NMP NOV10eedition

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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MAIN STREET
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A Commentary on the Transfer of Mortgage Loans to
RBMS Securitization Trusts By Stephen Kudenholdt and
Stephen F.J. Ornstein
The Secondary Market Overview: The New Financial
Services Law Long-Term Benefit By Dave Hershman
The NAMB Perspective
Value Nation: The Desk Appraisal Review Under the
Microscope By Charlie W. Elliott Jr., MAI, SRA
The Trusted Mortgage Professional: Back on Track
Encouraging Takeaways From This Years MBA Annual
Convention By Greg Schroeder
Trend Spotter: Dont Let Americas Lost Decade be Your
Lost Decade By Gibran Nicholas
SAFE Smart Credit When Credit Is Due
By Paul Donohue, CRMS
Forward on Reverse: FIT for Reverse Mortgage Lenders:
Part III Why Lenders Must be FIT Smart
By Atare E. Agbamu, CRMS
Professional Servicing Companies: The Key to Seller
Carry-Back Loan Survival By Drew Louis
FHA Insider: FHA Update on CLTV Changes and UFMIP
Refunds By Jeff Mifsud
Social Media: Take Two Breaths and E-mail Me in the
Morning By Andrea Obston
Ask Tommy: Your QC Expert By Tommy A. Duncan, CMT
National Mortgage Professional Magazines 40 Under 40:
The 40 Most Influential Mortgage Professionals Under 40
MRev Hits New York
A View From the C-Suite: Predictions and Strategies in a
Down Market By David Lykken
2011: The Year of Big Decisions By Marve Stockert
Embrace These Five Actions and Grow in 2011
By Josephine Nicholas
The New Mortgage Company: Changing Your Business to
Thrive in Todays Market By Joshua Stein
Mortgage Professionals: Where Are You Headed in 2011?
By Joy Gendusa
Have you reserved your user name on NationalMortgageProfessional.com?
Visit NationalMortgageProfessional.com.
A Message From NMP Media Corp.
Executive Vice President Andrew T. Berman
What Thanksgiving Means to NMP
For me, I, like everyone else, am thankful that I have a wonderful family, great friends
and a team of wordsmiths, designers and business development experts that help us
deliver a product that just keeps growing (much like my waistline on Thanksgiving!). I
also want to take the time to give thanks to our readers for helping us create this mag-
azine each month by letting us know what they want to see in an industry publication.
I also need to give thanks to our thoughtful and inspiring monthly contributors. Folks
like Dave Hershman, with his monthly update on the secondary market, or Charlie W.
Elliott Jr. who provides his insights from the frontlines of the valuation business. How
about industry leaders like Gibran Nicholas of the CMPS Institute who attended The Future of Housing
Finance conference, hosted by the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve,
on behalf of National Mortgage Professional Magazine. Gibran learned the sobering fact that this was noth-
ing more than a photo-op. He does continue on with a pretty motivating message for our readers.
We also cannot forget one of the top reverse mortgage authorities in the nation, Atare E. Agbamu, who,
this month, brings us the third installment of his FIT for Reverse Mortgage Lenders series. I am also really
thankful for one of my longtime favorite trainers in the industry, Paul Donohue. We enjoy sharing his
insights on the SAFE Act and industry training grace the pages of our publication each month. This month,
Paul covers the controversial credit reports that mortgage loan originators are subject to. And how can I for-
get our FHA Insider Jeff Mifsud? Our readers are very thankful for the insights on FHA that he has shared
with us over the years, and this month, he covers CLTV changes and UFMIP refunds. How about David
Lykkens view from the C-Suite? I am honored to have the top mortgage banking consultant share monthly
his insights on what he sees with mortgage industry CEOs, CIOs, CSOs, COOs and other C-Level executives.
Last, but certainly not least, Id like to mention Tommy A. Duncan. Tommy has been writing his Ask
Tommy: Your QC Expert column since we launched the magazine. He has provided some great insights on
loan quality as he sees it, looking at the data from all sources of origination, from credit unions, to com-
munity banks, to TPOs, to big banks and everything in between. I thank him for his great articles and also
his service to our country. While you might know him as executive vice president of Quality Mortgage
Services, many dont know he is also an active duty lieutenant colonel commanding a battalion with 30
years of service and has earned multiple campaign badges.
