P R E S O R T E D S T A N D A R D

U . S . P O S T A G E P A I D
N M P M E D I A C O R P .
N M P M E D I A C O R P .
1 2 2 0 W A N T A G H A V E N U E
W A N T A G H , N E W Y O R K 1 1 7 9 3
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table o
N A T I O N A L M O R T
M A Y 2 0 1 3 l V O L U
A SPECI AL LOOK AT
MOTI VATI ON AND
TRAI NI NG FOR
SUCCESS
The Benefit of a Hired Sales Trainer By Greg Frost Sr. ......50
Training and Coaching Sales Personnel
By Dave Hershman ......................................................................51
Leadership and Restoring Confidence in
the Community By David Lykken ........................................52
Unleashing the Trainer in You: 10 Easy Steps
to Creating a Course By Ginger Bell ..................................54
Stop Getting in the Way of YOUBuild
Systems for Success and Prevent
Self-Sabotaging Behaviors By Kelly Resendez....................57
Learning Event Strategies to Enhance Motivation
By Judy Wheatley & John C. Cunningham ..................................59
You Can Let Your Teeth Rot or Recruit New
Loan Officers Your Choice By Ralph LoVuolo ................61
FEATURES
When to Stop Thinking By Jake Soley......................................8
The Elite Performer: Set Your Goals!
By Andy W. Harris, CRMS ........................................................8
Two Reverse Mortgage Misconceptions
By Ralph E. Rosynek Jr. ........................................................16
Escrow Requirements Final Rule
Amended Already? By Laurie Spira ....................................18
NAMB Perspective ........................................................20
AllRegs.............................................................. www.allregs.com ..........................................................34
American Financial Resources Inc. ...................... www.afrwholesale.com ............................Inside Back Cover
Appraisal Nation, LLC ........................................ www.appraisal-nation.com ............................................57
Brokers Compliance Group.................................. www.brokerscompliancegroup.com ..................................21
Calyx Software .................................................. www.calyxsoftware.com ................................................43
CBC National Bank ............................................ www.cbconnex.com ......................................................34
Cendix .............................................................. www.zairmail.com/mortgage_marketing ........................51
Credit Plus, Inc. ................................................ www.creditplus.com/undisclosed-debt-monitoring ............23
Data Facts ........................................................ www.datafacts.com ........................................................60
Document Systems, Inc./DocMagic ...................... www.docmagic.com ........................................................9
FAMP ................................................................ www.myfamp.org ..........................................................47
indMortgageJobs.com ........................................ www.findmortgagejobs.com ..................................46 & 66
First Guaranty Mortgage Corp. ............................ www.fgmcwholesale.com ................................................7
GSF Mortgage Corp. ............................................ www.gsfsales.com ..........................................................19
Hometown Lenders ............................................ www.whotookmybacon.com ..................................13 & 35
HomeBridge ...................................................... www.homebridgewholesale.com ....................................41
Maverick Funding Corp. ...................................... www.maverickwholesale.com ........................................27
Maximum Acceleration Coaching ........................ www.maccelcoach.com ..................................................25
Menlo Park Funding .......................................... www.mpfunding.com ....................................................61
V I S I T O U R A
Company Web Site Page
10
Waiting for the CPFB
By Jonathan Foxx
24
Lesson Learned:
The Great Recession
Ends, but Young
Professionals Remain
Elusive!
By Chad Jampedro
32
Wecome to the Show!
Industry Newcomers
Learning From the
Past to Create a
Positive Lending
Future
By Tara R. Nygaard
33
Regulatory
Compliance Review:
FHA Mortgage
Review Board ...
Administrative Actions
By Jonathan Foxx
36
Growth and
Expansion in Todays
Mortgage
Marketplace
Welcome to
the Show!
Welcome to
the Show!
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let us
help your
brand
soar
Through our Integrated Marketing Campaigns, we offer our
advertisers ads in the monthly edition of National Mortgage
Professional Magazine and our 38 state-specific electron-
ic editions. We also offer promotion throughout various forms
of electronic media, including e-mail blasts, social networking
outlets, banner ads and the ability to interact with our
readership through jointly-hosted Webinars. To find out how
National Mortgage Professional Magazine can
empower your brand, contact us today.
NMP Media Corp.
1220 Wantagh Avenue
Wantagh, New York 11793-2202
516.409.5555
516.409.4600
advertise@NMPMediaCorp.com
www.NationalMortgageProfessional.com
f contents
T G A G E P R O F E S S I O N A L
M E 5 l N U M B E R 5
Create Preeminence in Wholesale Lending
By Sharon Bitz ....................................................................22
Secrets to More Closings: Stages Three
to Five of the Sales Funnel (Part II) By Jean LeBlanc ........30
Bonded With NAMB: Cmon Step Right Up
and Play the Shell Game By Mason Grashot, CPA................40
FHA Insider: FHA Lays Down the Hammer
on Multiple Lenders Find Out Why By Jeff Mifsud..........44
The Five Critical Factors to Develop
Call Confidence By Jeff Krantz ..........................................48
Using Engagement-Based Professional Services
to Meet Your Business Needs By Dan Thoms ..................49
Increase Your Monthly Funding Volume
With These Simple Steps By Joshua Conklin ......................62
2013 So Far So Good for the USDA
Single-Family Loan Program By Rich Obermeier ................63
NAMB Sales & Marketing Tips for
Todays Mortgage Professional: Sharpening
Your Skills A Daily Practice By Fred Arnold, CMC............64
Have You Seen a Dip in Your Marketing Results?........65
The Keys to Leadership: An Unlikely Source
By Kevin E. OConnor, CSP ....................................................66
COLUMNS
NMP News Flash: May 2013..........................................12
New to Market................................................................14
Heard on the Street ......................................................62
NMP Mortgage Professional Resource Registry ..........68
NMP Calendar of Events................................................72
Mortgage Mapp, Inc. .......................................... www.mortgagemapp.com/MO ........................................29
NAPMW ............................................................ www.napmw.org ..........................................................42
New Penn Financial, LLC .................................... www.gonewpenn.com ....................................................53
PB Financial Group Corp. .................................... www.pbfinancialgrp.com ..............................................47
Quality Mortgage Services .................................. www.qcmortgage.com ....................................................58
REMN (Real Estate Mortgage Network) ................ www.remnwholesale.com ................................................5
Reverse Mortgage Solutions .............................. www.RMPath.com ........................................................45
Ridgewood Savings Bank .................................... www.ridgewoodbank.com ..............................................56
Rushmore Loan Management Services LLC............ www.rushmorehl.com ....................................................17
Salomon James Capital Group, ULP...................... www.salomonjamesfinance.com ....................................11
Simple Nexus .................................................... www.simplenexus.com ..................................................59
Streetlinks LLC .................................................. www.streetlinks.com ..............................Inside Front Cover
TagQuest .......................................................... www.tagquest.com ........................................................39
The Bond Exchange............................................ www.thebondexchange.com ..........................................50
Titan List & Mailing Services, Inc. ........................ www.titanlists.com ..........................................................1
Ultimate Mortgage Expo .................................... www.ultimatemortgageexpo.com ....................................15
United Wholesale Mortgage ................................ www.uwm.com ................................................Back Cover
Vanguard Funding LLC........................................ www.unleashvpower.com ..............................................31
WCS Lending...................................................... www.wcswholesale.com ................................................38
D V E R T I S E R S
Company Web Site Page
COMING SOON!
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MAY 2013
Volume 5 Number 5
1220 Wantagh Avenue Wantagh, NY 11793-2202
Phone: (516) 409-5555 Fax: (516) 409-4600
Web site: NationalMortgageProfessional.com
STAFF
Eric C. Peck
Editor-in-Chief
(516) 409-5555, ext. 312
ericp@nmpmediacorp.com
Joel M. Berman
Publisher - CEO
(516) 409-5555, ext. 310
joel@nmpmediacorp.com
David J. Coster
Senior Editor
davidc@nmpmediacorp.com
Robert Peter Ottone
Assistant Editor
(516) 409-5555, ext. 314
robertpo@nmpmediacorp.com
Joey Arendt
Art Director
joeya@nmpmediacorp.com
Jon Blake
Advertising Coordinator
(516) 409-5555, ext. 301
jonb@nmpmediacorp.com
Beverly Koondel
National Account Executive
(516) 409-5555, ext. 316
beverlyk@nmpmediacorp.com
ADVERTISING
To receive any information regarding advertising rates, deadlines and
requirements, please contact National Account Executive Beverly
Koondel at (516) 409-5555, ext. 316 or e-mail beverlyk@nmpmedia-
corp.com.
ARTICLE SUBMISSIONS/PRESS RELEASES
To submit any material, including articles and press releases, please
contact Editor-in-Chief Eric C. Peck at (516) 409-5555, ext. 312 or e-
mail ericp@nmpmediacorp.com. The deadline for submissions is the
first of the month prior to the target issue.
SUBSCRIPTIONS
To receive subscription information, please call (516) 409-5555, ext.
301; e-mail orders@nmpmediacorp.com or visit www.nationalmort-
gageprofessional.com. Any subscription changes may be made to
the attention of Circulation via fax to (516) 409-4600.
Statements, articles and opinions in National Mortgage Professional
Magazine are the responsibility of the authors alone and do not imply the
opinion or endorsement of NMP Media Corp., or the officers or members
of National Association of Mortgage Brokers and its State Affiliates
(NAMB), National Association of Professional Mortgage Women
(NAPMW), National Consumer Reporting Association (NCRA) and/or other
state mortgage trade associations.
Participation in NAMB, NAPMW, NCRA, and/or other state mort-
gage trade associations events, activities and/or publications is avail-
able on a non-discriminatory basis and does not reflect the endorse-
ment of the product and/or services by NMP Media Corp., NAMB,
NAPMW, NCRA, and other state mortgage trade associations.
National Mortgage Professional Magazine, NAMB, NAPMW, NCRA,
and/or other state mortgage trade associations do not make any mis-
representations or warranties concerning the regulatory and/or compli-
ance aspects of advertisers, products or services and/or the editorial
content contained in NMP Media Corp. publications. National Mortgage
Professional Magazine and NMP Media Corp. reserve the right to edit,
reject and/or postpone the publication of any articles, information or data.
The Catch 22 of compliance
I recently attended the Mortgage Bankers Associations Secondary Marketing Conference in
New York City and was troubled by an old buzzword. Compliance is not new, its been
around for as long as people have been closing loans and putting people into homes. The
advent of the Dodd-Frank Act has put compliance again to the forefront, and the chatter
amongst the small businessmen and mortgage professionals in attendance at the MBAs
Secondary Conference left me confused.
The birth of Dodd-Frank has caused a boom in the compliance market, as new layers upon layers of
legalities and regulations have been put in place to achieve the American dream of homeownership. Sure,
compliance is a good thing. It has effectively washed away many of those who swooped into the industry,
illegally made a quick buck and either ran for the hills or wound up behind bars. In addition to the layers
of regulations previously mentioned, mortgage professionals now needed compliance professionals on call
at all times in order to keep pace with new rules and regulations as they were passed. End result anoth-
er added cost to the overhead of todays mortgage professional.
And what of those who are lacking in information those who are not really following the ebbs and
flows of the regulation arena closely? They too pay a price, but their cost is generally in the form of huge
monetary fines or even jail time. Bottom line there is a cost of the double-edged sword that is compli-
ance. Jonathan Foxx, on page 10, prepares us for the impending Consumer Financial Protection Bureau
(CFPB) fines and penalties against non-banks.
Motivation and training
This month, we focus on motivation and training. Kicking things off this month for us is Greg Frost Sr.,
known as the industrys first billion dollar originator, with his story on page 50 about hiring a sales train-
er. Dave Hershman picks up where Greg leaves off on page 51 and discusses the ways in which to proper-
ly prepare your training and sales personnel to get out and makes some deals. David Lykken follows on
page 52 and gets into the motivation end of business in his piece on how confident leaders setting the tone
to restore confidence in todays homebuying public. National Training Director Ginger Bell of Plaza Home
Mortgage takes training a step further on page 54 with her article. She provides you with the foundation
to take your industry experience and utilize it by getting out into the field and becoming an industry train-
er by creating industry-specific courses. Kelly Resendez of Paramount Equity breaks down the barriers to
achieving personal success with her article on page 57, focusing on goal-setting and laying the foundation
to your future successes. The duo of Judy Wheatley and John C. Cunningham of Indecomm Global Services
dissect the three elements of successful learning on page 59, when they delve deeper into pre-learning,
learning and post-learning. And wrapping up our special section on page 61, Ralph LoVuolo of consulting
firm Mortgage Motivator shares some real-life experiences in his piece on building the ideal LO for todays
marketplace.
Back to our leaders
In my travels at the MBA Secondary Conference, I encountered many who foresee a downshift in the mar-
ket. As the refi market subsides, a new purchase market strategy must compensate for that lost refi busi-
ness, and many of the mortgage professionals I met with are grabbing the bull by the horns. To avoid from
the mistakes of the past, many are prepping their infrastructure and shifting their focus to the purchase
market. These individuals are to be applauded for not viewing an impending down market as a roadblock,
but a simple bump in the road on their path to success. They have set methods in place to deal with these
issues such as a dried up refi market in a positive way, and not treating it like its the end of the world.
To that end, National Mortgage Professional Magazine was able to host a roundtable discussion and
brainstorming session with 10 of the industrys movers and shakers. Our 2013 Mortgage Mastermind panel
discussion, beginning on page 36, lends their ideas and thoughts on how to keep pace with an ever-shift-
ing market and how to properly navigate through these waters to maintain success. From company growth,
to everyday business practices, our panelists tackle the issues in roundtable fashion and share what has
made hem successful and also discuss the pitfalls to avoid along the way.
All of this and much more lies ahead in this issue of National Mortgage Professional Magazine. As the
summer months set in, take this opportunity to stay sharp and remain ahead of the curve. While your com-
petition is kicking their feet up and sunning in the sand, gain that competitive edge and claim your share
of this changing market and stay sharp. With rapid-fire regulations changing daily, there is no time for
relaxing, only time for vigilance as the hold of compliance grows stronger. Dont be the one to pay the ulti-
mate price of compliance stay ahead and keep ahead of the curve to avoid long-term troubles by tend-
ing to short-term problems.
Sincerely,
Joel M. Berman, Publisher-CEO
NMP Media Corp.
joel@nmpmediacorp.com
National Mortgage Professional Magazine
is published monthly by NMP Media Corp.
Copyright 2013 NMP Media Corp.
publishers desk
FROM THE
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NAMBThe Association of
Mortgage Professionals
2701 West 15th Street, Suite 536 l Plano, TX 75075
Phone: (703) 342-5900 l Fax: (530) 484-2906
Web site: www.namb.org
OFFICERS
Donald J. Frommeyer, CRMSPresident
Amtrust Mortgage Funding Inc.
200 Medical Drive, Suite D l Carmel, IN 46032
(317) 575-4355 l dfrommeyer@amtrust.net
John Councilman, CMC, CRMSVice President
AMC Mortgage Corporation
11920 Fairway Lakes Drive, Suite 2 l Fort Myers, FL 33913
(239) 267-2400 l jlc@amcmortgage.com
Fred Arnold, CMCTreasurer
American Family Funding
24961 The Old Road, Suite #101 l Stevenson Ranch, CA 91381
(661) 284-1150 l fred.arnold@affloans.com
Kay A. Cleland, CMC, CRMSSecretary
KC Mortgage LLC
200 South Wilcox Street #224 l Castle Rock, CO 80104
(720) 810-4917 l kay@kcmortgagecolorado.com
Jim Pair, CMCImmediate Past President
Mortgage America Corpus Christi Inc.
22800 Bulverde Road, Apt. 1402 l San Antonio, TX 78261
(361) 774-7314 l E-mail: jlpair@aol.com
DIRECTORS
Rocke Andrews, CMC, CRMSDirector
Lending Arizona LLC
1996 North Kolb l Tucson, AZ 85715
(520) 886-7283 l randrews@lendingarizona.net
Rick BettencourtDirector
Mortgage Network
300 Rosewood Drive l Danvers, MA 01923
(978) 777-7500 l rbettencourt@mortgagenetwork.com
Donald E. Fader, CRMSDirector
SMC Home Finance
PO Box 1376 l Kinston, NC 28503-1376
(252) 523-5800 l dfader@smchf.com
Andy W. Harris, CRMSDirector
Vantage Mortgage Group Inc
15962 SW Boones Ferry Road, Ste. 100 l Lake Oswego, OR 97035
(503) 496-0431, ext. 302 l aharris@vantagemortgagegroup.com
Olga Kucerak, CRMSDirector
Crown Lending
328 West Mistletoe l San Antonio, TX 78212
(210) 828-3384 l olga@crownlending.com
Linda McCoyDirector
Mortgage Team 1 Inc.
6336 Piccadilly Square Drive l Mobile, AL 36609
(251) 650-0805 l linda@mortgageteam1.com
Dick MorinDirector
Consumers First Mortgage
P.O. Box 918 l Kennebunk, ME 04043
207-985-2895 l dick@consumers1stmortgage.com
Valerie SaundersDirector
RE Financial Services
13033 West Lindburgh Avenue l Tampa, FL 33626
(866) 992-0785 l valsaun@gmail.com
John StevensDirector
Bank of England d/b/a ENG Lending
11650 South State Street, Ste. 350 l Draper UT 84020
(801) 427-7111 l jstevens@englending.com
President
Candace M. Smith, CME
(512) 306-6354
president@napmw.org
President-Elect
Jill Kinsman
(206) 344-7827
jill.kinsman@usbank.com
Senior Vice President
Christine Pollard
(607) 226-1046
cpollard1046@gmail.com
Vice PresidentCentral Region
Kelly Hendricks
(314) 398-6840
khendricks@fsbfinancial.com
Vice PresidentEastern Region
Katrica J. Driscoll, MML, CME, CMI
(919) 877-5683
kdriscoll4@nc.rr.com
Vice PresidentNorthwestern Region
Debbie Tofte, GML
(425) 483-3359
dtofte@gmail.com
Vice PresidentWestern Region
Lyman King III, CMI, CME
(916) 967-4653
lking@gemcorp.com
Secretary
Sara Vasura
(703) 255-7460
svasuranapmw@gmail.com
Treasurer
Jeanne Evans, CME
(918) 431-0155
drmjevans@att.net
Parliamentarian
Hulene Works
(972) 494-2788
admin@napmw.org
NAMB 2012-2013 Board of Directors
National Association of
Professional Mortgage Women
P.O. Box 451718 l Garland, TX 75042
Phone: (800) 827-3034 l Fax: (469) 524-5121
Web site: www.napmw.org
National Board of Directors 2012-2013
Daphne Large
President
(901) 259-5105
daphnel@datafacts.com
Maureen Devine
Vice President
(413) 736-4511
mdevine@strategicinfo.com
Donald J. Unger
Ex-Officio
(303) 670-7993, ext. 222
don@advcredit.com
Mike Brown
Treasurer
(800) 925-6691, ext. 4350
mike.brown@ncogroup.com
Nancy Fedich
DirectorChair
Legal Committee
(908) 813-8555, ext. 3010
nancy@cisinfo.net
William Bower
DirectorChair
Tenant Screening Committee
(800) 288-4757
wbower@continfo.com
Tom Conwell
DirectorLiaison
Legislative Committee
(800) 445-4922, ext. 1010
tconwell@credittechnologies.com
Judy Ryan
DirectorChair
Strategic Alliance Partnership
Committee
(800) 929-3400, ext. 201
jryan@kroll.com
Renee Erickson
DirectorChair
New Membership Committee
(866) 932-2715
renee.erickson@acranet.com
Sharon Bieszk
Director
(262) 542-1700
sbieszk@wititle.com
Mary Campbell
Director
(701) 239-9977
mary@advantagecreditbureau.com
Terry Clemans
Executive Director
(630) 539-1525
tclemans@ncrainc.org
Jan Gerber
Office Manager/Member
Services
(630) 539-1525
jgerber@ncrainc.org
National Consumer
Reporting Association
701 East Irving Park Road, Suite 306 l Roselle, IL 60172
Phone: (630) 539-1525 l Fax: (630) 539-1526
Web site: www.ncrainc.org
2013 Board of Directors & Staff
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Sponsored Editorial
By Jake Soley
Overthinking marketing is a common error many
brokers and lenders make when putting forward
the best effort for their marketing approaches.
Oftentimes, the best thoughts lead them down the
path to failure. This can be attributed to thinking
from the wrong perspective. Lenders and brokers
without much experience will put forward what
they think is the best as it suits their personal taste instead of looking
at their approach from the eyes of their target consumer. Many also
lose sight of the goal that direct mail is to spark the interest of the bor-
rower to call and not to sell the borrower on the loan program being
proposed.
The most common error in overthinking is in piece design. During
the design process, the lender/broker envisions what they would
respond to or attempt to elaborate in strong detail on what they are
selling the borrower. This will often lead to a piece that is over the
head of the borrower, using terms that a layman may not be familiar
with or spending too much effort explaining why they should refi-
nance with you. No borrower wants to read a two-page document
about why they should refinance with you. When it comes to
approach, the acronym K.I.S.S. (Keep It Simple Stupid) comes to mind.
If the borrower does not understand terms that are simple and easily
understood, they simply will not respond.
With direct mail, you only have a few seconds to capture the inter-
est of the reader. Far too often, we encounter clients who saturate
their mail design with verbiage that explains the loan program, thus
relying on the mail piece to sell the loan program. This approach clut-
ters the piece with information that most borrowers will not read, and
in many cases, often confuses them. The most effective approach is
when the piece is direct, highlights the benefits of the loan program
you are targeting and is short with a call to action. Using color to high-
light the benefits of the program amplifies the points that trigger the
borrower to respond. Dont overthink beyond these simple tenants.
Another common overthinking mistake is when companies want
to test a market, but do not want to spend the money necessary to hit
the quantity needed to give the test a fair shot. Many are hesitant to
break into a new market out of fear of failure and money wasted.
Testing should be approached as a normal drop would; the best test
will come from dropping the maximum amount of pieces for the max-
imum return. By testing a minimal quantity, you will not hit enough
of the quality within your universe to extract a comfortable return
that would justify additional mail efforts. When testing, always focus
on testing at least 5,000 pieces. With around 5,000 pieces is where the
best returns begin. When thinking of your mail campaigns, whether
they are continuous or are chartering into new territory, take simple
steps in your approach to the design and target.
Jake Soley of Titan List and Mailing Services has specialized in mort-
gage-specific marketing since 2006. Jakes commitment to educating his
customers on the proper steps to take when launching direct mail pro-
grams has catapulted him as a leader in mortgage direct mail. He may
be reached by phone at (800) 544-8060, ext. 209 or e-mail jake@titan-
lists.com.
When to Stop Thinking
elite performer
T H E
By Andy W. Harris,
CRMS
A
s a small business
owner, its impor-
tant to consider
and respect the vital need for goal set-
ting. Yes, if you originate mortgage
loans you are a self-employed small
business owner. If you hang your hat at
a company with 5,000 employees or
five employees, it wont make a differ-
ence to your title. The success of your
small business is only determined by
the person you see in the mirror every
morning and the team you work with
daily. Setting and documenting your
own tangible career goals is a necessity.
The first plan in developing goals
is to understand the two primary fac-
tors for success:
l Self-motivation: The ability to
motivate yourself internally and
work hard without requiring con-
stant external assistance or some-
one else to push you. This is the
single most important quality any
person can hold to be successful.
To have a successful business and
to be the best employee possible,
you must be consistently self-moti-
vated regardless of the circum-
stances you face.
l Vision: The ability to see the
future and actually visualize meet-
ing your goal is vital. If you cannot
see yourself reaching your goals or
lack the determination, than there
is no point in setting goals. You
must have a vision in sight at all
times to support your self-motiva-
tion, as well as planning accord-
Set Your Goals!
ingly and preparing for any
changes in the future.
Once your goals are established,
make sure you remove any outside
pressures if possible. In a transaction-
al-based commissioned business,
make sure you control your balance
sheet more than your balance sheet
controls you. Save more than you
spend and dont borrow money unless
secured to real estate for housing or
responsible investment. Limiting your
liabilities will reduce stress and allow
you to focus more on business and on
your asset column.
There are numerous benefits for
those who establish and actually write
down their goals. The number one rea-
son people dont document goals is that
they dont want to be held accountable
if they fail to reach their own goals. How
ridiculous is that? If this has crossed
your mind, really think about what this
means. It truly means that youve
already planned to fail.
Andy W. Harris, CRMS is president and
owner of Lake Oswego, Ore.-based Vantage
Mortgage Group Inc. and 2010-2011 presi-
dent of the Oregon Association of Mortgage
Professionals. He may be reached by
phone at (877) 496-0431 or e-mail ahar-
ris@vantagemortgagegroup.com or visit
VantageMortgageGroup.com.
The arrogance of success is to
think that what you did yesterday
will be sufficient for tomorrow.
Willam Pollard
COMING SOON!
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By Jonathan Foxx
M
y sources tell me
that the Consum-
er Financial Pro-
tection Bureau (CFPB) will
soon announce substantial monetary
penalties and other administrative
actions against a large non-bank. I guess
it is inevitable that when such an
announcement is finally out and about,
humansand especially the financial
services type humanswill be easily
aroused to panicwhich means the nas-
cent, CFPB exam preparation industry
will receive a steroidal boost. And the fris-
son of dismay and frenzy will be stirred
up even further by the ambulance
chasers, running to the rescue, with their
merry band of products and services to
quell the indomitable, bureaucratic
brute.
There are plenty of compliance and
law firms scouring the horizon for new
clients that seek CFPB exam readiness.
Indeed, I know of one such firm that has
made fear-mongering into a fine art,
whirring about and speaking at industry
events where a surfeit of anxiety and
angst may be supremely generated. As
the affrighted crowd bounds into the
arms of these ushers of deliverance, seek-
ing the aegis of their singular protection,
they are quite sold on a full scale risk
assessment and sempiternal, on-going
monitoring. But the prospective clients,
sore at the loss of money in this endeav-
or, need not be too vexed, inasmuch as
they do get action plans, some risk assess-
ment tools, and assorted bric-a-brac of
one-size-fits-all templates specially draft-
ed for their own unique purposes.
Our industry is a strong bunch, sur-
vivors of the toughest real estate cycles,
and accustomed to adapting to regulato-
ry mandates. We have seen the largest fall
and the lowest rise. We push back, when
needed; and we push forward, when
appropriate. We know that our industry is
the backbone of the economy. Our future
will not be compromised by cold sweat
and consternation.
So, when considering the legal and reg-
ulatory compliance requirements of the
CFPB, how alarmed and apprehensive
should we be?
Trembling before
the Tsar
In the Tsardom of Russia, most people
never met the Tsar. They met his agents,
which at the time meant the duly consti-
tuted orders of functionaries who acted in
accordance with the law. The people who
did meet the Tsar, even nobles, were
known (and even expected) to tremble in
his presence. Like the custom required by
English kings, the people who stood in the
presence of the Tsar stated their views,
when called upon to speak, and, upon
finishing their statements, they left the
reception chamber by bowing and slowly
backing out of the room, always facing
the Tsar. This kind of obeisance showed
respect for the established order and
reflected the insuperable power and pri-
macy of the monarchy.
But we do not live in a monarchy and
the CFPB is not the Tsar. We need not
tremble before the CFPB!
There are a set of guidelines that the
CFPB requires for implementation by
lenders, mortgage brokers, servicers, and
others in the financial services sector.
Most of these guidelines are not particu-
larly ponderous, unless the foregoing
entities hadnt been implementing them
all along.
It is not as if we do not know the impor-
tance of fair lending or proper data collec-
tion pursuant to the Home Mortgage
Disclosure Act (HMDA). There is no real
mystery regarding compliance with adver-
tising rules. Every company is keenly aware
of the mandates set forth in the Real Estate
Settlement Procedures Act (RESPA) and the
Truth-in-Lending Act (TILA).
At this point in the industrys growth,
who does not know about the importance
of risk controls and risk mitigation? Who
does not know about the central impor-
tance of responsible and knowledgeable
management? How many companies will-
fully ignore consumer complaints?
A whole generation of bankers,
lenders, brokers, and servicers have culti-
vated a heightened sensitivity to the Fair
Credit Reporting Act (FCRA) and Fair &
Accurate Credit Transaction Act (FACTA),
Gramm-Leach-Bliley Act (GLBA), Bank
Secrecy Act and Anti-Money Laundering
Program requirements, Equal Credit
Opportunity Act (Regulation B), Home
Ownership & Equity Protection Act
(HOEPA), Secure & Fair Enforcement for
Mortgage Licensing Act (SAFE Act), the Fair
Housing Act, the Anti-Predatory Lending
Act, the National Do-Not-Call Registry,
and monitoring third party service
providers (sometimes neutrally referred
to as vendor management).
These are the sorts of areas about which
the CFPB has an interest in ensuring con-
sumer financial protection. None of the
aforementioned is strange or new to any-
body who has been paying attention!
I have
said many times
that Preparation is
Protectionand most com-
panies associated with residential
mortgage loan originations and servicing
have been preparing, thus protecting
themselves, for a long, long time. Many
have been through numerous state and
federal banking examinations, respond-
ing, where needed, with corrective
actions. Not a few have retained compe-
tent mortgage risk management firms or
in-house compliance advisors. Even those
who cannot afford compliance counsel
have participated in one way or another
in conferences, conventions, and training
venues in order to be educated in regula-
tory developments. Everybody now
knows unequivocally that sales are
cemented to compliance.
Whos afraid of the
big bad wolf?
As I wrote recently in this publication,
the CFPB has considerable enforcement
powers.
1
Among other things, it can
rescind or reform contracts, require the
refunding of money to a consumer and
demand other forms of restitution,
mandate the disgorgement and refund-
ing of various types of assets, compel
the return of real property, cause fees
and other compensation to be dis-
gorged for unjust enrichment, require
the payment of damages or other mon-
etary relief, cause public notification
regarding a violation, limit the activities
or functions of alleged violators, and, of
course, exact civil monetary penalties.
But, in terms of the remedies men-
tioned above, none of these adminis-
trative actions is really new. Virtually
every state banking department in the
country has most of these enforcement
Waiting
for
the
CFPB
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powers. Nearly all prudential regulators
have many such authorities. Banks and
nonbanks that have undergone routine
examinations are not an unsuspecting
lot, completely unprepared for the
kinds of detailed review that the CFPB
conducts. Having watched the CFPB in
action, I can say that a firm that is ade-
quately prepared for a state or federal
examination should be prepared for a
CFPB examination.
Is the CFPBs examination a bit more
detailed? Yes.
But most of the exam requirements are
re-treads or the kinds of state and federal
banking information and documentation
requests or guidelines that are mostly cus-
tomary and pro forma.
Does the CFPB create some new
readiness challenges? Yes.
However, for the most part,
if an entity that is subject to
the authority of the CFPB
is already implement-
ing the Four Ps
principles, policies,
procedures, and prac-
ticesit should be in a posi-
tion to respond promptly, confident-
ly, and accurately to CFPB examination
protocol requirements.
To be utterly reductive, the CFPB exam-
ination is not a known-unknown, or an
unknown-unknown, but merely an
unknown that is actually, mostly known!
Waiting for Godot
In the absurdist play Waiting for Godot,
by Samuel Beckett, two characters,
Vladimir and Estragon, wait for the arrival
of someone named Godot (the t is silent).
While waiting for Godot, the two men,
both vagrants, occupy their time by phi-
losophizing, sleeping, arguing, singing,
exercising, and even considering suicide -
anything to hold the terrible silence at
bay.
But Godot never shows up and,
although they agree to leave, neither of
them ever leaves.
It seems to me that we can be prepared
for the CFPB examination, without having
to endure the rancorous agitation stirred
up at conferences by CFPB experts, sales
pitches by compliance firms with a bet-
ter eye for mining new clients than provid-
ing demonstrably worthwhile services,
though they promise (for a fee, of course)
to offer churned-out, colored-coded charts
and unceasing monitoring.
To be sure, being unprepared for the
unknown is not qualitatively the same as
being prepared for the mostly known! It is
easy to conflate the two, but often costly.
Indeed, there are aspects of prepara-
tion that probably do require professional
support, if a company has not been towing
the regulatory line for some time. There
may be gaps in legal and regulatory com-
pliance knowledge that will affect man-
agements ability to prepare incisively for a
CFPB examination. But we should not
underestimate our own track record of
complying with the expectations of
Examiners and Regulators. We should not
depreciate or otherwise minimize our own
efforts to prepare for the many state and
federal and Agency regulatory examina-
tions heretofore experienced, or what we
thereby learned toward improving our
compliance with applicable banking laws.
Of course, my firm offers CFPB exami-
nation preparedness. We were among the
first to set up such procedures, and we
even offered (at no fee) a Compendium to
navigate the use of CFPBs Supervision and
Examiner ManualVersion 1. CFPB exam
readiness is important to undertake for
certain types of entities.
2
Like Vladimir and Estragon, some com-
panies wait around endlessly for the CFPB
to show up.
Eventually, it may!
But in the meantime, doesnt it make
sense to prepare determinedly through
proper compliance with all the rules, stan-
dards, guidelines, and laws involving resi-
dential mortgage loan originations? Isnt it
more cost-effective and responsive (rather
than reactive) to carefully prepare through
continual due diligence? To think that
some company or expert is going to offer
regulatory deliverance on a silver platter is
simply unrealistic. Be cautious of such
promises!
Our firm works hard to ensure that our
clients are prepared for any banking or
due diligence examination, state or feder-
al, Agency or Warehouse Bank, including
certainly an examination by the CFPB. We
see our role as providing guidance to iden-
tify, mitigate, reduce, and, where possible,
eliminate risk. This is because we know
that going to the goal is the goal! That is a
mission which we all should feel confident
in pursuing.
Jonathan Foxx is president and man-
aging director of Lenders Compliance
Group and Brokers Compliance
Group, mortgage risk management
firms devoted to providing regulatory
compliance advice and counsel to the
mortgage industry. He may be con-
tacted at (516) 442-3456, by e-mail
a t j f o x x @l e n d e r s c o mp l i a n c e-
group.com, or visit www.Lenders-
ComplianceGroup.com or www:Bro-
kersComplianceGroup.com.
Footnotes
1Foxx, Jonathan, The Enforcement Powers of
the Consumer Financial Protection Bureau,
National Mortgage Professional Magazine, April
2013, Volume 5, Issue 4, pp. 8-32.
2See www.LendersComplianceGroup.com,
Footer Section: CFPB Compendium-V1.
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continued on page 16
Originator Survey Finds
Regulations Remain Top
Industry Concern
Hammer hous e
LLC has released
the results from
its 3rd Annual Survey of Originator
Opinions. The Annual Survey asked
originators for their opinions on criti-
cal issues facing the mortgage industry
and impacting their performance of
their jobs. Of the significant sample of
more than 350 active mortgage loan
originators that responded, about 81
percent have been originating mortgage
loans for more than 10 years. Key
responses to survey questions included:
l Regulatory oversight remains the
top issue facing the industry.
l Mid-sized, non-depository lenders
are superior alternatives to large
depositories or brokers.
l Operational capability of a lender is
clearly their most important attribute.
l Leaders of lending organizations are
judged by their integrity and the
clarity of their vision.
l Recruitment of top originating tal-
ent has intensified.
l Loan volume will rise, as will their
personal production.
l Marketing must be diversified and
involve referral relationships with
professional partners.
The best originators in 2013 are a
very experienced group of profession-
als that are in high demand by lenders,
but who demand outstanding opera-
tions, technology and leadership from
their employers, said Drew
Waterhouse, managing director of
Hammerhouse LLC.
The questions from the 3rd Annual
Survey of Originator Opinions cover
important factors from each of the six
core business areas identified by
Hammerhouse as integral to the rela-
tionship between originators and
lenders: Leadership, Culture, Business,
Operations, Technology and Geography.
