallows them to do all of this with flexi-ble workflows while maintaining com-pliance with an increasingly-complexset of regulatory requirements.”

OneFile is a transactional contentmanagement system that has beendesigned for mortgage origination. Itoffers pre-built mortgage file workflow,embedded document capture functions,and document review features that help


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Demonstrate your higher standards by joining today!

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enforce compliance with lender process-ing and underwriting guidelines. OneFilealso helps lenders dramatically reducethe inherent risks that accompany papermortgage files. These include poor disas-ter recovery, business continuity, andsecurity issues surrounding confidentialborrower information. OneFile usessecure data centers that have undergonean SAS 70 Type II review. The solutionalso encrypts the sensitive informationwhile at rest and in-transit.For more information, visit www.one-filenow.com.

Veros adds Appraiser PanelManagement capabilitywith module for itsVeroSELECT platform

Veros, a providerof collateral val-uation technolo-

gy, enterprise risk management and pre-dictive analytics, has launched AppraiserPanel Management, a functional compo-nent within its VeroSELECT platform giv-ing lenders the flexibility to includeappraisers from their own approvedpanels while remaining compliant with

Dodd-Frank and FHA appraiser inde-pendence rules.

The VeroSELECT platform intelligent-ly routes and returns appraisals andother valuation products, includingappraisals ordered through appraisalmanagement companies (AMCs), bro-ker price opinions (BPOs), automatedvaluation models (AVMs), and automat-ed risk, fraud, and data products, forlenders. With its connectivity intoinvestor portals, it can assist lenders inmeeting investor compliance require-ments and identify potential valuationconcerns. VeroSELECT enables lendersto achieve regulatory compliancethrough its flexibility to route valuationorders across multiple service sources,while tracking all transactions and data

elements in a real-time, fully auditablereporting module. It also maintains alldata points from the valuation source,including a first-generation PDF of theentire report.

With the Appraiser Panel Managementfunctionality, lenders can use VeroSELECTto electronically invite appraisers to jointheir network and directly send appraisalorders. This gives lenders the advantageof guaranteeing local proficiency, whilestaying compliant with appraisal regula-tions. By being able to create and main-tain their panels of approved appraisersas part of their ordering list, lenders canreduce their dependence on single ven-dors, keep response times high andreduce costs over the long term.For more information, visitwww.veros.com.

Field Asset Servicesreleases REO and shortsale management tool

Field Asset Services(FAS), a provider offield services to thereal estate-owned

(REO) industry, has announced the availabil-ity of FAS Direct Services, a new service solu-tion for larger real estate firms, based onFAS’s revolutionary Collateral Commandconcept. An integrated suite of services, FASDirect Services eliminates the hassles ofproperty management for local realestate agents and brokers.

“FAS understands that the goal of realestate agents is to move properties fastand not be held back by the time-con-suming tasks associated with propertymanagement,” said Dale McPherson,president and chief executive officer ofField Asset Services. “FAS Direct Serviceswas created to offload the burdens ofproperty management by providing realestate agents with a dependable solu-tion that delivers the services they need,when they need them and in a recurringbusiness model. By leveraging our morethan 15 years of experience providingproperty management services to thelender community, we’ve been able tobuild a robust solution for the agentcommunity that eliminates propertymanagement challenges and enablesthem to focus on their job of sellingand marketing properties.”

FAS Direct Services is an integratedsuite of services created to streamlinethe management of REO and fore-closed properties for real estate agents.Centrally managed by FAStrack, FAS’sstate-of-the-art workflow managementsystem, FAS Direct Services enables FASto deliver agents consistent and highquality service and predictable pricingwith a three-day turn around on initialservices.