NAMB/WEST
Our partnership with the National Association of Mortgage Brokers (NAMB) as their official magazine has
brought us some great insights from the frontlines. This month, we feature a message from Mike Anderson,
NAMB Government Affairs Committee Chair, talking about the need to band together to fight the preda-
tors preying upon mortgage originators. Make sure you are at NAMB/WEST in Las Vegas to learn how to pro-
tect yourself from these attacks. In addition,, it will be a great event to learn how to build your business in
2011 with some of the industrys brightest minds, including Greg Frost, Frank Garay and Brian Stevens from
Think Big Work Small, and other industry leaders.
Our 40 Mortgage Professionals of the Month
Last year, the list was comprised mostly of originators. However, this year, we were more open to suggestions
from individuals involved with mortgage technology, the secondary market and the servicing sector. While
my roots are personally in the origination side of the business, I recognize that those individuals who bring
technology, help with automation, provide access to products and give originators the ability to be competi-
tive on pricing impact a larger pool of mortgages (literally and figuratively). So, the idea is to still highlight
the originators out there who are crushing it (hat tip to Gary Vaynerchuk) and to also shine the spotlight on
some of the individuals who empower these MLOs to help America with their real estate financing.
Positive vibes at this years MBA Convention
This months Trusted Mortgage Professional column from Greg Schroder has some positive comments on
the Mortgage Bankers Association (MBA) and its recent Annual Convention in Atlanta speculating that
wholesale market is making a strong comeback. Mark Green of Top of Mind Networks attended the MBA
Annual Convention to create video content for the upcoming launch of MortgageProfessional.TV. You will
be able to see his footage in January 2011 on MortgageProfessional.TV. As Mark put it, Suffice it to say, all
in attendance agreed that 2011 is going to be another chaotic year in the mortgage businessand that the
only thing that will stay the same is lots of change.
Growth strategies
As you prepare your goals for 2011, be sure to check out our Special Focus on Growth Strategies for 2011.
The section starts off with David Lykken sharing some of his insights from his panel discussion at the MBA
Annual Conference. Following David, Marve Stockert provides a number of planning tips for 2011. Then,
you can grab five strategies from Josephine Nicholas that will be sure to help you grow in 2011. Joshua
Shein shares some business models to look at to see what is right for you and your organization, and this
months focus wraps up with a piece from direct mail expert, Joy Gendusa, on three strategies to grow your
business in the new year.
Until next month ...
Andrew T. Berman, Executive Vice President
NMP Media Corp.
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November 2010
Volume 2 Number 11
1220 Wantagh Avenue Wantagh, NY 11793-2202
Phone: (516) 409-5555 / (888) 409-9770
Fax: (516) 409-4600
Web site: www.nationalmortgageprofessional.com
Mortgage
PROFESSIONAL
N A T I O N A L
M A G A Z I N E
Your source for the latest on originations, settlement, and servicing
STAFF
Eric C. Peck
Editor-in-Chief
(516) 409-5555, ext. 312
ericp@nmpmediacorp.com
Andrew T. Berman
Executive Vice President
(516) 409-5555, ext. 333
andrew@nmpmediacorp.com
Domenica Trafficanda
Art Director
domenicat@nmpmediacorp.com
Karen Krizman
Senior National Account Executive
(516) 409-5555, ext. 326
karenk@nmpmediacorp.com
Jon Blake
Advertising Coordinator
(516) 409-5555, ext. 301
jonb@nmpmediacorp.com
Jennifer Moeller
Billing Coordinator
(516) 409-5555, ext. 324
jenniferm@nmpmediacorp.com
ADVERTISING
To receive any information regarding advertising rates, deadlines and require-
ments, please contact Senior National Account Executive Karen Krizman at
(516) 409-5555, ext. 326 or e-mail karenk@nmpmediacorp.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 Credit
Reporting Association (NCRA) and/or other state mortgage trade associations.
Participation in NAMB, NAPMW, NCRA, and/or other state mortgage
trade associations events, activities and/or publications is available on
a non-discriminatory basis and does not reflect the endorsement 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 misrepre-
sentations or warranties concerning the regulatory and/or compliance
aspects of advertisers, products or services and/or the editorial content con-
tained in NMP Media Corp. publications. National Mortgage Professional
Magazine and NMP Media Corp. reserve the right to edit, reject and/or post-
pone the publication of any articles, information or data.