The sheer size of the mortgage
originator responders with more than
10 years of experience suggests a need
for lenders to seek younger origination
talent by developing talent in-house or
through recruitment from outside,
said Waterhouse. The results of the
2013 Survey of Originator Opinions are
supportive of these forecasts. In our
2013 Survey, we hear a very clear state-
ment from originators that they are
professionals who expect to work with
effective lenders and with other profes-
sionals in service of the housing and
financial needs of consumers.
Mortgage Banker
Per-Loan Profits Down
$200 to $2,256 in Q4
I nd e p e nd e nt
mortgage banks
and mortgage
subsidiaries of
chartered banks
made an average
profit of $2,256
on each loan they originated in the fourth
quarter of 2012, down from $2,465 per
loan in the third quarter, as increasing
costs outweighed higher revenues, the
Mortgage Bankers Association (MBA)
reported.
Per-loan profits decreased in the
fourth quarter, primarily driven by rising
costs, said MBA Associate Vice President
of Industry Analysis Marina Walsh.
Historically, production costs have
dropped with rising volume. In this quar-
ter, however, despite high origination vol-
umes, per-loan costs reached the highest
levels we have seen in this study, other
than during the first half of 2011, when
origination volume was 60 percent lower.
MBAs Mortgage Bankers
Performance Report series offers a vari-
ety of performance measures on the
mortgage banking industry and is
intended as a financial and operational
benchmark for independent mortgage
companies, bank subsidiaries and other
non-depository institutions.
FHFA Directs GSEs to Only
Purchase Loans Meeting
QM Requirements
The Feder al
Housing Finance
Agency (FHFA)
has announced
that it is direct-
EWSFLASH l MAY 2013 l NMP NEWSFLASH l MAY 2013 l NMP NEWSFLASH l M
ing Fannie Mae and Freddie Mac to
limit their future mortgage acquisi-
tions to loans that meet the require-
ments for a qualified mortgage (QM),
including those that meet the special
or temporary qualified mortgage defi-
nition, and loans that are exempt from
the ability-to-repay requirements
under the Dodd-Frank Wall Street
Reform and Consumer Protection Act.
In January, the Consumer Financial
Protection Bureau (CFPB) issued a final
rule implementing the ability-to-repay
provisions of Dodd-Frank, including
certain protections from liability for
loans that meet the criteria of a quali-
fied mortgage as outlined in the rule.
Beginning Jan. 10, 2014, Fannie
Mae and Freddie Mac will no longer
purchase a loan that is subject to the
ability-to-repay rule if the loan:
l Is not fully amortizing,
l Has a term of longer than 30 years,
or
l Includes points and fees in excess of
three percent of the total loan
amount, or such other limits for low
balance loans as set forth in the
rule.
Effectively, this means Fannie Mae
and Freddie Mac will not purchase
interest-only loans, loans with 40-year
terms, or those with points and fees
exceeding the thresholds established
by the rule. Fannie Mae and Freddie
Mac will continue to purchase loans
that meet the underwriting and deliv-
ery eligibility requirements stated in
their respective selling guides. This
includes loans that are processed
through their automated underwriting
systems and loans with a debt-to-
income ratio of greater than 43 per-
cent. Loans with a debt-to-income
ratio of more than 43 percent are not
eligible for protection as qualified
mortgages under the CFPBs final rule
unless they are eligible for purchase by
Fannie Mae and Freddie Mac under
the special or temporary qualified
mortgage definition.
Adoption of these new limitations
by Fannie Mae and Freddie Mac is in
keeping with FHFAs goal of gradually
contracting their market footprint and
protecting borrowers and taxpayers.
Survey Finds Appraisers
Finding Hope in
Rebounding Housing
Market
A recently com-
pleted survey
conducted by
United States
Appraisals found
appraisers mild-
ly encouraged
by the current housing market. When
asked, What is your current level of
confidence in the housing market,
54.7 percent of respondents answered
mildly or moderately strong, while 24.9
percent were neutral. The survey was
completed by United States Appraisals
nationwide panel of residential
appraisers. United States Appraisals
plans to conduct this survey quarterly
to monitor trends and opinions in their
appraiser network.
Appraisers tend to be realistic,
focused on their local markets and
unmoved by news stories and national
numbers, said Aaron Fowler, president
of United States Appraisals. We believe
they provide a good gauge of the status
of the housing market. After the last
few years, a mildly strong level of con-
fidence shows some definite improve-
ment in appraiser attitudes.
Opinions were slightly higher
regarding home values with 46.2 per-
cent of respondents reporting a mild
increase in values in their area, while
15.6 percent were seeing a moderate
value increase, while 24 percent were
neutral. Despite somewhat tepid feel-
ings on the market in general, most
appraisers reported increased order
volume, as 26.1 percent saw mild
increases, 17.8 percent saw moderate
increases and 18.5 percent reported
significant volume increases. Only 15.3
percent of respondents reported any
reduction in their order volume.
We all know the real estate market
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DocMagic Launches New
4506-T Income
Verification System and
Transparency App
DocMagic Inc.
has announced
its new 4506-T
service, an auto-
mated service
for income verification that provides a
quick and complete service, automati-
cally submitting borrowers eSigned
forms to the Ives vender of their choice
for immediate processing by the IRS.
DocMagics automatic income verifica-
tion process accelerates workflow so
that critical data, typically entered
manually on the IRS Web site, is han-
dled instantly in one streamlined solu-
tion. Bundled with the initial disclo-
sure package, or served-up separately,
the eSigned 4506-T service saves time,
increases efficiency, and protects docu-
ment integrity.
DocMagic handles all the details of
compliance with federal law ensuring
that forms meet all current regula-
tions. DocMagics eSign technology
delivers the signed 4506-T in compli-
ance with the standards and require-
ments of the federal Electronic
Signatures in Global and National
Commerce Act (ESIGN). Since 2010,
DocMagic has processed over 23 mil-
lion eSign requests.
The automated 4506-T service is just
one more way that DocMagics technol-
ogy improves the borrowers experi-
ence, increases efficiency for the lender,
and ensures compliance and data
integrity along the way. DocMagics
technology solutions and compliance
expertise keep you on the leading edge
of the mortgage lending industry.
DocMagic Inc. has also announced
the launch of BorrowerMobile, an inter-
active application that turns any tablet
or smartphone into a seamless commu-
nication tool for borrowers and lenders.
Through BorrowerMobile, lenders sim-
ply invite borrowers to download the
BorrowerMobile application and the
system establishes a direct communica-
tion link between the lender and bor-
rower, allowing all parties to interact
and share information from any-
wherecommunication is instant,
seamless, and completely secure.
BorrowerMobile brings transparen-
cy to the loan process. Borrowers have
constant access to their loan status,
giving them the ability to anticipate
and understand next steps; electroni-
cally satisfy loan conditions, and eSign
documents and disclosures all with
the touch of a finger. BorrowerMobile
allows lenders and closing agents to
communicate loan conditions immedi-
ately, giving borrowers a real-time to
do list. As borrowers satisfy the list of
conditions, the application instantly
updates the lender and closing agent
as items are satisfied.
BorrowerMobile leverages
DocMagics eSign process, the fastest,
easiest and most secure way to get doc-
uments signed. Borrowers can review
and eSign loan documents and disclo-
sures, attach any required trailing doc-
uments, or provide additional infor-
mation instantly. BorrowerMobile can
be easily customized to share the
lenders unique branding style and the
system can easily integrate with any
loan origination software system (LOS).
UWM Unveils Free
Marketing Program for
Brokers
United Whole-
sale Mortgage
(UWM) has an-
nounced that it
has launched a
free Web portal that enables brokers
they work with to produce customized
flyers, with options geared towards
also marketing to borrowers and real
estate agents. The system offers an
easy-to-use interface by which to tailor
marketing pieces, thus promoting the
growth of their businesses and person-
al brands.
Users can log into the portal and
quickly generate a free PDF for e-mail
purposes of self-printing whereby con-
tact information, company name,
logos, photos and more can be config-
ured to create a professionally designed
marketing piece. Functionality at the
site allows brokers and agents to per-
sonalize flyers, change content and
instantly download them into format-
ted PDFs. UWM makes available options
to order full-color printed copies that
can be used to hand out to borrowers
or realtors, as mailer campaigns, or in
any way the like.
The initial response of this free serv-
ice has been well-received by origina-
tors, and we expect the portal to
become a widely used marketing tool
over the next few months, said Mat
Ishbia, president of UWM. We strive to
continually make our originators more
successful; the development of this free
service helps them to accomplish that.
New Secure Settlements
Offerings to Help
Mortgage Lenders
Increase Consumer
Protection
Secure Settlements Inc. (SSI) has
announced that it has launched two
new lender-subscription fraud tool
programs assisting in the evaluation,
monitoring and reporting of closing
agent risk. Closing Guard is the result
of the continuing evolution of the SSI
risk management program, designed
to help lenders uncover and reduce
fraud risks while simultaneously pro-
viding better consumer protections
surrounding the residential mortgage
closing. Following consultation with
key industry partners, including retail
banks, warehouse banks, mortgage
lenders, title and escrow agents and
professional associations, SSI has cre-
ated a subscription fee based service
that allows banks to adopt the SSI
Closing Guard program as a new tool
for quality control (QC) and loan quali-
ty assurance while shifting the cost of
vetting, monitoring and reporting of
risk away from agents.
The cost shift allows banks and
mortgage lenders to avoid competitive
disadvantages while meeting their reg-
ulatory obligation to address closing
agent risk in the daily operation of
their businesses. The agent-paid
model will not disappear. Agents who
choose to become vetted and join the
SSI National Closing Agent database as
a marketable credential can choose to
pay the applicable vetting fee and gain
the advantages of independent vetting,
monitoring and reporting for 12 months,
which gives them access to the SSI photo
ID card, SSI Vetted Agent Seal, eligibility
for discounted insurance, free fraud and
best practice resources, and discounted
continuing education programs.
These new programs maintain SSIs
position as the industry leader and inno-
vator when it comes to third party serv-
ice provider risk management, said SSI
President and CEO Andrew Liput. We are
excited about the launch of Closing
Guard and Quick Check and look forward
to doing the heavy lifting needed by
mortgage lenders in this area of regula-
tory compliance so they can focus on
what they do best: Selling loans.
Lenders who desire to do business
only with vetted agents for risk man-
agement purposes will pay the Closing
Guard subscription fee which will allow
all of the agents they choose to handle
their funds and documents to become
vetted, without any cost to those
agents. The subscription fee for lenders
is based upon lender loan volume, and
it includes agent vetting, ongoing mon-
itoring and reporting, and unlimited
access to the searchable SSI database.
Agents will be vetted and rated for risk
using the same comprehensive risk
evaluation methodology SSI has pio-
neered previously as the leader in clos-
ing agent risk management.
360 Mortgage Group
Releases No MI NOMI
Offering
360 Mortgage
Group has
announced that
it has expanded
its product port-
folio by offering a new No Mortgage
Insurance Loan or NOMI Product to
borrowers purchasing a home. This
first-of-its-kind NOMI product offers
borrowers with a less than 20 percent
downpayment the opportunity to avoid
mortgage insurance (MI) payments
without interest rate adjustments or
other price inflations.
This unique product provides bor-
rowers with an opportunity to benefit
from low interest rates without having
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The mortgage market is hot, and were kick-
ing off the summer with the biggest gathering
of mortgage origination pros so far this year!
TheUltimate Mortgage Expo is brought to
you byAgility Resources Group, creators of
the incredible NAMB National conference
and the same management team that created
the highly successful New England Mort-
gage Expo.
Why should you be an Ultimate
Exhibitor or Sponsor?
n Innovative and effective techniques to drive
crowds of top mortgage originators to
the show, and to you. Invite all your customers and prospects to attend the entire conference for free
a $295 value.
n Were giving all paid attendees a chance to get all of their required 8 hours of continuing edu-
cation for free.
n Speaking opportunities available to select sponsors.
n Were expecting 700-1,000 attendees
n Wedrive traffic into the Exhibit Hallconstantly, where all
meals and beverages are served. We give away a 42-inch
HDTV at every break! And were hosting two cocktail recep-
tions for added networking!
n We offer affordable exhibiting and sponsorship opportunities.
This is not just a great conference for attendees, but an ex-
citing and profitable one for our vendors as well.
Join companies like United Wholesale Mortgage, Maximum Ac-
celeration, Quality Mortgage Services, Reverse Mortgage Solutions, Mortgage Educators, National Mort-
gage Professional Magazine, Best Rate Referrals, Carrington Mortgage Services, National Credit Fixers,
Appraisal Nation, Yodle.com and more!
Be An Ultimate
Mortgage Exhibitor!
Come To The Hottest Mortgage Show of the Year!
June 9-11, Tropicana Resort, Atlantic City
www.UltimateMortgageEXPO.com
Or contact
Vincent M. Valvo
Agility Events
info@agility-events.com
Direct:(860) 922-3441
IN
PARTNERSHIP
WITH
to pay mortgage insurance, said Mark
Greco, president and founder of 360
Mortgage. Many lenders currently
offer a NOMI-type product, but add on
a pricing adjustment that increases the
borrowers interest rate and overall cost
of owning a home. Our NOMI Product
will give mortgage brokers the opportu-
nity to help home buyers save thousands
of dollars annually and realize the dream
of sustainable homeownership.
The NOMI Product has no pricing
inflations or adjustments to interest
rates. This product allows borrowers with
a less than 20 percent downpayment to
avoid the cost of mortgage insurance
rates and take advantage of the lowest
potential interest rates available in the
marketplace.
Key guidelines for NOMI include:
Purchase transactions only, a minimum
740 FICO score, a maximum LTV 95 per-
cent, no mortgage insurance underwrit-
ten, and the residence must be owner-
occupied.
360 Mortgage is committed to offer-
ing our mortgage brokers partners rele-
vant products with competitive pricing,
extensive product knowledge, and best-
in-class technology and service, said
Greco. Our objective is to enable all
third-party originators to offer borrow-
ers the best mortgage solution and
operate efficiently within our model,
which is based on service, speed, and
sustainability.
McLean Mortgage
Announces New LoanFirst
Program
McLean Mort-
gage Corpora-
tion announced
that the compa-
ny has released
a special program to aid homebuyers
and realtors in todays real estate mar-
ket. McLean Mortgage Corporation recog-
nizes the special needs of prospective
homebuyers today in a market character-
ized by increasingly scarce inventory and
competition from cash bidders. The
LoanFirst Program allows for a prospec-
tive buyer to make application for a pre-
approval mortgage loan before they pur-
chase a home. McLean will not merely
issue a pre-qualification opinion based
upon this application, but actually fully
process the credit and income documen-
tation of the borrower so that it can be
underwritten by an underwriter and a
full pre-approval issued. This pre-
approval would be subject to a sales con-
tract on a property, as well as a satisfac-
tory appraisal and title policy after a
property is identified.
In my experience in the mortgage
industry, I have always felt that the
average Realtor and homebuyer went
about the process backwards by shop-
ping for a home and then applying for
a mortgage, Nathan Burch, president
of McLean Mortgage Corporation, said.
Just to satisfy a seller, a Realtor will
call a loan officer the day before a con-
tract is presented to obtain a pre-quali-
fication letter, which is merely an opin-
ion and does not bind a lender.
Compliance Verified
Via New CoesterVMS CFPB
Suite
CoesterVMS has launched its CFPB Suite,
a Web-accessible compliance program
that allows lenders to verify compliance
with all third-party regulations set forth
by the Consumer Financial Protection
Bureau (CFPB), every time an appraisal is
done. CoesterVMS CFPB Suite is powered
by a proprietary technology that logs,
files and sorts all CoesterVMS compliance
related activities for every third party reg-
ulation, from appraiser independence
and appraiser selection requirements, to
mandates for customary and reasonable
fees, and current state licensing laws.
Coester customers can access that
information, verifying compliance on
any third party regulation on a per loan
basis, via their own CoesterVMS.com
client pages. The CFPB Suite provides
more than a yes/no response to its com-
pliance checklist. It also provides sup-
porting information for each regula-
tion, so lenders know the steps
CoesterVMS took to stay compliant.
Using a third-party service provider
can be a lenders best decision for spe-
cialized services like appraisal manage-
ment, but engaging the wrong provider
exposes them to unnecessary risk, said
CoesterVMS CEO Brian Coester. The
CFPB has stated that it expects lenders
to do their due diligence on the service
providers it engages. The CFPB Suite
allows lenders to find out the actual
steps CoesterVMS took to ensure com-
pliance with every CFPB third party reg-
ulation that could possibly be consid-
ered their responsibility. Were making
that due diligence easy.
DataQuick Launches New
REO-to-Rental
Neighborhood Rankings
DataQuick has announced the avail-
ability of REO-to-Rental Neighborhood
Rankings, which leverages the compa-
continued on page 63
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Sponsored Editorial
By Ralph E. Rosynek Jr.
As loan originators, our ability to overcome objection
is the key to successful transaction completion. In the
formative years of the reverse mortgage industry, it
became very apparent that the reverse mortgage was a
product which cannot be sold. It is a product which
must be delivered with an educational component
from loan origination professionals who also understand the concerns of
a class of borrowers who have been targeted due to their lack of infor-
mation and resources.
Despite significant consumer education and information efforts over
the past years by industry professionals, U.S. Department of Housing &
Urban Development (HUD) counseling resources and reverse mortgage
media discussions, reverse mortgage loan acceptance by seniors contin-
ues to involve misconceptions in many cases. Two of the most common
misconceptions are:
1. The bank owns my home
The bank does not own the home. A reverse mortgage is secured by a pri-
mary lien on the property, no different than a forward traditional mort-
gage, with one minor difference. Upon recordation of the lenders inter-
est, a second mortgage instrument (not a second mortgage facility) is
recorded against the property subsequent to the lenders first lien posi-
tion. This second mortgage instrument is in favor the Secretary of HUD
and allows for the seamless transition of loan control should the first lien
holder lender become impaired and unable to be responsible for con-
tinuing to service and support the loan.
2. Reverse mortgages are expensive
In the past, the costs, expenses and fees associated with a Home Equity
Conversion Mortgage (HECM) transaction were greater than the products
being offered today, The more expensive years were, in part, due to
decreased options, features and benefits; lesser volume restricting
potential secondary and investment banker interest; and a scarcity of
vendors and resources familiar with the product.
Today, the costs, fees and expenses associated with the reverse mort-
gage transaction have been reduced due to greater Wall Street investor
opportunities recognizing the quality of the product, the offering of a
saver product group alternative to those borrowers not seeking full
proceeds access, and the offering of lender credits resulting in addition-
al borrower proceeds.
The reverse mortgage product may not be the right fit for all senior
borrowers. As the efforts of many resources continue to whittle away at
product misconceptions, the commitment to preserve the product for
use as a viable choice for a senior to remain in their home and maintain
financial independence has not changed over the years since the intro-
duction of the reverse mortgage in 1989.
If you are considering expanding your market share and adding the
reverse mortgage product, now is the time to look at this growing oppor-
tunity. Your market entry will require a sales force committed to educa-
tion with knowledge of this increasing class of borrowers. One of the
most important aspects of your plan should be your ability to draw upon
the strengths of a recognized Lender and staff for guidance and assis-
tance to achieve your success.
Ralph E. Rosynek Jr. is senior vice president, national production manager
for RMS, Reverse Mortgage Solutions Inc. RMS provides complete HECM
program training, product availability and partnership access to mortgage
professionals through the company RMPath wholesale and correspondent
channels. He may be reached by phone at (281) 404-7970 or e-mail
rrosynek@rmpath.com or info@rmpath.com.
Two Reverse Mortgage
Misconceptions
is a zip code by zip code driven business,
explained Fowler. Our appraisers are our
eyes into the local markets and the back-
bone of our business. We want to make
sure we stay engaged and understand
their vision of the marketplace.
FHFA Extends HARP
Through 2015
The Federal
Housing Finance
Agency (FHFA)
has directed
Fannie Mae and
Freddie Mac to
extend the Home Affordable Refinance
Program (HARP) by two years to Dec. 31,
2015. The program was set to expire
Dec. 31, 2013.
More than two million homeowners
have refinanced through HARP, proving
it a useful tool for reducing risk, said
FHFA Acting Director Edward J.
DeMarco. We are extending the pro-
gram so more underwater borrowers
can benefit from lower interest rates.
In addition, FHFA will soon launch a
nationwide campaign to inform home-
owners about HARP. This campaign will
educate consumers about HARP and its
eligibility requirements and motivate
them to explore their options and uti-
lize HARP before the program ends.
HARP is uniquely designed to allow bor-
rowers who owe more than their home
is worth the opportunity to refinance
their mortgage. Extending the program
will continue to provide borrowers
opportunities to refinance, give clear
guidance to lenders and reduce risk for
Fannie Mae, Freddie Mac and taxpayers.
Commercial/Multifamily
Market Closes $200
Billion-Plus in 2012
Commercial and
mu l t i f a mi l y
m o r t g a g e
bankers closed
$244.2 billion of
loans in 2012
according to the Mortgage Bankers
Associations (MBA) 2012 Commercial
Real Estate/Multifamily Finance Annual
Origination Volume Summation. Loans
originated for Fannie Mae, Freddie Mac
and FHA in 2012 collectively totaled
$77.6 billion, and represented the lead-
ing investor group. Commercial bank
and savings institutions saw the second
highest volume, $56.9 billion and were
followed by life insurance companies
and pension funds; CMBS issuers; REITS,
mortgage REITs and investment funds;
and credit companies and specialty
finance firms.
In terms of property types, multifam-
ily properties saw the highest origina-
tion volume, $103.2 billion, followed by
retail properties, office buildings, indus-
trial, hotel/motel and health care. First
liens accounted for 98 percent of the
total dollar volume closed.
Driven in part by greater coverage,
the reported dollar volume of commer-
cial and multifamily mortgages closed
in 2012 was 33 percent higher than the
2011 volume. Among repeat partici-
pants in the survey, the dollar volume
of closed loans rose by 15 percent.
The commercial and multifamily
mortgage market saw solid growth dur-
ing 2012, said Jamie Woodwell, MBAs
vice president of Commercial Real
Estate Research. The multifamily mar-
ket continued to be a major driver of
activity, and nearly every investor
group increased their activity from the
year before. With a continuation of low
interest rates and improving property
markets, originations are on track for
continued growth this year.
Four Million-Plus
Borrowers to Receive
Servicing Settlement
Payouts
Payments to 4.2 mil-
lion borrowers be-
gan April 12 follow-
ing an agreement
reached by the
Office of the
Comptroller of the Currency (OCC) and
the Federal Reserve Board with 13
mortgage servicers. The agreement,
which was reached earlier this year,
provides $3.6 billion in cash payments
to borrowers whose homes were in any
stage of the foreclosure process in 2009
or 2010 and whose mortgages were
serviced by one of the following compa-
nies, their affiliates, or subsidiaries:
Aurora, Bank of America, Citibank,
Goldman Sachs, HSBC, JPMorgan Chase,
MetLife Bank, Morgan Stanley, PNC,
Sovereign, SunTrust, U.S. Bank, and
Wells Fargo.
The payments will range from $300
to $125,000. For borrowers whose
mortgages were serviced by 11 of the 13
servicersall servicers but Goldman
Sachs and Morgan Stanleychecks will
be sent in several waves beginning with
1.4 million checks on April 12. The final
wave is expected in mid-July 2013.
More than 90 percent of the total pay-
ments to borrowers at those 11 ser-
vicers are expected to have been sent
by the end of April. Information about
payments to borrowers whose mort-
gages were serviced by Goldman Sachs
and Morgan Stanley will be announced
in the near future.
In most cases, borrowers will receive
a letter with an enclosed check sent by
the Paying AgentRust Consulting Inc.
Some borrowers may receive letters
from Rust requesting additional infor-
mation needed to process their pay-
ments. Previously, Rust sent postcards
to the 4.2 million borrowers notifying
them of their eligibility to receive pay-
ment under the agreement.
Rust is sending all payments and cor-
respondence regarding the foreclosure
nmp newsflash continued from page 12
continued on page 18
Nobody cares how much
you know, until they know
HOW MUCH YOU CARE.
Theodore Roosevel t
S U B MI T. A C H I E V E . G R OW.
RUSHMORE HOME LOANS I S LED BY A GROUP WI TH
KNOWLEDGE AND KNOW HOW. And at the end of day
we care about hel pi ng you get the best f or your cl i ent. I n f act
we thri ve on i t! I f there s a way to make a better deci si on,
streaml i ne a process or uncover a new opportuni ty, we l l do i t.
CALL US 888. 202. 0878 | VI SI T US www. rushmorehl . com
2013 Rushmore Loan Management Services LLC. All Rights Reserved. Equal Housing Opportunity. Rushmore Loan Management Services LLC, NMLS ID# 185729, 15480 Laguna Canyon Road, Suite 100, Irvine, CA 92618. 1-866-699-5600. Not an offer for the extension of credit or a commitment to lend.
Intended for mortgage brokers. Not licensed in all states. Alabama Consumer Credit (#21602); Alaska Mortgage Lender (AK185729); Arizona Wholesale Lender Exemption; Arkansas Mortgage Banker-Broker-Servicer (#101513); Licensed by the Department of Corporations under the California Residential Mortgage
Lending Act (#4131068); Colorado Wholesale Lender Exemption (Regulated by the Division of Real Estate); Connecticut Mortgage Lender (ML-185729); Delaware Mortgage Lender (#012394); District of Columbia Mortgage Lender (MLB185729); Florida Mortgage Lender-Servicer (MLD622); Georgia Mortgage
Lender Licensee (#24224); Hawaii Mortgage Loan Originator Company (HI-185729); Idaho Wholesale Lender Exemption; Illinois Residential Mortgage Licensee (MB.6760723); Indiana DFI First Lien Mortgage Lending (#18619); Indiana DFI Subordinate Lien Mortgage Lending (#187644); Iowa Mortgage Banker (MBK-
2009-0083); Kansas Supervised Loan (SL.0026265); Kentucky Mortgage Company (MC71455); Louisiana Residential Mortgage Lending (#185729), Maine Supervised Lender (SLM11886); Maryland Mortgage Lender (#19168), Michigan Mortgage Broker, Lender & Servicer (FL0017075); Michigan Secondary Mortgage
Broker, Lender & Servicer (SR0017076); Minnesota Residential Mortgage Originator (185729); Mississippi Mortgage Lender (185729); Montana Mortgage Lender (#185729); Nebraska Mortgage Banker (#2071); Licensed by the NewHampshire Banking Department Mortgage Banker (#15265-MB), Licensed by the
NewJersey Department of Banking and Insurance Residential Mortgage Lender (#186729), NewMexico Mortgage Loan Company (185729); North Carolina Mortgage Lender (L-154769); North Dakota Money Broker (MB102411); Ohio Mortgage Loan Act Certicate of Registration (SM501700.000); Oklahoma
Mortgage Broker (MB001561); Oregon Wholesale Lender Exemption; Licensed by the Pennsylvania Department of Banking Mortgage Lender (#39094); South Carolina Mortgage Lender/Servicer (MLS-185729); South Dakota Mortgage Lender (ML.04880); Tennessee Mortgage License (109273); Texas SML Mortgage
Banker Registration; Utah Wholesale Lender Exemption; Vermont Lender (#6411); Licensed by the Virginia State Corporation Commission Lender License (MC-5664); Washington Consumer Loan Company (CL-185729); West Virginia Mortgage Lender
(ML-24836); Wisconsin Mortgage Banker (#185729); Wyoming Mortgage Lender/Broker (#2250); Fannie Mae Seller/Servicer (#30519-000-4); HUDFHA Title II (#3094100002);Veterans Affairs Lender (#902914-00-00).
17
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Sponsored Editorial
By Laurie Spira
Issued in January, the Escrow Requirements under the
Truth-in-Lending Act Final Rule (Rule) seemed straightfor-
ward. It was clear from a quick read that the Rule length-
ens the time for which a mandatory escrow account estab-
lished for a Higher-Priced Mortgage Loan (HPML) must be maintained.
The Rule also creates an exemption for small creditors that operate pre-
dominately in rural or underserved areas and expands upon an exemp-
tion from escrowing for insurance premiums for condominiums by
extending the exemption to other similar situations.
A closer read shows that this regulatory change has a greater impact
than appears on the surface. The Rule revises the definition of an HPML.
The Rule also removes the ability-to-repay requirement and existing
restrictions on prepayment penalties. Then, on April 12, the Consumer
Financial Protection Bureau (CFPB) issued a proposal containing amend-
ments to the Rule. The proposal clarifies the exemption for creditors
operating in rural or underserved areas and restores the ability to pay
requirements and restrictions on prepayment penalties.
Do you feel like you need help keeping everything straight? Heres a
summary of the Rule, which is effective for applications received on or
after June 1, 2013:
The definition of HPML will be revised
Under the Rule, an HPML is a closed-end consumer credit transaction
secured by the consumers principal dwelling with an annual percentage
rate (APR) that exceeds the average prime offer rate for a comparable
transaction as of the date the interest rate is set by:
l 1.5 percent or more for first lien loans that do not exceed the Freddie
Mac conforming loan limit in effect as of the date the interest rate is set;
l 2.5 percent or more for first lien loans that exceed the Freddie Mac con-
forming loan limit in effect as of the date the interest rate is set; or
l 3.5 percent or more for subordinate lien loans.
Currently, the jumbo loan threshold applies only to the mandatory
escrow account requirements; however, beginning June 1, the jumbo
threshold will become part of the definition.
The requirement to establish escrow
accounts for HPMLs will change
The Rule lengthens the time, from one year to five, for which a manda-
tory escrow account established for a HPML must be maintained. The
Rule also creates an exemption for small creditors that operate predom-
inately in rural or underserved areas and expands upon an existing
exemption from escrowing for insurance premiums for condominium
units to extend the exemption to other situations in which a consumers
property is covered by a master insurance policy.
Other requirements relating to HPMLs
may change
As it stands today, the Rule deletes the prepayment penalty and ability-
to-repay rules applicable to HPMLs. However, the CFPB has issued a pro-
posed amendment to the Rule that would ensure these protections
remain in place until the effective date of the Ability-to-Repay rule,
which expands these protections to apply to most mortgage transactions.
The CFPB has acknowledged that certainty regarding compliance is a
matter of some urgency, and plans to make both the Rule and any
amendments effective June 1.
Laurie Spira is chief compliance officer with Torrance, Calif.-based
DocMagic Inc. She may be reached by phone at (800) 649-1362, ext. 6446
or e-mail laurie@docmagic.com.
Escrow Requirements
Final RuleAmended
Already?
nmp newsflash continued from page 16
agreement at the direction of the OCC
and the Federal Reserve.
In determining payment amounts,
borrowers were categorized according to
the stage of their foreclosure process
and the type of possible servicer error.
Regulators then determined amounts
for each category using the financial
remediation matrix published in June
2012 as a guide, incorporating input
from various consumer groups.
Regulators have published the pay-
ment amounts and number of people
in each category on their Web sites at
www.occ.gov/independentforeclosur-
ereview and www.federalreserve.gov/
consumerinfo/independent-foreclosure-
review-payment-agreement.htm.
While the agreement ended the
Independent Foreclosure Review for the
13 companies identified above, the
review continues for OneWest, Everbank,
and GMAC Mortgage.
Four MI Firms to Pay
$15 Million-Plus in
Penalties to the CFPB
in Kick-Back Probe
The Consumer Fi-
nancial Protec-
tion Bureau (CFPB)
has announced
four enforcement actions to end what
the Bureau believes to be improper kick-
backs paid by mortgage insurers to mort-
gage lenders in exchange for business.
The CFPB filed complaints and proposed
consent orders against four national
mortgage insurance companies in order
to stop these practices, which have been
prevalent for more than 10 years. The
proposed orders require the four mort-
gage insurers to pay more than $15 mil-
lion in penalties to the CFPB.
Illegal kickbacks distort markets and
can inflate the financial burden of home-
ownership for consumers, said CFPB
Director Richard Cordray. We believe
these mortgage insurance companies
funneled millions of dollars to mortgage
lenders for well over a decade. The
orders announced today put an end to
these types of arrangements and require
these insurers to pay more than $15 mil-
lion in penalties for violating the law.
The CFPB alleges that four mortgage
insurance companies violated federal
consumer financial law by engaging in
widespread kickback arrangements with
lenders across the country. The CFPB
believes the mortgage insurers named in
todays enforcement actions provided
kickbacks to mortgage lenders by pur-
chasing captive reinsurance that was
essentially worthless but was designed to
make a profit for the lenders. The four
companies named are Genworth
Mortgage Insurance Corporation, United
Guaranty Corporation, Radian Guaranty
Inc., and Mortgage Guaranty Insurance
Corporation. In exchange for kickbacks,
these mortgage insurers received lucra-
tive business referrals from lenders.
These types of kickbacks were a common
practice in the years leading up to the
financial crisis. These four companies were
key players during that time.
Genworth USMI agreed to settle this
review so we can focus our resources on
working with customers to help borrowers
responsibly achieve and maintain home-
ownership, and to resolve the uncertain-
ties inherent in such a review and any pos-
sible resulting litigation, said Rohit Gupta,
president and chief executive officer of
Genworth USMI.
eRecording of
Documents on the Rise
Nationwide Title
Clearing Inc. (NTC)
has announced
that company
experts have
identified a trend that shows more doc-
uments are being recorded electroni-
cally in the nations Recorders Offices.
NTCs eRecording manager Brian
Ernissee spoke on the topic at the
Property Records Industry Association
(PRIA) Winter Symposium as part of an
expert panel.
More than 840 jurisdictions are
currently eRecording-enabled, and
approximately 15 new jurisdictions
become enabled every month,
Ernissee said. The volume of docu-
ments sent by NTC to record electron-
ically has gone from 10 percent in
May 2012 to well above 40 percent in
February 2013. With such positive
growth, we expect the total volume of
documents submitted electronically
for recording to be well above 50% by
May.
eRecording at NTC consists of a
five-step process: Submit, receive,
review, record and return.
eRecording makes processing land
record and property documents sim-
ple, fast and secure. The process
allows documents to be submitted
24/7, and is cost-effective, reducing
paperwork. Documents are scanned
and submitted within minutes, and
are then returned electronically
immediately after recording.
PRIA is an organization which
develops and promotes national
standards and practices within the
land records industry. The PRIA
Winter Symposium consisted of 23
sessions on the topic of eRecords and
was well-attended with 148 mem-
bers, guests and speakers. Brian
Ernissee, NTCs Electronic Recording
Manager, spoke on a panel at the
conference called eRecord from a
Submitters Perspective. Ernissee
spoke about the relative newness of
eRecording and how to improve upon
the practice and make it widespread,
drawing upon NTCs 20 years of expe-
rience with property documents.
continued on page 22
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1-800-400-USDA
Its All We Do!
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T
he time has come for
me to write an article
that really points out
a few of the items that con-
tinually make me scratch
my head and wonder
WHAT THE HECK IS GOING ON HERE???
I have been the president of
NAMBThe Association of Mortgage
Professionals for nearly 18 months
now, and it seems to me that we are
continually fighting every day for the
existence of the mortgage broker. And
to say that I am a little upset about this
is an understatement. I just got done
attending a conference call about the
qualified mortgage (QM) and the Three
Percent Rule. What I dont understand
about this entire situation is that a
mortgage loan is a mortgage loan is a
mortgage loan, no matter who does it.
So why is every change in this going
towards the mortgage broker? When
the SAFE Act was passed, it reminded
me of the things that happened to
make all of the stock brokers, no mat-
ter where they worked, to all be on the
same page. There wasnt anything dif-
ferent for those that worked in a bank
or those that worked for a broker or
broker house. Everyone was now treat-
ed the same and they all had the same
rules and regulations governing their
transactions. But in the mortgage busi-
ness, we have different rules for differ-
ent sectors of the business.
Mortgage brokers are the only ones
who need an agreement with the lender
on how much they get paid. This is done
to eliminate steering. But, brokers have
to complete a Steering Form to inform
the customer of their loan options. Only
brokers do this. Why? If you dont need
an agreement, no Steering Form even
though this is where the originator can
wait to find out what lender is paying the
most and send it there. And everyone
keeps trying to get me to open up a ware-
house line so we can become lenders and
not have the agreement and we can col-
lect all of the money for our company.