Through FAS Direct Services, FAS isable to efficiently oversee all aspects ofproperty management activities fromutilities to compliance and proposalwhile providing real estate agents withan easy way to order, inspect andreview preservation and recurring serv-ices. In addition, through FAStrack, FAS


A PRMI Company

If you would like to learn more about our BranchPartner business model, please inquire:

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“My experience with Frost Mortgage has been “asadvertised.” Our recent MasterMind Meeting in Al-buquerque was one of my best learning experiencesI’ve had since entering the mortgage business.”

- Loren Winzeler - Santa Rosa, CA

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"We were plugging along at $1.5M a month for years.Greg offered to help me recruit and has joined me inNashville for several days in the the last few months.Our branch production is up 300%."

- Shane Atwell, Nashville, TN

“I made a bad move to a small net branch companywith terrible service. The Frost team jumped in, gotmy loans processed, approved and closed on time.Great service and great pricing.”

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“Greg promised to put an Underwriter in my officewhen I hit my numbers. I did, he did, and we could-n’t be happier. This local decision making ability givesmy team a decisive advantage over our competition.”

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“I joined Frost Mortgage and immediately saw myrevenue get back to what it used to be. I now havethe tools I need to be successful in today’s marketplace.”

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Regulation and Licensing Department, Financial Institutions Division #621 • Branch License #00621

• Multiple National Lenders

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managing in the brave new world

of mortgage financeattend the

28th Annual Regional Conference of Mortgage Bankers Associations

March 15 - 17, 2011Trump Taj Mahal Casino Resort, Atlantic City, NJ

For The First Time: The Residential Program Will Include A Commercial Track So That Attendees Will Have A Choice As To Which Sessions To Attend. Both Cocktail Receptions And

The Exhibit Hall Will Be For Both Residential And Commercial Programs.

TuesdayOpening Residential Networking Cocktail Reception

in the Exhibit Hall

WednesdayGeneral Session Topics

The Future of the Securitization Market, Risk Retention, TBA Market, Reforming the GSE’s, Government

Guarantees & More

MBA’s Report on Current Legislative/Regulatory Issues

Banks in the Mortgage Market

How to Use Social Networking: Facebook, Twitter, LO Websites, Blogs

Exhibit Hall with Lunch

Afternoon Session TopicsLO & Broker Compensation

Labor Law Issues (LO Overtime, Department Of Labor Opinion, Minimum Wage)

Mortgage Bankers & Financial Institutions Panel:Independent Mortgage Bankers

Mortgage Brokers (FHA Business, Use Of Compare Ratio’s, Etc.)

Regulators RoundtableRegulators from NJ, PA & NY

Mortgage Fraud Panel: How To Detect And Avoid Mortgage Fraud

Networking Cocktail Reception

ThursdayCritical Issues Day

An in Depth Look at Financial Regulatory ReformLO Compensation

Risk RetentionAbility To Repay

CFPB RegulationsFed Reserve Rules

SAFE Act And Related Issues

MI’s: Future Of The Private MI Industry

Residential Mortgage Lending For Financial InstitutionsSubsidiary vs. DivisionRegistration Of LO’s

Obtaining HUD ApprovalInvestor Approvals

Underwriting

A View From The Regulators: OCC, FDIC, State Reg

For Registration Information visit www.mbanj.com


can enable QA inspections and onlinetracking.For more information, visitwww.fieldassets.com.

LPS Applied Analyticsannounces RealtorValuation Model

Lender ProcessingServices Inc. (LPS), aprovider of integrat-ed technology and

services to the mortgage and real estateindustries, has announced the releaseof the Realtor Valuation Model (RVM)from its LPS Applied Analytics division.The LPS RVM is the only automated val-uation model (AVM) with duly licensedmultiple listing services (MLS) datadrawn from the Realtors PropertyResource (RPR).

The RPR is a parcel-centric informa-tion database launched by the NationalAssociation of Realtors (NAR), coveringall of the more than 147 million prop-erty parcels in the country as a resourcefor NAR members. By leveraging thisinformation for the development of theRVM, LPS Applied Analytics expands thereach of traditional automated valua-tion, bringing listing and pending saledata into the equation.