National Mortgage Professional Magazine
is published monthly by NMP Media Corp.
Copyright 2010 NMP Media Corp.
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National Credit Reporting Association Inc.
125 East Lake Street, Suite 200 O Bloomingdale, IL 60108
Phone #: (630) 539-1525 O Fax #: (630) 539-1526
Web site: www.ncrainc.org
The National Association of
Mortgage Brokers
11325 Random Hills Road, Suite 360
Fairfax, VA 22030
Phone #: (703) 342-5900 O Fax #: (703) 342-5905
PresidentWilliam R. Howe, CMC, CRMS
Howe Mortgage Corporation
13322 East Paradise Drive
Scottsdale, AZ 85259
(602) 200-8100 O bill@howemortgage.com
President-ElectMichael DAlonzo, CMC
Creative Mortgage Group
1126 Horsham Road, Suite D
Maple Glen, PA 19002
(215) 657-9600 O mjdalonzo@hotmail.com
Vice PresidentDonald J. Frommeyer, CRMS
Amtrust Mortgage Funding Inc.
200 Medical Drive, Suite D
Carmel, IN 46032
(317) 575-4355 O dfrommeyer@amtrust.net
SecretaryVirginia Ferguson, CMC
Heritage Valley Mortgage Inc.
5700 Stoneridge Mall Road, Suite 225
Pleasanton, CA 94588
(925) 469-0100 O hvm1@msn.com
TreasurerJohn Councilman, CMC,CRMS
AMC Mortgage Corporation
2613 Fallston Road
Fallston, MD 21047
(410) 557-6400 O jlc@amcmortgage.com
Immediate Past PresidentJim Pair, CMC
Mortgage Associates Corpus Christi
6262 Weber Road, Suite 208
Corpus Christi, TX 78413
(361) 853-9987 O jlpair@aol.com
Michael Anderson, CRMS
Essential Mortgage
3029 S. Sherwood Forest Boulevard, Suite 200
Baton Rouge, LA 70816
(225) 297-7704 O mikea@essentialmtg.com
Donald Fader, CRMS
SMC Home Finance
P.O. Box 1376
Kinston, NC 28503-1376
(252) 523-5800 O dfader@smchf.com
Deb Killian, CRMS
Charter Oak Lending Group LLC
3 Corporate Drive, P.O. Box 3196
Danbury, CT 06813-3196
(203) 778-9999, ext. 103 O debkillian@snet.net
Olga Kucerak, CRMS
Crown Lending
222 East Houston, Suite 1600 O San Antonio, TX 78205
(210) 828-3384 O olga@crownlending.com
Walter Scott
Excalibur Financial Inc.
175 Strafford Avenue, Suite 1 O Wayne, PA 19087
(215) 669-3273 O wscott.afcs@gmail.com
Marty Flynn
President
(925) 831-3520, ext. 224
marty@ccireports.com
Tom Conwell
Vice President
(248) 473-7400
tconwell@credittechnologies.com
Daphne Large
Treasurer
(901) 259-5105
daphnel@datafacts.com
William Bower
Director
(800) 288-4757
wbower@confinfo.com
Mike Brown
Director
(800) 285-6691
mike.brown@ncogroup.com
Susan Cataldo
Director
(404) 303-8656, ext. 204
susancds@cdsusa.net
Nancy Fedich
Director
(908) 813-8555, ext. 3010
nancy@cisinfo.net
Sanford (Sandy) Lubin
Director
(805) 481-3155
slubin@cbslo.com
Judy Ryan
Director
(800) 929-3400, ext. 201
jryan@kroll.com
Tom Swider
Director
(856) 787-9005, ext. 1201
tswider@creditlenders.com
Donald J. Unger
Director
(303) 670-7993, ext. 222
don@advcredit.com
NCRA Staff
Terry Clemans
Executive Director
(630) 539-1525
tclemans@ncrainc.org
Jan Gerber
Office Manager/Membership Services
(630) 539-1525
jgerber@ncrainc.org
President
Gary Tumbiolo, CMI
(919) 452-1529
garytumbiolo@aol.com
President-Elect
Laurie Abshier, GML, CMI
(661) 283-1262
E-Mail: lauriea@gemcorp.com
Senior Vice President
Candace Smith, CMI, CME
(512) 329-9040
csmith@wrstarkey.com
Vice PresidentNorthwestern Region
Jill M. Kinsman
(206) 344-7827
jill.kinsman@usbank.com
Vice PresidentWestern Region
Tim Courtney
(760) 792-5620
desertranchrealty@hotmail.com
Vice PresidentCentral Region
Lisa Puckett
(405) 741-5485
lpuckett@ameagletitle.com
Vice PresidentEastern Region
Christine Pollard
(646) 584-8332
cpollard1046@gmail.com
Secretary
Murielle Barnes, CME
(806) 373-6641
napmw123@yahoo.com
Treasurer
Hulene Bridgman-Works
(972) 494-2788
hulene137@yahoo.com
Parliamentarian
Dawn Adams, GML, CMI
(607) 737-2584
dawnvadams@live.com