They also want us to become this corre-
spondent so we do not have to disclose to
the customer how much money we are
making. And we can make as much
money as we want because as a corre-
spondent, that is what we get. And you
dont have to complete a Steering
Disclosure either. But the ironic thing is I
have been a mortgage broker for 25
years, and I have never lost a loan to a
customer for disclosing my fees. I like the
fact that we are transparent to the cus-
tomer on everything.
So here is my question. Why are
there so many different rules for mort-
gages? Wouldnt it be better to have one
set of rules for all mortgage loans? This
would make the process so easy and the
consumer would be able to go from
broker to bank and broker and get the
same information. The government is
spending millions of dollars to make
three different programs work, when if
they just had one set of rules for every-
one, it would be so simple. Imagine
having every company on the same
page and the forms we send out would
be so easy to understand because every-
one is the same.
Would this really change the way we
do business? I dont think so. I think
that audits would be easier, disclosures
would be simpler and understandable,
and there would be no confusion as to
what the customer is looking at of get-
ting. After all, this is what we are all
about, making it easier for the con-
sumer to understand the largest trans-
action of their lifetime. That is what the
goal should be at this time. And as far
as licensing ALL mortgage originators,
this is a must. Make everyone who
works in the business have a license.
Why are we only going half way by only
a section of the business has a license? I
hear the critics now basically saying
that it would cost too much. All current
brokers and non-depositories are
licensed and we all paid to take our
education, fingerprints, background
checks, take a national and state test
and send our state their credit report.
Why isnt good enough for the rest of
Mortgage Land?
If the CFPB and those in government
really want to make changes and clean
up these problems, they need to make
the mortgage business transparent and
make everything the same. Then, there
would be no misunderstandings, no
picking on one sector of the business to
make them do this while the other sec-
tor does that. As I said before, when a
consumer is looking for a mortgage, it
would be easier for them to know that
all originators are the same and what
The Presidents Corner: May 2013
I Signed What?
By John
Councilman, CMC,
CRMS
One day, you may be ask-
ing yourself that question.
Ive noticed the contracts we are being
asked to sign are what one lawyer once
described to me as frying pan contracts.
I think he meant that if you jumped out,
you landed in the fire. Either way, you got
burned.
You may be signing an employment
agreement, a branch agreement, a corre-
spondent agreement or a broker agree-
ment. If you didnt draw up the contract
or have your attorney draw it you can be
certain the terms arent in your favor.
As an employee, you may be asked to
sign a contract that you will never com-
pete with your new employer. You may be
prohibited from calling on the people with
whom you have long-standing relation-
ships. It will be very difficult to move to a
better company or secure better working
conditions. Hiring a lawyer is an expensive
proposition for an individual. Be careful
before signing an employment contract.
I can remember when branches first
started to become popular. I was called
upon to be an expert witness in a lawsuit
between a lender and a branch. The
lender stopped paying the branch and its
expenses as called for in the agreement.
The lender claimed they had never
authorized the people the branch hired or
the commission split given to the origina-
tors. The contract said that the lender had
to approve all contacts and the loans and
employees belonged to the lender. They
could terminate the contract at any time.
Things dragged on for several years until
the lender started having financial trou-
bles. I dont think the branch ever got any
money.
Lenders have become must more
sophisticated since those days. The con-
tracts I have seen require the branch,
which had been an independent business,
to sell the entire operation to the lender.
There is very little freedom after that.
Every decision is made by the lender. This
is very difficult for entrepreneurs who are
used to making the decisions. Many of
these contracts make the originators and
branch employees at will employees.
That means they can terminate any
employee at any time for any reason. The
lender retains the branch, even if the
branch manager is terminated. I know of
one instance where the lender decided to
consolidate two branches. It didnt make
economic sense, but that is what they
decided to do. They let the good proces-
sors go and kept the cheaper, less talent-
ed ones. The originators didnt want to
commute 20 miles and left one by one
and found new employment. What had
been a very profitable independent busi-
ness became a valueless, empty shell.
Perhaps the area that is of most con-
cern is the evolution of the correspondent
or broker agreement. The days are gone
when people unloaded junk on Wall
Street with no recourse. We operate in a
strange business. A company can produce
N A MB
they are looking at from Company A is
the same as what Company B has to
offer. You can still have your differ-
ences from state to state, and from con-
ventional to FHA, to VA and what types
of loans you can do, but the documen-
tation and disclosures would all have
the same criteria, and each originator
would have the same credentials as
being licensed and the consumer would
be able to better understand what
information that they are getting for
their loan and to be able to compare
the programs.
I think that this is the right way to go!
As a final note, NAMB is participating
in the Ultimate Mortgage Expo in Atlantic
City, N.J. from June 9-11. This marks
another great opportunity to get out and
see some great speakers, network with
your peers, get some education and
become more knowledgeable about the
industry. Come and join your fellow orig-
inators in this outstanding event.
And this just in the 2013 NAMB
National Conference is set for Saturday-
Monday, Oct. 19-21 in Las Vegas at
Harrahs. We have moved to this hotel
this year and it really looks to be better
than last year. So mark this date on your
calendar. NAMB will be starting to accept
reservations very shortly so stay tuned.
Sincerely,
Donald J. Frommeyer, CRMS,
President
NAMBThe Association of Mortgage
Professionals
perspective
N A MB
perspective
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$1 billion worth of loans with a net worth
of only a few million. It only takes a few
bad loans or buybacks to erode that equi-
ty. One small event such as a spike in FHA
delinquencies, a mistake or a regulatory
finding, can cause your warehouse lender
to cut you off. If that happens, you are out
of business in days or hours. Many of
these warehouse agreements contain per-
sonal guarantees. I have seen people who
were flying high one day financially
ruined the next day. One person I knew
committed suicide. Correspondents are
expected to buy the loan back for virtual-
ly any reason. If you dont, your investor
will cut you off. If you are dealing with
Fannie Mae or Freddie Mac, they may stop
purchasing your loans. It doesnt matter if
you think you are right or perhaps you are
right. If you cannot sell your loans, you are
toast.
The most curious agreements I see are
todays broker agreements. Most broker
companies have a net worth that is less
than $50,000. Some are much lower. Yet,
we now see the same or similar agree-
ment for brokers as we see for correspon-
dents. I see broker shops with a net worth
of $10,000 agreeing to buy back loans that
may be in the $400,000 range that is
insane. Lenders say Fannie Mae, Freddie
Mac and bank regulators require them to
have such clauses. The contract of one of
the largest wholesale lenders calls for buy-
backs for any reason. It is in their sole dis-
cretion to require the broker to repur-
chase the loan or indemnify them.
Perhaps they just didnt like the loan or
maybe the borrower lost his job after a
year. Like many other contracts I have
seen, even if the lender made a mistake or
error, the originator is liable to buy back
the loan. I refused to sign their agree-
ment, but have a friend who signed up
who said it was too expensive to pay $600
per month for a compliance contract. Is
this really what this wholesale lender
wants, to sign up brokers with little to
lose?
A few wholesale lenders are now
including personal guarantees in their
agreements. I suppose they will try to grab
your bank accounts or sell off your car or
your house. What is so silly is that anyone
who has substantial assets will shy away
from these agreements while those with
nothing to lose will sign them. The lenders
have no idea whether the person making
the guarantee is a pauper or a millionaire.
It is likely that conscientious, high-quality
originators will select other lenders to do
business with.
Although there are not a huge number
of buybacks for brokers at this time, these
contracts are sometimes enforced many
years later. Not long ago, the Federal
Deposit Insurance Corporation (FDIC) was
asking brokers who had originated loans
for failed banks to pay for the losses on
loans the banks had made. They particu-
larly singled out stated-income loans.
Nearly every broker agreement contained
a buyback agreement if the file contained
fraud, whether or not the broker was
aware of it.
I have heard many brokers say they
dont even bother to read these agree-
ments. That may be fine if you have noth-
ing to lose. Unless you view your business
as a short-term proposition, you may want
to pay close attention to what you are
signing. It may be that many brokers do
not understand the legalese contained in
the contracts. I suspect the majority sim-
ply want to make a living and will sign
anything. That is a sad commentary on
how desperate people have become to
make a living. It would even sadder to
see them lose everything they have
worked for.
John Councilman, CMC, CRMS is NAMB
vice president and FHA Committee Chair,
and president of AMC Mortgage
Corporation. He may be reached by
phone at (239) 267-2400 or e-mail.
jlc@amcmortgage.com.
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Client Preeminence in
Wholesale Lending
By Sharon Bitz
Do you wish to rise? Begin by descending. You plan
a tower that will pierce the clouds? Lay first the
foundation of humility.Saint Augustine
Success in business is wholly dependent on the ability to
solve a problem or to make your partners lives easier. In
building a business many will miss the key point and in so doing, plant
the seeds of their own failure. The point, of course, is to serve your
clients by providing goods or services that they need and want. WCS
Wholesale is retooling its foundation to build its business and to ensure
that its not missing the point.
WCS Lending is an independent, financially strong, mid-tier mortgage
lender. Our wholesale business has the corporate DNA and proven man-
agement capability to be successful, yet we know we fail if we dont meet
the basic requirement of client preeminence. Client preeminence is a
comprehensive orientation to put the needs of our originating partners
first in every aspect of our business.
What does this foundation look like?
The first building block of our client-oriented business is listening.
Before we began growing our business we interviewed dozens of suc-
cessful brokers to get their feedback on the characteristics of the best
wholesale lenders and the shortcomings of others. We have asked bro-
kers: How is wholesale mortgage lending best done? Where must we
excel to win and maintain broker loyalty? What areas of friction exist in
the process? How can we maintain an open dialogue so that we can con-
stantly adjust to your assessment of our work? As an example, I recent-
ly sat in on an originator roundtable at a CMBA convention where the
originators were stressing a need for lenders to accommodate their
clients prequals (TBDs). Reaching out to the originating community to
determine their needs is a strategy that will set WCS apart from the com-
petition. After listening, weve come up with a strategy to serve the pre-
qual need of the originating community.
One consistent comment we received was that many lenders com-
munications are unclear. We have therefore made it a priority to ensure
all our written communications are vetted, clear, consistent, and concise.
Clients can feel confident that all changes will be communicated in a
timely fashion, keeping them informed and up to date.
The second building block of a client-oriented business is making life
easier for the client. If we truly put our brokers needs first, they will find
it easier to do their job. Since there are many pieces to the puzzle of orig-
inating, underwriting and closing mortgage loans, there are numerous
places in which the process can be improved. We are committed to sim-
plifying the process and developing tools that will make working with us
the smoothest choice available. As a national company with fulfillment
on both coasts, we exercise best practices based on decades of mortgage
lending experience in order to guarantee streamlined operations.
The third and final building block of a client-oriented business is to
define our success by the success of our clients. In mortgage origination,
production volume and quality is the ultimate measure of success, along
with satisfied customers who will recommend you. Therefore; we will
measure our success by the growth in production volume of our origi-
nating partners. Our task then is to provide staffing that supports our
customers volume, and service that is timely and efficient.
Making mortgage originators successful and improving the quality of
their lives is our business. Together as partners we will rise.
Sharon Bitz is the national head of wholesale lending for WCS Lending, one
of the largest privately-held mortgage banks in the U.S. that has been rec-
ognized as an Inc. 5000 honoree for the fourth consecutive year. WCS,
which is licensed in 49 states, has offices in Florida, New York, California,
Michigan, Maryland, Delaware, Ohio and Hawaii and generates $2 billion-
plus in loans annually. She may be reached by phone at (916) 996-1620.
SPONSORED EDITORIAL www.wcswholesale.com NMLS #4260
nmp newsflash continued from page 18
New FHFA Initiative
Assists Delinquent
Borrowers With Avoiding
Foreclosure
The Federal Housing
Finance Agency (FHFA)
has announced that
Fannie Mae and Freddie
Mac will offer a new, simpli-
fied loan modification initiative to mini-
mize losses and to help troubled borrowers
avoid foreclosure and stay in their homes.
Beginning July 1, servicers will be required
to offer eligible borrowers who are at least
90 days delinquent on their mortgage an
easy way to lower their monthly payments
and modify their mortgage without requir-
ing financial or hardship documentation.
The new Streamlined Modification
Initiative eliminates the administrative
barriers associated with document collec-
tion and evaluation. Eligible borrowers
must demonstrate a willingness and ability
to pay by making three on-time trial pay-
ments, after which the mortgage will be
permanently modified. Homeowners are
encouraged to continue working with their
servicer to evaluate all of their foreclosure
prevention options. Documenting income
and financial hardship could result in a
modification with additional savings for
the borrower.
The Streamlined Modification Initiative
adds to the suite of home retention tools
offered by Fannie Mae and Freddie Mac,
said FHFA Acting Director Edward J.
DeMarco. This new option gives delinquent
borrowers another path to avoid foreclo-
sure. We will still encourage such borrowers
to provide documentation to support other
modification options that would likely result
in additional borrower savings.
Homes Near Public
Transportation See
Rise in Value
Location, location, location near public
transportation may
be the new real-estate
mantra according to a
new study released by
the American Public
Transportation Association (APTA) and
the National Association of Realtors
(NAR). Data in the study reveals that
during the last recession, residential
property values performed 42 percent
better on average if they were located
near public transportation with high-
frequency service.
When homes are located near public
transportation, they are among the most
valuable and desirable in the area, said
APTA President and CEO Michael
Melaniphy. This study shows that con-
sumers are choosing neighborhoods with
high-frequency public transportation
because it provides access to up to five
times as many jobs per square mile as
compared to other areas in a given region.
Other attractive amenities in these neigh-
borhoods include lower transportation
costs, walkable areas and robust trans-
portation choices.
Higher home values reflect greater
market demand for areas near public
transportation, said NAR Chief Economist
Lawrence Yun. Transportation plays an
important role in real estate and housing
decisions, and the data suggests that resi-
dential real-estate near public transit will
remain attractive to buyers going forward.
A sound transportation system not only
benefits individual property owners, but
also creates the foundation for a commu-
nitys long-term economic wellbeing.
The study, The New Real-Estate
Mantra: Location near Public
Transportation, investigates how well res-
idential properties located in a half-mile
proximity to high-frequency public trans-
portation or in the public transit shed
have performed in holding their value dur-
ing the recession compared to other prop-
erties in a given region.
While residential property values
declined substantially between 2006 to
2011, properties close to public transit
showed significantly stronger resiliency.
The following are a few examples from the
study: In Boston, residential property in
the rapid transit area outperformed other
properties in the region by an incredible
129 percent. In the Chicago public transit
area home values performed 30 percent
better than the region; in San Francisco, 37
percent; Minneapolis-St Paul, 48 percent;
and in Phoenix 37 percent.
Your turn
National Mortgage Professional
Magazine invites you to submit any
information on regulatory changes, leg-
islative updates, human interest stories
or any other newsworthy items pertain-
ing to the mortgage industry to the
attention of:
NMP News Flash column
Phone #: (516) 409-5555
E-mail:
newsroom@nmpmediacorp.com
Note: Submissions sent via e-mail are pre-
ferred. The deadline for submissions is the
1st of the month prior to the target issue.
Correction
Due to a production error on page 45 of the April 2013 issue of National Mortgage
Professional Magazine, the incorrect pull quote appeared with the article by Les Acree
in his article, Are Leaders Born or Can Some one be Taught to Lead? The correct
quote that should have appeared is as follows: I do believe that leaders know, at an
early age, that they did not come into this world to sit on the bench they came to
play. The quote that appeared in the April 2013 issue should be attributed to
Tommy A. Duncan, CMT from his March 2013 article, also on page 45, Quality
Control Trends Positively Impacting the Market.
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.creditplus.com/undisclosed-debt-monitoring beyondbundled@creditplus.com
By Chad Jampedro
In the thralls of the go-go
1990s, young profession-
als seemed to have it all.
Flush with college
degrees and the cash from good-paying
jobs, the generation not only embraced
the American Dreamthey built it big-
ger and better than any previous gener-
ation had before. Not content with the
quaint Cape Cods and split-level colo-
nials inhabited by their parents and
grandparents, the group sprung for
McMansions in sprawling suburbs or
sophisticated condos in the city.
Then the housing market crashed.
In one fell swoop, the Great
Recession dashed the hopes of millions
of would-be first-time homebuyers. As
businesses dealt with the blow from
constricted budgets, some college grads
were forced to forego a promising
career for low-paying service jobs.
Others had no choice but to move in
with their parents just to get by.
Thousands of young professionals
could scarcely pay their rent, let alone
invest in a mortgage.
To make matters worse, the constant
coverage about predatory lenders tar-
nished the reputation of the mortgage
industry. The reports swayed even those
young professionals who managed to
escape the woes of the downturn.
Despite their footing, the group consis-
tently turned to more malleable living
options, like renting and rooming.
Today, the housing industry is expe-
riencing a venerable recovery. But, the
young professional remains elusive.
Its no coincidence that the recession
happened at the same time that social
media, and other digital communica-
tion channels, began to take the world
by storm. Outside of their novel fea-
tures, perhaps the biggest lure of these
new mediums was their inherent sense
of transparencya facet that had long
been lost on the nations marketers in
the decades prior.
Social media allows its users to get
behind the Man and get right to the
point. It also provides a constant stream
of informationsocial channels are lit-
erally built so users never miss a thing.
The way that information is presented
is engaging, simple and straightfor-
ward. When its not, users can instantly
provide feedback and demand a
response.
Many mortgage companies are on
social media. But, this isnt a column
about social media or digital marketing.
It is about how mortgage companies
can use the lessons learned from social
media companies to attract young pro-
fessionals back to the housing market.
Understanding the
social shift
The numbers speak for themselves.
First-time homeownership is at an all-
time low. According to a fall 2012 sur-
vey conducted by Campbell/Inside
Mortgage Finance, the first time home-
buyer share of home purchases fell to
34.7 percent.
To understand why young profes-
sionals are eschewing homeownership,
mortgage professionals must first try to
understand the social shift that has
occurred in this group. For example,
young professionals are more likely to
feel tied down rather than liberated
by owning a home. Studies also show
they are waiting longer to settle
down, get married or start a family.
Others are simply turned off to home-
ownership by what happened during
the housing crisis. While rising home
prices and tighter lending is certainly to
blame, mortgage lenders possess the
capabilities to reel in a greater share of
these customers.
How so, you may ask? Consider this
despite could-be homebuyers hesi-
tations, a 2011 Pew Research study on
homeownership reported more than 80
percent of current renters expressed
wanting to own a home and agreed
that buying a home is the best long-
term investment a person can make.
Young professionals want to buy
homes. Mortgage lenders can make
that happen. Yet, first time homeown-
ership is at an all-time low. Theres a
disconnect occurring here, and it is up
Lesson Learned:
The Great Recession Ends,
but Young Professionals Remain Elusive
Learn how borrowing lessons from the world of social media can help bring them back
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to mortgage professionals to fix it.
So, how does the mortgage profes-
sional heal the wounds left behind by
the recession? It all comes down to
trust.
Socially speaking
Social media companies have grown in-
step with the millennial generation, so
its not hard to understand why young
professionals prefer the digital land-
scape. This is a generation that was
raised on the Internet and technologi-
cal expansion. The rise of technology
has brought down the walls of hierar-
chy, in many ways, and social media
found a way to capitalize on that.
As virtual as the world of social
media may appear, it works by building
relationshipsonline and offline. In
the social world, the number of users
matters, but it is the effectiveness of
those relationships, often corroborated
by distinguishing the levels of user
engagement, that bring a user back to
the business, time and time again.
User engagement is about a lot more
than Likes. Its about the information
sharing, the commenting, and the IRL (in
real life) word-of-mouth buzz. In the mort-
gage industry, we can compare Likes to
leads. At some point, we want those
thumbs up to turn into conversions, and
eventually, into real-life customers.
At its most basic level, social media
really isnt all that revolutionary. But,
what sets social media companies apart
from traditional corporations is that
they not only tune in to their users
habits and wants, but they listen to
their needs. Then, they deliver and
delivery fast. Social media communica-
tion cuts through the red tape and
bureaucracy that many companies
refuse to let go of.
In many cases, users are receiving
information from and directly commu-
nicating with the higher ups of an
organization. Then, they provide the
platform for users to speak for them-
selves. If a company is lucky, users will
also speak on behalf of the business,
and create a buzz.
Embedding interactivity and pro-
viding personal access to superiors
within a company isnt a new concept.
Its the very lifeblood of old time Ma
and Pop shop business models, and
other successful ventures. But, it is a
notion that many industries have lost
along the way.
Mortgage companies cannot com-
pete with the broad appeal of social
media companies, like Facebook or
Twitter. But, they can heed some les-
sons from this group of successful mar-
keters. There are reasons why social
media channels make young profes-
sionals tick.
Here are some tips to get you started:
l Be an information generator: Young
professionals demand a constant
stream of informationit puts them
at ease. Information should be pre-
sented clearly and simply, and avail-
able in a variety of formats, includ-
ing print, on the Web, on social
media and on mobile and tablets.
l Mix-it up: Social feeds are popular
because they contain a variety of
content. Embed videos, images, glos-
saries, audio programs, news arti-
cles, industry updates and blogs on
company Web sites and on social
channels.
l Respond to feedback: Avoid auto-
mated voice systems and placing cus-
tomers on hold. Customers should
have direct phone access to the busi-
ness, as well as the tools to reach out
to mortgage pros via social media, e-
mail, commenting boxes or online
chat. Mortgage professionals should
do their best to respond to customers
within 24 hours.
l Be transparent: Young professionals
want the truthnot fluff. Clouding
promotional materials with empty
promises and marketing jargon isnt
going to result in sales. Give it to
them straight.
l Embrace technology: Young profes-
sionals often equate a trustworthy
business with a tech-savvy one. An
outdated Web site or a site with slow
page load time may turn off a poten-
tial customer. A small or ineffective
digital footprint makes the young
professionals of today wonder if a
business is sketchy or out of touch.
l Show your value: If Facebooks $40
billion IPO was any indication, a
companys value is about more than
just money. Prove your worth by pro-
viding excellent customer service,
following up with a client, or by
anticipating their needs.
In the mortgage industry, that also
means reminding young professionals
about the importance of homeowner-
ship. This group is reachable, but mort-
gage professionals have to be willing to
go where young professionals go
mentally and digitally.
Chad Jampedro is president of GSF
Mortgage Corporation. With more than
20 years of experience, GSF Mortgage has
embraced the next generation of home-
owners with its GOGSF brand, continuing
its dedication to flexible and transparent
lending. He may be reached by phone at
(262) 373-0790.
www.maccelcoach.com
Email info@maccelcoach.com | Tel. (888) 819-7047
Follow us @ Facebook.com/maccelcoach
CONTACT US FOR GROUP & PRIVATE TRAINING!
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ON T HE
heard
street
Our Heard on the Street column is a chronicle of events, changes and passages in the lives of the people
and companies shaping the mortgage industry.
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DocMagic Achieves 100
Percent Uptime
DocMagic Inc. has
announced that
the company has
maintained a per-
fect 100 percent
uptime record for the past 120 days.
DocMagic provides system status infor-
mation on its Web site in real time.
Over the past 12 months, DocMagic has
maintained an unparalleled 99.989
percent uptime record. That period of
time includes the companys move to
their new location and switch-over to
the new state-of- the-art technology
center resulting in the new 100 percent
uptime record.
Some service providers and IT exec-
utives will say that 100 percent uptime
is an impossible standard, said
Dominic Iannitti, CEO of DocMagic. I
can assure you that it is possible and
meeting this standard involves invest-
ment in infrastructure, superior staff
training, constant monitoring and an
unwavering commitment to the task.
When it comes to measuring online
service reliability, the terms uptime
and availability are often used inter-
changeably. However, they are not
always the same thing. Often providers
that measure uptime only check to see
if a server is responding to pings on the
network. In some cases, a server may be
up but unable to perform the service
for which it was designed.
GSF Partners With
TRUSTe Privacy
Management Firm
GSF Mortgage has
announced that it
has joined forces
with global privacy management solu-
tions provider, TRUSTe. TRUSTe enables
multinational companies to safely and
efficiently handle the customer data
powering their online businesses includ-
ing advertising, cloud services, mobile
applications and websites. The online
consumer protection company works
with several recognizable companies,
including Apple, Disney, HP and eBay.
As more and more companies move
their businesses online including GSF,
the company recognized the need to
ensure Web user privacy, especially in
the home mortgage lending space.
While GSF, which offers a variety of
mortgage tools and online lending
options on its Web site at
www.gogsf.com, has always practiced
secure lending practices, the partner-
ship with TRUSTe adds yet another layer
of protection against the breach of pri-
vacy. Customers can rest assured that
their privacy and data is secure with
GSF, as all online transactions conduct-
ed through the company will now be
monitored by the third-party, TRUSTe.
Our mission isand has always
been to put our customers at ease
throughout the mortgage lending
process, whether its through our low
rates, flexible lending options, or
through our online tools, said GSF
President Chad Jampedro. We are
extremely excited to partner with
TRUSTe, a step that we feel will help us
continue our legacy as a transparent
and trustworthy home mortgage
provider.
WCS Lending Revamps Its
Wholesale Lending Division
WCS Lending has
revamped its
wholesale lending division as part of its
plan to significantly increase the com-
panys loan volume and customer
base throughout 2013 and 2014. The
re-introduction of WCS wholesale
program includes expanded program
offerings, improved pricing, and
redesigned infrastructure, with the
ultimate goal of establishing itself as
a vital part of the mainstream whole-
sale mortgage market and becoming
the most trusted partner for whole-
sale lending within the origination
community.
WCS wholesale divisions new prod-
uct line includes a wider range of
mortgage products. In addition to con-
ventional, FHA and VA loans, WCS is
one of the few wholesale lenders to
offer USDA loans. The company will
also be adding portfolio jumbo loans
to its offerings within the next sever-
al weeks.
Weve got a plan that takes great
care of our loyal, longstanding cus-
tomers, while allowing us to quickly
expand into more markets and still
deliver on our trademark quality,
service and speed, said Rouvaun
Walker, WCS wholesale divisional
manager in California. I think the
mortgage broker community is going
to be shocked at how much of a dif-
ference it makes when a wholesale
lender invests in the best technology,
hires more knowledgeable and sea-
soned staff, and offers a full suite of
loan products.
As part of its growth initiative, WCS
Lending has reinforced the divisions
infrastructure by creating the policies
and workflow that will support expo-
nential growth and implementing
new loan origination and accounting
software.
Industry veterans Sharon Bitz, the
companys national head of whole-
sale lending who has 35 years of
experience, and California divisional
manager Walker, who has 22 years of
industry experience, are guiding the
expansion of WCS wholesale division.
There is a demand for the prod-
ucts, service and expertise WCS pro-
vides, said Bitz. Loan originators
need wholesale lenders that function
like true partners; otherwise they can
end up losing a lot of time, or even
entire transactions. All of the changes
weve made have enhanced our abili-
ty to function as a true partner to the
origination community. Were look-
ing forward to the growth we have
planned for the next two years.
United States Appraisals
Partners With Collateral
Risk Network
United States
Appraisals has
a n n o u n c e d
that it has joined the Collateral Risk
Network (CRN). Composed of chief
appraisers, collateral risk managers,
regulators and valuation experts, CRN is
focused on resolving the risk and com-
pliance challenges facing the collateral
risk profession. With over 400 members
represented by leading AMCs, lending
institutions, Wall Street, Fannie Mae,
Freddie Mac, The Veterans
Administration, the Federal Housing
Administration and appraisers, CRN
engages all stakeholders in open dia-
logue to find solutions to industry
issues.
We are pleased to join an organiza-
tion that utilizes the diverse back-
grounds of its members for the com-
mon good of the industry, said Aaron
Fowler, president of United States
Appraisals. Obviously, risk and compli-
ance are hot topics in the mortgage
industry. As we grow, we wanted to
ensure our involvement in the discus-
sions that shape our industry. We look
forward to working with our peers and
industry partners to identify and
resolve these issues.
Joan Trice, CRN founder and manag-
ing director, said, We welcome United
States Appraisals to the CRN group. We
are always excited to have a growing
organization bring a fresh set of ideas
and a new perspective to the table.
First Guaranty Mortgage
Moves Into Larger Facility
First Guaranty
Mortgage Corp-
oration (FGMC)
has relocated its national headquarters
to a larger facility in the Tysons Corner
neighborhood of McLean, Va. FGMC is a
continued on page 43
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By Erik Janeczko
The most common ques-
tion we hear in coaching
is how do I get more
business? But there are
always multiple layers to consider
before answering. The simple answer is
get more leads and convert better, but
often that is easier said than done.
Beyond that, what if you have a capac-
ity problem?, In reality, we have found
it better to ask first, Are you ready for
more business? Think about this for a
moment, what is the role of a loan orig-
inator in your organization? We find in
most organizations, that originators
wear three separate hats: Lead genera-
tion, thats the creation phase; sales,
which is a function of lead capture and
conversion; and then the third phase is
completion, but do you really have the
capacity for more business? To find out,
we need to dig a bit deeper, and that is
exactly what we intend to do in this
series over the next three issues
You see, the mortgage industry is no
different than any other professional
practice, theres really only three criti-
cal focus areas that impact production
growth. We call them the Three Cs of
Success: Create, Capture and
Completion.
1) Create is about Getting more leads;
2) Capture is about converting more
leads; and
3) Completion is about your ability (or
capacity) to handle the volume you cre-
ate and capture, with the desired level
of service quality.
This last one is probably the most
subtle and difficult one to manage, as it
is often the silent killer. Think about
the last time you received poor service?
How many people did you tell? The crit-
ical failure often is, if you dont make
sure you have the capacity to service the
deals that you generate, the first two Cs
are totally wasted effort.
The other big challenge to effective
growth planning and training imple-
mentation is not knowing in what order
to work on these three areas. For exam-
ple, in our coaching often what hap-
pens is that we work from three back to
one. If an originator, branch or region is
seeing significant volatility to their pro-
duction, with widely ranging peaks and
valleys month by month, then most
often we first have to expand
capacity. Before we then can
improve conversion, and
all this must happen
before it is even pru-
dent to invest time or
money on creating
more leads. So the
fundamentals of any
good sales develop-
ment program should
focus on these three criti-
cal focus areas and one must
first assess the needs of the organi-
zation and individuals before offering
any training. Then, once it is clear what
the real needs of the organization are,
develop programming organized into
the proper sequence for the organiza-
tion. For the purpose of this series, we
are going to address these three areas
on the order they most often need to be
addressed which is Completion,
Conversion and Creation.
Completion is
about capacity
Often in our coaching and training
work, we find that marketing and sales,
though needing attention, are not the
most urgent issue limiting an organiza-
tions growth. If your originators are
focused and professional then they like-
ly have the skill and ability to generate
more lead volume than your support
teams can handle, you most certainly
will reach a capacity ceiling. Think
about this for a moment, why is it that
the average loan officer in the United
States closes four loans a month or less?
Now this may be counterintuitive to a
lot of managers, and Im probably irri-
tating some of you right now, but the
practical reality is that the primary rea-
son most originators in the U.S. average
less than four loans per month is
because theyre doing three jobs, and
most of the time, not doing them
very well. In essence, they
have a lead creation job;
they have a lead cap-
ture job, and they have
a lead completion
jobthe last of these
three consuming the
majority of their time.
Think about it from
this perspective in
terms of the highest paid
extremely skilled processors,
what do they typically earn per year
in your market? Im not going to go into
specifics here, but think about it, what
do the rock star processors in your area
make a month? For most areas of the
country, including the high index mar-
kets, youre talking probably an income
scale that tops out at $45 or $50 an
hour for an exceptional processor. Now
compare that to the value of the origi-
nators 10 or so hours over six to eight
weeks to solidify a real estate agent or
financial planner partnership that is
worth six or more deals annually. How
much revenue does your company
make on six deals a year? For most of
our coaching clients, it is in excess of
$4,000 per loan (company gross rev-
enue). So, every hour an originator
spends chasing conditions and mas-
saging loans through underwriting, is
an hour they are not spending creat-
ing new business, which carries a
heavy opportunity cost. How much
money does that hour potentially cost
the company? Just look at this rough
comparison: If the company average is
$4,000 in gross profit per loan, and it
takes 10 or so hours for that originator
to create a relationship worth six deals
a year, thats $24,000 annually in rev-
enue or $2,400 per hour activity, and
an opportunity cost of over $2,300 per
hour.
Armed with this information, how
fast should we be working to effectively
create additional support capacity that
grows at the same pace (or even faster
than) the growth pace of our Creation
and Capture programs?
If we truly understand this issue,
then our job as leadership coaches,
trainers and originators is to keep a
constant eye on capacity and build for
it before it arrives. To do this, there
are two primary solutions we must
implement:
1) Help the originators get consistent
focused and efficient; and
2) Build capacity by building the right
team at the right time.
Through our coaching work, we
have identified that the first part of
creating capacity is to build the focus
and efficiency skills of the originator.
This includes both basic time man-
agement training, as well as sales dis-
cipline through business planning
and performance metrics. By training
and reinforcing success habits with
your team, you will improve capacity
by helping the originator recognize
that their highest and best use is lead
creation and conversion, and that
you will get them producing more
The Three Cs
of Mortgage
Success
(Part I)
So you want to create
maximum growth acceleration
for your company
but where do you start?
our job as
leadership coaches,
trainers and originators
is to keep a constant eye
on capacity and build
for it before it
arrives.
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results in less time, by being more
focused on those activities.
The second part of creating capaci-
ty is to build the right support team.
By the way, Im not just saying go out
and hire a bunch of entry-level
processors and throw bodies at the
problem, because that simply does
not work. Throwing people into a sys-
tem-less environment just creates the
3 Cs you dont want Confusion, Chaos
and Crisis. The first step is systemize.
Get your originators efficient and con-
sistent with the amount of time and
energy theyre spending on capacity
creation and conversion; efficiently
pushing loans through. And then work
to recognize the warning signs of
pushing the capacity ceiling, and
move proactively to hedge against
service failures and lost volume.
Once the systems are in place and
the originator is operating at maxi-
mum efficiency, eventually, the vol-
ume of business increases beyond the
man hours available by any one origi-
nator. Think about it from this per-
spective, how many actual man hours
does it take from start to finish on a
viable, well-structured, well-docu-
mented loan? Opinions range on this
issue, but in our experiences, the typ-
ical sales cycle, from first contact
through to 30 days after closing, is
consistently around 50 to 60 man
hours per loan. Another way to recog-
nize this in your own organization is
do the math. At what level does your
team begin to experience burnout
from being overworked and massive
peaks and valleys begin to appear?
If your average originator, with a
shared processor, is maxing out at
about five loans per month, this indi-
cates that, based on five files, which
equals 40 hours per file. Add to that
the time a processor spends on each
file and it is a bit easier to see why
your growth is volatile. In most organ-
izations, top originators will reach
their first ceiling of capacity some-
where around what will average out
to six or seven loans per month. With
the support of a shared processor
who is handling a pipeline of 80-100
loans and the processors job is most-
ly just pushing that file through
underwriting efficiently. Unfortunately,
most originators wont be doing seven
or eight loans per month consistent-
ly. Theyre going to be doing 10-12
loans one month and two or three
the following month. So the primary
first indicator that you have a capac-
ity problem is watching for volatility
in the pipeline. If you have origina-
tors on your team doing massive
peaks and valleys, thats probably
one of the single best indicators that
you have a capacity challenge in your
organization.
The next thing that we spend the
majority of our time working on with
our coaching members is helping
them grow and build their businesses,
taking loan officers from five or six
deals each month to 10-12, 18-20, and
20-plus to whatever level they want.
Capacity management becomes every
bit as important, if not more impor-
tant, in some cases than creation or
conversion. Skill development train-
ing, staffing, recruiting and integrated
team communication training systems
all become a vital part of an effective
and efficiently-growing practice, com-
pany or organization.