“With the introduction of the LPSRVM, users now have housing supplyinformation at their fingertips,” saidRobert Walker, managing director, val-uations, for LPS Applied Analytics. “Byfactoring listings and pending sales inthe report, it becomes easier to betterunderstand the external factors impact-ing the value of a specific property.”

In testing, the LPS RVM has provenextraordinarily accurate when com-pared with other comparative AVMs. Ina sampling of Maricopa County, Ariz.(Phoenix) properties, for example, theLPS RVM correctly predicted the sellingprice of a property 72 percent of thetime. According to Walker, this highaccuracy is the direct result of the addi-tion of MLS data fully licensed by RPR.For more information, visitwww.lpsvcs.com.

Advantage Systems addsClearing House feature toits accounting system

Advantage Systems, a provider ofaccounting and contract managementtools for the mortgage and real estateindustries, has announced the additionof an Automated Clearing House (ACH)processing function to its Accountingfor Mortgage Bankers (AMB) system.AMB is an accounting system designedfor mortgage bankers to provide loan-level detail of accounting transactions.

The ACH application was created inresponse to the growing use of elec-tronic payments. With the feature,lenders are able to cut costs by elimi-

nating check processing and postagefees. The payment file created by thesystem is generated in the NationalAutomated Clearing House Association(NACHA) format. As such, the file can beread by any bank supporting the NACHAformat. Dallas, Texas-based PrimeLending,a PlainsCapital Company, is AdvantageSystems’ first customer leveraging theapplication.

“Lenders are seeking ways todecrease expenses in all areas of busi-ness, even in how they pay bills,” saidBrian Lynch, president of AdvantageSystems. “In speaking with customers,we found that some were spending sig-nificant amounts mailing thousands ofchecks each month. With the ACHapplication, they can easily send elec-tronic payments and maintain securityfor all parties involved. We build eachaddition to AMB with our customers inmind, taking steps to increase theirbusiness efficiency and makingaccounting, which affects all portionsof the company, as simple as possible.”

The AMB system provides generalledger, accounts payable and reportwriting capabilities. A Web-basedbranch reporting module is also avail-able for branch managers along with amodule to calculate commissions,bonuses and overrides.For more information, visit www.mort-gageaccounting.com.

NCS launches newemployment verificationsolution

NCS, a provider of income,identity and credit intelli-gence, has announced thelaunch of VOE CONFIRM,

an advanced employment verification solu-tion that enables lenders to better confirmpotential borrowers’ ability to repay, help-ing to ensure overall loan quality. With VOECONFIRM, lenders submit their employ-ment verification requests throughNCS’ secure Web site. Then, NCS con-ducts the necessary research and itsstaff of professionals makes personalphone calls to verify the employmentinformation given by the potential bor-rower. Within 24-48 hours, the lenderreceives a VOE CONFIRM report thatverifies whether or not the employ-ment information provided is accurate.

In addition to verifying the accuracyof the employment information, theVOE CONFIRM report also outlines thedetails of the steps involved in theaccuracy determination process foraudit purposes. The information in thereport is delivered in an easy-to-understand format that enableslenders to expedite the originationprocess. Further, the VOE CONFIRMreport follows the guidelines estab-lished by Fannie Mae and Freddie Mac.

“While employment verifications arenot new to the mortgage industry, thedemand for timely and accurate

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employment verification that deliversthe next level of quality assurance isvery strong,” said Curt Knuth, executivevice president of NCS. “Whether tryingto remain in compliance with the LoanQuality Initiative or identify potentialfraud, lenders must be able to confirmthe information provided on borrowerapplications. VOE CONFIRM supportsthat need and complements NCS’extensive line of well-established verifi-cations solutions, including those thatconfirm income, identity and credit.”For more information, visitwww.ncstrv.com.