NAMB Board of Directors
National Association of Professional
Mortgage Women
P.O. Box 451718 O Garland, TX 75042
Phone #: (800) 827-3034 O Fax #: (469) 524-5121
Web site: www.napmw.org
Officers
Directors
2010 Board of Directors
National Board of Directors
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MBA survey finds
mortgage bankers made
$300-plus more per
loan in Q2 over Q1
Independent mort-
gage bankers and
subsidiaries made
an average profit
of $917 on each loan they originated in
the second quarter of 2010, up from
$606 per loan in the first quarter of
2010, according to the Mortgage
Bankers Association (MBA)s Second
Quarter 2010 Mortgage Bankers
Performance Report. The increase was
driven by a rise in the average produc-
tion volume for each firm to $196.6
million in the second quarter of 2010,
compared to $157.8 million in the first
quarter of 2010. As a result, production
operating expenses decreased to
$4,677 per loan in the second quarter
of 2010, from $5,147 per loan in the
first quarter of 2010.
The significant rise in loan origina-
tion volume during the second quarter
reflects the surge in first-time home-
buyers seeking to take advantage of the
tax credit before the deadline expired,
said Marina Walsh, MBAs associate vice
president of industry analysis. Higher
production operating expenses typical-
ly are associated with purchase produc-
tion compared to refinances. But in
this case, fixed costs were spread out
over more loans and lenders experi-
enced higher pull-through rates. These
factors help explain why operating
expense dropped on a per-loan basis by
$470 per loan between quarters.
However, average profits in the sec-
ond quarter of 2010 were significantly
lower than the profits in the second quar-
ter of 2009. Walsh said, A year before,
quarterly production volume averaged
$280.9 million and the refinancing share
was over 60 percent. The heavy volume
and refinancing share helped lower per-
loan operating costs to $3,414 per loan
and profits soared to $1,358 per loan.
For more information, visit www.mort-
gagebankers.org.
Federal Reserve Board
announces rule
protecting the integrity
of the appraisal process
The Federal Reserve Board
(FRB) has announced
an interim final rule to
ensure that real estate
appraisers are free to
use their independent professional judg-
ment in assigning home values without
influence or pressure from those with inter-
ests in the transactions. The rule also seeks
to ensure that appraisers receive customary
and reasonable payments for their services.
The interim final rule includes sev-
eral provisions that protect the integri-
ty of the appraisal process when a con-
sumers home is securing the loan. The
interim final rule:
O Prohibits coercion and other similar
actions designed to cause appraisers
to base the appraised value of prop-
erties on factors other than their
independent judgment;
O Prohibits appraisers and appraisal
management companies hired by
lenders from having financial or
other interests in the properties or
the credit transactions;
O Prohibits creditors from extending
credit based on appraisals if they
know beforehand of violations involv-
ing appraiser coercion or conflicts of
interest, unless the creditors deter-
mine that the values of the properties
are not materially misstated;
O Requires that creditors or settlement
service providers that have informa-
tion about appraiser misconduct file
reports with the appropriate state
licensing authorities; and
O Requires the payment of reasonable and
customary compensation to appraisers
who are not employees of the creditors
or of the appraisal management compa-
nies hired by the creditors.