So there you have it. If youre con-
sidering sales training or a structured
development program, or are consid-
ering a rapid growth and development
process, first start by assessing which
of the three areas is your biggest need.
Are you generating plenty of leads, but
your conversion rate shows limited
lead pull-through? Then you need
sales training. If your originators can
convert like mad, but are complaining
about lead volume, then you need
marketing and business development
training first. If your marketing is gen-
erating plenty of leads and your origi-
nators are converting effectively, but
youre still not at the volume that you
think you should be, or youre starting
to see massive peaks and valleys in
your organization with individual orig-
inators, then start looking at the sys-
tems and processes that those origina-
tors are using. You need to see what
their support staff and teams would
like to build and if they have the
capacity to efficiently pull that volume
through all the way to closing. Once
you have your capacity issues fixed,
you can circle back around to market-
ing and sales training.
At all three levels, Creation, Capture
& Completion, identifying where the
biggest opportunities for growth are,
then strategically resolving those chal-
lenges is your best bet for creating
effective and efficient growth.
Through coaching, we have refined
this model with the thousands of orig-
inators, managers and sales teams
that have grown through our training
programs.
The single most important lesson
we have learned through the years is
that we must always follow a solu-
tions-oriented strategic planning and
growth model. We are most effective
by starting with objective assessment,
moving on to action planning, and
finally, implementation.
Looking at your organizations
growth, follow the model of studying
what are the challenges, and then
determine the best practices and
strategies to apply at each phase of the
process that will yield the greatest
amount of growth in the least amount
of time. Stay tuned to next months
issue of this series where we will go
deeper into the best methods for
Capturing leads.
Erik Janeczko is head coach/speak with
Maximum Acceleration, and is also pres-
ident of the Missouri Association of
Mortgage Professionals (MAMP), a state
affiliate of NAMBThe Association of
Mortgage Professionals. He may be
reached by phone at (573) 298-4237, ext.
101 or e-mail erik@maccelcoach.com.
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on the one
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use most.
Ready to get started?
Go to MortgageMapp.com/MO
and sign up today!
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By Jean LeBlanc
Last month, we began
looking at the initial
stages that every one of
your prospects goes
through as they strike up a relationship
with you, from the tire-kicker stage to
the Stage Two Seekers. This month,
were exploring what your prospects or
clients are looking for in Stages Three
through Five, and therefore, what you
need to be able to provide to them, in
order to keep them moving down the
funnel toward closing.
Stage Three:
The shoppers
Armed with the information theyve
obtained from you (or from another
mortgage office), now theyre ready to
shop. Theyll compare you to your com-
petitor down the street and to online
sources such as bankrate.com, or low-
ermybills.com.
Again, we have learned recently that
many borrowers just dont shop
around, but go straight to one company
and never look at another. We also
learned that price isnt necessarily the
primary deciding factor, but often serv-
ice is. Lesson for all of us: while we may
not be able to compete with the lend-
ingtree.coms of the world, we can com-
pete on service and other factors. Thats
why its so important to make your cus-
tomer reviews readily available to
shoppers.
In this stage, its important to
know your companys USP (Unique
Selling Proposition), which answers
the question, What makes you
unique from the other lenders or bro-
kers? or Why should I purchase my
loan from you? Your sales materials,
even down to the e-mails you send,
should answer this question for
prospects in the shopper stage.
Stage Four:
The application
Your clients are excited. Chances are, they
have found their perfect home. Now
theyre ready to make this thing hap-
penand tomorrow isnt too soon. And
youve got to burst their bubblegently.
If theyre a first-time buyer, they may
have no clue how time-consuming and
labyrinth-like the loan process can be.
Even if theyre not a newcomer to home-
ownership, the rules have changed, and
they may be required to submit MANY
more docs than they did before.
This is when you want to provide them
with concise information, either on your
Web site or handouts, as to what to expect
during the app process: Tips on credit,
appraisals, gathering their docs, and so
on. The more professional materials that
you can provide that are simple to read,
the more your LOs and your company will
look like experts.
Finally, you want to continue to sell
your company and your LO during this
stage, because they may be hearing
from other lenders with attractive
offers. Be attentive, communicate posi-
tively and regularly; show just how
good your customer service is. And con-
tinue this during Stage Five.
Stage Five:
Waiting to close
During this stage, a number of elements
are outside your control, such as how
long underwriting takes, what addition-
al docs are required, whether closing
will happen on time, and so on. Most of
the communication that hap-
pens here is one-on-
one; by that I mean,
you wont be handling
the client a brochure,
but rather communicat-
ing personally.
For instance, this is a good
time to remember some of the
things they told you earlier, such
as their desire to upgrade the
kitchen. Send them
links to kitchen
upgrade ideas online
and a few contractors
that they may want to talk
with. If theyre moving from
outside the area, send them
links to events in their new neigh-
borhood. Just keep communicat-
ingpositivelywith them (to
help overcome any negative conversa-
tions that you may need to have, such as
Your closings going to be delayed).
Now is a good time to ask for referrals
as well. An e-mail is timely that says,
Most of my clients are referred to
me from others who have worked
with me in the past. Do you have any
friends or family members who may
be looking for a home purchase loan
or a refinance loan?
Next month, we will explore the last
stage of the funnel after the close. Too
many loan originators stop communicat-
ing once they receive their commission
check, forgetting that these valuable
clients may very well bring you additional
income in the future!
Jean LeBlanc is director of marketing for
Guaranteed Home Mortgage Company.
For more marketing tips, download the
eBook, 13 Ways to Juice Up Your
Marketing in 2013, by going to
joinghmc.com and clicking on the eBook
offer midway down the page. She may be
reached by phone at (914) 696-3400.
Secrets
to More
Closings:
Stages Three to Five
of the Sales Funnel
(Part II)
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By Tara R. Nygaard
Two days after receiving
my mortgage license, I
stepped off a plane in
D.C. to attend the 2013
NAMB Annual Legislative & Regulatory
Conference in March. To this point, my
experience in finance consisted of pur-
chasing a home in 2007, working at a
bank right out of college and passing
my licensing exams.
How did one with so little exposure to
the mortgage broker business end up in
D.C. at a national conference? My hus-
band and I were relocating to Billings,
Mont. for his work. I commenced house
hunting and called the home loan com-
pany that was listed first on my Google
search. The broker and I ended up talk-
ing for three hours at the first appoint-
ment. I sent her my resume to see if she
knew of any career opportunities. Her
response was, Have you ever thought
about being a loan originator? and my
honest answer was, No.
That was last December. We never
found a house, but I plunged headfirst
into the world of the mortgage broker.
When I got to the NAMB Legislative
Conference D.C., it was apparent to me
that I would be one of the youngest
attendees at the age of 29.
During the conference, I learned the
industry was still licking its wounds
from the financial meltdown; how new
regulations were affecting companies
like my own employer; and I learned
how rules and regulations that were
coming down the pipeline could even
further damage the mortgage industry
which I was now part of. The Dodd-
Frank Act and the Consumer Financial
Protection Bureau (CFPB) were no
longer answers to multiple choice test
questions, but now were regulation
hurdles to my future success.
By far, the most frequent question I
received was usually why I decided to
begin a career in origination at a tumul-
tuous time like this in the industry, at my
age and in the state of Montana. Truth
be told, I didnt have an answer then, a
mere 48 hours after being licensed.
Since then, I have wrapped up the
Wyoming state test, the Uniform State
Test and now have a little over a month
of industry experience under my belt in
originating. My perspective on the econ-
omy, the ways of lending and mortgages
themselves have been crafted.
Todays young people are driven.
One can blame it on energy drinks or
designer coffee, but we are. We want to
be in control of our income and require
intellectual stimulation on a daily basis.
When I finished up grad school, there
was a moment where I wasnt sure what
to do with a masters degree in con-
sumer psychology aside from an ad
agency or in-house marketing depart-
ment. Since 2009, each origination has
a little psychology built into it while
calming the fears of customers. With
todays mortgage application turned
into an investigation into the life of
each applicant, its easy to build
Consumer Behavior 422 into each day.
I am not the only member of
Generation Y walking the halls of
Division Mortgage Group (NMLS Entity
#140614). I am one of three, in fact,
that Tavell Peete, CRMS, broker/owner
of Division Mortgage Group, brought on
within a month. She attributes it to the
perfect storm between a flexible sched-
ule, challenging industry and the abili-
ty to earn as much as you desire (i.e.
commission-based comp plans).
Hiring young people ensures the
brokers existence, said Peete. They
bring new ideas and a fresh perspective
to the industry. On the flip side, we, as
brokers, can offer all of the perks the
younger generation is looking for, such
as work-life balance and upward
mobility.
With 63 percent of my office under
the age of 33, you can bet the office is
high-energy and tech savvy with
healthy competition among origina-
tors. The mortgage industry doesnt
have the sexy allure of ad agencies and
fashion icons, but for someone like me
with advanced degrees plus profession-
al experience in marketing and adver-
tising, it requires all of the skills Ive
been striving to use. Therefore, my
approach to the market is probably
very different from someone with 20
years on their resume.
Young people view the mortgage
industry as being in repair, explained
Peete. They are aware of the melt-
down and see an industry they can
improve upon. Its a chance to make a
difference in how one of the biggest
financial transactions takes place.
I think my motivation and approach
are indicative of my generation. I incor-
porate technology into everything. I
aim to be responsive and available to
customers outside of the normal office
structure. I headed out to D.C. to
understand how decisions being made
on Capitol Hill trickle down to every
customer and loan originator, even out
here in Montana.
My ambitions go far beyond the
standard nine to five workday, but into
making the brokerage business benefi-
cial to the customer and subsequently
successful, a sentiment echoed by all of
my peers thus far. It may be interesting
for the wise and the new to share space
for a time. We respect what the indus-
try has gone through and aim to learn
from the unfortunate events to create a
positive lending environment for the
next wave of homeowners.
Tara R. Nygaard, MA is a loan origina-
tor with Division Mortgage Group
(NMLS #140614) and a member of
NAMBThe Association of Mortgage
Professionals. She may be reached by
phone at (406) 690-0098 or e-mail
tara@divisionmortgagegroup.com.
Welcome to
the Show!
Industry Newcomers Learning
From the Past to Create
a Positive Lending Future
Welcome to
the Show!
Industry Newcomers Learning
From the Past to Create
a Positive Lending Future
By Jonathan Foxx
P
eriodically, I review
with you the types of
administrative ac-
tions taken by the U.S.
Department of Housing & Urban
Developments (HUD) Mortgagee Review
Board (MRB). The review of the MRBs
published administrative actions should
be considered a teaching moment for all
FHA approved mortgagees, inasmuch as
the MRB is empowered to enforce its
administrative sanctions through, among
other things, reprimand, probation, sus-
pension or withdrawal of approval and/or
underwriting authority, cease-and-desist
orders, and civil money penalties.
On April 11, HUD published the admin-
istrative actions taken by the Mortgagee
Review Board (MRB) against certain FHA
mortgagees. The period covered in the
issuance is Jan. 1, 2012-Sept. 30, 2012.
In this article, I provide an outline of
the kinds of violations and respective
sanctions that the MRB recently sustained.
A word to the wise
In representing clients before the MRB, we
can vouch for the exhaustive due dili-
gence that is virtually mandated, the con-
siderable costs involved, the experienced
legal counsel and requisite regulatory
compliance expertise that is needed, and
the significant adverse impact on an FHA
lenders ability to conduct or even contin-
ue in business.
Its easy to get lulled into a sense of false
confidence by thinking that some violations
are minor. But if the MRB gets involved,
those minor violations will become a part of
the causes for administrative action, and
even in some instances the proximate cause
of the administrative action.
Nothing should be considered a
minor violation, when originating
HUD/FHA mortgage loans. It is instructive
to note the causes for the administrative
action brought against an FHA-approved
mortgagee.
Ignorance is a futile defense, when it
comes to the causes that can affirmatively
contribute to disciplinary action.
Rule of thumb rule
The MRB is not sympathetic to a mort-
gagee that violates HUD/FHA require-
ments which are, or are expected to be,
within the mortgagees control. Violations
that are not, or not expected to be, in the
mortgagees control provide the MRB with
a more nuanced basis upon which to pro-
vide some leniency.
Administrative actions
1
Violation: Failed to notify the Department
that it was the subject of multiple state
regulatory actions and sanctions, and sub-
mitted false certifications to HUD in con-
nection with its annual renewal of eligibil-
ity documentation for its fiscal years end-
ing in 2009, 2010 and 2011.
Action: Civil money penalty in the amount
of $75,000.
Violation: Failed to perform quality con-
trol functions in compliance with
HUD/FHA requirements, failed to meet the
requirements for participation in the FHA
mortgage insurance program, failed to
ensure the correct mortgagee identifica-
tion number was used when originating
FHA-insured mortgage loans, failed to
adequately document the source of
and/or adequacy of funds used for closing,
failed to correctly calculate and document
the mortgagors income, failed to verify
the stability of the mortgagors income,
failed to ensure the mortgagor was eligible
for an FHA-insured mortgage loan, failed
to ensure the property met HUDs eligibil-
ity requirements, failed to comply with
TOTAL Scorecard requirements, failed to
comply with HUDs property flipping
requirements, failed to provide construc-
tion documents required for property eli-
gibility and/or high ratio financing result-
ing in over-insured mortgages, failed to
ensure that the maximum mortgage
amount was correctly calculated, resulting
in over-insured mortgages, failed to
ensure that data submitted to HUD sys-
tems was accurate, and charged mort-
gagors unallowable fees.
Action: Notice of Administrative Action
immediately and permanently withdraw-
ing the FHA approval.
Violation: Failed to obtain adequate doc-
umentation of the income used to qualify
a borrower, failed to resolve discrepancies
and/or conflicting information before sub-
mitting loans for FHA mortgage approval,
and failed to ensure mortgagors were not
charged fees that were excessive and/or
unreasonable for the services performed.
Action: Settlement Agreement that
required civil money penalties in the
amount of $17,000, to indemnify
HUD/FHA for its losses with
respect to two FHA-insured
loans, and to refund
borrowers for exces-
sive origination fees.
V i o l a t i o n :
Submitted or
caused to be sub-
mitted false infor-
mation to HUD in
relation to 63
mortgagee record
changes, failed to reconcile its
portfolio data and allowed HUD
records to incorrectly identify the mort-
gagee as the holder of 97 FHA-insured
mortgage loans, and submitted false infor-
mation to HUD on 133 claims for FHA
insurance benefits and, in 90 instances,
claimed benefits for ineligible holders of
record.
Action: Settlement Agreement that,
among other things, required a civil
money penalty in the amount of $1.2 mil-
lion and to complete mortgage record
changes to facilitate the payment of cer-
tain FHA insurance claims.
Violation: Employed or retained a
debarred director and made three false
certifications to HUD on the Yearly
Verification Report and annual recertifica-
tion submissions to HUD for 2009, 2010
and 2011.
Action: Civil money penalty in the
amount of $59,000.
Violation: Failed to engage in loss mitiga-
tion and/or retain required documenta-
tion in its loan servicing files with respect
to its loss mitigation decisions.
Action: Civil money penalty in the
amount of $32,500.
Violation: Failed to adopt and maintain a
quality control plan and management
reports, failed to implement a quality con-
trol plan, allowed non-employees and non
W-2 employees to originate FHA loans,
and failed to require the loan interviewer
to sign page 4 of the initial Uniform
Residential Loan Application, Fannie Mae
Form 1003, and page 1 of the initial Form
HUD 92900-A.
Action: Civil money penalty in the
amount of $12,000.
Violation: Disseminated a misrepresenta-
tive or misleading advertisement or busi-
ness solicitation to the public.
Action: Probation for a period of six
months and required to pay a civil money
penalty in the amount of $7,500.
Violation: Failed to maintain a quality
control plan, failed to perform quality
control functions, failed to service
FHA-insured loans in accordance
with HUDs loss mitigation require-
ments, and failed to timely provide the
HUD-PA-426 pamphlet to delinquent
borrowers.
Action: Civil money penalty in the
amount of $23,300, to require all of its
mortgage servicing staff and supervisors
to complete, within six months, HUDs
twelve-module electronic training pro-
gram on loss mitigation and servicing sys-
tems, and to submit to HUD and imple-
ment a written quality control plan that
complies with HUD requirements.
Violation: Failed to notify HUD/FHA
that the mortgagee was involuntarily
dissolved by the state of Illinois and,
the fiscal years ending March 31, 2009,
March 31, 2010 and March 31, 2011,
failed to timely submit its Yearly
Verification Report/Elec-tronic Annual
Certification forms, failed to pay the
annual recertification fees and failed to
submit acceptable audited financial
statements.
Action: Notice of Administrative Action
withdrawing the FHA approval for a
period of one year.
Violation: Failed either to timely remit
monthly mortgage insurance premiums
to HUD/FHA or to notify HUD/FHA with-
in fifteen calendar days of the termina-
tion of the contract of mortgage insur-
ance, the sale of the mortgage, or both
on 1,373 loans.
Action: Civil money penalty in the
amount of $85,150.
Violation: Failed to engage in loss mit-
igation, failed to service FHA loans in
accordance with HUD requirements,
and failed to offer property disposition
options to the mortgagors.
Action: Civil money penalty in the
amount of $37,000, and pay $92,677 to
indemnify HUD for its losses with
respect to one FHA loan, to indemnify
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continued on page 34
FHA Mortgagee Review Board: Administrative Actions
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HUD for any loss (past, present or
future) on five FHA loans for a period of
five years from the date of the agree-
ment, and to retain and fully pay for a
third-party servicing monitor for a period
of one year.
Violation: Failed either to timely remit
mortgage insurance premiums to
HUD/FHA or to notify HUD/FHA within
15 calendar days of the termination of
the contract of mortgage insurance, the
sale of the mortgage, or both on 20
loans.
Action: Civil money penalty in the
amount of $8,100 and remit all
Mortgage Insurance Premiums and late
fees due HUD for 20 FHA insured mort-
gages serviced by the mortgagee.
Violation: Approved loans without
properly analyzing the borrowers cred-
it, approved loans without properly
documenting or verifying effective
income, approved loans with inade-
quate verification of the borrowers cash
investment in the property, approved
loans with inadequate analysis of the
borrowers ability to repay the mort-
gage obligation, approved a loan with
an incomplete Mortgage Credit Analysis
Worksheet (MCAW), and failed to imple-
ment an acceptable quality control
plan.
Action: Civil money penalty in the
amount of $91,500, to pay $917,528 to
indemnify HUD for its losses with
respect to five defaulted FHA loans, and
to indemnify HUD for any loss (past,
present or future) on three FHA loans
for a period of five years from the date
of the agreement, without admitting
fault or liability.
Violation: On 13 FHA-insured mort-
gages serviced or held by the mort-
gagee, the mortgagee failed to remit
Mortgage Insurance Premiums, failed
to notify HUD/FHA within fifteen calen-
dar days of the termination of the con-
tract for mortgage insurance or the sale
of the mortgage, or both.
Action: Notice of Administrative Action
withdrawing the FHA approval for a
period of one year.
Violation: Failed to timely remit 200
Upfront Mortgage Insurance Premiums
to HUD/FHA within ten calendar days of
closing or disbursement, whichever was
later, and failed to honor two indemni-
fication agreements with HUD when it
failed to remit payments owed to HUD
pursuant to the terms of the
Indemnification Agreements.
Action: Civil money penalty in the
amount of $13,500 and to pay
$243,872 to indemnify HUD for its loss-
es with respect to two defaulted FHA
loans.
Violation: Failed to complete its annu-
al online certification, failed to submit
the recertification fee, failed to submit
its audited financial statements,
employed individuals to originate loans
who NHL knew or should have known
were engaged in prohibited outside
employment in the mortgage lending
field, permitted non-FHA-approved
mortgage brokers to perform loan orig-
ination services, failed to adhere to
HUD/FHA requirements when under-
writing loans for FHA insurance, and
failed to adopt, maintain, and imple-
ment a quality control plan in compli-
ance with HUD/FHA requirements.
Action: Notice of Administrative Action
permanently withdrawing the FHA
approval.
Violation: Failed to remit payments
owed to HUD per the terms of an
indemnification agreement with HUD,
failed to timely notify HUD/FHA of a
business change that affected the stand-
ing as an approved institution or
changed the information on which it
was originally approved, failed to time-
ly submit its audited financial state-
ments for fiscal years 2009, 2010, and
2011, failed to timely submit its annual
recertification fee(s) for fiscal years
2009, 2010 and 2011, and failed to
timely submit its annual online certifi-
cations for fiscal years 2009, 2010 and
2011.
Action: Notice of Administrative Action
permanently withdrawing the FHA
approval.
Violation: Failed to maintain its state
mortgage lenders license and failed to
notify HUD/FHA that it had closed its
main office and was no longer licensed
in the state.
Action: Notice of Administrative Action
withdrawing the FHA approval for a
period of one year.
Violation: Failed either to timely remit
mortgage insurance premiums to
HUD/FHA or to notify HUD/FHA within
fifteen calendar days of the termination
of the contract of mortgage insurance,
the sale of the mortgage, or both on 97
FHA-insured loans.
Action: Civil money penalty in the amount
of $15,000.
Jonathan Foxx, former chief compliance
officer for two of the countrys top publicly-
traded residential mortgage loan origina-
tors, is the president and managing director
of Lenders Compliance Group, a mortgage
risk management firm devoted to providing
regulatory compliance advice and counsel
to the mortgage industry. He may be con-
tacted at (516) 442-3456 or by e-mail at
jfoxx@lenderscompliancegroup.com.
Footnote
1Mortgagee Review Board: Administrative Actions,
Department of Housing and Urban Development,
Office of the Assistant Secretary for Housing, Federal
Housing Commissioner, Federal Register, Vol. 78, No.
70, Thursday, April 11, 2013, Notices 21618-2162. For
PDF download, see www.LendersCompliance-
Group.com, Library, Issuances 2013.
Whether required by current legislation, agency guidelines or
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Save time with AllRegs Policy Manuals, pre-written by industry
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regulatory compliance review continued from page 33
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National Mortgage Prof
Mortgage
Navigating the water
Growth and Expansio
N
ational Mortgage Professional Magazine
recently had the opportunity to gather 10
of todays top mortgage leaders for its 2013
Mortgage Mastermind VIP Panel
Discussion. The event, moderated by
National Mortgage Professional Magazine
Co-Founder Andrew T. Berman, was put
together as a forum to share ideas and pick
each others brains on the latest trends and innovations taking
place in the market. Some on the panel, seasoned veterans who
have watched their businesses grow and succeed in the ever-
changing mortgage market, shared their thoughts and perspec-
tives with others who touched upon their own growth and
expansion. No matter the situation, the message remained clear:
There is no right or wrong way to go about doing business in the
mortgage industry, ones work schedule and work ethic is dictat-
ed by how one defines success.
Moderator: Does the size of a compa-
ny matter anymore? Does the size of
a company hurt of hinder its growth?
Barbara Gallagher McDonald: I think
it goes both ways. Im very old fash-
ioned, and Welcome Mortgage
Corporation has had chances to grow,
but Im very hands-on, so, growth isnt
something were interested in. I only
work with referrals. We have a small
group of people I know and trust, and
we make a nice living that way.
Craig LaBruno: Ive never worked for a
big bank like Wells Fargo or Bank of
America. Mortgage Capital Associates has
only about 10 or 12 employees. We dont
take on any new guys, we only go with
seasoned veterans in the business. We all
work together and help each other out.
Im the FHA guy, and every one in the
company has their own specialty. I
believe in a slow growth of the company.
Dave Pressel: I think this industry is all
about scalability. Whether you have 100
employees or 40, the last thing you
want is a person getting overextended.
The business really boils down to ones
capabilities. My reputation is made bet-
ter by the people behind the scenes. Its
in my best interest that the originators
or processors I hire know what they are
doing. Whether you are as big as Wells
Fargo or as small as Joes Mortgage
its about dedication and doing a good
job.
Kevin Zhu: When I grow, I start with
one assistant, then add another, and
another. I dont look at how big a cor-
poration is, as I have found out I add
more to my sales team as I go. You
always hit a ceiling. Size, in my experi-
ence, can limit your production.
Nikitas Kouimanis: I feel sometimes
bigger is better, and that is why I have
decided to join Equity Loans. They not
only have the strength of a mortgage
lender, but maintain flexibility and
diversity among a huge product line. To
add icing on the cake, they are now
Fannie Mae seller/services, or should I
say we are now seller/servicers.
Ed Kenmure: No matter how big you
get, how quickly you get support,
whether you are with a large company or
small firm, it all depends on how you
treat your business. Each one of
PrimeSources offices acts as an inde-
pendent company. How they treat the
community is like a one-on-one basis. We
are not looking at size, but I think how
one does business is more important.
Jeff Van Note: Brokers are getting
squeezed out, so we have to adapt our
mentality. Working at a smaller compa-
ny, we are looking to close 15-20 deals,
its a goal. If youre looking to close
more deals, youre not going to meet
the individuals needs.
Jon Lamkin: If youre entrepreneurial,
and have more freedom, you can go
and build your own team. Im a firm
believer in giving the consumer a nice
story if you are a relatively unknown
company.
Robinson Cardona: Small bank or big
bank it doesnt matter. Theres a dif-
ference in how you go about your busi-
ness, but the goals are the same.
Brian Ofsie: If you are too big, you need
to streamline your processes. You can-
not work the deals and work with the
consumer, spending time on the deal.
At the same time, we are getting
squeezed by the big banks. You must
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ofessional Magazines
Mastermind 2013
rs of an ever-shifting marketplace
n in Todays Mortgage Marketplace
have the right capital for the right
investors. You must try and have a
good balance without getting too big.
Keep your identity and have a great
company.
Moderator: What do you think is stop-
ping you from getting to the next
level of originations?
Craig LaBruno: Unfortunately, we are a
smaller company and lack the ability to
hire that many assistants. I feel a little
more help would be good. I have a
processor who deals with my deals.
There was a small period of time four
years ago where I was starting to lose
faith in this business. About a year ago,
I started really liking what I do. The
constant changes and the stress of rates
changing would get to me. With securi-
ties being down and the constant mar-
ket swings, I really focus more on get-
ting out there. I take care of the inside
work that allows me to get out, I struc-
ture my business a little different, and it
allows me the time to hit the pavement
more. Now that Ive got things set up
how I want them to be internally, I can
grow more.
Dave Pressel: Its by choice I dont go
back to that next level. About three
years ago, we did close to $100 million
in business. It was so much work, so
much time. My decision was to be
home with the kids when they get
home from school and spend time
with them. For me, I put the gauge of
success on something other than the
financial. Getting a large paycheck is
nice, for sure, but at the end of the
day, thats not what its about for me.
Like my grandmother said, Think
twice, act once.
Kevin Zhu: Everyone has their own lim-
itations, in terms of time, children or
whatever it may be. I stopped working
Saturdays and Sundays last year
because I hit a level where I can take
the time to spend with my family. This
year, we hired a sales manager
because I want to reduce my working
hours and continue to reach the next
level. In turn, by adding staff, I have
doubled the amount earned. I barely
had time to make phone calls, so I give
my leads to others. Next level for me is
expansion.
Nikitas Kouimanis: I like to delegate
work to my team and focus on the
industry more. This way, I can go after
more business from real estate agents,
financial planners and CPAs.
Ed Kenmure: In the business sense, its
been a challenge this year to grow and
make that jump to the next level, but
I had to work with the back-office
people to connect with our investors.
The next level is getting the team
ready to deal with products, families
and types currently offered.
Jeff Van Note: Its tough to do business
in a changing marketplace. Loan offi-
cers focus on the negatives more often
than not, so personal issues can be dis-
tracting.
Jon Lamkin: Just this year, I hired a
marketing company, and we have been
working on branding. Were working on
a lot of different things, as well as
updating our CRM system. Last year was
our biggest year, it doesnt matter
because its a new year. I want to con-
tinue to do well, but I pride myself on
not missing any of my kids games or
The 2013 Mortgage Mastermind VIP Panel was comprised of the following:
Robinson
Cardona
Mortgage Planner
GMH Mortgage
Services LLC
Barbara
Gallagher
McDonald
Vice President
Welcome Mortgage
Corporation
Ed
Kenmure
Vice President
PrimeSource
Mortgage, Inc.
Nikitas
Kouimanis
Senior Mortgage
Banker
Equity Loans LLC
Jon
Lamkin
AVP/Mortgage
Sales Manager
First Hope Bank
Craig
LaBruno
Senior Residential
Home Loan Consultant
Mortgage Capital
Associates Inc.
Brian
Ofsie
President and CEO
Vanguard
Funding LLC
Dave
Pressel
Manager
West Town
Savings Bank
Jeff
Van Note
Branch Manager
United Northern
Mortgage Bankers
Ltd.
Kevin
Zhu
Managing Director
of Sales
MLD Mortgage Inc.
continued on page 38
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dance recitals. I coach a lot, but if the
phone rings, Ill tell the client that Ill have
to call them back after my kids soccer
game or whatever I may be tied up with.
Brian Ofsie: I originate and manage a lot
of people. What I try to do is have every-
body work as smart and as hard as they
can. I have each individual, including
myself, investing back into their work.
Everyone has an assistant or two. They
need to be out in the field and networking
in the community. My goal is to give them
enough ammunition to get it done. You
dont have to work 15 hours a day, just
work smart and plan for success.
Barbara Gallagher McDonald: Desire and
need. I used to care about things I dont
care about anymore. Lifes too short to do
what you dont like. I like talking to clients
and building relationships. Because I did
the sales stuff that I dont like, I can now sit
back and not have to deal with that stuff
anymore. It has to be more than three
years since Ive been asked what our rates
are. I want my kids to grow up knowing
that I was good at what I did.
Moderator: Do you think that your com-
panys structure allows you to have
access to top-tier talent and allows you
to push loans forward?
Dave Pressel: What used to be so simple is
now often difficult. Were in a business
where sometimes logic has no place in the
workflow. We all play in the same sandbox
in terms of compliance, etc. It doesnt mat-
ter what happens with FHA or the Dodd-
Frank Act, I still feel it in my gut whether a
borrower is going to make a payment on a
loan. The decision-making that was a slam
dunk four years ago is now up in the air.
Interestingly enough, the changes in our
business have gotten a lot of people out of
our businesses that shouldnt have been in
our business to begin with. Its a function
of workflow efficiency. Once youre done
with A, go to B, and once youre done with
B, go to C. What works for investor A will
not work for investor B. Its all about plan-
ning ahead.
Kevin Zhu: Its very important to distin-
guish the types of loans and the channels
through which these loans travel. We have
a huge core center that moves things
online, with tons of volume. My own ratio
is definitely around 95 percent and you
have to communicate with top manage-
ment to distinguish this.
Nikitas Kouimanis: I think that it all
depends on the loan and how you put it
together. Some loans will obviously move
quicker than others through the pipeline,
so, if you ask for the right documents
upfront and package the loan correctly, it
will move quicker than others.
Ed Kenmure: Pushing a particular loan, a
tough one, through a smaller organization,
maybe you get to the mid-sized loans, but
the mid-sized guys give you the ability to
push a loan through with a proper back-
office staff. You can eventually get to
enough resources where, as you grow, you
can push loans through.
Jeff Van Note: It all depends on who is
pushing what through. An experienced
loan officer will be able to get something
through faster than an inexperienced loan
officer. It all depends on the type of loan,
as well. I think its fair that everyone oper-
ates under the same terms, but the more
deals you close, you should be able to
expedite the process a bit.
Jon Lamkin: If I dont think a loan is going
to go through, I dont waste the processors
time. Im smart enough to know not to
waste the underwriters time, but some-
times, Ill let them know that I need them
to look at something today.
Robinson Cardona: I do not think every-
thing should be a rush. I think its impor-
tant to follow that model.
Brian Ofsie: We try to streamline our
pipeline as much as possible. We pre-
underwrite, and have six or seven under-
writers whose job it is to tackle any prob-
lems from day one. Once we get to pro-
cessing, everything is streamlined. When
youre smaller, you can massage the deal,
so, thats always good. On the other side, in
terms of operations, its getting so difficult
to sell loans in the secondary market.
Barbara Gallagher McDonald: This busi-
ness did draw a lot of criticism. Many of
those who were criticized left the business,
and those who remained, we are used to.
I think thats how you manage.
Craig LaBruno: These issues have begun
to trickle down to us. Im not a manager,
but because I deal primarily with real
estate agents and purchase businesses, I
believe in doing the work upfront. I like to
pre-approve and close the loan myself. It
all depends on the deal. Sometimes, you
will see 35-day closings, but at the same
time, putting together a three-day closing
can really hinder the process.
Moderator: What are some of the prac-
tices you implemented when you first
started in the business that you continue
to use today?
Kevin Zhu: The things I have been doing
the past 10 years have been broadening.
Im always looking for new companies,
and am always looking to broaden myself
as well. My name is very strong in my com-
munity. Im very tight in the Indian com-
munity, I close about 80 percent of the
houses in my community all through
referrals.
Nikitas Kouimanis: When I first started, I
actually was trained and learned that you
mortgage mastermind 2013 continued from page 37
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By Mason Grashot, CPA
What does this General Indemnity
Agreement do? Should I actually
read all of this?
The Indemnity Agreement is one of the corner-
stones of what makes surety bonds different from
other insurance policies. The Indemnity (hold
harmless) Agreement allows the bond carrier to
recover assets from the indemnitors if the carrier is damaged by hav-
ing to pay a claim to the obligee because of the principals failure to
meet the obligations of the bond. Each carrier has its own version of
the indemnity agreement with its own terms and conditions. However,
they are all constructed with the same purpose: To give the carrier
direct, express permission to recover damages. Depending on the
amount of the overall bond exposure, the agreement can be as short
as one page or as long as a dozen.
Ill sign on behalf of my company, but why do
I have to sign personally? Why does my spouse
have to sign? Why do the other owners have to
sign? Why do my other business ventures have
to sign?
In short, because the surety has been there/done that once bitten,
twice shy. Instead of playing the legal game of trying to determine
what shell the assets may be hidden under in the event of a bond
claim, the surety industry simply will not play unless its according to
its rules. Regardless of their choice of entity (LLP, LLC, S-Corp, C-Corp),
most licensees are closely-held companies. This means that, while
there may be a legitimate separation of business and personal
finances, decisions, etc. during the normal (happy/healthy) times, at
the end of the rainbow (when everyones got their hands in the pot of
gold) those individuals in control of the company can creatively move
cash and other assets out of the company and into the control of
themselves personally, their spouses, or even other business entities
in which they have an interest. Ultimately, the surety carriers would
like the indemnity of anyone who has or could easily end up having
the assets that are supporting their underwriting decision to go ahead
and bond the principal.
Mason Grashot, CPA is president of The Bond Exchange, a national insur-
ance agency focused on surety bonds with a unique specialty practice cen-
tered on the mortgage profession. As the endorsed strategic partner of
NAMBThe Association of Mortgage Professionals, The Bond Exchange
services thousands of surety bonds through programs designed specifically
for the mortgage industry. For more information, call (501) 224-8895 or
visit www.thebondexchange.com.
Cmon ...
Step Right Up and
Play the Shell Game
Sponsored Editorial
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mortgage mastermind 2013 continued from page 38
should always take appointments face to
face. I still do that. I think its important to
meet face to face with your customers so
you can get them their documents upfront
and the client establishes a personal con-
nection with you.
Ed Kenmure: As much as things change,
they stay the same. We can get away from
automation, but we still need to work on a
loan before it enters the system. When I
jumped into the business, we got every-
thing upfront and its still the same way.
Jeff Van Note: Rules, values, ethics if
we keep doing things the right way, busi-
ness will be fine.
Jon Lamkin: I had a goal to take applica-
tions and get two potential referrals from
each deal. I still try to do that. Whether its
the client themselves or an attorney you
connect with, you must always be working
on building relationships, and always try to
make deals through deals.
Robinson Cardona: I always call the cus-
tomer first, and not wait for them to call
you. Following up is big, thats really some-
thing that has worked for me.