ISGN announces itsQuality Assurance andReview service offeringfor servicers

ISGN, a provider of end-to-end technology solu-tions and services to the

U.S. mortgage industry, has announcedits Quality Assurance and Review servic-es for servicers, mortgage insurance(MI) companies and investors. Thisproduct line, which covers all activitiesranging from loan audits, underwritingreview, loan modification review toforeclosure documentation, helps ser-vicers prevent buy-backs, reduce futurelegal expense and ensure integritythroughout their processes.

“This foreclosure crisis will have ahuge impact on the housing industry,”said Chetan Patel, executive vice presi-dent for ISGN. “If there is even a limit-ed foreclosure moratorium and loanownership is being challenged, the REOmarket is going to see a major slow-down. Naturally, buyers and investorswill be hesitant to purchase a propertywhose title is in question. The rippleeffect and implications are massive.”

ISGN’s Quality Assurance and Reviewservices are standardized for consisten-cy of process, and are carried out bytrained and experienced professionals.ISGN has been providing loan origina-tion and due diligence services formore than 10 years and clearly under-stands both GSE requirements andappropriate underwriting rigor neededto create a conforming loan. Servicesinclude file-level and workflow auditsin addition to predictive analytics andportfolio surveillance. Servicers canchoose to implement the service orservices that best fit their objectives.The Quality Assurance and Review serv-ices can be implemented as an on oroff-site outsourced solution.For more information, visitwww.isgn.com.

Consumer Mortgage Bureau announces two newprofessional designationprograms

The Consumer MortgageBureau has announcedthat they have developedtwo new designation pro-grams to define the mort-

gage industry in the wake of the SAFEMortgage Licensing Act of 2008: TheRegistered Mortgage Professional (RMP)

and the Licensed MortgageProfessional (LMP). On July 30, 2008,President Barack Obama signed theHousing and Economic Recovery Act of2008 (HR 3221) into law to stabilize thehousing market and help alleviate thefinancial crisis. Title V of the Act, theSecure and Fair Enforcement (SAFE) forMortgage Licensing Act of 2008, is spe-cific to the registration and educationof mortgage loan originators across thecountry to aid with consumer protec-tion and fraud reduction.

The SAFE Mortgage Licensing Actmandates that all loan originators beidentified through the NationwideMortgage Licensing System and Registry(NMLS) and establishes uniform mini-

mum national standards for testingand education. The ConsumerMortgage Bureau’s new designationsgive added credibility to the profes-sionals, while giving consumers addi-tional security, comfort and general“peace of mind.”

The Registered Mortgage Professionaldesignation is used by mortgage loanoriginators who are an employee of adepository institution (including creditunion) regulated by a federal bankingagency (OCC, OTS, FDIC, FRB, NCUA), asubsidiary-owned and controlled by adepository institution and regulated bya federal banking agency, or an institu-tion regulated by the Farm CreditAdministration. The RMP designation

means that the individual is a certifiedmember of the Consumer MortgageBureau and has met all of the organiza-tions qualifications and agrees toadhere by their strict Code of Ethics. TheRMP is the mark of those who have metthe following criteria: registered in theNational Mortgage Licensing Systemwith a unique identifier (startingJanuary 2011); fingerprinted; back-ground check; working for a depositorylender, bank or credit union; education(internal); profile accessible atwww.consumermortgagebureau.org.

The Licensed Mortgage Professionaldesignation was developed for mort-


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Appraisal Management Company

We are a premier National Appraisal Company since 1970.We have a complete product line for your entire organization.We guarantee HVCC and FHA regulatory compliance.Let our experience work for you. The way valuations should be.

Coester Appraisal Group7650 Standish Place, Suite 107 • Rockville, MD 20855

www.coesterappraisals.com(888) 485-1999 Ext. 2

Branch Recruitment

Continuing Education

Contact Management/CRM

Branch Manager

Branch Manager

Freedom Mortgage Corporation, The BEST Branch Solution, Period.