The interim final rule is required by
the Dodd-Frank Wall Street Reform and
Consumer Protection Act. Compliance
will be mandatory on April 1, 2011.
Public comments are due 60 days after
the interim final rule is published in the
Federal Register, which is expected soon.
For more information, visit www.federal-
reserve.gov.
Zillow report finds 33 per-
cent of Americans do not
qualify for a mortgage
Nearly one-third of
Americans are unlikely
to qualify for a mort-
gage because their cred-
it scores are too low,
making homeownership out of reach
for many, according to an analysis of
Contact one of our Regional Managers in your area
TX, OK, LA: David Walden 1-214-878-6300 dwalden@iservelending.com
Southeast & East Coast: Ken Michael 1-931-222-8023 kmichael@iservelending.com
CA, OR, WA, NV: Allen Friedman 1-415-298-2500 afriedman@iservelending.com
UT, CO, ID, WY, MT: Tony Moore 1-801-824-7243 tmoore@iservelending.com
KEY #1
Offer your borrowers full product line,
BEAT THE STREET PRICING and
dedicated service support
FHA, Conventional, Jumbo, Super Jumbo,
USDA, VA and Reverse Mortgage products
& more coming!
On-line pricing system with lock-in and ap-
proval engine
Automated pre-approvals
Full 24/7 access to processing and under-
writing pipeline management
24 to 48 hour turn times on conditions and
underwriting
Fund loans in two weeks
KEY #2
Have a POWERFUL lender behind you
Full service Direct Lender
Multi-state lending
As a HomePath Lender we can deliver
leads directly from FannieMae
Experienced underwriters and staff to as-
sist with your loans
Non-Disclosure of YSP on HUD
Appraisals ordered in-house through our
appraisal department and using local ap-
praisers
In-house licensing department to handle all
State Licensing and Compliance
The security and stability of a big lender
with the personal touch of a small lender
KEY #3
Maximize Branch PROFITABILITY and
Branch Manager COMPENSATION
Generous commission split
Branch managers are able to control their
branchs profts by designing their own rev-
enue model for the four sources of income
indigenous to their market
W-2 Employee with group health, dental,
vision and disability benefts
Matching 100% dollar for dollar 401K con-
tributions with vesting in 3 years
Support for all accounting, human resources,
payroll, licensing and operations
5
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MortgageCompanySpecialist@amertoner.com
www.amertoner.com
more than 25,000 loan quotes and pur-
chase requests on Zillow Mortgage
Marketplace during the first half of
September 2010. Borrowers with credit
scores under 620 who requested pur-
chase loan quotes for 30-year fixed,
conventional loans were unlikely to
receive even one loan quote on Zillow
Mortgage Marketplace, even if they
offered a relatively high downpayment
of 15-25 percent. Nearly one-third of
Americans, or 29.3 percent, has a cred-
it score this low, according to data pro-
vided by myFICO.com.
Meanwhile, the lowest interest rates
went to mortgage borrowers who were
among the 47 percent of Americans
with excellent credit scores of 720 or
above. In the first half of September,
borrowers with credit scores of 720 or
above got an average low annual per-
centage rate (APR) of 4.3 percent for
conventional 30-year fixed mortgages.
Borrowers with mid-range credit scores
between 620 and 719 received APRs
between 4.73 and 4.44 percent, with
the APR rising as credit score drops.
Those with credit scores below 620
received too few loan quotes to calcu-
late average low APR.
For those with mid-range credit
scores of 620 to 719, improving ones
credit score can mean a significant sav-
ings in interest over time. For each 20-
point credit score increase, the average
low APR declines 0.12 percent, which
for a $300,000 home, with a 20 percent
downpayment, equates to a savings of
$6,400 over the life of a 30-year loan.
We are in an era of historically low
mortgage rates, reaching levels not
seen in decades. Coupled with four
years of home value declines, homes
are more affordable than weve seen
for years. But the irony here is that so
many Americans cant qualify for these
low rates, or cant qualify for a mort-
gage at all, said Zillow Chief Economist
Dr. Stan Humphries. Four years ago, in
the era of easy-to-get subprime loans,
many borrowers with low scores did
buy homes, which in turn helped con-
tribute to a housing bubble. Todays
tighter credit is a predictable response
by banks after the foreclosure crisis,
but also keeps a cap on housing
demand, which is important for the
greater housing market recovery.