Brian Ofsie: Always say organized and
meticulous to detail. If you do that, you
can be a great loan officer. Its not about
being the best salesman, its about servic-
ing clients. Every night, I put together a to-
do list and am prepared for the next day.
When I come in, I have a combination of
motivational sayings from Tony Robbins, I
get myself focused and everybody in the
office knows Im ready to tackle the day.
Barbara Gallagher McDonald: I am a 100
percent referral-based business, and still
meet my clients face-to-face these two
reasons are likely why many of us are still
here today. Referrals are so much cleaner
and loyal, they make all the difference in
the world. I also keep lists on customers,
and have more than 20 years of notes,
including their kids names, and follow up
with birthday cards, etc. I try to stay in
touch as much as possible.
Craig LaBruno: I keep up on the latest
online and Internet trends, and remain
close with my customers through face to
face meetings, and connect with financial
planners. My niche was in real estate agents
and the first-time homebuyer market. Not
much has changed for me since day one. I
still get out there and make sure I am seen.
I make sure I am meeting with my real
estate companies once or twice a week.
Dave Pressel: I am always teachable and
desire to acquire knowledge. We dont
have the answers to everything in this
industry. Nowadays, we get four or five
product changes a day. Its crazy. Our
industry has had a lot of changes, and I
think sticking with those changes and stay-
ing on top of them are keys to remaining
successful. Its about workflow, and its
about what not to do. What used to be a
standard thing may not be the way they
want it done. It will affect your mindset
when you understand that you dont have
all the answers.
Moderator: What do you think is the pri-
mary difference between top producers
and marginal producers in todays mort-
gage market?
Nikitas Kouimanis: I think its in the way
we work and what you put into that work.
Networking and getting out there are key,
but it is really just about motivation the
way you work and what habits drive you. I
think others look at this like a job instead
of as something they have a passion for. I
wake up every day and I am happy to be a
part of the achieving the American dream
of homeownership. I wouldnt give this up
for the world. I think other people look at
this as a nine to five job and pretend its
just a job or a paycheck.
Ed Kenmure: We all like what we do.
Consistency, motivation, organization, and
having a strong passion for your career are
all keys to success or failure.
Jeff Van Note: I think it comes down to
ones natural talents. When I get a closing
report, I relate it back to sports. If you are
submitting 10 files and staying competi-
tive, maintain strong ethics and have a
desire to succeed, those attributes will sep-
arate you from the others.
Jon Lamkin: Time-management is key. Ill
see guys with a huge closing month, but
nothing the next month. If you are organ-
ized, I think that will put you ahead of
other guys in the business. Its a cycle, so
having prospects for your next month is
key.
Robinson Cardona: You must love what
you do. If you love what you do, youll be
successful in any career.
Brian Ofsie: In this industry, you dont
need to re-create the wheel. I believe you
must map out all your aspects, properly
manage your time, market properly and
have the right technology in place.
Technology is unbelievable, so making use
of it is vital to any business. If you have
some who are excellent at sales and mar-
keting, you will be fine.
Barbara Gallagher McDonald: I believe
that you must truly love the business. I have
always loved the business, and if you truly
care, people know that and good follows.
Craig LaBruno: I have been lucky enough
to work with great producers. Everyone
has a little niche. The main thing that sep-
arates us is the follow-up and making sure
clients are followed-up with. Its the little
touches you do. Obviously, having a good
continued on page 42
41
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HomeBridge is a national wholesale lender offering both conventional and
government products. We are committed to providing the highest value to our clients
through competitive pricing, unique product offerings, superior customer service, and
state-of-the-art technology.
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change without notice. HomeBridge is a division of Real Estate Mortgage Network, Inc. NMLS #6521. HomeBridge is licensed or operating with a license exemption under the
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To learn more about the HomeBridge advantage,
please contact us at 855-729-2885
www.homebridgewholesale.com
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mortgage mastermind 2013 continued from page 40
NAPMW Houston is excited to host the
2013 National Educational Conference
and YOU are invited to join us!
CONFERENCE DATES:
May 16 - 19, 2013
Westin Houston - Memorial City
945 Gessner Poad - Houston, TX 77024
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One giant leap for NAPMW but one quick fight for you!
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staff and good people behind you are
important as well.
Dave Pressel: Adopting a nice, positive
attitude helps success. When you get to the
office, set some goals for the day. I once
had a loan I closed all via e-mail, I never
spoke to the woman before. Again, its
about remaining teachable. This is what
separates us from a middle-tier guy.
Theres a different mentality to defining
success. Geographically, there are compa-
nies with lower-loan amounts, so its all rel-
ative. Its not about volume, its about units
to me. Im not shallow enough to base my
success in life on money. In the grand
scheme of things, I know what I can do. Its
all about accountability and reliability. The
client doesnt care. They want to know if
you can close their loan and if it will be
done on time. If you apply logic to a situa-
tion, failure is not an option.
Kevin Zhu: Basically, remaining consis-
tent, establishing a reputation, using tech-
nology and executing successfully helps
keep you consistent. Whenever new tech-
nology comes onto the scene, I look for it
and research it. Google has really helped
make everything easier. I use a Google
Voice number, so when a client calls, my
assistant has the potential to answer,
which helps the process. I use Google Docs
to monitor when business is up or when
business is down. All of these technological
enhancements have made things easier. I
use everything, LinkedIn, Google, etc.
Dave Pressel: I get at least two loans a
month off Facebook, and I dont even
advertise my rates. Google is definitely a
plus.
Craig LaBruno: Every few days on
LinkedIn, I post articles and stuff on my
page, I have become very active on
LinkedIn and have made countless valu-
able connections.
Moderator: What does retirement look
like for you?
Ed Kenmure: I have four kids all with the
same wife. I realize that Im going to have
to work until Im 64-years-old because of
college, but Ive also looked at the business
as being great to be in. Were not putting
out fires or shooting bad guys. On days
when we relax, we can still get a client and
help them out, play some golf, whatever.
Why do I want to sit around and watch TV
or play golf? Why not help people all my
life? Im not going to retire.
Jeff Van Note: Its different for everyone,
and it depends where youre at. You have
to plan accordingly and give yourself the
option to retire if you need to.
Jon Lamkin: Put your money in different
buckets. The business is jamming, and Im
a big proponent of not wasting money. But
if you want to enjoy life and plan accord-
ingly, youll be fine.
Robinson Cardona: My dad used to say,
If I stop working, Ill die. Retirements not
for me.
Brian Ofsie: Its great that we are mak-
ing money, but you never know what
tomorrow will bring. Its good to have
meetings like this to pick one anoth-
ers brains and make as much money
as we can.
Barbara Gallagher McDonald: In 2003, I
remember telling my loan officers that
the money is very good and you need to
sock it away, and they kept throwing it in
my face. However, Im saying the same
thing now. We have to prepare. Save
what you can save, because eventually,
rates are going to rise once again. Im not
an expert, but eventually, were going to
be at a rate of six percent or so, and peo-
ple wont be saving money anymore. I
think we need to prepare not necessarily
for retirement, but for the lean years that
may lie ahead. I dont think the little guy
will ever be squeezed out.
Craig LaBruno: Im going to start setting
aside money for my kids college fund.
Well have to take it upon ourselves and
use our own money. We dont have stock
options or a 401k or anything like that.
We dont have to punch a clock, we can
be mobile. I dont plan on retiring, but I
do plan on slowing down. Ill scale down
and cherry pick is all.
Dave Pressel: I still play music, but I
gave it up when I was building my busi-
ness. I love to play the keyboard, and I
get to play once a week with a couple
guys. When I retire, Im going to play
music, and do a few loans here and
there. Ill still get business from time to
time, unless I cut myself off from the
industry. The Web is very dangerous, so
its imperative that you maintain your
reputation in this business. Thats the
snowball that will either lead to a lot of
business or a factor that will contami-
nate the business down the line. As
long as youre making X amount of
dollars and dont live to excess, thats
usually a safe and steadfast formula for
maintaining your life down the line.
Kevin Zhu: You cannot trust Social
Security. I will likely retire and keep writing
one or two loans a month. You dont have
to work a crazy amount. One or two loans
should be very easy. For myself, I plan on
staying on top of technology and continue
to learn. Itll be good to see how technolo-
gy impacts what we do from here, and
honestly, I do about 50 percent of my
loans via e-mail. If I can use new technolo-
gy to have other people help me, those
one or two loans per month can pay for
my retirement.
Nikitas Kouimanis: Im not looking to
retire. Im looking to do this until the busi-
ness kills me or until I die.
43
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sales@calyxsoftware.com
www.calyxsoftware.com
national, full-service mortgage lending
firm offering retail, correspondent and
wholesale mortgage solutions to clients
of varying income and credit types. The
new facility, which is two miles away
from the companys previous headquar-
ters, is a top-floor location. FGMC will
occupy the entire level. The headquar-
ters is 60 percent larger than the compa-
nys previous location, and includes
increased and improved space for tech-
nology, collaboration and presentations.
Chief Executive Officer Andrew Peters
notes that the relocation was made nec-
essary by the companys dramatic growth
in the past two years, including a 50 per-
cent increase in staffing.
Weve now established four distinct
production channels, all of which are
growing quickly, Peters said. We foresee
considerable growth in the near future,
and are confident it will be sustainable.
Quite simply, we outgrew our old facility.
AllRegs Powers Poli
Mortgage Group s
Lending Library Using
Norwood, Mass.-
based Poli Mortgage
Group Inc. has
announced that it
will leverage the
AllRegs technology platform to publish,
manage and maintain its lending libraries
of underwriting guidelines. Poli Mortgage
Group will now leverage the AllRegs tech-
nology platform and publishing expertise
to manage and maintain its retail and
wholesale lending library of mortgage
underwriting guidelines. Users will benefit
from a variety of productivity tools,
including an electronic Table of Contents
tree with links to content, guidelines and
forms. Content is also accessible through a
robust search engine that features a the-
saurus with industry jargon and relative
matching results. Through the archiving
feature, users will be able to view revised
content with the effective date displayed
and a shaded background.
We are excited to help Poli Mortgage
Group utilize an innovative and robust
resource to publish their guidelines and
communicate policy and changes, as
well as navigate and search the compa-
nys underwriting guide, said Dan
Thoms, executive vice president of
AllRegs. Poli Mortgage Groups lending
libraries will help their staff and partners
alike to streamline business processes
and increase productivity.
In addition, the Poli Mortgage Group
Lending Libraries features a Recent
Updates section to announce changes to
content, as well as E-mail Alerts to notify
users of changes.
Veros Named Master
Distributor of Freddie
Mac Valuation Tools
Veros Real Es-
tate Solutions
has been named a distributor of the
Freddie Mac Home Value Suite, which
includes the Home Value Explorer (HVE)
and Home Value Calibrator. Freddie
Macs Home Value Suite is a defined set
of valuation modeling tools that are
designed to automate, streamline, and
ultimately drive down the industrys
cost of collateral valuation. The suite
was developed to serve lenders in pro-
cessing and underwriting capacities,
portfolio managers, quality control pro-
fessionals, real estate brokers and Wall
Street investors. Veros is authorized to
directly distribute the products.
Freddie Macs HVE is an automated
valuation model (AVM) that incorpo-
rates the property data from the GSEs
portfolio of loans, appraisal data from
the Uniform Collateral Data Portal
(UCDP) and data from the GSEs portfo-
lio on the 12 non-disclosure states that
do not allow public access to this infor-
mation.
We have found the HVE AVM to be
an excellent complement to the
VeroVALUE AVM in cascade approaches,
which are available via our proprietary
valuation management systems, said
Charles Rumfola, senior vice president
of strategic initiatives for Veros. We
encourage clients to engage in their
own blind AVM tests or utilize the test-
ing conducted by industry experts, and
the results of those tests consistently
show the VeroVALUE AVM and Freddie
Macs HVE AVM as top performers.
Global DMS Recognized
by Pennsylvania Governor
Global DMS has announced that it has
been named one of five finalists in the
state of Pennsylvanias inaugural
Governors Impact Awards in the cate-
gory of small business impact within its
region. The Governors Impact Awards
recognizes companies from 10 different
regions throughout the state in five cat-
egories: Community Impact, Small
Business Impact, Entrepreneurial
Impact, Export Impact and Jobs First
Impact. In the category of Small
Business Impact, the award is given to a
business with under 100 employees that
has been an innovator in its industry,
demonstrated revenue/profit growth,
expanded its workforce, and been com-
mitted to the growth and development
of its employees and community.
The Governors Impact Awards is a
joint effort coordinated by the
Governors Office, the Department of
Community and Economic
Development (DCED) and the Team
Pennsylvania Foundation.
We are honored to be named a
finalist in the small business category by
the judges for the inaugural Governors
Impact Awards, said Vladimir Bien-
heard on the street continued from page 26
continued on page 45
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By Jeff Mifsud
In compliance with
Section 202(c) (5) of the
National Housing Act, the
U.S. Department of
Housing & Urban Development (HUD)
publishes notices in the Federal
Register making known the cause and
description of administrative actions
taken by HUDs Mortgagee Review
Board against FHA-approved lenders.
The purpose of this article is not to sin-
gle out specific companies (which Im
not mentioning by name), but to high-
light the reasons why HUD has penal-
ized these companies so we can learn
from their unfortunate experience.
This public notice from FHA coin-
cides nicely with this issues theme of
training since otherwise good compa-
nies are often fined heavily due to a
lack of internal training systems; sys-
tems which needed to be in place to
assure strict staff compliance of FHA
guidelines.
Now well explore some of the penal-
ties recently imposed on six FHA
lenders. These penalties include: Civil
Money Penalties; Withdrawals of FHA
Approval; Suspensions; Probations;
Reprimands; and Administrative
Payments. The cases below are excerpt-
ed from the Federal Register Vol. 78,
No. 70 dated April 11, 2013. Each case
shows the action taken by FHA and the
cause of the action.
Case #1
Action: On April 27, 2012, the Board
entered into a Settlement Agreement
with a company that required a Civil
Money Penalty in the amount of
$75,000, without admitting fault or lia-
bility.
Cause: The Board took this action based
of the following violations of FHA
requirements alleged by HUD: The com-
pany failed to notify the Department that
it was the subject of multiple state regu-
latory actions and sanctions, and submit-
ted false certifications to HUD in connec-
tion with Academys annual renewal of
eligibility documentation for its fiscal
years ending in 2009, 2010 and 2011.
Case #2
Action: On March 22, 2012, the Board
issued a Notice of Administrative Action
which immediately and permanently with-
drew the FHA approval of the company.
Cause: The Board took this action based
on the following violations of FHA require-
ments alleged by HUD: The company
failed to perform quality control functions
in compliance with FHA requirements,
failed to meet the requirements for partic-
ipation in the FHA mortgage insurance
program, failed to ensure that the correct
mortgagee identification number was
used when originating FHA-insured mort-
gage loans, failed to adequately document
the source of and/or adequacy of funds
used for closing, failed to correctly calcu-
late and document the mortgagors
income, failed to verify the stability of the
mortgagors income, failed to ensure the
mortgagor was eligible for an FHA insured
mortgage loan, failed to ensure the prop-
erty met HUDs eligibility requirements,
failed to comply with TOTAL Scorecard
requirements, failed to comply with HUDs
property flipping requirements, failed to
provide construction documents required
for property eligibility and/or high ratio
financing resulting in over-insured mort-
gages, failed to ensure that the maximum
mortgage amount was correctly calculated
resulting in over-insured mortgages, failed
to ensure that data submitted to HUD sys-
tems was accurate, and charged mort-
gagors unallowable fees.
Thats an awful lot of oversight, dont
you think?
Case #3
Action: On Sept. 14, 2012, the Board
entered into a Settlement Agreement
with a company and required it to pay a
civil money penalty in the amount of
$1.2 million and to complete mortgage
record changes to facilitate the payment
of certain FHA insurance claims, without
admitting fault or liability.
Cause: The Board took this action based
on the following violations of FHA
requirements alleged by HUD: The com-
pany submitted or caused to be submit-
ted false information to HUD in relation
to 63 mortgagee record changes, failed to
reconcile its portfolio data, and allowed
HUD records to incorrectly identify the
company as the holder of 97 FHA-insured
mortgage loans. In addition, they submit-
ted false information to HUD on 133
claims for FHA insurance benefits and, in
90 instances, claimed benefits for ineligi-
ble holders of record.
Case #4
Action: On June 14, 2012, the Board
entered into a Settlement Agreement with
a Company and required it to pay a civil
money penalty in the amount of $12,000,
without admitting fault or liability.
Cause: The Board took this action based
on the following violation of FHA require-
ments alleged by HUD: The company
failed to adopt and maintain a quality
control plan and management reports,
failed to implement a quality control
plan, allowed non-employees and non
W-2 employees to originate FHA loans,
and failed to require the loan interviewer
to sign page four of the initial Uniform
Residential Loan Application (Fannie Mae
Form 1003), and page one of the initial
Form HUD 92900A.
Case #5
Action: On Nov. 21, 2012, the Board
entered into a Settlement Agreement with
a company and required it to pay a civil
money penalty in the amount of $37,000,
and pay $92,677 to indemnify HUD for its
losses with respect to one FHA loan, to
indemnify HUD for any loss (past, present
or future) on five FHA loans for a period of
five years from the date of the agreement,
and to retain and fully pay for a third-
party servicing monitor for a period of one
year, without admitting fault or liability.
Cause: The Board took this action based
on the following violations of FHA require-
ments alleged by HUD: The company
failed to engage in loss mitigation, failed to
service FHA loans in accordance with HUD
requirements, and failed to offer property
disposition options to the mortgagors.
Case #6
Action: On July 16, 2012, the Board
entered into a Settlement Agreement
with a Company and required it to pay a
civil money penalty in the amount of
$91,500, and to pay $917,528 to indem-
nify HUD for its losses with respect to five
defaulted FHA loans, and to indemnify
HUD for any loss (past, present or future)
on three FHA loans for a period of five
years from the date of the agreement,
without admitting fault or liability.
Cause: The Board took this action based
on the following violations of FHA require-
ments alleged by HUD: The company
approved loans without properly analyz-
ing the borrowers credit, approved loans
without properly documenting or verifying
effective income, approved loans with
inadequate verification of the borrowers
cash investment in the property, approved
loans with inadequate analysis of the bor-
rowers ability to repay the mortgage obli-
gation, approved a loan with an incom-
plete Mortgage Credit Analysis Worksheet
(MCAW), and failed to implement an
acceptable quality control plan.
As you can see from the actions
taken by FHA against these companies,
FHA means business when it comes to
complying with FHA policies and proce-
dures. From your company marketing
to your MLOs taking application, to
your processors, closers and insurers,
all need to be continuously trained and
updated on FHA requirements. Its hard
to believe that companies in todays
regulatory environment still dont take
compliance seriously. Given the high
number of FHA loans currently being
originated, and the revenue that can be
generated, how can a company com-
pete without FHA approval? Let this
serve as a lesson to all company deci-
sion makers to analyze the strength of
your business systems when it comes to
FHA compliance, and to the staffs level
of knowledge needed to meet the com-
pliance requirements.
Go FHA!
Jeff Mifsud is founder of Michigan-based
Mortgage Seminars LLC, a former FHA
underwriter with 15-plus years of experi-
ence originating FHA loans, an FHA
expert for LoanToolbox.com and creator
of The FHA Originator, a monthly FHA
newsletter. Jeff may be reached by
phone at (248) 403-8181 or visit
www.MortgageSeminars.com.
FHA Lays Down the Hammer on Multiple Lenders Again: Find Out Why
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RMPath.com

RMSNAV.com
Wholesale Lending
Correspondent Lending
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Aime, president and CEO of Global DMS.
Global DMS is a highly entrepreneurial
organization that provides innovative
software solutions for the mortgage
banking industry and has built a com-
pany that is growing and making a pos-
itive impact in our local community.
Were very excited to be recognized by
Governor Corbett for our achievements,
commitment to our employees, the
mortgage industry and the state of
Pennsylvania.
Mortgage Master Expands
Further Westward Into
the California Market
Mortgage Master
has announced
that it plans to
expand its West Coast geographic foot-
print by opening new branch offices
and recruiting high quality production
professionals. Mortgage Master, which
led the state of Massachusetts in resi-
dential loan production in 2012 (bank
or mortgage banker), is now focused on
leveraging its successful model in the
California market. Ito Rodi, who recent-
ly was named branch manager of
Mortgage Masters La Jolla, Calif.
branch, will lead the drive to recruit
additional high quality loan officers
and increase originations throughout
San Diego County.
The La Jolla, Calif. branch currently
has six actively producing loan officers,
including a dedicated team of onsite
underwriters and processors with 75
total years of experience underwriting
in California.
Our expansion plans, which have
just begun in California, have always
been based on having the highest qual-
ity and most experienced mortgage
professionals in place to lead and drive
our growth, said Paul Anastos, presi-
dent of Mortgage Master. We are confi-
dent that Itos successful production
track record, industry knowledge, and
mentoring skills will help us attract top
industry talent, like Brian Wada, by
offering them the opportunity to deliv-
er the best possible pricing and service
to borrowers, while maximizing their
earnings potential.
ValuTrac and Platinum
Data Enter Into Appraisal
Quality Partnership
V a l u T r a c
Software and
Platinum Data
Solutions have
announced they have entered into a
partnership that sets a new standard
for a single, end-to-end appraisal qual-
ity verification and management tech-
nologies solution. The companies will
integrate ValuTracs ValuTrac Pro, a
customizable appraisal management
system, with Platinums RealView, a
configurable appraisal data quality ver-
ification technology, to provide mort-
gage lenders and appraisal manage-
ment companies an all-in-one solution
for managing workflow, ensuring com-
pliance, and mitigating risk in the
appraisal review process.
ValuTrac is setting a new standard
by providing the industry with state-of-
the-art, fully customizable appraisal
management technology, said Clint
Cornett, chief executive officer of
ValuTrac. Platinum is the premier
provider of appraisal verification tools
and a perfect partner for us to further
help our clients mitigate risk in the
lending value chain. By adding
RealView to our product offerings, we
now offer appraisal management com-
panies, banks, credit unions, and mort-
gage lenders the industrys most
advanced appraisal management sys-
tem to help them operate more effi-
ciently, enhance customer service, miti-
gate risk, and ensure industry regulato-
ry compliance.
ValuTrac Pro is a customizable
appraisal management system that
streamlines appraisal workflow, pro-
ducing huge operational efficiencies,
while mitigating business risk.
ValuTrac Pro customers gain signifi-
cant efficiencies with one repository
for all appraisals, streamlined web-
based appraisal ordering, real-time
appraisal status, automated status
notifications and appraiser selection.
ValuTrac Pro is fully customizable to
fit each customers specific business
requirements.
Greg Frost Announces
Marketing Partnership
With focusIT
focusIT Inc. has
announced a partner-
ship with renowned
mortgage sales and
marketing guru Greg
Frost, integrating Gregs sales and mar-
keting software, including the ACTion!
Marketing System, Daily Communicator,
Call Capture Marketing System, and
more, with focusITs Pulse productivity
software for mortgage originators, pro-
viding Pulse users with a comprehen-
sive, effective system for marketing,
selling and managing loans.
The way weve integrated Gregs sys-
tems into Pulse, were offering our cus-
tomers a set-it-and-forget-it marketing
program, said Josh Bopp, CEO of
focusIT. Gregs systems literally guide
users with day-by-day instruction and
automation to easily reach prospects
and referrals with consistency.
Pulse is a Web-based software that
fully integrates into the Calyx
PointCentral loan origination system.
The seamless exchange of information
between the two software solutions
enables users to manage their loans,
while also automating sales, production
heard on the street continued from page 43
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and marketing efforts. Pulse enables
loan originators to achieve what users
refer to as drastic increases in produc-
tivity and efficiency throughout the
mortgage cycle, from prospecting to
close to follow up marketing.
A renowned expert in mortgage
originations, Greg Frost has been one
of the countrys top producers in the
mortgage industry for more than two
decades. He has been recognized as
the first billion dollar loan originator
by National Mortgage News and the
number one mortgage originator in
the state of New Mexico by
Albuquerque Business Journal. His
sales and marketing systems are
based on his personal formula for
achieving the high volume of transac-
tions he has generated over the past
two decades. Frosts sales and mar-
keting systems provide marketing
templates as well as a formal process
for contacting prospects and referral
sources at predetermined intervals.
Title Source Expands
California Operations
Title Source has announced that it has
expanded its presence in California,
and is now licensed to write title insur-
ance policies in all 58 counties in the
state. This is in addition to Title Sources
current presence in California, where
the company has been providing escrow
and closing services since 2004. Title
Source has been writing title insurance
policies in the states most densely pop-
ulated areas since its 2007 acquisition
of Transunion Title and Escrow, but just
recently expanded to include the entire
state. Also in 2008, the companys serv-
ice expanded to include title insurance
in the most populated counties within
the state.
We are excited to extend our title
coverage throughout the entire state of
California and look forward to deliver-
ing the seamless and comprehensive
service experience that our clients have
come to expect from Title Source, said
Jeff Eisenshtadt, president and CEO of
Title Source.
Successfully obtaining authoriza-
tion from the Department of
Insurance to operate in all 58 counties
in California is a great achievement,
said Tim Donovan, corporate counsel
at Title Source. This is consistent with
our mission to remain the largest
independent provider of title insur-
ance, property valuations and settle-
ment services in the nation.
Capsilon Merges Katalyst
and DocVelocity Into One
Product
Capsilon has announced that it has
merged its Katalyst and DocVelocity
imaging systems into a combined offer-
ing, called DocVelocity, available to all
lenders. This product combination fol-
lows Capsilons recent acquisition of the
DocVelocity business. Until recently, the
Katalyst and DocVelocity services were
sold to different segments of the mort-
gage banking market. With Capsilons
acquisition of DocVelocity, the compa-
ny is now able to better serve the entire
market. The unified system is scalable
to meet the needs of both large and
small mortgage lenders.
Our DocVelocity offering combines
an award-winning, highly scalable doc-
ument management solution with
superior maintenance, support and
professional services capabilities, said
Sanjeev Malaney, chief executive officer
at Capsilon. The unified DocVelocity
system enables Capsilon to serve small,
medium and large mortgage lenders
equally well with single industry-stan-
dard solution.
Capsilon developed much of the
technology that DocVelocity marketed
and sold from 2007 until its acquisition.
Lenders who previously bought from
DocVelocity will benefit from this con-
solidation, as they now have a direct
relationship with the company that
develops and supports the technology.
In addition, certain optional capabili-
ties, such as mobile access and enter-
prise interoperability, previously pro-
vided only by Capsilon to its own cus-
tomers, are now available to all new
and prior DocVelocity customers.
All customers will benefit from the
combined product lines, whether they
bought from Capsilon or DocVelocity, as
they all will now use the same, unified
technology platform and receive consis-
tent support, training and services
offerings.
CoreLogic Acquires
Case-Shiller
CoreLogic has announced the acquisi-
tion of Case-Shiller from Fiserv Inc. In
addition to the widely recognized Case-
Shiller Indexes, CoreLogic will continue
to offer its CoreLogic HPI, which repre-
sents the most geographically compre-
hensive and current set of home price
indexes available. The CoreLogic HPI
and the Case-Shiller Indexes are com-
plementary measures of home price
trends utilizing the same baseline
methodology of repeat home sales.
The Case-Shiller Indexes will be
renamed the CoreLogic Case-Shiller
Indexes. The S&P/Case-Shiller Home
Price Indices will retain their brand
name. The CoreLogic HPI, CoreLogic
Case-Shiller Indexes, and S&P/Case-
Shiller Home Price Indices reports will
continue to be published and distrib-
uted on their customary time schedules
and in their current formats.
Dr. David Stiff, chief economist for
Case-Shiller, will continue to supervise
the preparation of the CoreLogic Case-
Shiller Indexes and comment on the
findings of those indexes. Dr. Mark
Fleming, chief economist for CoreLogic,
will continue to supervise the prepara-
tion of the CoreLogic HPI reports and
comment on the findings of those
reports.
National MI Officially
Launches Operations
National MI has issued its first mort-
gage insurance commitments, officially
marking its entry into the private mort-
gage insurance (PMI) business. National
MI plans to quickly establish itself as a
company that offers the most definitive
terms of coverage in the industry. The
company has approved its first 100
master policies with lender customers.
Both Fannie Mae and Freddie Mac
approved National MI as a qualified
mortgage insurer in January, and
National MI intends to work with
lenders nationwide. To date, the com-
pany has been approved in 46 states
and the District of Columbia, and
expects approval from the remaining
four states in the near term.
With our unique master policy and
transparent terms of coverage, National
MI is reinventing private mortgage
insurance, said Bradley Shuster, presi-
dent and CEO. By raising over $500
million in capital last year, we led the
way for the reintroduction of private
capital into the mortgage insurance
industry.
National MI was founded last year by
Bradley Shuster and Jay Sherwood,
executive vice president and CFO of the
company. In 2012, Shuster and
Sherwood raised $550 million in private
capital to launch the new venture. The
company estimates that its available
capital will support mortgage insurance
coverage on over $30 billion of mort-
gage loans, which will help make
homeownership available for roughly
150,000 households throughout the
country, most of whom are expected to
be first-time homebuyers.
Liberty Home Equity
Solutions Purchased By
Ocwen Financial
Corporation
Ocwen Financial Corp-
oration announced
that it has completed
the purchase of Liberty
Home Equity Solutions
from Genworth Financial. Liberty will
continue to offer reverse mortgages
through direct, wholesale and corre-
spondent channels.
Liberty is the industry leader in
helping seniors secure their retirement
with strong customer-service and supe-
rior quality, said Ronald M. Faris, chief
executive officer of Ocwen. We believe
heard on the street continued from page 45
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this promising market offers enormous
long-term growth potential, and this
purchase positions Ocwen to capture
that growth.
Pete Engelken, president of Liberty
Home Equity Solutions, said We are
very excited to complete this transac-
tion and become a part of one of the
largest mortgage servicing and origina-
tion companies in the industry.
Together we will be able to help even
more seniors with home equity retire-
ment income solutions, including FHA
and proprietary products.
Value Services LLC
Changes Name and
Launches New Site
Value Services LLC
has announced
t hat i t has
changed i t s
name to reflect the mortgage industrys
growing demand for service and value in
the appraisal market. The company was
originally founded as Reese Appraisals
and was later affiliated with IRR-
Residential. In addition to its new name,
Value Services has launched a new Web
site, www.ValueServicesAppraisals.com,
and in the coming months plans to
introduce a new appraisal solution
aimed at addressing the mortgage
industrys most pressing valuation
needs.
Value Services provides residential
and commercial property appraisals in
addition to appraisal management
services, forensic appraisal reviews, liti-
gation support, alternative valuation
products, appraisal compliance services
and other solutions. All valuation work
is performed by licensed and certified
appraisers who have established them-
selves as leaders in their local markets.
The companys staff includes licensed
builders, certified expert witnesses and
USPAP-certified instructors.
Quicken Loans
Acquires Servicing
Rights from Ally Bank
Detroit-based Quicken Loans Inc.
announced the purchase of approxi-
mately $34 billion in mortgage servic-
ing rights from Ally Bank. The servicing
pool is comprised of non-delinquent
Freddie Mac and Fannie Mae-backed
mortgages that currently have higher-
than-market interest rates which could
substantially benefit from refinancing.
The acquisition, expected to close in
the second quarter following approvals
from Fannie Mae and Freddie Mac, will
dramatically increase Quicken Loans
servicing footprint. In the last year, the
company has aggressively built a $90
billion mortgage servicing portfolio,
making it the nations 17th largest ser-
vicer. With the addition of the $34 bil-
lion in servicing from Ally Bank, the
company is expected to grow to be a
top-10 servicer by mid-year.
We have not been bashful in making
the market aware of our interest in
acquiring servicing rights, said Bill
Emerson, chief executive officer of
Quicken Loans. This transaction with
Ally Bank allows us to purchase a well
performing pool of loans, and will help
grow our servicing footprint. This servic-
ing pool will also create a large oppor-
tunity for Quicken Loans to refinance a
substantial amount of these clients into
significantly lower monthly payments.
The company also announced that it
will continue to pursue servicing pools,
while also growing its servicing portfolio
organically through its mortgage origi-
nation business. In 2012, Quicken Loans
originated a company record $70 billion
in residential home mortgages, making
it the nations third largest mortgage
lender.
NewDay USA Acquires
Education Provider
Abacus Mortgage Training
Chrysalis Holdings
LLC, parent com-
pany of NewDay
USA, has announced it has acquired the
intellectual assets of Abacus Mortgage
Training and Education, a privately held
company and provider of NMLS-
approved loan officer training and edu-
cation for mortgage originators. This
timely acquisition supports and
strengthens another of Chrysalis key
holdings, NewDay USA, one of the
nations leading mortgage companies
serving the homeownership needs of
veterans by providing VA, FHA, reverse
and conventional loan products.
NewDay USA also provides loan officer
education and training through its
NewDay USA University initiative. The
acquisition enhances NewDay USA
Universitys capabilities and positions
the company to achieve its objective of
serving the veteran community.
The NewDay USA University initia-
tive is one of the cornerstones of our
companys success, said Rob Posner,
chief executive officer of NewDay USA.
At NewDay, we are committed to
developing the industrys next genera-
tion of mortgage bankers. The
Universitys programs, which focus
intensely on originations, loan process-
ing and underwriting, will deliver the
training that puts our professionals on
the path to a successful career.
Abacus Founder Paul Donohue will
join the leadership team at NewDay
USA and serve as Dean of NewDay USA
University. In this capacity, he will
manage and oversee the design of
leading-edge curriculum devoted to
housing finance sales, service and
compliance issues. Donohue, whose
mortgage and housing industry experi-
ence spans more than 30 years, is a
nationally-renowned speaker and edu-
cator in the lending industry. He is the
author of numerous training courses
approved for federal and state man-
dated requirements.
Abacus team members Tom Estes Jr.,
PB FINANCIAL GROUP
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Grow with FAMP in 2013...
Join us at our 2013 Convention & Trade Show
July 31 through August 3, 2013

Attendees
Complete Your NMLS-Approved Required Continuing Education in 1 Day
Meet and Hear Industry Experts at Our Luncheons
Attend Breakout Sessions to Sharpen Your Professional Skills and
Knowledge
Attend Our Annual Trade Show to Meet the Industry Professionals You
Need to Know
Participate in the FAMP Golf Outing at the Beautiful Shingle Creek Golf
Club
Vendors
Network, Network, Network
Meet New Prospects, Strengthen Existing Customer Relationships
Gain a Competitive Edge
Do you want to bring home leads, sell your products/services and build
your company image? Meet the Mortgage Professionals you need to know
at our Trade Show. People want to do business with people theyve met.
Visit us at www.MyFAMP.org for more information.
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By Jeff Krantz
C
onfidence is a mag-
netic personal qual-
ity that causes
prospects to desire to
hear what we have to say. Its one of
the most effective traits of top pro-
ducing sales professionals. But
how do we get it?
Every sales represen-
tative, whether the
newbie or the sea-
soned professional,
experiences appre-
hensions from time
to time when it
comes to prospecting
for new business. This
nervousness has been
commonly known as call
reluctance. Its natural. We all get
it. But what separates the top pro-
ducers from the rest of the sales force
is how they get over it and develop
call confidence.
The following five factors are cru-
cial to develop the confidence
required to effectively prospect and
schedule quality sales appointments:
Factor #1:
Be fully prepared
It starts with research. We must have
enough quality information on the
background of the prospect and their
purchasing tendencies. Once we have
this understanding, we can draft an
effective, well thought out, pre-call
plan. Successfully scheduling a quali-
fied appointment then becomes a
matter of executing the plan.
Factor #2:
Comprehend the art
and science of
appointment scheduling
Contacting prospects to schedule
appointments an art form. Its a real
life, authentic endeavor to connect
with a real person who has very real
needs. Appointment scheduling
is an art form because its a
people-business, and all
people are different. We
interpret experiences
differently much in
the same way that an
artists painting may
be interpreted differ-
ently by a viewer. One
size does not fit every-
one.