Freedom Mortgage [email protected]

800.220.9498

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]

Be in business for yourself, but not by yourself. Join GSF Mortgage'sProfessional Branch Network. Enjoy freedom and stability and reapthe rewards. Signing bonus for Branch Managers, retain 100% ofyour commissions. Absolutely NO files fees, NO splits

GSF Mortgage15430 W Capitol Dr. Brookfield, WI 53005

1-877-494-4448www.gsfprobranch.com

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

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.

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.

WorkCenter CRM ....................................877.498.6888A CRM & contact management solution designed for mortgageprofessionals. Automated campaigns & LOS synchronization makeWorkCenter an intuitive timesaver for staying in touch with clients.

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

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Brokers United ........................................877-710-0948Consulting & Branch opportunities. Exclusive opportunities with atop Federally Chartered Bank, Mortgage Banker and/or MortgageBanker/Broker Platform. Email Jeff Flees at [email protected].

Closing Gifts

Increase your Loans,Get the Edge & Generate More Referrals!Offer your clients a 5 Day 4 Night Cruise certificate for Two to Mexico,the Bahamas or the Western Caribbean (up to a $1798.00 value) onlywhen they close a loan with you. Only $159.00 per certificate!!

Cruise4Two-Loan Incentives1-866-541-8077

www.Cruise4Two.com

Compliance Consultants

The first full-service, mortgage risk management firm in the country, specializing exclusively in mortgage compliance.

Pioneers in outsourcing solutions for mortgage compliance.

Our Compliance Team Will:

Leverage your existing employees.Improve your productivity.Collaborate on projects.Make the most of your current technology.Bring innovation to your company.Be a strong cultural fit.Free you to focus on your core competencies.Give you access to world-class expertise.Lower your total operational costs.

LENDERS COMPLIANCE GROUP167 West Hudson Street - Suite 200

Long Beach | NY | 11561 | (516) 442-3456www.LendersComplianceGroup.com

There’s only one avenue to guaranteed appraisal performance!With a commitment to doing business the RIGHT way, StreetLinksis bringing real value as a PARTNER, not a vendor.

• We attract and retain the best appraisers – Our appraisers settheir own fees and our peer-to-peer approach attracts appraisersthat simply won’t work for other AMCs

• IQ Select™ proprietary order assignment methodology assignsbased on proximity, service and quality – not lowest fee!

• 100% Manual Quality Control – every report is manually pre-underwritten by a USPAP certified appraisal underwriter

• Certified compliance with appraiser independence requirements

AND INTRODUCING SCORe™ - a revolutionary approach toappraisal validation. Credible 2nd opinions on comp selection from licensed, local appraisers. Stop Guessing. Start Knowing!

StreetLinks National Appraisal Services(800) 778-4788

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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

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Education

North Lake College - Specialized Education In Mortgage Banking.Earn An Associates Degree in Mortgage Banking From the First FullyAccredited Mortgage Banking Degree Program in the U.S. ForInformation About Our 30 Year Program email:[email protected].

North Lake College5001 North MacArthur Blvd, Room T-231-C

Irving, TX 75038(972) 273-3467 • http://www.northlakecollege.edu/

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 to sim-plify the loan origination experience. Imagine having all your doc-uments in the loan process as electronic files, all online, from pre-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 important compli-ance issues while giving your office the competitive advantage ofbeing paperless. It streamlines all aspects of the mortgageprocess and most important, it does so in one easy-to-use andinexpensive package. Its newest version, DocVelocity 2.5, addsover 50 new features and enhancements to make the best paper-less office even better. DocVelocity is the flagship product ofPaperless Office Solutions, Inc., a wholly owned subsidiary ofFlagstar Bancorp. Visit www.docvelocity.com to find out more.

DocVelocitywww.docvelocity.com

(877) [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

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.

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!

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

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!

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.