For more information, visit www.zillow.com.
Study finds race a factor
in foreclosure process
Although the rise in
sub-prime lending
and the ensuing
wave of foreclosures
was partly a result of market forces that
have been well-documented, the fore-
closure crisis was also a highly racial-
ized process, according to a study by
two Woodrow Wilson School scholars
published in the October 2010 issue of
the American Sociological Review.
Woodrow Wilson School Ph.D. candi-
date Jacob Rugh and Woodrow Wilson
Schools Henry G. Bryant, professor of
sociology and public affairs; and
Douglas Massey, assessed segregation
and the American foreclosure crisis.
The authors argue that residential seg-
regation created a unique niche of
minority clients who were differentially
marketed risky sub-prime loans that
were in great demand for use in mort-
gage-backed securities (MBS) that could
be sold on secondary markets.
The authors use data from the 100
largest U.S. metropolitan areas to test
their argument. Findings show that
black segregation, and to a lesser
extent Hispanic segregation, are power-
ful predictors of the number and rate
of foreclosures in the United States
even after removing the effects of a
variety of other market conditions such
as average creditworthiness, the degree
of zoning regulation, coverage under
the Community Reinvestment Act
(CRA), and the overall rate of sub-prime
lending.
This study is critical to our under-
standing of the foreclosure crisis since
it shows the important and independ-
ent role that racial segregation played
in the housing bust, said Rugh.
A special statistical analysis provided
strong evidence that the effect of black
segregation on foreclosures is causal
and not simply a correlation.
While policy makers understand
that the housing crisis affected minori-
ties much more than others, they are
quick to attribute this outcome to the
personal failures of those losing their
homespoor credit and weaker eco-
nomic position, noted Massey. In
fact, something more profound was
taking place; institutional racism
played a big part in this crisis.
The authors conclude that Hispanic
and black racial segregation was a key
contributing cause of the foreclosure
crisis. This outcome was not simply a
result of neutral market forces but was
structured on the basis of race and eth-
nicity through the social fact of resi-
dential segregation, the authors note
in the article. Ultimately, the racializa-
tion of Americas foreclosure crisis
occurred because of a systematic fail-
ure to enforce basic civil rights laws in
the United States, the authors write in
the article. In addition to tighter regu-
lation of lending, rating, and securitiza-
tion practices, greater civil rights
enforcement has an important role to
play in cleaning up U.S. markets. It is in
the nations interest for federal author-
ities to take stronger and more ener-
getic steps to rid U.S. real estate and
lending markets of discrimination, not
simply to promote a more integrated
and just society but to avoid future cat-
astrophic financial losses.
For more information, visit www.asanet.org.
Coester Appraisal
survey finds appraiser
inexperience populates
the marketplace
A recently conducted
survey of more than
5,000 licensed appraisers
across the country contradicts lenders
continued on page 8
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2. A lien on real property collateral secur-
ing this obligation to repay the debt,
which is created by a mortgage or a deed
of trust.
As used in this article, mortgage
includes a deed of trust. Transfers of
notes are governed by
applicable state contract
law including the Uniform
Commercial Code (UCC).
Transfers of a mortgage or
deed of trust are general-
ly governed by state real
property law. While these
laws do not conflict, they
do have the result of
transfers of mortgage
loans being legally com-
plex. There is no single
legally prescribed format
for transferring mortgage
loans, such as the certifi-
cate of title rules for
motor vehicles. In addi-
tion, ownership of a
mortgage loan does not
require the owner to
have recorded an assign-
ment of the mortgage in
the real property records.
There are decades of
custom and practice in
the transfer of mortgage
loans as between the orig-
inator and successive pur-
chasers or into a securiti-
zation. The practices used in conveying
mortgage loans to private label securiti-
zation trusts are consistent with the
practices used in transferring mortgage
loans to Fannie Mae and Freddie Mac. In
addition, these practices are the same
practices used in sales of mortgage loans
(whole loan sales) in transactions prior to
or not involving a securitization, as
between the originator and successive
purchasers in these whole loan sales.