Appointment scheduling is
also a bit of a science, because it can
be completed successfully if we break it
down into a proven process. If we fol-
low sequential steps that work each
time, we can be more assured of reach-
ing our desired outcome.
Factor #3:
Proven process
Driving a car that has a stick-shift
transmission involves following a
proven, sequential process. If you
skip steps, you will either break
something or hurt someone. In the
same way, successfully scheduling
sales appointments follows a proven
process.
Factor #4:
Experience
Nothing beats the experience that is
The
Five
Critical Factors
to Develop
Call
Confidence
Even the best
in the business
experience days when
they dont feel like
making prospective
phone calls.
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By Dan Thoms
The mortgage industry today is in the midst of signifi-
cant change. Between investor and agency require-
ments, and the ongoing changes in regulatory compli-
ance requirements, the need for clear and current docu-
mentation has never been greater. In todays fast-paced,
change-centric environment, finding the time, attention, and most
importantly, resources, to complete large scale authorship initiatives is a
challenge in and of itself.
To that end, AllRegs has launched engagement-based professional
services to meet the documentation needs of mortgage lenders and the
various departments within their organizations, including mortgage
compliance, mortgage underwriting, mortgage servicing and more.
While doing custom documentation for many large scale clients, we
found that many companies need continued updates to projects as
industry changes are made. For example, a company looking for a
Credit Policy Manual or Sellers Guide may also benefit from scheduled
quarterly updates. Engagement-based services offer the ease of con-
tinuing updates and changes without the need for additional contracts
or sales meetings. You let us know how else we can support your doc-
umentation goals, and our writing team gets back to work without a
loss in momentum.
From policies and procedural guidance, to full service lending guides
(wholesale, retail, correspondent, etc.) mortgage lenders can rely on our
team of experts to create a custom documentation solution, with the
ability to scale up or down as the needs changes. Some benefits of these
engagement-based services include:
n Leverage AllRegs 20+ years of industry experience and understanding
of regulatory compliance and industry best practices for a fraction of
the price of a full-time staff writer
n Create full-scale documentation for your organization that can easily
be published in a variety of formats, including AllRegs Publishing
Services
n Expand project scope easily using the engagement-based project
model
n Create the custom solutions you need, based on the available suite of
services
n Engagement Reports issued regularly to keep you informed on the
time/resources expended on your project, with no budgetary surprises
n Project management and communication supported by AllRegs,
with insight into how comparable companies are approaching sim-
ilar challenges
n Consultative guidance resulting in stronger practices and improved
efficiencies
For a personal consultation on your engagement needs, call your dedicat-
ed account executive at (800) 848-4904. Or, get more information about
AllRegs and the full suite of products and services by visiting www.all-
regs.comtoday.
Using Engagement-Based
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developed over the course of time as
we practice, practice, practice. The
most accomplished and successful
professionals in every industry have
spent time practicing their craft until
they have mastered it.
Like any seasoned professional,
through trial and error, they know
what works and what doesnt work.
These professionals draw on years of
experience that has made them what
they are today.
When it comes to developing confi-
dence, there is nothing quite as effective
as the experience that develops the skills
we need to perform at our very best.
Factor #5:
Acknowledgement
Who doesnt like to celebrate suc-
cess? When sales managers give cred-
it to those on their team who have
achieved milestones, they help them
to develop greater confidence.
Ive developed sales leadership
programs which equip sales man-
agers with the acumen to positively
lead their sales teams to greater lev-
els of achievement. Inspirational
leaders are those that provide recog-
nition and acknowledgement to their
teams when they succeed.
Overcoming
call-reluctance
Even the best in the business experi-
ence days when they dont feel like
making prospective phone calls.
Some days, the phone looks like it
weighs 500 pounds. This apprehen-
sion to pick up the phone and reach
prospects has been referred to as
call-reluctance. It can be one of the
most crippling mindsets in the pro-
fession of selling.
If we allow call-reluctance to hold
us back, we wont have calendars full
of quality appointments and our
sales production will suffer poorly.
How do we rid ourselves of Call-
Reluctance? Lets start with identify-
ing what causes it in the first place.
l What causes call-reluctance: Start
by listing the top three reasons that
you personally experience call-
reluctance. When I facilitate train-
ing workshops, I hear a few of the
common reasons that sales profes-
sionals experience call-reluctance,
including:
I dont like the feeling of being
rejected.
I feel like Im bothering people.
It feels as though Im just inter-
rupting them.
They feel like Im just calling to
sell them something.
How do we remedy this? How can we
overcome every hint of call-reluctance?
Five factors for
overcoming every hint
of call-reluctance
l Factor #1: Prepare and plan
Planning is critical in every sales
activity. If we go about the call hap-
hazardly, we will not be prepared
and the prospects responses could
catch us off guard. The result is an
ineffective appointment scheduling
call and a calendar void of meaning-
ful sales meetings. It has been said,
success is where preparation meets
opportunity.
l Factor #2: View the appointment
scheduling process as critical to
your success
Imagine trying to drive a car and
skip second gear? The engine
would stall. If you want to drive it
successfully, you have to follow
the proven process and move
properly through all the gears.
Appointment scheduling is a criti-
cal step in a successful sales
process. If you avoid this step
because you are reluctant, your
sales will stall. Developing a posi-
tive mindset toward sales appoint-
ment scheduling is a critical factor
in overcoming call-reluctance.
l Factor #3: Proven methods
When we follow a successful
method, it takes the stress off of us
and puts it onto the process. Its
not a matter of whether or not the
method works, its more a matter
of whether or not you work the
method.
l Factor #4: Partnering
Accountability is an incredibly
motivating factor in business.
Sometimes when we try to go it
alone we run out of inspiration or
may even fall back into old, inef-
fective habits. If you have a col-
league, whose motivation is to see
you succeed, he/she can act as a
mentor. This person can offer
encouragement and feedback
when you need it most. That type
of edification builds confidence
and alleviates the feelings of call-
reluctance.
l Factor #5: Practice, practice,
practice
There is nothing that fosters confi-
dence or dispels fears like the expe-
rience that results from practicing.
The more time you practice the
skill of appointment scheduling,
the faster you will master it.
Every successful professional
spends ample time practicing their
skill, over and over and over again.
Each exercise of the skill becomes a
learning opportunity of what works
best or a moment of enlightenment
for what not to do again next
time. We all learn through trial and
error.
Jeff Krantz is of www.JeffKrantz.co LLC
trains the techniques that ultra-top sales
producers use to fill their calendars with
qualified sales appointments. He may be
reached by phone at (716) 432-1202 or e-
mail jeff@krantz.com.
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The Benefit of a Hired Sales Trainer
By Greg Frost Sr.
P
rofessional training is a topic
close to my heart. Being a for-
mer NCAA athlete, as well as a
nationally-recognized loan origina-
tor, I have always had a deep appre-
ciation for and have personally ben-
efited from, both group and person-
al professional training. Being both a
production manager and a profes-
sional trainer myself, I am also keen-
ly aware that A prophet is rarely
heard in his own village.
I can stand in front of 200 loan
originators in a hotel ballroom and
move most of them to commit to
implement one or more of the tac-
tics, strategies or business building
systems, to which I train. But, Ill be
darned if I can get my own eight loan
originators here in Albuquerque,
N.M. to embrace my teachings. This
is especially perplexing because they
are in my market and have either
watched or are keenly aware of how
I became the first billion dollar loan
originator in the entire mortgage
industry.
What is it about a professional
trainer that will cause your team to
pay more attention than they will to
you, and more than likely deter-
mine that the training material is
beneficial and worthy of considera-
tion? The trainer may well have
included several tactics you have
suggested many times. However,
when a professional trainer presents
them, they are embraced. Its crazy,
but true. I have regularly main-
tained that once I crossed the New
Mexico state line, I immediately
became an expert and significantly
more credible.
To better understand this phe-
nomenon, you need to look no fur-
ther than Dr. Robert Cialdinis writ-
ings on the Principles of
Persuasion and focus on the princi-
ple of authority. When one is pre-
sented as an authority and possesses
the trappings of authority, one is
perceived as an authority. When one
is perceived as an authority the psy-
chological principle of satisficing
(to satisfy and suffice) is embraced
by the recipients, causing them to
want to believe that what they are
hearing will actually help them.
Many will still question and even
eliminate certain isolated aspects of
the training, but most will be
accepted as beneficial.
What can you do to insure that
the message your team receives is
consistent with what you want them
to be taught? Insist on a content
review with your prospective profes-
sional trainer. Review your objec-
tives, the proposed material and
insist on curriculum modifications
where necessary. A good trainer has
been in the origination trenches and
should be able to readily adapt to
your wishes. Include time in the
training for a commitment session,
at which time every attendee vocal-
izes which of the tactics presented
they like and are willing to imple-
ment. Get their commitment in writ-
ing, as well.
Budget for a follow up training,
where the trainer returns to interac-
tively focus on your teams individual
implementation of successes and
failures. The trainer should be able
to share their personal implementa-
tion experience with each tactic,
identify with the challenges and
offer counter measures and in-flight
corrections.
If your team knows beforehand
that this is not just a one and done
training. If they know that the train-
er will be back and personally follow
up with them, they will be much
more inclined to buy in and
embrace one or more of the tactics
presented.
If you can get 50 percent of your
team to embrace and implement
just one successful business build-
ing tactic, and if that one tactic
results in that 50 percent of your
team funding two more loans per
month, what is the return on your
training investment?
Zig Ziglar maintained that, You
can get everything you want in life
if you will just help as many people,
as you can, get what they want.
Help your team learn new busi-
ness building strategies by providing
professional training; help them
commit to implementation; help
them recover if/when they stumble
with training follow up and watch
them help you get what you want.
Greg Frost Sr. is vice president of
national training for Primary
Residential Mortgage Inc. (PRMI). He
was the industrys first billion-dollar
originator and has been the number
one residential mortgage lender in
New Mexico since 1985. He may be
reached by phone at (505) 292-7200
or e-mail greg@gregfrost.com.
A good trainer has been in the origination trenches and
should be able to readily adapt to your wishes.
We have them!
Do you?
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gage companies across the country
we use our buying power and
leveraged competition among
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Training and Coaching Sales Personnel
By Dave Hershman
T
here are several reasons why
many in the mortgage industry do
not hire inexperienced loan offi-
cers. The lack of time is one reason.
Most managers are personal producers
and do not have the time to train.
Secondly, identifying the needs of each
neophyte is difficult. Not every person
needs the same training. For example,
someone who is inexperienced may
have 20 years of sales experience or 20
years of real estate experience. Their
needs would be different than hiring
someone from a government job.
Finally, the training of sales personnel
provides some special challenges
because it is difficult to measure the
reasons they may or not be producing
results. For example, when we train an
originator and he/she goes out on the
street: How do we know why they are
not producing?
l Are they making calls but not asking
for the business?
l Are they calling on the wrong targets?
l Are they saying the wrong things and
turning people off?
l Are they too aggressive?
l Are they hiding out in a bar all day?
We can train and monitor all we
want, but we are not going to know
what an originator is saying out on the
street in order to help or hurt the
cause. Coaching calls will not necessari-
ly tell us what is wrong because we will
not see true behavior while we are
present. Just because coaching calls will
not be 100 percent effective does not
mean that they are not important.
Basically, there are three types of
coaching calls:
l Training calls: We send a rookie out
on the street with us or have them
listen to us handling inquiry calls.
They are to observe our behavior.
This is a training exercise and the
goal is learning. In technical terms
this is called the process of bench-
marking.
l Monitoring calls: We are observing
a salespersons behavior. It is up to
us to let the other person do the
talkingeven if we are approached
by a person, attempt to defer. Our
goal is to observe true behavior
(not exactly as effective as having a
hidden video or audio tape). Many
telemarketing firms do monitor
calls blindly for training purposes.
l Joint calls: Whether a conference
call or a joint sales visit, many of our
sales personnel will rely upon us to
help them seal important deals.
Perhaps you have a previous rela-
tionship with a particular client or
office. Perhaps you have a great
sales meeting presentation that you
can deliver on behalf of your
employee.
Identifying reluctances
Every salesperson has some type of
reluctance. This reluctance could be
defined as a type of call reluctance,
marketing reluctance or even commu-
nication reluctance such as the fear of
public speaking. These reluctances
can be crippling to the average sales-
person and an important part of the
managers job is to not only to identi-
fy this reluctance, but format solu-
tions to help the salesperson over-
come this handicap. For example, it is
important for a salesperson to stay in
contact with previous customers. And
the most effective contact in this
regard is over the phone rather than
sending notes. But if the salesperson
has a reluctance to make telephone
calls for marketing and/or customer
service purposes, this is an issue. The
question is: how do you overcome this
fear? Before finding an alternative
means of communication, there are
many tools you can use:
l By making sure they schedule activi-
ties which they are likely to overlook
if they are not specifically on their
calendar;
l By helping the loan officer eliminate
obstacles that are being used as
excuses for keeping us from doing
what they need to do. For example
showing them that their pipeline
does not need a babysitter.
l By pairing up with buddies or
coaches who will give them daily
encouragement to take certain
actions.
l By making it fun with contests, chal-
lenges and games. These things may
be seen as infantile by some, but
they are really major sales tools. In
reality, if they do not like what we
are doing, they are less likely to
accomplish the task.
l By helping them be honest with
themselves. If they are going to over-
come an obstacle they must admit
that their call reluctance (and per-
haps attitude) is the problem, not all
the other things we have been blam-
ingsuch as paperwork and the
competition.
Scripts
No salesperson can develop into a
true relationship star through the
use of scripts. Yet, we all know that
the secret to great telephone sales
and overcoming objections is being
prepared with what to say and at the
right time. You will facilitate the
process greatly by developing stan-
dard answers for standard questions.
In training, I often jest by saying,
Dont put the customer on hold
while you search for your script.
Scripts do have a time and place
but they do not substitute for real
needs assessment and conversation-
al/relationship skills.
This article barely scrapes the sur-
face of training and coaching issues.
But it does demonstrate several fac-
tors which are important within the
process. Training and coaching are
serious and important functions of
managers and most managers have
not been trained to become excel-
lent coaches. Getting the most out of
our staffs is an important objective.
So is the goal of reducing turnover.
In other wordsit is complicated
and difficult, but worth the time and
effort to accomplish in the right way.
Dave Hershman is a top author in the
mortgage industry with seven books pub-
lished, including The Complete
Mortgage Management Kit. Dave is also
director of branch support for McLean
Mortgage. He may be reached by e-mail
at Dave@HershmanGroup.com or visit
OriginationPro.com.
We can train and monitor all we want, but we are not going
to know what an originator is saying out on the street in
order to help or hurt the cause.
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Leadership and Restoring Confidence
in the Community
By David Lykken
A
s I sit back and think about the
training programs and initiatives
for loan officers in the mortgage
industry, it is difficult to write about how
to teach salespeople to become better
salespeople without first teaching them
about leadership. Dont get me wrong; I
believe many benefits can be derived
from a good sales training program. But
before anyone starts talking about sales
training, a different conversation needs to
take place. As leaders our industry and
community, we need to muster the
inward strength and integrity to first
address a different kind of trainingval-
ues training. You start by asking yourself
questions like, What are my values? and
What the values of my organization?
Recently, I was speaking at a state
mortgage industry convention to a large
group of mortgage professionals and
Murphys Law showed up. As soon as I
stepped on stage, I started experiencing
technical difficulties. My laptop wouldnt
communicate with the projector. As I
quickly tried to resolve the problem, I
could feel some restless tension begin to
stir in the room. Knowing the importance
of keeping the attention of the audience
was way more important than getting the
presentation working, I made the decision
to just set the laptop aside with all my
notes and slides and just started visiting
with everyone in the audience as if they
were sitting in my living room. I began to
speak from my heart about two topics I
am so very passionate about, LEADERSHIP
and VALUES. The technical difficulties I
experienced turned out to be the most
convenient inconvenience that could pos-
sibly have happened because I began to
expound on what I think is the most press-
ing leadership issues in the mortgage
industry today.
I spoke from the heart about the impor-
tance of homeownership and how integral
it is to our economy. By this time, an
audio/visual person fixed the problem and
I was able to step back into the slides I had
prepared. It was perfect timing. The slide
that first came up in my presentation was a
slide that showed how the level of home-
ownership had fallen to alarming new
lows. The trend lines were showing how we
were fast becoming a nation of renters.
At another conference where I was the
keynote speaker, I asked the audience to
raise their hands if they thought they
could afford to buy a new home in the
next few years. The vast majority of peo-
ple in the audience raised their hands.
Then, I asked another question. How
many of you, I pressed, actually plan on
buying a home within the next few years?
Like a receding tide, over half of the hands
slid slowly downwardconfirming the
data on the slide. Fewer and fewer
Americans plan to buy a home in the near
future. Why?
As I ask more and more people that
can afford to buy homes, as to why they
are not doing so, I consistently get the
same answers:
l Because, I dont see the benefits in
owning a home.
l It is a long-term financial commitment,
and I honestly dont know if my
income will remain at this level or if I
will even have a job this time next year.
l In spite of homes be very affordable, I
dont want to run the risk of losing my
home to foreclosure Id rather play
it safe and rent.
This fear of being foreclosed on per-
vades our culture today. Since the end of
2006, the U.S. has added 4.8 million
renter households and lost 1.7 million
owner households. Just as this trend
began, a survey by Harris Interactive of
1,334 U.S. homeowners revealed the fol-
lowing answers to the question, If home
foreclosure were likely for you, what best
describes how you would feel? Here are
the results:
l Scared (38%)
l Depressed (35%)
l Angry (9%)
l Embarrassed (8%)
l None of the Above (9%)
The Mortgage Banking Association
(MBA) estimates that roughly one million
new families each year enter into foreclo-
sure, and that one out of every 200 home
purchases will end in foreclosure. This
trend is a systemic problem that feeds on
itself. When homes are foreclosed, fewer
people buy. Prices rise and more foreclo-
sures occur. Its a vicious cycle filling the
country with fear. When people lose their
homes, they arent just losing houses.
Theyre losing a piece of their founda-
tion/roots. They are losing a sense of sta-
bility and confidence in the future.
During a brief period of insanity, from
2001 to 2007, many mortgage profession-
als enabled buyers to buy homes they
could not afford and failed to properly
educate them on what they were getting
into, much less how to make responsible
homebuying decisions. Those who didnt
participate in the insanity did little or
nothing to try and stop the madness. If
you have ever heard me speak at a con-
ference, you will hear me make this state-
ment, When we fail to regulate from
within, we will be regulated from with-
out. The Consumer Financial Protection
Bureau (CFPB) is all the evidence we need
to realize just how painfully true that is.
Great leaders dont need regulation.
They are built with internal regulation.
They have integrity instilled in their core
that emanates from their being. Those are
the mortgage professionals we need rising
up in the industry. Those are the loan orig-
inators we need in the field. We dont
need people selling houses, but need peo-
ple to teach others how to responsibly buy
homes. Only when that happens will we
see the industry bounce back.
Why complain about the regulation?
Instead, lets turn it on its head. Lets set the
bar even higher. Lets become teachers.
According to a survey conducted by
Freddie Mac and Roper Public Affairs, six
out of 10 homeowners wished they more
thoroughly understood the terms and
details of their mortgage. Moreover, even
more than six in 10 homeowners who
were delinquent were not aware of the
programs offered by lenders to help them
find solutions to paying their mortgages.
What does this tell us? Two very important
things:
l Buyers are not properly educated; and
l Buyers want to be more educated.
Thats where great leadership in the
mortgage industry comes into play.
How do we alleviate the fear? How do
we restore confidence to the marketplace?
How do we turn this thing around? The
solution, as with many other things, lies in
education. We need to work with local
builders to create programs that foster a
more educated community of homebuyers.
We need to take the responsibility of mak-
ing sure people know what theyre doing
when they enter into mortgage contracts.
We need to teach people financial/fis-
cal literacy. People need to understand
what they can and cannot afford and why.
People need to understand how interest
works. People need to understand how
property taxes work. And we can no
longer have a thats for us to know and
you to find out mentality. We must take
responsibility for our customers under-
standing of the mortgage finance indus-
try. If they dont understand how it works,
it isnt because they failed to learn; its
because we failed to properly and effec-
tively teach them. I believe that the future
leaders in the mortgage industry will be
those offering seminars and workshops
through local churches, community cen-
ters or libraries to teach the public how to
manage their finances, especially as it
relates to buying a house. The more edu-
cated homebuyers are, the less fearful
they will be in entering market. People
are afraid a great deal because they dont
understand how mortgage finance works.
Lets take that fear off of the table and
teach them!
We need to remind people of the ben-
efits of owning a home. More and more,
as the market recovers from the recession,
people are beginning to be able to afford
homes. But we still need to remind them
why they would want to own a home in
According to a survey conducted by Freddie Mac and Roper
Public Affairs, six out of 10 homeowners wished they more
thoroughly understood the terms and details of their
mortgage.
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the first place! We need to remind them
that, according to research done by Ohio
State University for the Journal of Housing
Research, homeowners tend to be health-
iermentally, emotionally, and physical-
lythat homeowners tend to have high-
er participation in civic life and that chil-
dren of homeowners tend to reach
greater levels of academic performance.
In short, we need to remind people that
owning a home is a good thing.
Almost everyone knows the Biblical
story of David and Goliath. Most people
view it as an underdog storythe small
boy David taking down the giant Goliath
with nothing but his faith and a single
stone. But theres more to the story. Its
also a story about fear and how unreal-
ized leadership can overcome it.
Most think David killed Goliath with a
single rock slung against his forehead, but
in reality, it was that he believed in some-
thing beyond himself. As a result, he over-
came giant odds and turned the tide of
that battle. David probably didnt see him-
self as any kind of leader, but the net
effect was that he demonstrated more
leadership than the entire Israeli army.
What amazes me is how the Israelites
his people, who moments before were
dismayed and greatly afraid, reacted to
the victory. The Bible says in 1 Samuel
17:52, The men of Israel and Judah arose
and shouted and pursued the Philistines
Just like that, the fear was gone. How?
David restored confidence through a sin-
gle act of bold confidence in the face of
seemingly gigantic adversity.
Just as David restored confidence in his
people, we must restore confidence in
homebuyers across the nation. All it takes
is the strength of character to step up and
do what no one else is doing. Its time to
become leaders by educating Americans
in the basics of financial management and
responsible homeownership. Mortgage
professionals are the Davids of today,
and homebuyers are the Israelites. Fear is
the Goliath of the mortgage industry and
education is the stone that slays it. Go
forth and lead your people into home-
ownership and achieve success regardless
of what market conditions.
David Lykken is president of mortgage
strategies and managing partner with
Mortgage Banking Solutions. He has more
than 35 years of industry experience and
has garnered a national reputation, and
has become a frequent guest on FOX
Business News with Neil Cavuto, Stuart
Varney, Liz Claman and Dave Asman
with additional guest appearances on
the CBS Evening News, Bloomberg TV
and radio. He may be reached by phone
at (512) 977-9900, ext. 10, or e-mail
dlykken@mortgagebankingsolutions.com or
dlykken@mbs-team.com.
Unleashing the Trainer in You:
10 Easy Steps to Creating a Course
By Ginger Bell
If I had eight hours to chop down a tree,
Id spend six hours sharpening my axe.
Abraham Lincoln
W
ith the Consumer Financial
(CFPBs) focus on compliance
management systems and the
increasing need to provide training to
personnel outside of the standard con-
tinuing education for loan originators
with the passage of the SAFE Act in
2008, our industry has had to look to
means to create effective training.
Whether you are a subject matter
expert (SME) creating a course on
Completing Correct Disclosures, or a
loan originator looking to provide educa-
tion to your real estate agents and part-
ners, we all begin at the same starting
placea blank sheet of paper. The real-
ity is that we all have something we are
really good at. Whether it is specializing
in VA loans, marketing or underwriting,
you have information you can share with
someone else. The challenge lies in how
you go about creating a presentation,
course or video that shows someone how
to do what you do or know.
Creating a training course may seem
like a daunting task, but its really very
simple. If you follow these 10 simple
steps, youll be on your way to creating
a successful course that will allow you
to take your expertise and hold a real-
tor presentation, develop an entire cur-
riculum to place into a learning man-
agement system or write a continuing
education course.
Step 1: Prepare yourself
l Begin by educating yourself by read-
ing and researching articles about
your topic. This will help to provide
supporting documentation and infor-
mation to support your knowledge.
l Create a file folder on your comput-
er where you can gather information
to use as a reference and guide for
writing your course.
l Determine how you will deliver the
course. Will it be online, live or both.
l Make sure you have the right soft-
ware to prepare your course. Will
you be presenting live to a group?
Will you be creating a video to
embed on your Web site or
YouTube? Will you be conducting a
live Webinar? Will you be creating an
online course to be presented in a
learning management system (LMS)?
Often, you can repurpose your infor-
mation into a variety of delivery
methods.
l If you are going to have your course
approved for continuing education,
you will want to research how to do
that with the governing authority.
Step 2: Prepare your
materials
l Gather your course materials and
content in a central location.
l Include items such as handouts,
slides shows, syllabus, lecture notes,
projects, assessments and discussion
points.
l Determine the formats of your mate-
rials. Take notes of items already in
electronic formats such as Word doc-
uments, spreadsheets and slides.
l Accommodate different types of
learners. Make sure visual learners
have graphics. Provide narration and
text for verbal learners and include
projects to keep students active and
engaged.
l Identify measurable course objec-
tives. Determine if there are core
competencies and knowledge stu-
dents will need to meet these
objectives.
Step 3: Make an outline
l Make an outline. Be sure to use
Step 4: Determine how to
deliver materials
l Determine which materials should
be delivered in the face-to-face com-
ponent of your course and which
materials can be delivered online if
you are using an online model.
Select items that are relevant to your
course objectives and will also pro-
vide for the best learning experience
for your students.
l Prepare your materials for both face-
to-face and electronic delivery. This
may include scanning graphics, cre-
ating files, developing activities, case
studies, tests and slides.
l Avoid delivering materials that will
distract the student from the course
objectives. Dont add irrelevant
information to fill-up your time.
Face-to-face best practices
l It is important to use a variety of
teaching and learning materials in
your face-to-face sessions to help
meet the intended learning objec-
tive. Youll want to include audio-
visual aids, tasks for students to
complete and handouts. The most
effective face-to-face course includes
explanation, demonstration and
practice. Interaction and participa-
tion in the course will promote
learning, engagement and retention.
Be sure to use demonstration and
practice of what you are teaching.
Simply explaining how things are
done will not enable the students to
learn the skills. Be sure to use exam-
ples, emphasize or dramatize your
ideas and use open format to pro-
mote questioning. Include pop
quizzes and fun activities and
resources in your face-to-face
course. Keep details on your slides to
a minimum and use a handbook for
students to refer to more in-depth
details and activities. Allow room for
note taking in the handbook.
Electronic delivery best practices
l You will want a mix of delivery
forms. This will include starting
with text and including short
recorded sessions, brief case stud-
ies, interactive activities for stu-
Creating a training course may seem like a daunting task,
but its really very simple.
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material that includes case studies,
assignments and corresponding
items.
l Include material for all learners and
instructional methods that address dif-
ferent learning styles and preferences.
l Write the course description provid-
ing a brief introduction to what you
will be covering in the course.
Three Hours 2012 Update to Federal
Mortgage Laws: Course is intended
to provide the student with an
understanding of the major changes
that were implemented from 2009
and 2011 that industry professionals
need to be aware of in the day-to-
day performance of work and/or to
prepare to take and pass the MLO
SAFE test.
l Write the course learning objective.
This will help you as you develop the
course and help you to make sure
you have reached your objective.
Including a timeline for each objec-
tive will help you to focus on how
much content you will need to
include in each section.
Learning objectives
n Understand the requirements of
the Federal SAFE Act and its impact
on the industry. 30 minutes
n Review the major changes to
RESPA and how they impact the
MLO. 30 minutes
n Compare and contrast the old and
new Good Faith Estimate and
know how to complete the form
and explain it to consumers. 30
minutes
n Understand how Yield Spread
Premium (YSP) is used on the new
GFE and know how to explain it to
consumers. 15 minutes
n Become familiar with the changes
to Reg Z and its impact on mort-
gage loan origination. 45 minutes
l Make sure to include tools in your
course using the following learning
modalities:
Visual: Seeing pictures, words, diagrams
Auditory: Listening to explanations
Kinesthetic: Performing the activity
dents to perform online including
word matches, fill in the blanks
and short quizzes. Providing a mix
of delivery methods will help to
keep your student engaged. If you
are working with a system adminis-
trator, they may suggest how they
want the material delivered.
Important note
Try to avoid putting all of your infor-
mation on slides and then reading the
slides. This is an easy pattern for speak-
ers to fall into, but one of the least
engaging and least effective teaching
methods.
Step 5: Build a course
skeleton
l Create the organizational (or skele-
ton) structure of your course. This
involves creating a series of clearly
labeled folders that will hold the
course materials.
l Make a folder for every item in
your outline (from Step 3) or
mimic the structure of your course
outline.
l Enter the course information area
and create subfolders for your out-
line, slides, case studies, tests,
activities, etc. Be sure to note
where you obtained information
from your research in your course.
This will help to build credibility in
your course and provide reference
notes for course evaluators if you
are planning to get your course
approved for continuing education.
Be sure your folders and subfolders
correspond with the main topics
sections of your course. If you are
providing both online, electronic
training and face-to-face training,
youll want to have a folder and
subfolders for each of these as your
delivery methods and content will
be different for each. When creat-
ing your subfolders and subtopics,
be sure to name each for easy ref-
erence in the future. Also date each
file when you update information
and put older versions of your
information in a different folder.
Be sure to date each version so you
know you are working with the
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most current information. When nam-
ing your folders use this example:
Main folderThree-Hour Federal
Regulations Class 2013
n Subfolders
n Research
n Online Course
n Older Versions
n Text Document
n Case Studies
n Tests
n Activities
n Recordings
n Slides
n Face-to-Face Course
n Older Versions
n Text Document
n Case Studies
n Tests
n Activities
n Recordings
n Slides
Step 6: Write the course
l Now that you have your course out-
line, objectives and research, you
can begin writing. First, write the
course completely in text. Then you
can pull the content out into short-
er videos for your online course
and build your slides for your face-
to-face course. Be sure to use refer-
ences for your research. The course
consistency checklist below will
provide a guide for your course
development.
Course consistency checklist
n Layout of course is visually and
functionally consistent
n Navigability is clear, simple and
user-friendly
n Spelling and grammar are consis-
tent and accurate
n Written material is concise
n Language of written material is
friendly and supportive
n Clear directions are given for
each task or assignment
n Sentences and paragraphs brief
n Research material is referenced
n Visual aids are properly used
n Course objections and timeline
are met
Step 7: Incorporate
technology into the
course
l Whether you are delivering your
course live or online, its important
to use tools that engage your stu-
dents, such as videos, test questions,
activities and group discussions.
l Locate five to 10-minute videos from
credible sources to add to your face-
to-face courses. There are a variety of
tools available to embed videos into
your slide presentation. Make sure to
give proper credit for any videos you
add. Add the link to your slides so
you can easily remember where you
got the information.
Step 8: Develop activities
for the course
l It is important to add activities to
your course to keep the student
engaged and learning, such as the
following examples.
Activities to enhance student
learning
(Addresses multiple learning styles)
n Video clips of interviews
n Historical audio clips of famous
speeches
n Screen animations for instruc-
tional exercises using software
n Personal interview reports
n Crossword or word search puzzles
n Matching and game-show-style
trivia games
n Online scavenger hunts
n Annotated bibliography
n PowerPoint presentations as
assignments/quizzes
n Flash simulations
Activities to develop critical
thinking and problem-solving
skills
n Discussions center on questions
without a single correct answer
n Compare and contrast exercises
n Case studies
n Critique classmates assignments
n Collaborative exercises
n Portfolios (building one activity
upon another) to share/peer
review
Step 9: Develop questions
and tests
l If you are developing a course for
continuing education credit, you
will probably need to include a
final exam. Check with the licens-
ing board or regulatory authorities
on what the requirements are for
final exams.
l Start at the beginning of the course
and start developing questions.
Youll want to make notes on
where in the material the answer
lies for future reference. You may
also need to note this information
when you get your course
approved for continuing educa-
tion. As you write the questions
and answers, youll want to think
of the most probable answers that
are close to being correct but are
not in fact correct. Be sure to
include reference material and
reasoning so students will know
why the answer they selected was
correct or incorrect.
Developing questioning in the
course
The effective use of questions is
one of the most difficult but
effective methods for promoting
learning. The skillful use of
questions can achieve the follow-
ing results:
n Questions can stimulate interest
and motivation
n Questions can use learners
knowledge for the benefit of the
group
n Questions focus thinking skills
and the practice of thinking skills
n Questions encourage the devel-
opment of self-expression of
thought and feelings
n Questions can be used to assess
student knowledge and under-
standing
Key tactics in developing questions
l Make the questions clear and brief.
Just ask one thing at a time.
l Pitch questions at the right level
for the individual or group. Be sure
to use language the student can
understand.
l Choose the right type of questions
for your purpose. For example;
open questions for exploration;
closed questions for a focused
response.
l Provide enough time for the stu-
dents to answer questions.
Step 10: Pulling all the
pieces together
Heres what you have accom-
plished so far:
1. Prepared yourself and completed
your research.
2. Created your outline, course descrip-
tion and objectives.
3. Determined your delivery method
and built your course skeleton.
4. Wrote your course using text, videos,
activities and questioning.
l Now its time to review your infor-
mation and make certain you are
meeting your original outline,
timeline and objections.
l Review all of your course materi-
al. Verify your reference materi-
al, check your links, proofread
your descriptions and view the
course from the students per-
spective.
l Prepare all information for delivery
upload course content into your
online learning system and print
your materials for your face-to-face
delivery.
l Teaching can be a valuable tool to
position yourself as an expert in
your industry. The key is success-
ful planning, preparation and
delivery.
All of us teach! We teach our kids
how to tie their shoes or show a
processor how to input data into a
loan origination system (LOS). Were
all trainers. Sharing that information
is critical, and creating a presentation
or course to do that doesnt have to
be intimidating. It just takes time and
a little practice!
Ginger Bell is a best-selling author
and the national training director for
Plaza Home Mortgage, with expertise
in developing and implementing
training programs and speaking on
mortgage related topics. She recently
joined forces with best-selling author
and speaker, Brian Tracy, and other
successful business professionals to
publish the best-selling book titled
Cracking the Success Code.
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brokers!
Call Bijan Farassat at 917-731-4870
or email bfarassat@ridgewoodbank.com
NMLS ID# 646654
www.ridgewoodbank.com






Call Lisa Constant at 516-640-8375
or email lconstant@ridgewoodbank.com
NMLS ID# 646655
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Stop Getting in the Way of YOU
Build Systems for Success and Prevent
Self-Sabotaging Behaviors
By Kelly Resendez
W
hat is standing in the way of
your success? Do you want
more clients? More referrals?
Do you want to build better relation-
ships with those in your field? Whats
holding you back? When I ask real
estate professionals these questions,
the answer I almost always come to
find is you.
Most of us have goals wed like to
accomplish, but many times, our own
perceptions, inaction and quest for
perfection gets in our way.
Additionally, we dont set up systems
for success and try to treat each cus-
tomers needs as they come in fits and
starts. To overcome these self-induced
challenges, I implement in my team a
two-pronged approach to get them
moving from intention to action, set-
ting up processes that are applied to
each and every one of their cus-
tomers. Not only will this approach
lead to a more successful business,
the lessons learned can be applied to
almost every aspect of your life.