Continuing Education

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]

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

Bookmark this!Access these listings online at nmpmag.com/directory_list

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Title

Intracoastal Abstract Co. Inc.................516-358-0505Privately owned & operated full service title insurance agencyin NY, NJ and FL, with affiliates throughout the US & Canada.Escrow Agent in Florida. www.intracoastalabstract.com.

Retail Branch

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 perfectfor you. We are offering you all the benefits of partnering with anestablished lender while still enjoying your independence.Mortgage Concepts is a nationwide FHA Direct Lender with a 16year long reputation of excellence.

YOUR SUCCESS IS OUR SUCCESS!

For more information contact THOMAS R. SIRICO, Vice Presidentof Business Development at (917) 923-1472 or email [email protected].

We look forward to sharing our services with you!

(800) LOANS-15www.mortgageconcepts.com

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

Secondary Marketing Consulting

Broker to Banker Services.com ..........(951) 746-3075 We complete your applications for approvalSave the time and hasslecontact: brokertobankerservices.com

Loan Incentives

Increase your Loans,Get the Edge & Generate More Referrals!Offer your clients a 5 Day 4 Night Cruise certificate for Two to Mexico,the Bahamas or the Western Caribbean (up to a $1798.00 value) onlywhen they close a loan with you. Only $159.00 per certificate!!

Cruise4Two-Loan Incentives1-866-541-8077

www.Cruise4Two.com

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

End-to-end LOS system for multi-channel lending.PreQual thru Interim Servicing. Includes all back-office functionality;Underwriting,Secondary Marketing,Post Closing and much moreSaaS, ASP and Client Server delivery options.

Mortgage Builder Software24370 Northwestern Highway, Suite 200

Southfield, MI 48075800-460-5040 • www.mortgagebuilder.com

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.

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Jumbo

Sign up with the Premier Jumbo Lender

www.ingloans.com877.464.0555, option 2

Move your Jumbos to a better neighborhood. ING Mortgage isyour home for Portfolio loans up to $3,000,000. We offer aggressivepricing and simple guidelines in all 50 states. Big Loans. Low Rates. Great Value.

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.

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 7 million unique

consumers every monthwww.Bankrate.com • 561-630-1257

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

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.

The Resource Registry is a directory of lenders (wholesaler or retail that are recruiting), affiliated services and resources that is seen

by more than 191,181 active Professionals.

Call 888-409-9770 ext 4. to register your company.

If your ad was here, you would be seen by 191,181 MortgageProfessionals looking for resources to help them in their business.

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Wholesale/Residential Wholesale/Residential

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] 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

Wholesale Reverse Mortgages

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

Lykken on Lending is a weekly 60-minute show hosted by mortgageveteran of 37 yrs, David Lykken, along with special guest Alice Alvey &Joe Farr as well as featured special guests. Each week we provide our

listeners with up-to-the-minute information of what is happening inmortgage and housing industry.

Sign-on weekly atnmpmag.com/lykkenonlending

Call 888-409-9770 ext 4. to register your company. PROFESSIONAL .TV

MORTGAGEComing in

2011!

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JANUARY 2011Thursday, January 13

Florida Association of MortgageProfessionals Palm Beaches Chapter

2011 Annual Trade Show“Mortgage Olympics: Are You in it to Win It?”Palm Beach County Convention Center

650 Okeechobee BoulevardWest Palm Beach, Fla.

For more information, call (561) 254-5379or e-mail [email protected].

FEBRUARY 2011Sunday-Wednesday, February 6-9

Mortgage Bankers Association’s CommercialReal Estate Finance/Multifamily Housing

Convention & Expo 2011Manchester Grand Hyatt San Diego

One Market Place • San Diego, Calif.For more information, call (800) 793-6222

or visit www.mortgagebankers.org.

Wednesday, February 16Florida Association of Mortgage

Professionals 2011 Annual Trade ShowThe Broward Convention Center

1950 Eisenhower BoulevardFort Lauderdale, Fla.

For more information, call (954) 294-6360or visit www.browardfamp.org.