These standard transfer procedures
are essentially designed to meet three
objectives:
1. Document the parties intent to effect
a sale of the mortgage loans and
memorialize all terms and conditions of
that sale;
2. Evidence the transfer of ownership
by delivering the physical notes with
endorsements consistent with UCC pro-
visions, which protects the purchaser
from being subject to adverse third
party claims in the mortgage loans; and
3. Enable the purchaser to become the
mortgagee of record as needed for fore-
closure proceedings or other purposes.
There is a tremendous amount of public
commentary these days about possible
defects in foreclosure proceedings com-
menced by loan servicers. Much of this dis-
cussion concerns procedural matters, such
as whether the appropriate steps are being
taken to verify the accuracy of statements
made in affidavits executed
in connection with these
proceedings. These issues
are very fact specific and it
may take some time to
ascertain what effect, if any,
they may have on any given
loan.
Within this overall dia-
logue, however, more fun-
damental issues have been
raised challenging both the
validity of the procedures
used to convey mortgage
loans into securitization
trusts and the qualification
of the securitization trusts as
a real estate mortgage
investment conduit (REMIC)
at the time those trusts were
formed. These statements
are false and misguided.
The reasoning behind
these statements appears
to be as follows:
1. In order to satisfy pro-
cedural requirements in
connection with foreclo-
sure, certain steps may
need to be taken in order to document
the ownership of a mortgage loan by
the securitization trust; and
2. Since not all of these steps were taken at
the time of the securitization, the securiti-
zation trust must not own the mortgage
loan. This reasoning is faulty, because some
of the steps that may be required under
applicable state law in order to bring a
foreclosure action are not required to
transfer ownership of the mortgage loan.
The purpose of this article is to refute
these challenges to the efficacy of mort-
gage loan transfers to securitization trusts.
Simply stated, the industry standard pro-
cedures used for decades in transferring
mortgage loans to securitization vehicles
comply with the well-settled principles of
law governing the transfer of mortgage
loans, and therefore, are effective to
transfer ownership of the mortgage loans.
Standard procedures for
transferring a mortgage loan
A mortgage loan can be thought of as a
bundle of rights, including:
1. A borrowers obligation to repay
debt, evidenced by a note; and
A Commentary on the
Transfer of Mortgage Loans to
RMBS Securitization Trusts
By Stephen Kudenholdt and Stephen F.J. Ornstein
Stephen Kudenholdt
the industry stan-
dard procedures used
for decades in trans-
ferring mortgage
loans to securitization
vehicles comply with
the well-settled princi-
ples of law governing
the transfer of mort-
gage loans, and there-
fore, are effective to
transfer ownership of
the mortgage loans.
continued on page 10
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Recently, I hosted a Webinar which covered
a summary of the new financial services
legislation as it affects those in the mort-
gage industry. We had a guest speaker, Jim
Milano of Weiner, Brodsky, Sidman and
Kider PC, who focused on the topic of
greatest interest to mortgage loan officers,
compensation. Of course, the feedback we
have heard time and time again, is woe is
us. The industry will never be the same.
Actually, the industry will be the same. This
legislation completes a cycle that takes it
back to where it was 30 years ago when I
first got in the industry. We had some fixed-
rate loans, adjustable-rate loans and some
growing equity mortgages, but nothing
fancy. There were no overages paid. Banks
had lists of approved appraisers and that is
all you could use. There wasnt much of a
secondary market outside of being able to
sell government and conforming loans,
and I made quite a good living at that time.
Now in reality, I dont think that the
industry will stay at this 30-year-ago phase.
This is truly a pendulum that was swung
completely to the other side from the cow-
boy days of just five years ago. The pendu-
lum will swing back. But it will swing back
more slowly and not nearly as far. The leg-
islation really makes sure this pendulum
does not move as violently as it has in the
past. That is probably a good thing. Not only
had the industry swung too far, but it has
also swung too fast. Who could possibly
keep up with the changes? That is one rea-
son I moved to having a legislative update
two to three times per week as part of our
Certified Mortgage Advisor program
(www.webinars.originationpro.com) and I
can tell you that it has been a major task for
me to keep up to communicate this infor-
mation on a timely basis.