Foundation for
sustainable success
The first step in achieving your goals is
to set up systems that set expectations
for your customers, automate regular
communications, and encourage refer-
rals. Think of your business as a fran-
chise where you could bring someone
else in from the outside, train them on
your system, and have them be just as
successful as you. So many profession-
als fall into the trap of getting caught
up in the day-to-day details, which
leads to burnout and hampers creativi-
ty and energy that could be spent on
growth. Here are the basics you need to
systemize and streamline your process-
es to allow yourself more time be a bet-
ter real estate professional and build
your business:
l Maximize opportunity: Customers
have many options when shopping
for mortgage products and you have
to be ahead of the curve. Utilize pro-
file sheets and gather the informa-
tion necessary to best guide your
client. Create a personal connection;
e-mail loan proposals to every cus-
tomer, mail personal notes 100 per-
cent of the time to your referring
party and new customer, and add
them to drip campaigns and sched-
ule follow ups. Be organized and use
your calendar to remind you to call
your customers backif you dont
schedule it, youll likely forget it.
l Manage your pipeline: Starting at
the beginning of the transaction, set
expectations that you can meet or
exceed (under promise, over deliver).
Most customers understand that
obtaining a loan can be difficult, and
are looking for a loan officer to be
open and upfront with them about
potential hurdles. Create a calendar
for your files when your clients go
into escrow and hold yourself
accountable to communicating dur-
ing important milestones in the
transaction, such as contingency
removal, appraisal due, loan
approval, target signing day, and
funding. Fight the urge to hide your
head in the sand when the news isnt
perfectcommunicating is complete-
ly within your control while the rest
of the transaction often isnt.
l Work your database: If you do a
great job of obtaining customers and
communicating with them through-
out the process, youll likely have no
problem receiving referralsthat is, if
you ask for them! It all starts with the
initial thank you after closing. A
handwritten note is always appreci-
ated, and be sure to send along busi-
ness cards that they can give to
potential clients. Then, include them
in your ongoing communications
processes. It could look something
like this:
Mailed a thank you note after the
transaction
Add to newsletter drip and e-mail
monthly
Add on social media and post
updates weekly (this will keep you
keyed into big life events that may
warrant a new mortgage product,
such as marriage, retirement, new
baby, etc.)
Follow up call 45 days after fund-
ing, and semi-annual phone call
Send physical mail quarterly (post
card, flier, etc.)
Dont forget to thank your real
estate agents and ask them for
referrals
Goals, goals, goals
Now comes the fun part! By now youre
treating your business like a franchise,
you have systems in place to ensure
By treating your business like a franchise and setting up
systems for success, youll foster happy customers and a
solid referral flow.
consistent communication with your
customers, and you have a good refer-
ral flow coming through. In order to
take your business to the next level, its
time to take a hard look at your goal
setting process and how you may be
sabotaging your own efforts.
It starts with a plan
What are your intentions, goals, or vision?
If you have these in place, do you have a
roadmap to get there? And how do you
measure your success or progress? Many
people dont even bother making goals for
many reasons: its too scary, they feel they
wont achieve them, or they feel they dont
have the time. But goal setting in a vital
exercise in creating the life you want by
taking the time to really know what you
want and why.
Start with your values: What do you
value in life? What motivates you? For
most of us, we create goals that arent spe-
cific, are too much of a stretch, or are sole-
ly driven by competition. These goals set
you up for failure. Take the time to really
think about your values and write them
down. I like to use a grid that lists them
into categories: business, financial,
health/personal, and family.
Now, how do these values play into
each category? Within each category, I cre-
ate short- and long-term goals for each
item and have a list of three activities asso-
ciated with those goals that I will take with-
in three months and one year. This allows
you to break your goals into smaller,
achievable action items and keep you
motivated and on course.
Ready, set, goal!
Now that youve detailed your goals, its
time to start acting on them. Set deadlines
with calendar reminders, find an account-
ability partner that you can meet with peri-
odically to check in on your progress, or
create a visual associated with your goals
and post it in places that youll consistent-
ly see (phone backgrounds/lock screens are
a great place for this). Surround yourself
with reminders of your goals so they stay
top of mind. And recognize yourself when
you achieve milestones! By celebrating
completed activities or even attempts to
complete them, youll get a sense of fulfill-
ment that will keep you motivated.
Stop getting in your way
There are many excuses why people fail to
reach their goals, and most times it comes
down to themselves. We can be our own
worst enemy, giving ourselves every reason
to abandon our goals when it doesnt go
our way. Here are the biggest barriers that
people create that inhibit them from
reaching their goals:
l You seek perfection: Are you waiting
for things to be just right before you
act? Are you an all or nothing person?
The truth is that theres never a perfect
time or circumstance for most events in
life. Perfection is not necessary for suc-
cess. No one is really going to notice or
care that everything is perfect, so its
better to aim for imperfection than
unfeasible perfection.
l Youre paralyzed by fear: Many people
live their lives in fear of the what ifs.
We can imagine negative situations in
our minds so vividly, its almost like
theyre real. However, these thoughts
are not real; theyre hallucinations of
our own creation. They usually lead to
inaction, which can cause not only
more worry, but often potentially nega-
tive situations to escalate. To stop this
negative cycle, start testing out your
biggest fears. Lets say youre afraid to
give a customer bad news. Whats the
worst possible outcome you can think
of? Whats the best? Whats the likely
outcome? Now, write these down. Then
push yourselfface your fear, call your
customer, and deliver the bad news.
What happened? Most likely it will fall
somewhere in between the best and
likely outcomenowhere near our
imagined worst-case scenario we creat-
ed in our thoughts. In addition, try
doing something uncomfortable or that
you fear every day. Whether it be wak-
ing up early to go to the gym or starting
a conversation with someone that
intimidates youpushing yourself to
fight off your hesitations will condition
you to take on lifes challenges and can
potentially lead to opportunities you
never dreamed of.
l Dont beat yourself up: Many times,
we dwell on our mistakes and run a
cycle of negative commentary in our
minds. Have compassion for yourself
and the mistakes you made. We are
quick to compare ourselves to others
and judge ourselves as failures but one
universal truth we neglect to remember
is that everyone makes mistakes and
everyone fails from time to time. Learn
from your mistakes and move one with-
out knocking yourself around in the
process.
You have all the tools you need to create
the business you want. By treating your
business like a franchise and setting up sys-
tems for success, youll foster happy cus-
tomers and a solid referral flow. Once thats
in order, take the time to find your values,
create your goals, and eliminate the barri-
ers you create that prevent you from being
successful. You are in control of your success
now you just have to go out and get it!
Kelly Resendez is senior vice president of
business and sales development for
Paramount Equity, assisting with mort-
gage originator recruitment and train-
ing. She studied economics at California
State University Sacramento, and is cur-
rently completing her degree in psychol-
ogy at University of Massachusetts
Lowell. She may be reached by phone at
(916) 290-9999.
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Learning Event Strategies
To Enhance Motivation
By Judy Wheatley & John C. Cunningham
F
rederick Herzberg, a pioneer in
employee motivation, taught that
an employees opportunity to
learn, grow in responsibilities, and be
recognized for achievements is a much
more powerful motivator than just
money. With increasing regulations in
the mortgage industry and the stress
associated with rapidly implementing
the mandated changes, it is often diffi-
cult for employees to stay motivated. In
fact, all the change can end up being
very debilitating for employees as they
restructure their work processes and pro-
cedures to meet regulatory and business
deadlines. Designing innovative and
motivational learning events can, howev-
er, be a powerful aid for employees,
helping them to see their role in the
companys future. Corporate learning
can guide them to optimize their per-
formance, and ultimately enhance their
satisfaction with the organization.
Successful learning inspires and moti-
vates employees with three elements: Pre-
learning, learning and post-learning. It
starts with careful planning during the
pre-learning phase. This entails a variety
of factors, including an assessment of the
needs of the organization. The learning
event itself must be balanced and flexible
enough to follow a predetermined plan,
but at the same time it must be able to
take advantage of teachable moments
which arise spontaneously.
Post-training events are an essential
component of successful learning. They
reinforce the training and are impor-
tant to provide continuing motivation
and for further supporting the concepts
presented in the learning event.
Enhancing motivation
during the pre-learning
event
The key to any effective initiative is a
good strategy. In a sense, this means
having all your ducks in a row before
the learning event occurs so that learn-
ers can be actively involved in a mean-
ingful educational experience.
The pre-learning event process begins
with identifying the learning objectives.
Any event provided by the organization,
including training, must have relevant
goals. One of the most frustrating, as well
as de-motivating experiences for an asso-
ciate, is to be involved in an initiative
where learners do not know or under-
stand the purpose. This leads to confu-
sion and resentment when they are asked
to spend time they could otherwise use
getting their work done. Thus, making
certain that each and every training event
is meaningful, worthwhile, and appropri-
ate to all of the learners is a top priority.
The next step is to select the most suit-
able learning vehicle to support the
objective. Remember, the aim is to cre-
ate an educational initiative that will
motivate participation so the tools select-
ed are critical. The event could employ a
variety of different tools during training,
or just one single tool. Finding the right
mix of tools and making them easily
accessible can inspire learners, promote
the pursuit of knowledge, and increase
the trainings effectiveness.
Arguably the most important compo-
nent in this strategic process is to be
aware of the parameters of the initiative.
One of the biggest mistakes educators
make is that they forget or simply ignore
legitimate constraints. These can include
company guidelines, time restrictions,
limitations on technology or educational
vehicles, and remote participants.
Failure to take these into account can be
an error in judgment permanently
impeding the motivation and pre-plan-
ning process. This can be demotivating.
A simple analogy can be helpful here.
Suppose a person takes on the challenge
of assembling a 1,000 piece jigsaw puzzle.
But, in the excitement of the moment,
they fail to realize that there is far too lit-
tle time for a project of this scope nor is
there room to even layout the pieces. It
will not be long before the excitement and
motivation wanes. Overreaching is almost
always demotivating.
Enhancing motivation
during the learning event
One key to inspiring motivation and
delivering a successful learning initiative
is to trust your preparation and follow
the plan. Flexibility is important, as is
identifying the spontaneous teaching
moments. But sticking to the plan and
not getting seriously sidetracked is going
to go a long way in motivating your learn-
ers. Remember that you spent a good
amount of time during the pre-learning
event identifying the key objectives and
planned accordingly. In the midst of the
actual learning event, assessing how
motivated your learners are (especially
for remote learners), is very important
and a few tweaks to the plan are fine.
But, overall the instructors need to trust
the strategies that were chosen.
Another method of enhancing motiva-
tion in the learning event is to use as
many of the engagement and interactivi-
ty tools as you have available. Almost
every training vehicle has interactivity
tools which are available to maximize
both engagement and motivation.
Whether you are taking advantage of
WebEx features such as polling or chat,
using gamification features in an e-learn-
ing course, or presenting your stand-up
facilitation session energetically, these
individual engagement tools are invalu-
able in initiating and maintaining maxi-
mum learner motivation.
A good rule of thumb regarding the
heightening of motivation during the
learning event is to balance informa-
tion and activity. Keep in mind that
even though pure information is
extremely valuable and a significant
part of the learning event process, it is
not the part of the training which
always promotes maximum engage-
ment. The activity portion is the part
which generally does that best, and the
key to any activity is the effective use of
the appropriate motivational tools.
Enhancing motivation
during the post-learning
event
In order to keep employees motivated
and to measure the value of the train-
ing event, there must be follow-up
activities and tools to reinforce the
learning. Sometimes it is not easy to
measure effectiveness. For example,
diversity training is more difficult to
measure than skills based training.
However, if learning is aligned with
business needs and applicable tools are
used, companies can calculate their
return on the training investment.
The place to start your post-training
event is with a participant survey evaluat-
With increasing regulations in the mortgage industry and the
stress associated with rapidly implementing the mandated
changes, it is often difficult for employees to stay motivated.
Judy Wheatley
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Finding the right mix of tools and making them
easily accessible can inspire learners, promote the
pursuit of knowledge, and increase the trainings
effectiveness.
John C. Cunningham
ing the learners first impressions and
helping to identify ways to improve the
event. Companies need to provide an
anonymous method for participants to
submit their opinions on the presenter,
material, timing, methodology, and per-
ceived effectiveness or utilization of the
training. Survey results need to be quan-
tified and reported to management.
Making learning available anytime and
anywhere is a critical way to reinforce the
specific learning and keep employees
motivated. One approach is to provide the
course content online for participants to
reference. Video recording a classroom
session is another effective method. E-
learning approaches continue to mature
and many companies use podcasts, learn-
ing in motion, or blogs to share informa-
tion and support on-going learning.
Skills-based training should include
tools such as job aides that employees
can use in their day-to-day functions,
allowing them to practice the skills they
have learned. Monitoring employees per-
formance with the use of assessments
done at various intervals after training is
a good way to measure the effectiveness
of the training event, as well.
One-on-one mentoring sessions are
also important to reinforce learning
events. They help to keep employees
motivated because mentoring demon-
strates a companys commitment to an
employees development and success.
Training is an investment
Learning events that are carefully designed
to be meaningful, worthwhile and appro-
priate will have many benefits for your
company and employees. Greater motiva-
tion will lead to an increase in productivity
and a reduction in staff turnover.
The best types of events take into
account that people have different learn-
ing styles. Some employees learn best by
listening, some by seeing and others by
experiencing, but most learn best through
a combination of these styles. Learning
events and post-training activities that
combine these styles to be engaging and
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interactive will yield more motivated
associates and a high rate of return on
the companys learning investments.
Judy Wheatley is senior vice president of
compliance for Indecomm Global Services.
Judy received her Certified Mortgage Banker
(CMB) designation in 2003, and her
Accredited Residential Underwriter designa-
tion in 1993. She may be reached by e-mail
at jwheatley@indecomm.net. John C.
Cunningham holds the position of education
coordinator of the Lenders Solution Group
for Indecomm Global Services. John is also a
Results Coach, having received his training at
Coach U. He may be reached by e-mail at
john.cunningham@Indecomm.net.
You Can Let Your Teeth Rot or Recruit
New Loan Officers ... Your Choice
By Ralph LoVuolo
O
kay folks what are you going
to do now? What are you going
to do to increase your busi-
ness? Whats your plan? What great
ideas did you put in place to get you
through 2012. Whats your five-year
plan? What do you absolutely know?
What did you know in November that
you could have enacted this year
that would have helped you? What
Im finding from this vantage point
is, very little.
Much too often we wait. We wait
until something seriously bad hap-
pens before we start to realize whats
going on. Ever notice how often we
drive by a spot on one of our streets
and say to ourselves, This is really a
bad spot. There really needs to be a
speed bump put in here. Ill call City
Hall when I get home to let them
know. Meanwhile, were on our cell-
phone talking to someone, even
mentioning what we just thought.
Then we drive a couple of blocks and
forget.
Im seeing so much chatter about
how to increase business. Last year,
it wasnt a problem. Refis were
abound and even purchases were
fueled by rates that challenged the
floor. One of the most often dis-
cussed ideas is to start to poach on
the company down the street and get
their loan officers to see our light.
The light we shine is brighter than
the light shining from the other com-
panies. We have better service. We
like our people more than they do.
Dont we ever learn? Why didnt
we have a recruitment plan in place
all along?
Around the year 1993, I was con-
sulting at a mortgage company in
Brooklyn, N.Y. One of our part-time
LOs was an older woman. She was
standing next to the desk of another
much younger LO. He was complain-
ing about his teeth and the pain he
was suffering through. When are
you going to the dentist, she asked.
Im going soon. I just hate the
pain while Im in the dentists chair.
Well, she said, If you had just
flossed every day like you were told
by your mother, you wouldnt be suf-
fering right now.
And what about you, he asked?
Do you floss every day?
Are you crazy, she retorted, Im
too old, nothing I do is going to
change these teeth. So wait a
minute, youre telling me to floss
every day, and in fact, if I would have
done it every day, I wouldnt be hav-
ing this pain; but youre too old? I
think this conversation is over. What
youre saying doesnt make any
sense.
To me, this entire conversation
didnt make any sense. I was observ-
ing the American attitude. The stan-
dards that most of us live by. Lets
not make a plan. Lets not really put
any thought into the future. We all
hate meetings, lets just keep doing
what were doing.
A good friend of mine had a mort-
gage brokerage company that had
about 20 sales reps. Yet he had one
person on the payroll whose full-
time job was to ensure that every
active LO had to bring in one busi-
ness card a week of any LO that they
determined was their competition.
The person on payroll assembled a
file on these competitors and the
president of the firm made at least
one call a day to recruit one of those
people. The tenor of the market did-
nt matter. This was done every day
of every month of every year.
Right now there is so much scram-
bling to figure out a plan to recruit
LOs, that I am astounded. Dont we
ever learn? In fact, I saw one com-
ment in an often read blog that elud-
ed to the fact that it is too late to put
a recruiting plan into place. Too late?
Too late? If its never to late to start to
floss, which I am pretty sure youll
agree with, its never too late to begin
to put any well thought-out plan in
place. And to use the same reasoning
over and over that we hate meetings
because it takes us away from what
were doing is just as ludicrous.
Have a meeting. Include the top
brass. Make a list of your company
strengths and weaknesses. Make a
third list that states what it is that
you would want a company to offer
you if you were a successful LO.
Then, see what your budget will
allow you to enact.
Here is what I promise you if
you dont start a recruitment plan
now, your teeth will rot.
With more than 45 years in the mortgage
industry, Ralph LoVuolo is president of
Mortgage Motivator, a consulting firm
on the cutting edge of the mortgage busi-
ness. He may be reached by phone at
(561) 509-8425 or e-mail ralph@mort-
gagemotivator.com.
Much too often we wait. We wait until something
seriously bad happens before we start to realize
whats going on.
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Get ON BOARD With The
BEST MORTGAGE LENDER
In the Nation!
For Branch opportunities call 877.896.8496
Real Estate Mortgage Network Inc, DBA Menlo Park Funding.
499 Thornall Street 2nd Floor, Edison, NJ 08837. NMLS# 6521
www.mpfunding.com
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Be diligent
Although we all want to be
one-call closers, this is sim-
ply not a reality. In fact,
most consumers close
somewhere between the
fifth and 10th call. If you
are only calling on those
fresh leads each dayyou
are losing deals to the
competitor. This happens
for a variety of reasons:
People are busy, their
needs can be complex,
their final decisions may
require input from a
spouse, etc.
Ask questions
and listen
This seems intuitive, but how many times
have you heard a salesperson so revved
up on their canned pitch that they are
talking past the potential customer. Make
sure that you start with questions and a
needs assessment and close with confir-
mations of these needs. This is guaran-
teed to increase your closings!
Take
applications
An application and
quote is free, so take
applications and give
them often. Consum-
ers are looking for the
price and commit-
ment. Withholding
the price so that the
customer doesnt shop
with me is bunk. If
you dont tell them
the deal they will get
from you, they are
guaranteed to go to
the competitor.
Consumers want con-
venience, not games.
If you are still worried about
shopping, use the application and
quote process to build trust. Educate
them on all of the tricks and hidden
fees or gimmicks the competitor is
going to pull, and when they do,
they will run back to you and be a
trusting customer and referral for
life.
The bottom line: Follow-up,
dont lose customers and
satisfy needs
As your pipeline gets larger, it gets harder
and harder to manage this bottom line.
That is why I generally recommend a man-
aged pipeline of no larger than 100-150
leads. This ensures that you are able to
contact every consumer in your pipeline
at least once every 48 hours, assuming you
are hitting my recommended call velocity
of 60-80 calls per day. The management of
the pipeline, call backs and annotating
consumer needs all point to the need for
a capable lead management strategy that
keeps all of these best practices consistent,
enforced and managed.
Enjoy increased closings today!
Joshua Conklin is director of business
development at MortgageLeads.org and is
an authority in the lead generation space.
Joshua has more than 14 years of experi-
ence at developing strategic marketing
platforms for the nations tops lenders and
brokers nationwide. He may be reached by
phone at (800) 848-7086, ext. 201 or e-
mail josh@mortgageleads.org.
Increase Your Monthly Funding Volume
With
These Simple Steps
B Y J O S H U A C O N K L I N
H
ow do I increase my conversion
rate on the lead I purchase?
This is the top question I am
asked on a daily basis. So, I thought I
would post directly to that question.
These are common best practices
and will be reiterated by any successful
sales organization and lead provider.
However, the difficulty is having the
discipline (or the lead management sys-
tem) to consistently enforce these best
practices.
Be informed
Know what is going on. You need to
know your market, your competi-
tors, and what is causing people to
have a need for your product(s). If
you have a large number of prod-
ucts, educate yourself and simplify
your presentation by segmenting
products by potential consumer
needs.
In addition to understanding what
you are selling, make sure you read
and watch what is going on in the
news. Consumers want to feel like
there is a human on the other end of
the sale. Read the front page, the
sports pages, and the entertainment
pages of the newspaper or your
favorite news sources on the Web.
People love to talk about the weath-
er, so be sure you know what it is
going on outside of your cubicle.
Contact quickly
Consumers, especially Internet con-
sumers in this age of high-connectivi-
ty, expect an immediate response.
Unfortunately, on the sell-side of the
equation, consumers also expect to
transact at their convenience.
Consequently, you need to imme-
diately respond to each new lead
receipt with an immediate message
to the consumer that you are
attempting to contact them. This is
easily done with an introductory e-
mail and phone call (voice mail). This
introduces your company, what you
have to offer and your ability to meet
their needs.
Know what is
going on.
You need to
know your
market, your
competitors,
and what is
causing people
to have a need
for your
product(s).
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Sponsored Editorial
By Rich Obermeier
The year 2013 has been good thus far for the USDA sin-
gle-family program in adding additional scope to the
refinance program, clarification to underwriting crite-
ria and an eligibility deadline extension.
Effective in February, the USDA added 16 new states
to their Rural Refinance Pilot Program. Individuals with existing USDA-
insured home loans located in one of these states could refinance
without the need to obtain a credit report or appraisal. The original
states were: Alabama, Arizona, California, Florida, Georgia, Illinois,
Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, New
Mexico, North Carolina, Ohio, Oregon, Rhode Island, South Carolina
and Tennessee. The additional states added are Alaska, Arkansas,
Colorado, Idaho, Kansas, Missouri, Montana, North Dakota,
Oklahoma, Puerto Rico, South Dakota, Texas, Utah, Washington, West
Virginia and Wisconsin.
Also, in February the USDA offered clarity with regard to under-
writing guidelines as they apply to loans with and without Guaranteed
Underwriting System (GUS) findings. The update published a compari-
son checklist for documentation required for manually underwritten
loans and loans receiving GUS finding recommendations as "refer"
and "refer with caution. As part of the update, the USDA has also
addressed the details of reduced documentation for eligible loans
receiving a GUS accept recommendation.
Most recently, it was announced that the USDA would delay the
implementation of the 2010 Census Data that would align area eligi-
bility. This is good news since the data, if acted upon, would have
adjusted area eligibility and disqualified more than 900 currently
approved communities and disqualify nearly 40 percent of the loans
in process at the time. The current eligible areas will remain in effect
through Sept. 20, 2013. This extension was part of the 2013
Appropriations Act of 2013. To remain eligible, it is stated that the
Rural Development (RD) field office would need to receive a complete
application by end of business on Sept. 30.
The USDA program continues to be the only source of non-military
100 percent financing in the marketplace. In 2012, before the
Refinance Pilot Program was released in March, 97 percent of Rural
Development production was purchase money, and after its release,
92 percent of total production are purchase transactions. All 50 states
currently have areas of eligibility.
As an originator, one should develop a more purchase-dominated
pipeline where the USDA fits in nicely as a loan option. There is a
learning curve in mastering this product, and having a wholesale lend-
ing partner that is exclusively dedicated to processing and underwrit-
ing this loan is an advantage.
With more than 25 years in the mortgage industry, Rich Obermeier, National
Accounts Representative for GSF Mortgage Corporation, has worked with some
of the largest mortgage companies in the country developing retail and
wholesale channels. Rich has assisted in developing and implementing
operational protocols for sales managers, originators and loan processors. In
recent years, Rich has developed the USDA Rural Development Product in
multiple states and locations. Rich may be reached by phone at 800-400-USDA
(8732) or e-mail robermeier@gogsf.com.
2013 So Far So Good
for the USDA Single-Family
Loan Program
new to market continued from page 15
continued on page 65
nys National Property Database and
RiskFinder Distress product to score and
rank counties and ZIP codes within coun-
ties. Servicers and investors can use the
rankings to identify the specific geogra-
phies they want to target and then the
specific ZIP codes in those geographies
that offer potential for the highest return.
Scores and ranks are based on property
valuation appreciation and depreciation;
depth of market supply; depth of market
demand; distressed sales; and distressed
discount trends.
Identifying the most attractive REO-to-
Rental markets and properties is cumber-
some for servicers and investors due to
the sheer amount of data an accurate
analysis requires, said John Walsh, presi-
dent of DataQuick. The REO-to-Rental
Neighborhood Rankings provide more
than 10 years of monthly metrics for ZIP
codes nationwide, ensuring the best REO
investment destinations are evaluated
and targeted.
REO-to-Rental Neighborhood Rankings
are also delivered with extensive data sets
that allow for custom analysis.
ISGN Partners With
TRUPOINT on CFPB
Mock Audit
ISGN Corpora-
tion announced
it has partnered
with TRUPOINT
Partners to offer
a comprehensive Consumer Financial
Protection Bureau (CFPB) Mock Audit,
ensuring financial institutions and mort-
gage lenders maintain compliance with
the changing regulatory environment,
CFPB rules and Fair Lending requirements.
ISGNs Professional Services group, which
assesses compliance and operational risk
and provides process optimization and
cost reduction strategies, has developed a
proprietary risk framework to conduct a
mock CFPB audit for financial institutions
and mortgage lenders. During the audit,
ISGN performs a targeted loan review of
potential problem loans identified
through TRUPOINT Analytics Fair Lending
and Home Mortgage Disclosure Act
(HMDA) analysis systems.
According to Lisa Weaver, CMB, senior
vice president of Mortgage Solutions for
ISGN, This approach provides our clients
the ability to conduct a dry run to bring
out any issues prior to the actual regulato-
ry review.
TRUPOINT Analytics is a Software-as-a-
Service (SaaS)-based comparative analysis
platform for financial institutions.
TRUPOINTs revolutionary analysis engine
provides the data analytics and lending
report insight financial institutions need to
understand and mitigate Fair Lending and
HMDA risks.
When left unchecked, Fair Lending and
HDMA risk can stall growth, undermine
acquisition plans, hinder profitability and
damage an organizations reputation, said
Trey Sullivan, CEO of TRUPOINT. The col-
laboration of TRUPOINTs compliance analyt-
ics combined with ISGNs compliance expert-
ise compounds our ability to offer cost-effec-
tive solutions in a difficult area where mis-
takes can have severe consequences.
Mortgage Keeper to Aid
Homeowners During
Disaster Recovery
MortgageKeeper Referral Services has added
resources to aid homeowners in case of nat-
ural disaster. The application already has
information for national service providers
such as the American Red Cross. In the event
of a disaster, MortgageKeeper can quickly
add local non-profit and government
resources that are uniquely qualified and
equipped to help struggling homeowners.
These days, homeowners turn to their
mortgage servicer to find their bearings
after a disaster, said Rochelle Nawrocki
Gorey, president of MortgageKeeper
Referral Services. Our servicer clients are
now equipped to refer homeowners to
resources that can help. This may include
national and regional responders, but also
the makeshift assistance center started in a
local church. Our disaster assistance will be
local and flexible.
Ernst Increases
Geocoding Functionality
Ernst Publishing
Company has re-
leased new functionality for its patented
fee engine technology that allows the firm
to overlay its data on a geocoding applica-
tion provided by CoreLogic to provide pre-
cise local tax jurisdiction information to its
customers. The new functionality is expect-
ed to save Ernsts clients millions of dollars
as new taxing jurisdictions continue to
spring up across the country.
When neighborhood communities find
themselves low on funds they often levy
new local taxes on real estate to make up
the difference, said Gregory E. Teal, presi-
dent and chief executive officer of Ernst
Publishing. This is their prerogative, the
challenge is knowing where these taxes
apply. Most lenders are unaware of these
confusing sub-jurisdiction until they result
in undisclosed transfer taxes that were not
on the GFE or HUD-1. This happens most
often the most affluent neighborhoods
across the country, these surprise taxes can
cost lenders upwards of $40,000 to $80,000
per loan!
The new functionality uses mailing
address standardization to geocode the
address and then overlays it with Ernst data
to determine the proper fees and taxes. If
the recording jurisdiction cannot be locat-
ed, options are provided for near miss
addresses. Each lender can customize the
functionality to pass addresses with a
warning if it is a near miss or pause the
deal until more information is provided by
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By Fred Arnold,
CMC
A
t the beginning of
the year, I suggest-
ed five disciplines
to incorporate into your daily routine,
to keep your pipeline full. The easiest
of the five, but most overlooked disci-
pline, involves keeping yourself at the
absolute forefront of industry trends,
legislation, compliance and regulation.
Keeping informed of up-to-the minute
market changes and legislation is vital
to being a true expert, which is exactly
what our clients need and deserve. We
owe it to them to not only be able to
answer all of their questions, but also
to educate them about the mortgage
industry in general.
Continuing education courses and
seminars are obviously very important.
Unfortunately, we cannot afford to
spend every morning in a seminar, or all
afternoon participating in a Webinar.
Therefore, we need to be smart in terms
of how we go about this. If we dont have
a structured practice in place, we run
the risk of becoming distracted all day
long by news and updates. Thats where
the daily discipline of strategically
spending 20 minutes to sharpen our
skills comes into play.
To increase efficiency when it comes
to reviewing the latest updates in the
mortgage field, its wise to create a fil-
ter system in your e-mail. Set up e-mail
filters to automatically file your daily
updates into a folder for keeping, to
read at your predetermined hour. For
example, I subscribe to a number of e-
newsletters and updates, including
National Mortgage Professional
Magazines Mortgage News
Ticker, Rob Chrismans Daily
Mo r t g a g e Ne ws &
Commentary, Larry Baers
Market Alert, The Garrett
and The McAuley Report.
I also receive updates
from NAMB via National
Mortgage Professional
Magazine, and the
California Association of
Mortgage Professionals.
Some of these come
weekly, some come daily
and others come multi-
ple times a day. I dont
read them the moment
they arrive as this distracts
me from my work with
clients, and my clients must
remain my number one focus. All
updates are immediately streamed
to a specified folder so that I am able to
read them, at the specific time Ive set
aside each day.
It is a good practice to read updates
in the morning before getting to the
office, or on lunch break. That way you
can be informed of changes before you
begin your work day, and check again
around midday to see if there is any
news you need to be aware of for the
second half of your day. Trying to keep
up with all news updates throughout
the day can lead to procrastination, or
at the very least, reduced efficiency.
In addition to reports from
third-party providers, you also
likely receive reports, updates
or newsletters from referral
partners or colleagues such
as real estate agents,
insurance agents, title
and escrow companies,
and more. Again, filter-
ing these to a specified
folder will help you
remain focused during
the day, as well as
ensure that you do not
overlook them or delete
them without reading. If
you are still looking for
additional sources of
information, sign up for a
search engine service such as
Google alerts, or use Google+
to flag relevant articles, and have
those directed towards your educa-
tion file as well.
Remember the reason youre doing
this is to further cement your own
understanding of the mortgage indus-
try. Youre striving to become a true
expert, by building a foundation of
knowledge. To that end, after youve
spent your time sharpening your skills,
try to recall one or two key points from
what youve read to commit to memo-
ry. If it helps, you might consider deter-
mining who in your database of clients,
strategic partners or networking group
might be most interested in a particular
insight. Then, send a synopsis or quick
e-mail to at least five people who will
find the information useful or insight-
ful.
Committing to spending 20 minutes
each day to further your own education
will do wonders in terms of helping you
become an expert in the field. The
ongoing effort will provide you not only
with information useful for your clients,
but will allow you to also reach out to
strategic partners with information that
may help them, all the while, you will
continue to build your own personal
knowledge base.
Fred Arnold, CMC is past president of the
California Association of Mortgage
Professionals, current Treasurer of
NAMBThe Association of Mortgage
Professionals, and a mortgage profes-
sional at American Family Funding, a
division of American Pacific Mortgage.
Fred hosts the radio show SCV Chamber
and Business Spotlight on AM 1220
KHTS, as well as the televised program
Out of The Rough on SCVTV.com, chan-
nel 20. He may be reached by phone at
(661) 284-1150, ext. 109 or e-mail
fred@fredarnold.com.
NAMB Sales
Marketing
Tips
for Todays
Mortgage
Professional
Sharpening Your Skills: A Daily Practice
If we
dont have
a structured
practice in place,
we run the risk
of becoming
distracted all
day long by
news and
updates.
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new to market continued from page 63
the borrower. The functionality is avail-
able to Ernst clients now.
Xerox to Streamline
Servicing With New
BlitzDocs Servicing
Offering
As new federal regulations requiring trans-
parency, accountability and collaboration
continue to be put in place, borrowers will
see increased communication regarding
the servicing of their mortgage, even after
the home is purchased. Xerox is helping
lenders and servicers simplify this process
with the release of BlitzDocs Servicing.
BlitzDocs, which has been used by
lenders for more than a decade to acceler-
ate and improve the loan process for orig-
ination and post-closing, provides an elec-
tronic loan folder (eFolder) that mimics
traditional paper loan folders. This offer-
ing extends BlitzDocs intelligent collabo-
ration into the servicing sector of the mort-
gage business and provides a single point
of reference for all documentation related
to a borrower for the duration of the loan.
BlitzDocs provides a single point of ref-
erence for all documentation relating to a
loan; resulting in better customer service for
our borrowers, said Matthew Schuster, sen-
ior vice president of Servicing Operations at
Fay Servicing. The ability to index and rec-
oncile documents from our sellers in bulk
also results in faster review times.
Leveraging the BlitzDocs intelligent net-
work, documents can be sent and received
from trading partners including origina-
tors, borrowers, investors, sub-servicers,
business process outsourcing providers
and mortgage insurance companies. Xerox
continues to add points of integration,
including new partnerships with BeesPath,
ComplianceEase and numerous loan orig-
ination systems.
LRES Adds to Its Online
Vendor Portal
LRES has announced
new features to its ven-
dor portal Web site
designed to enable
licensed appraisers the
ability to manage their residential and com-
mercial property appraisal orders more effi-
ciently. The updated vendor portal Web site
offers smoother workflow and transition to
various site features, more organized work
queue based on priority of orders, dash-
board with order counts by status and the
ability to search/sort, order payment histo-
ry and detail and an interactive mapping
system.
Workflow management features
include the ability to search and view com-
pleted orders/work files by dates, address-
es, order numbers, payment status, etc.
The vendor portal website also now
emphasizes special instructions/order due
dates and provides unlimited access to
engagement letters.
LRES places a premium on the strength
of its vendor network, so we constantly look
for ways to improve their user experience
and work more efficiently, said Roger
Beane, CEO of LRES. The new features
added to our vendor portal website create a
more productive environment and user-
friendly experience for our valued partners.
Carrington and Equator
Announce the Expanded
Availability of RentPointe
Carrington Tech-
nology Solutions
LLC and Equator
Business Solutions
have announced the commercial availability
of RentPointe, Carringtons proprietary soft-
ware application specifically designed to
meet the complexities of managing diverse
portfolios of single-family rental properties.
Integrated into Equators EQ Investor
Platform per an exclusive agreement
between the two companies, RentPointe pro-
vides financial institutions, institutional
investors and large-scale property manage-
ment companies with a scalable, end-to-end,
single-family asset management suite dedi-
cated to efficiently maximizing the perform-
ance of multiple-property portfolios.
RentPointe offers a specific advantage to
property management companies tasked
with managing multiple properties and
groups of individual property managers.
Delivering RentPointe as a software as a
service (SaaS) solution through Equator
introduces this and other key advantages to
a broader market and provides users with a
robust, comprehensive system to more
effectively meet their acquisition, property
management and asset disposition needs.
RentPointe was specifically designed to
meet a growing need within the single-fam-
ily rental market for more efficient portfolio
management and a solution with the ability
to manage multiple property managers
simultaneously, said Brent Rasmussen,
executive vice president and CIO for
Carrington Technology Solutions, LLC.