Tuesday-Friday, February 22-25Mortgage Bankers Association NationalMortgage Servicing Conference & Expo

Gaylord Texan Hotel & Convention Center1501 Gaylord Trail • Grapevine, Texas

For more information, call (800) 793-6222or visit www.mortgagebankers.org.

MARCH 2011Tuesday-Thursday, March 15-17

2011 Regional Conference of MortgageBankers Associations

Trump Taj Mahal1000 Boardwalk at Virginia Avenue

Atlantic City, N.J.For more information, call (973) 379-7447

or visit www.mbanj.com.

Wednesday-Thursday, March 23-24Mortgage Bankers Association’s National

Policy ConferenceHyatt Regency Washington on Capitol Hill

400 New Jersey Avenue NWWashington, D.C.


Sunday-Wednesday, March 27-30Mortgage Bankers Association’s National

Technology in Mortgage BankingConference & Expo

The Westin Diplomat Resort & Spa3555 South Ocean Drive

Ft. Lauderdale, Fla.For more information, call (800) 793-6222


Sunday-Wednesday, March 27-30Mortgage Bankers Association’s National

Fraud Issues ConferenceThe Westin Diplomat Resort & Spa

3555 South Ocean DriveFt. Lauderdale, Fla.


APRIL 2011Sunday-Wednesday, April 3-6

2011 National Association of MortgageBrokers 2011 Legislative & Regulatory

ConferenceHyatt Regency Washington on Capitol Hill

400 New Jersey Avenue NWWashington, D.C.

For more information, call (703) 342-5900or visit www.namb.org.

MAY 2011Sunday-Wednesday, May 1-4

Mortgage Bankers Association’s NationalSecondary Market Conference & Expo

The New York Marriott Marquis1535 BroadwayNew York, N.Y.


Sunday-Wednesday, May 1-4Mortgage Bankers Association’s Loan

Production ConferenceThe New York Marriott Marquis

1535 BroadwayNew York, N.Y.


Sunday-Wednesday, May 15-18Mortgage Bankers Association’s

Commercial/Multifamily Servicing &Technology Conference

Chicago Marriott Downtown Magnificent Mile

540 North Michigan AvenueChicago, Ill.


Sunday-Wednesday, May 15-18Mortgage Bankers Association’s Legal

Issues/Regulatory Compliance ConferenceBoca Raton Resort501 El Camino Real

Boca Raton, Fla.For more information, call (800) 793-6222


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


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].


gage loan originators who work fornon-depository lenders, mortgagebankers and brokers. Just like the RMP,the LMP designation means that theindividual is a certified member of theConsumer Mortgage Bureau and hasmet all of the organizations qualifica-tions and agrees to adhere by theirstrict Code of Ethics. In addition, allLMP’s are approved in the NMLS(National Mortgage Licensing System);possess a NMLS number (unique identi-fier generated by the NMLS); completedinitial pre-licensing training; complet-ed National and State examinations;participate in continuing education;fingerprinted; background check; pro-file accessible at www.consumermort-gagebureau.org.

For more information, visit www.con-sumermortgagebureau.org.

Your turnNational Mortgage Professional Magazineinvites you to submit any informationpromoting new “niche” loan programs,new products or any other announce-ment related to the introduction of anew program, to the attention of:

New to Market columnPhone #: (516) 409-5555


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

Whether you’re actively searching for a new jobor not, don’t miss what could be your next career opportunity. Post your anonymous

resume now to start building a better career in the mortgage industry.

Search the vast number of career possibilities available inthe origination, settlement, secondary & servicing areas ofthe Mortgage Business or create a personal job alert to be

notified of new jobs that match your search criteria.

Be available for your next career opportunity. Post your resume at FindMortgageJobs.com -

where employers search for mortgage professionals.

Post your resume. Find a job. Be happy.

NMP_DEC10eedition

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