Having utilized RentPointe as a proprietary
solution for the past seven years to manage
its own portfolio of nearly 15,000 U.S. prop-
erties, Carrington knows firsthand the
potential impact this solution can have on
the industry. That is why we are so pleased
to offer RentPointe to the commercial mar-
ket on Equators EQ Investor Platform.
Your turn
National Mortgage Professional Magazine
invites you to submit any information
promoting new niche loan programs,
new products or any other announce-
ment related to the introduction of a
new program, to the attention of:
New to Market column
Phone #: (516) 409-5555
E-mail: newsroom@nmpmediacorp.com
Note: Submissions sent via e-mail are pre-
ferred. The deadline for submissions is the
1st of the month prior to the target issue.
Sponsored Editorial
Have You Seen a Dip in Your
Marketing Results?
Here are some tips to keep your pipeline full
regardless of market conditions
Follow the trends
Its never a good idea to try and develop your own marketing cam-
paign until youve found multiple types of marketing that work for
you. If the big word in the industry is HARP (the Home Affordable
Refinance Program), dont try to go against the grain and market for
something that isnt working. The public is well-aware of the changes
in the mortgage industry, and is keeping up on buzz words like FHA
STREAMLINE and HARP. Find a marketing means that works for you
and your budget and get to work. When you go to trade shows or talk
with colleagues about how great their own campaigns are working, GO
AFTER THE SAME THING! The marketing is working because the market
is accepting it. Find a marketing firm that follows the trends, and then
follow them yourself. The market will always show you how to best
offer your products.
Test, measure, test again
Many people begin a new marketing campaign with a new marketing
firm and think that they should be setting records right away. This could-
nt be further from the truth. In fact, in most cases, the first campaign is
only the beginning. Campaign number three or four is where their
efforts really begin to pay off.
Tips for 2013
Direct mail responses are up. If you havent tried direct mail in a
while, it might be time to give it a try again. VA responses are down so
try to mix your VA campaign with other loan types as well. Itll keep
your response rates up while keeping an eye the VA market so youll
see exactly when responses come back.
Internet leads work if you work them. Dont expect to make an easy
buck those days are over. If you must use them, make sure you get
exclusive Internet leads and not ones that have been sold 10 times
already, unless you already know those type of leads work for you.
When it comes to Internet leads, cheaper is not always better.
Live transfers are a thing of the past. With as much as 90 percent of
the population on the Do-Not-Call List, telemarketing just isnt what it
used to be.
New data files are available specifically for the mortgage industry.
You dont have to get set up with credit bureaus to get qualified data
anymore. Mail houses wont have it, but good marketing firms will.
Trigger leads are still being sold by the credit bureaus. Remain aware
of what methods your competitors are using. Whether you are using
them or not, its a reality that must be dealt with.
Last, but not least, RIDE THE WAVE! The mortgage industry is back and
its time you came back with it. If you are not having the biggest year of
your career, youve got to take a look at your own marketing efforts and
how you can make your campaigns perform better.
Medford, Ore.-based TagQuest is a full-service marketing firm created
specifically for the ever-changing business world. TagQuest assists compa-
nies with their direct marketing, advertising and branding needs, and
knows what it takes to generate quality customers and, most importantly,
how to retain those customers for years to come. TagQuest brings forth a
unique opportunity to utilize our experience and expertise in varying con-
sumer sales and marketing environments. For more information, call (866)
376-5540 or visit Tagquest.com.
VIEW OUR MOST RECENT WEBINAR ON YOUTUBE
Online readers please click on the link below,
readers of the print edition, please copy the link and paste it into your browser.
http://www.youtube.com/watch?v=coBEsmEV0go
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By Kevin E.
OConnor, CSP
A
s a small business CEO
observed a window
washer at the Atlanta
airport one day, she asked what she
thought to be a straightforward question,
Whats the secret to window washing?
No secret, maam, the window
cleaner said as he continued working. I
just focus on keeping on with my tools
and my experience. I keep on going.
The master continued working with
repeated, slick motions, his tool
remaining fixed to the glass, and leav-
ing not one smudge. Then, true to his
word, he kept on going.
When the CEO asked what was in the
blue water, the cleaning professional
smiled and said, I cant tell you that! If
you knew that, you could do my job!
Then, before attacking another pane,
he said, It is very special, though.
When a professional window cleaner
uses just the right combination of
resourcesminimal tools; years of
experience; a flowing, non-stop
motion; and a secret concoction of
sudshis or her work is efficient,
engaging, and looks naturalperhaps
easyto those who observe.
Unlike the window washer, many
team leaders dont find their work to be
efficient, easy or appear natural. These
leaders often do not have degrees in
leadership; they are promoted because
they are very good at their jobs. Their
former colleagues and friends now
report to these peer leaders.
There is a skill to leading your former
peers without encountering resistance,
resentment and regret. When your tool-
box contains a simple collection of
thinking, communicating, and acting
that is coherent, ordered and intention-
al, your leadership appears as if it is
natural. When youre charged with lead-
ing a team of your peers or former
peers, the right combination of
resources makes all the difference. The
following techniques should be at the
core of every peer leaders toolbox.
1. Minimal tools
keep you focused.
The most effective leader uses only one
tool: his or her personality. One great
peer leader uses his thirst for under-
standing and information. When a
member of his team enters his office,
he asks that person to be the teacher
while he plays the role of student.
Any questions I ask are merely a stu-
dent asking, he explains. Then, I never
use the words I or youI only use the
words we and us. I want them walk-
ing out of my office feeling better than
when they walked in.
By using the mindset of education, the
pressure is removed from his teacher so
that no question is off limits. This philoso-
phy sets the tone for education and team-
work. If, instead, he were to use his intel-
lectual curiosity to demonstrate that only
he knew the correct answer, he could face
resentment. The best peer leaders learn to
harness their personality to inspire trust
and teamwork.
2. Experience gives
you credibility.
Just as window washers have well-exer-
cised wrists, your team wants to see that
you still need and relate to them. While
your team is working to create the next
product, researching relevant case law, or
driving across town at a moments notice
to meet with a customer, they want to
know that youre there with them.
Sometimes that means that they want
your hands working alongside theirs, and
sometimes it just means that they want
to know that you understand their daily
routines, frustrations and joys.
Regardless of which approach your team
members prefer, they want you to guide
them in the next, and right direction.
Your team will remember that you
were there with them when you encour-
age. Todays culture makes it easy for
bosses to find faults, but you will have
much greater influence when you fre-
quently ask this question of your team
members: You know what I liked
about what you did (or said)? Be relent-
less as you look to find the ways that
their input, skills and contributions
have benefited the entire team. This is
always of interest to the receiver; no
one has ever responded, No, I dont
want to know what you liked!
3. A flowing, non-stop
motion is very intentional.
There are few things more beautiful than
a leader who knows how and when to lis-
ten and where and when to speak; the
times to agree and those to dissent; when
to stay with the group and those other
times when to go out on a limb. Just as
the window washer intentionally follows
a specific pattern, the successful leader
never allows these moments to be chance
events. Instead, they are always intention-
al. While employees sometimes want to
be inquisitive, your peers want to be con-
nected with you. With intimacy comes
great trust and loyalty.
A consistent engagement with your
team on a personal level (within the
business environment) turns your role
from that of a boss to one of a fearless
leader, mentor, and teacher. This inti-
macy comes when you go beyond their
favorite sports team to learn about
their childhood passions, when you
understand their familys immigration
experience deeply affected their out-
look on international business, and
that their self-directed nature comes
from their Eagle Scout training. To the
inexperienced leader, these characteris-
tics are mere factoids. The best peer
leaders know that an understanding of
these experiences and traits lead to
unbreakable loyalty, an impassioned
work-ethic andmost importantly to
the companys ownershigher profits.
4. Your secret formula
keeps you ever useful.
Famous chefs sometimes share their
secret recipes, for they know what
many of us have learned after carefully
following the same recipe three times:
there are just some techniques that
cant be explained with words. Food
rarely tastes the same way twice and
rarely as good as it does in your favorite
restaurant!
The window washer humorously
refused to share the ingredients in his
bucket for fear of being replaced. The
best peer leaders are afraid that their tal-
ents and secret concoction may go
unused, so they focus on how their team
is furthering the companys mission.
When leading a group of your peers, you
must have a firm hold on the secret for-
mula that lies within you. Ask your team
members what they believe to be your
secret sauce, and be ready to listen
without judging their responses. You
may find that your team wants you to
talk more at meetings, even though you
might think you talk too much. Your
team may want you to consult them but
ultimately make a firm decision, while
you may lead by consensus for you fear
making decisions alone. When your
team tells you what they want, find a way
to do what they have asked!
Dolly Parton said, Figure out who
you are and then do it on purpose. All
of what you do as a leader must be nat-
urally intentional, obviously purpose-
ful, yet elegantly skillful.
Kevin E. OConnor, CSP, is a facilitator,
medical educator and author. He focuses
on teaching influence to scientific and tech-
nical professionals who are charged with
leading teams of their former peers. His lat-
est book, Fearless Facilitation, is due out
this year. He may be reached by phone at
(847) 208-8840, e-mail kevin@kevinoc.com
or visit www.kevinoc.com.
The Keys to Peer Leadership:
An Unlikely Source
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heard on the street continued from page 47
and Joy Soler will also join NewDay
USA. Estes, who served as compliance
and curriculum developer for Abacus,
is a nationally recognized regulatory
compliance expert and author. He
will be a member of the NewDay USA
compliance committee and will serve
as a liaison between compliance and
curriculum development. Soler, who
served as project manager at Abacus,
has broad experience working with
regulators to obtain curriculum
approvals.
Carrington Property
Services Partners With
LendingXpress on REO
Services
Carrington Property Services LLC and
LendingXpress, an SWBC company,
have announced an exclusive cross-
marketing agreement focused on pro-
viding credit unions and community
banks with a comprehensive suite of
real estate-owned (REO) asset man-
agement services designed to reduce
costs and maximize returns. Through
this strategic relationship,
LendingXpress will market
Carringtons integrated, end-to-end
REO asset management solution to its
customer base, offering credit unions
and community banks the proven,
best-in-class capabilities previously
reserved for large-scale financial
institutions.
This arrangement directly sup-
ports the value proposition
LendingXpress was based ongiving
lenders a highly efficient, seamless
method for accessing products and
services designed to increase efficien-
cy, reduce risk and offer a competi-
tive advantage, said LendingXpress
President Ted Robinson. Were
thrilled to work with Carrington
Property Services and to add REO
asset management to our service
offerings tailored to meet the needs
of the financial community.
Carringtons integrated solution
begins with an assessment of the
property, which helps the lender
determine whether to rent or sell the
asset, and whether or not repairs are
warranted. From that point, in com-
pliance with applicable federal, state
and local laws, Carrington handles
occupant resolution, property repairs,
and either rental management or the
marketing and disposition of the REO
properties all through a central
point of contact on a single operating
platform, and executed on a local
level by the companys national net-
work of real estate and property man-
agement professionals. LendingXpress
will integrate this full range of capabil-
ities within its existing offering of third-
party products and services dedicated
to meeting the needs of financial
institutions.
Mortgage Professionals
to Watch
l 360 Mortgage Group has announced
that it has hired Ron Summers as its
newest account executive to focus on
expanding relationships with high
quality mortgage brokers throughout
Northern California. 360 Mortgage
has also announced the additions of
Kim Bessette as wholesale account
executive for the central and north-
eastern Florida region, and Jennifer
Warthen as account executive for the
Sand Diego, Calif. area.
l RealtyTrac has announced the hir-
ing of Jake Adger as chief economist.
l Norcom Mortgage has announced
the addition of Lynn LaPierre as a
mortgage consultant.
l U.S. Bank has named Rick
Aneshansel president of U.S. Bank
Home Mortgage, succeeding Dan
Arrigoni who will retire June 30 after
42 years in the mortgage business.
l United Guaranty has announced
that Matt Muller has joined the com-
pany as senior account executive for
the Oklahoma market.
l Real Estate Mortgage Network Inc.
(REMN) has announced the opening
of their first Akron, Ohio office, and
Ohio mortgage industry veteran,
Steven Fishman has joined the com-
pany in the role of branch manager
of the new office. REMN has also
added several new associates at their
branches nationwide, including:
Tom Bawany in Orlando, Fla.;
Duante Duckett in Columbia, Md.;
Mark Erickson in South Burlington,
Vt.; Michael Gordon in Denver,
Colo.; Shane Hale in Plano, Texas;
Ronald Ireland in Overland Park,
Kan.; Rose Pinto in Daytona Beach,
Fla.
l First Guaranty Mortgage Corporation
(FGMC) has named Jeffrey Gibson to
the position of managing director of
TPO flow.
l Jim Bagnell of SBF Mortgage has
attained his Certified Residential
Mortgage Specialist (CRMS) designa-
tion from NAMBThe Association
of Mortgage Professionals.
l Devin Daly has joined Mortgage
Success Source LLC as executive vice
president of sales and service.
l The Mortgage Bankers Association
(MBA) has announced the promotion
of Kenneth A. Markison Esq., for-
merly associate vice president and
regulatory counsel, to the position of
VP and regulatory counsel.
l Cognitive Options Group has
announced the hiring of Dante
Jackson as the firms operations
manager and Michael Richardson as
director of special projects.
l ServiceLink has announced the addi-
tion of Mike Zwerner as senior vice
president of corporate development.
l Titan Lenders Corp. has brought on
software development specialist,
Matt Steck, as the companys new
chief information officer.
l Blueberry Systems LLC has
announced the promotion of indus-
try veteran Dominick Marchetti to
chief operations officer.
l WFG National Title Insurance
Company has announced the addi-
tion of Lee Ann Fenske to serve as
senior vice president, compliance
and national training officer.
l Stearns Lending Inc. has
announced the appointment of
Aaron Samples as the companys
new vice president of strategic devel-
opment
l Radian Guaranty Inc., the mortgage
insurance (MI) subsidiary of Radian
Group Inc., has announced the addi-
tion of 30-year mortgage industry
veteran Phillip Bracken to the team
in the newly created role of chief
policy officergovernment and
industry relations.
l First American Financial Corpora-
tion has announced the addition of
Mark C. Oman to its board of direc-
tors. Oman retired from Wells Fargo
& Company in 2011, after serving
that firm for more than 30 years.
l Loan Resolution Corporation (LRC)
announced that Corey Landon has
been promoted to operations direc-
tor.
l LenderLive Network Inc. has the
additions of Kevin Kelley as senior
vice president of operations for the
Document Services unit, and Leon
Niedzwiecki as director of review
services.
Your turn
National Mortgage Professional
Magazine invites its readers to submit
any information, events, passages, pro-
motions, personal or professional
occurrences that seem appropriate
and/or other pertinent data to the
attention of:
Heard on the Street/Mortgage
Professionals to Watch column
Phone #: (516) 409-5555
E-mail:
newsroom@nmpmediacorp.com
Note: Submissions sent via e-mail are pre-
ferred. The deadline for submissions is the
1st of the month prior to the target issue.
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LOWEST-COST STATE MORTGAGE LICENSE BONDS
Support NAMB in supporting you!
Online surety bond applications, instant underwriting approval, and
credit card payments administered through The Bond Exchange -
NAMB's exclusive partner provider for state license surety bonds.
The Bond Exchange is a national surety agency specializing in serv-
icing mortgage license bonds for thousands of mortgage profession-
als across the country.
Low prices and fantastic service. You really can have them both at
the same time!
The Bond Exchange
www.bondedwithnamb.org
(501) 224-8895
"WE HELP YOU GROW YOUR BRANCH AND SKYROCKET
YOUR INCOME!"
We fund your start-up costs
Corporate Recruiting Team that puts producers in your branch
Direct Connection with the branch managers who are crushing it
Proven "Marketing Maps" that will double your business
"Next Level Support" to help keep you growing
Get a BPS payback from our volume incentive, or build a margin
for yourself into your rate!
Full capability to control your loan officers' pricing.
Create, Customize and Optimize your branch's compensation plan.
Full Eagle Lender and In-House Underwriting, Closing and
Fundings
Currently looking for high-quality producers in: TX, CO, NC, SC,
NJ, OH, GA, AL, TN, FL, MS, LA, KY
Hometown Lenders
(888) 606-8066
moreinfo@htlenders.com
www.hometownbranch.com
StreetLinksLender Solutions provides an innovative and
comprehensive suite of valuation and service solutions used by
lenders, servicers and appraisers nationwide to improve everyday
business operations.
StreetLinks industry-leading products include LenderPlus
full-service appraisal management, LenderX lender-executed
appraisal management software and SCORe appraisal
reviews and a series of valuation analysis tools for services.
Our commitment to quality and service, embodied by our
partnership approach to clients and appraisers, continues to
set us apart as the nations premier lending solutions partner.
For more information, visit www.streetlinks.com.
StreetLinks Lender Solutions
(800) 778-4920
www.streetlinks.com
sales@streetlinks.com
Meadowbrook loan originators make 33% more money with
Meadowbrook than with any other company they worked for.
Enjoy the benefits of a low compare ratio, a lead management sys-
tem with an endless supply of leads, A tier investors, and much
more.
Meadowbrook is hiring Branch Managers and Loan Originators.
We are licensed in NY, CT, PA, NJ, MD, FL, MA, NC, pending in
SC, NH, and RI.
Meadowbrook is an FHA, Fannie Mae, Freddie Mac, and VA
endorsed lender.
Meadowbrook Financial Mortgage Bankers
1-888-MEADOW8 (632-3698)
www.mortgagesalesjob.com
United States Appraisals combines nationwide coverage with
personalized, world-class service. From fast turn-times to
rigorous quality assurance and delivery guarantees, we bring
much needed confidence to the valuation process.
Fast Turn Times We guarantee it!
Underwriter-Ready reports the first time!
100% Compliance with all regulations and guidelines
Customary and Reasonable Fees and a weekly pay cycle
Cutting-Edge Technology provides real time reporting
and full integration for a seamless business process
Call us at (866) 562-0123 for a free consultation.
Or visit www.UnitedStatesAppraisals.com to learn more.
United States Appraisals
World-Class Service. Nationwide Coverage.
Discover Condence in Your Appraisal Partner!
www.UnitedStatesAppraisals.com | (866) 562-0123
Are you a mortgage origination professional?
Are you exceptional?
Is your company?
Gateway Mortgage Group has immediate opportunities in 16
states. Our origination teams enjoy:
A local branch- and origination-centric model
The perfect balance of corporate support
Competitive compensation plans
And best of all, our entire platform is built with one thing in mind
helping local originators take their success to the next level.
Visit our careers page on LinkedIn. Follow us.
Or call us at 888.360.3773.
And we will show you YOUR Gateway to a Great Way of Life!
Gateway Mortgage Group, LLC
is an equal opportunity employer. NMLS 7233
HQ: 6910 E. 14th Street, Tulsa, OK 74112
APPRAISAL MANAGEMENT COMPANY BRANCH OPPORTUNITIES BONDS & LICENSING
BRANCH MANAGER
Its Timeto join one of the Top Mortgage Bankers as Branch
Managers or Loan Officer NOW! Why? You Have Our Guarantee!
Our Guarantee
We will not leave you stranded and alone on an island. Our
seasoned operational rollout team will ensure you a smooth tran-
sition to our branch platform.Our RHF University will train every-
one on your staff.We stand by our reputation of providing ongo-
ing support and communication to every branch , every day.
Youre our #1 Priority! We are a Full-Service Banker, a Direct
Endorsed FHA and Fannie Lender. We are a TRUE 48 hours in
Underwriting and Closing. We will close your loans on time.
We will give the best service to you and your clients
We will give you full access to all marketing and development
services from loan origination to hiring to specialty products. We
are the Leader in marketing, technology and strategic business
partnerships. We assist our Branch Managers in hiring, training
and motivating their staff. We will help you build your team.
CALL NOW 866-319-4442or EMAIL fkuri@rhfunding.com or
VISIT www.rhfbranch.com
GET THE BRANCH POWER YOU NEED!!!
Partner Smarter:
Fast boarding process
Multistate origination
Easy access to underwriting and decision makers
In-house underwriting & processing
24 hr underwriting approvals
Reverse mortgage experts
Corporate branch opportunities
VANGUARD FUNDING LLC
www.unleashVpower.com
(516) 824-3233
srand@vanguardfunding.net
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COACHING DIRECT MAIL COMPLIANCE/CONTINUING EDUCATION
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 GROUP
167 West Hudson Street - Suite 200
Long Beach | NY | 11561 | (516) 442-3456
www.LendersComplianceGroup.com
1he U|nmate L|fe 8a|ance & 8us|ness
Growth Academy for 1op roducers
Strateg|cke|anonsh|pAcademy.com
1op 8ealLor
wlLh
$273mm
volume
1op LC wlLh
$100mm
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Division of Lenders Compliance Group, BCG is the first and only
mortgage risk management firm in the U.S. devoted to supporting
the unique compliance needs of residential mortgage brokers.
Leveling the Playing Field for Mortgage Brokers
Low Cost Monthly Membership Includes:
Free Weekly Hotline
Access to Subject Matter Experts
Policies and Procedures
Webinars
*Special Pricing*
Quality Control
Exam Readiness
Licensing
Legal Reviews
BROKERS COMPLIANCE GROUP
167 West Hudson Street Suite 200
Long Beach | NY | 11561
members@brokerscompliancegroup.com
www.BrokersComplianceGroup.com
Cost: Only $19.95 per month per physical office location
Jeff Mifsud, a former FHA Direct Endorsed Underwriter trained by
HUD and an FHA Originator for over 15 years, is publisher of The
FHA Originator, a monthly marketing newsletter which gives you
FHA guideline news to keep you updated
FHA Marketing tips and downloads that are easily customized
Personal development tips to help you develop your character
Full access to all previous FHA marketing downloads!
No contracts so sign up today and give yourself the tools to brand
yourself as The FHA Expert in your marketplace.
Cost: Only $19.95 per month per physical office location.
Mortgage Seminars
MortgageSeminars.com
248-403-8181
AllRegs offers mortgage professionals fast, reliable answers need-
ed to conduct their day-to-day business. From research and ref-
erence to business intelligence, from education and training to
professional services, we are your definitive source for mortgage
industry information. With tools for originators like NMLS-
approved CE training, regulatory content libraries for compliance
staff, guidelines for underwriters, policy manuals for operations,
and business intelligence forbusiness development we have you
covered as the leading information provider for the mortgage
industry. If you have a specific need, our professional services
team can help with thing like policy, procedure or guideline devel-
opment, as well as custom training or publishing resources.
Contact usto learn how we can help you visit www.allregs.com
today.
AllRegsYour Source for Fast, Reliable Answers
2600 Eagan Woods Drive, Suite 220
Eagan, MN 55121
(800) 848-4904
www.allregs.com
COMPLIANCE CONSULTANTS
CONTINUING EDUCATION
TagQuest is a full service marketing frm created specifcally for
the ever changing mortgage business. We have tested and proven
campaigns for FHA -VA - HARP - CONVENTIONAL loan types.
TagQuest knows what it takes to generate quality leads whether
through direct mail marketing, telemarketing, internet leads, data
lists, tracking systems, or any combination thereof. TagQuest will
brand your company, prepare targeted marketing campaigns that
generate interest in your company, and most importantly, show
you how to turn sales leads into repeat customers.
TagQuest
www.myharpleads.com
TagQuest.com
888-717-8980
Titan List and Mailing Services, Inc. is a direct marketing agency
that offers a complete range of advertising and design services.
The frm specializes in data lists (mail/phone), printing, direct mail,
graphic and website design as well as internet and SEO market-
ing. Starting in 1998, the company has, since then employed high-
ly skilled individuals who have considerable experience regarding
marketing trends. The company manages the complete in-house
campaign themselves including Design, Data Lists, Printing,
Postage, and Mailing.
Titan List & Mailing Services, Inc.
1020 NW 6th St Suite D, Deereld Beach, FL. 33442
(800) 544-8060
www.TitanLists.com
Credit Plus, Inc., a leader in credit information services, is dedi-
cated to providing mortgage professionals with an unsurpassed
level of service and technology. We provide lenders and brokers
the best tools and support to close more loans faster and cheap-
er. Offering the most innovative, reliable and robust credit report-
ing platforms on the market, Credit Plus goes BEYOND BUN-
DLED
TM
by combining key products, such as credit reports, scor-
ing tools, Undisclosed Debt Monitoring powered by Equifax, flood
reports, title services, AVMs, Warranted AVMs, tax return verifica-
tions and more, while providing stellar customer service.
Credit Plus, Inc.
31550 Winterplace Parkway, Salisbury, MD 21804
800-258-3488
www.creditplus.com
CREDIT REPORTING
EMPLOYMENT SERVICES
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LEADS WHOLESALE/CORRESPONDENT LENDERS MARKETING SERVICES
8520 Macon Rd. Ste 2
Cordova, TN 38018
info@mcmf.net | 615-477-7118
Calyx Software is the #1 provider of affordable mortgage solutions
for banks, credit unions, mortgage bankers and brokers. Beginning
with customizable websites that offer online mortgage applications
with eDisclosures and document request/retrieval, Calyx offers
products that enable smooth bi-directional flow of data from start to
finish. Our solid yet flexible LOS delivers smart technology with
electronic document management, back-end functionality such as
underwriting and secondary marketing, strong security, remote
access, on-the-go productivity available with optional mobile apps,
and a configurable business rules engine needed for workflow and
compliance. Convenient interfaces with over 200 vendors providing
PPE, closing documents, compliance services and more make end-
to-end processing and reporting simple & accurate. Lenders can
take advantage of our fully integrated automated underwriting and
pricing products that determine loan eligibility and pricing against
investor or FHA guidelines.
Calyx Software
800-362-2599
www.calyxsoftware.com
MCMF developed My Guide, a Premier Credit & Financial
Education Magazine that you can customize with your LOGO
and Ad Pages to feature your organization as well as provide
your borrowers a go-to-guide for credit and financial resources,
empowering them to make the most informed financial
decisions.
This 16 page, full color, quarterly publication, provides financial
literacy tools in a concise, unbiased, easy to understand format.
My Guide is offered in traditional magazine print, as well as our
newest electronic flipbook version, bringing flipping through a
magazine experience right to your desktop
Contact me today to learn more about this one of a kind
opportunity!
Mortgage Internet Leads $9.99. Find out why the nation's top
lenders partner with MortgageLeads.ORG.
Target by:
Refinance
Purchase
HARP
FHA
VA
Reverse.
Close more loans today 888-695-3239 or click
www.MortgageLeads.org
MortgageLeads.org
888-695-3239
LOAN ORIGINATION SYSTEMS
MARKETING SERVICES
Gets you more referrals,
inquiries, and closings!
hats what mortgage loan
offcers tell us about our
unique, personalized marketing
brochures. f you are serious about
your career, you need serious sales
literature to help build credibility,
establish professionalism & differentiate
you from your competitors.
T
Warren J. Rosaluk
800.795.2150
BrochureGuy.com
Want more loans?
The Direct Path into the Reverse Mortgage Market.
Ralph E. Rosynek, Jr. / Senior Vice-President
National Production Manager /HECM Direct Endorsement Underwriter
E-Mail: rrosynek@rmsnav.com / rrosynek@rmpath.com
Office: 281.404.7970 / Cell: 708.774.1092 / EFax: 866.543.5420
URL: www.rmsnav.com www.RMPath.com
Whether you are an experienced reverse mortgage professional
looking to grow faster or a firm wanting to create a new product
line, allow RMSs production division RMPath to work with and
alongside you to build a strategic path to success. We have:
Correspondent, Wholesale Lending And Aggregation Partnering
We Offer Exceptional Customer Service And Market - Leading
Pricing
Powerful, Secure, Scalable Loan Origination Systems
Proprietary State-Of-The-Art Technology Utilizing The RM
COMPASS Technology Platform
Customizable Production Strategies To Fit Your Needs
Rapid Execution And Exceptional Customer Service
Excellent Compliance And Regulatory Controls
American Financial Resources, Inc.
Jim Melchior, National Sales Director
502-882-0529
www.AFRWholesale.com
American Financial Resources Wholesale Division is one of the
countrys leading wholesale lenders. Recently ranked #2 in total
sponsored FHA loans closed, AFR officers a wide variety of
products including:
Conventional
Freddie Mac Open Access and Fannie Mae DU Refi Plus
USDA
Manufactured Housing
VA
One-Time Close Construction
FHA 203k full and streamline rehabilitation loans
Since 1997 we have been expanding to better serve you and
our hard work and investment have resulted in faster turn times,
quality customer service, and one of the most robust product
lines in the industry.
Close Jumbo Loans Others Cannot
Service more jumbo borrowers with New Penns
Jumbo Advantage portfolio product
877-930-PENN
www.GoNewPenn.com
Jumbo Advantage Highlights:
Market leading jumbo rates
Loan amounts up to $2 million
Cash out up to $400,000
FICO down to 680
Expanded loan-to-value (LTV) up to 85% (no MI)
Expanded debt-to-income ratio (DTI) up to 50%
RECRUITMENT
RETAIL BRANCH
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855.422.5917
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WHOLESALE/CORRESPONDENT LENDERS WHOLESALE/RESIDENTIAL WHOLESALE LENDERS
REMN has FHA, USDA, 203k, VA and Conventional solutions to fit
the needs of your customers. But, at REMN, our most valuable
product is our people. The REMN Sales and Operations Teams
give you - and your loans - the time and attention that you
deserve. Even better, at REMN, same-day approvals are guaran-
teed.* You can rely on us to get the little, yet vital, things taken
care of on time.
Interested in joining our Wholesale Division?
Send your resume to
aerecruiting@remn.com
Real Estate Mortgage Network, Inc.
www.remnwholesale.com
866-933-6342
UWM has a full set of mortgage products to meet all of your
lending needs with Conventional, FHA, USDA (Rural
Development), VA, Jumbo, HARP 2.0 and DU Refi Plus. With
UWMs ELITE program, you will receive the most aggressive
conventional rates and pricing in the industry for your elite
borrowers! Discover Lending Made Easy with United Wholesale
Mortgage!
United Wholesale Mortgage
800-981-8898
www.uwm.com
HomeBridge
5 Park Plaza, 10th Floor
Irvine, CA 92614
www.homebridgewholesale.com
HomeBridge is a national wholesale lender offering both
conventional and government products. We are committed to
providing the highest value to our clients through competitive
pricing, unique product offerings, superior customer service,
and state-of-the-art technology.
Currently expanding and hiring experienced Wholesale
Account Executives nationwide.
Please send your resume to marketing@homebridge.com.
Building bridges to success, one loan at a time.
Rushmore Home Loans
www.rushmorehl.com
888.202.0878
Rushmore Home Loans is a wholesale lender dedicated to
understanding and answering the needs of our brokers. We
provide competitive mortgage loan products with a focus on
quality, efficiency and flexibility. Our goal is to deliver an
experienced, customer-focused team with access to the most
comprehensive technology platform to deliver the highest
possible service to our brokers.
WHOLESALE LENDERS
CBC National Bank is one of the nations fastest growing
wholesale lenders offering Conventional, FHA, VA, and USDA.
The most important aspect of being a leader in todays market is
the ability to build and maintain a meaningful relationship with
each customer. We understand that these meaningful relation-
ships coupled with competitive pricing and efficient technology
are the pillars of todays lending environment.
We are hiring Loan officers in the Southeast. GA, FL, AL, TN,
NC,SC.
Contact Gabe Santiago our Corporate Recruiter at
gsantiago@cbcnationalbank.com for further details.
Big Enough to MATTERSmall Enough to CARE
CBC National Bank
3010 Royal Boulevard South, Ste. 230
Alpharetta, GA 30022
888-486-4304
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calendar of events
N A T I O N A L M O R T G A G E P R O F E S S I O N A L
JUNE 2013
Monday-Friday, June 3-7
MISMO Spring Summit Meeting
Dallas/Addison Marriott Quorum
by the Galleria
14901 Dallas Parkway
Dallas, Texas
For more information, e-mail
info@mismo.org.
Friday, June 7
Mastermind 2013 Maximum
Growth Summit
Presented by Maximum Acceleration
The Palms Hotel
4381 West Flamingo Road
Las Vegas, Nev.
For more information,
call (888) 819-7047 or visit
www.maccelcoach.com.
Sunday-Tuesday, June 9-11
2013 Ultimate Mortgage Expo
Tropicana Resort & Casino
2831 Boardwalk
Atlantic City, N.J.
For more information,
call (860) 922-3441 or e-mail
info@agilityresourcesgroup.com.
JULY 2013
Wednesday, July 17
2013 Lets Make A Deal Tri-State
Wholesale Lending Fair
Trump Taj Mahal Casino Resort
1000 Boardwalk Avenue
Atlantic City, N.J.
For more information,
call (732) 596-1619 or visit
www.mbanj.com.
Wednesday-Saturday,
July 31-August 3
Florida Association of Mortgage
Professionals (FAMP 2013) Annual
Convention Here We Grow Again
Rosens Shingle Creek
9939 Universal Boulevard
Orlando, Fla.
For more information, e-mail
convention@myfamp.org
or visit www.famb.org.
AUGUST 2013
Thursday-Friday, August 8-9
Louisiana Mortgage Lenders
Association (LMLA) 2013 Annual
Conference
Hilton New Orleans Riverside
2 Poydras Street
New Orleans, La.
For more information,
call (225) 590-5722 or visit
www.lmla.com.
SEPTEMBER 2013
Sunday-Tuesday,
September 29-October 1
MBA Regulatory Compliance
Conference
Renaissance Washington DC
Downtown Hotel
999 9th Street NW
Washington, D.C.
For more information,
call (800) 793-6222 or visit
www.mortgagebankers.org.
OCTOBER 2013
Saturday-Monday, October 19-21
NAMB National 2013
Harrahs Las Vegas
3475 Las Vegas Boulevard South
Las Vegas, Nev.
For more information, call (972)
758-1151 or visit www.namb.org.
Sunday-Wednesday,
October 27-30
Mortgage Bankers Association (MBA)
100th Annual Convention & Expo
Walter E. Washington
Convention Center
801 Mt. Vernon Place
Washington, D.C.
For more information,
call (800) 793-6222 or visit
www.mortgagebankers.org.
To submit your entry for inclusion in the National Mortgage Professional
Calendar of Events, please e-mail the details of your event, along with
contact information, to newsroom@nmpmediacorp.com.
LOOKING FOR A
COMMITTED RELATIONSHIP?
While some of our competitors were trying to get rid of you,
AFR was figuring out ways to close more of your loans.
Conventional
- Conventional Fixed
- Freddie Mac Open Access
- Fannie Mae DU Ref Plus
(Unlimited LTV/CLTV on HARP loans)
- Manufactured Housing
VA
- Purchases and Refnances
- VA IRRRL Refnances
- Manufactured Housing
FHA
- FHA Streamline
- FHA Premium Plus
- FHA $100 Down
- FHA One Time Close
- FHA 203(k) and 203(k) Streamline
- Manufactured Housing
USDA
- Guaranteed Rural Housing Loan
- Manufactured Housing
AFR DOES NOT CHARGE
ANY LENDER FEES!
To sign up as a TPO or Table Funded Broker,
Correspondent or Correspondent with
Delegated Underwriting Authority, call us at
888-913-3912
or online at
AFRWholesale.com
American Financial Resources Wholesale Division ranked #1 in total sponsored FHA loans closed
and #1 in total sponsored 203k loans closed for all Non-Bank Lenders
AFR is a nationwide, direct FHA lender and approved GNMA issuer. Our corporate offce is located at 9 Sylvan Way, Parsippany, New Jersey 07054 1-888-664-2101
*AFR Wholesale Division ranked 1st in total sponsored FHA loans closed with a beginning amortization date between March 1, 2011, and February 28, 2013,
for all non-bank lenders; ranked #4 overall as reported by HUDs Neighborhood Watch (excludes streamlines). Intended for mortgage professionals only.