Rather than just continue with the
woe is me bent on all the information
coming out with regard to the financial
services and all the other legislation, I
would like to advance one very important
benefit for the mortgage and real estate
industriessurvival. Perhaps I am being a
bit melodramatic about what is happen-
ing here, but I dont think so. There is
nothing that is more important that what
has happened within this industry and
what could go wrong if this industry does
not continue to be healthy in the future.
It is true that most in this industry con-
sider this legislation just another aspect of
government intrusion. After all, we already
have the government taking over the
world in the wake of the financial crisis,
including hundreds of billions of dollars in
stimulus spent over the past three years,
bailing out major corporations and putting
Fannie Mae and Freddie Mac into conser-
vatorship. However, believe it or not,
sometimes a higher level of government
regulation can actually have the longer-
term result of lessening the need for gov-
ernment involvement. How can that be?
One impact of the financial crisis was
that the secondary markets for home loans
pretty much shut down in response to this
crisis. Not only were the secondary giants
Fannie Mae and Freddie Macbasically
bankrupt, what investors were going to
purchase securities backed by mortgages as
they were defaulting and home prices were
declining? Immediately, rates on home
loans rose even as the Federal Reserve
Board was lowering benchmark rates
because of this lack of confidence. The
most dramatic affect was on jumbo mort-
gages, as this market dried up completely.
The Fed stepped in and became the pri-
mary purchaser of these loans, as well as
purchasing Treasury securities. This helped
stabilize the markets. The good news is what
resulted from these actions. What could
have resulted in hundreds of billions in loss-
es for the government with regard to this
operation actually has turned out to be prof-
itable. Rarely has there been such a win-
win result as the markets also stabilized. We
should mention also that the recently
retired TARP program has been met with
similar success in regard to at least limiting
losses to the government as banks and auto-
mobile companies were also saved.
But here is the problem, the government
cannot support the secondary markets for-
ever just as it cannot own stakes in private
companies forever. That is not how capital-
ism works. The tight controls upon home
loan programs and underwriting sought by
the financial services legislation may restrict
choices with regard to exotic mortgages for
consumers and business models for origi-
nators, but they are designed to give confi-
The New Financial Services Law:
Long-Term Benefit
The long-term benefit of financial services legislation
dence to the world that our mortgages are
safe to purchase. If it works, a healthy sec-
ondary market will mean lower rates and
more choices in the long run, which will
help restore long-term health to the real
estate markets. If the secondary market
begins to strengthen, it can start evolving
again and that is what will start the pen-
dulum swinging back. Only this time, it can
evolve within a healthy regulatory frame-
work. There is no doubt that a lack of regu-
lation with regard to the markets helped an
unhealthy situation become worse. Too
much regulation? Perhaps. But it is a neces-
sary medicine to fix a very sick system.
Most everyone agrees that the real estate
markets will take a long time to heal. A
healthy secondary market for mortgages is
one of the more important parts of this heal-
ing process. In reality, they will both heal
slowly, together. Meanwhile, dont be sur-
prised that the foundation will be put in
place for a recovery that comes more quick-
ly than many are predicting. Why? There will
be pent up demand and population
growth. Even those who are relegated to
renting will need homes in the future. But
first, the foundation must be put in place.
Dave Hershman is a leading author for the
mortgage industry with eight books and sev-
eral hundred articles to his credit. He is also
head of OriginationPro Mortgage School and
a top industry speaker. Daves NewsletterPro
Marketing System can be found at
www.webinars.originationpro.com. If you
would like to stay ahead of what is happen-
ing in the markets, visit ratelink.origination-
pro.com for a free trial or e-mail
success@hershmangroup.com.
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and independent appraisers claims that
appraisal management companies
(AMCs) are employing inexperienced
appraisers and are significantly under-
paying appraisers. The survey, which was
conducted by Maryland-based AMC
Coester Appraisal Group, revealed that
only three percent of appraiser respon-
dents have less than five years of experi-
ence, and more than half have been in
the business for 15 years or more.
Additionally, almost two thirds of
appraisers earn $250 to $350 per
appraisals assigned through an
appraisal management companyfees
that are well above the rumored $180
to $220 fees that appraisal manage-
ment companies are believed to pay
appraisers, according to Brian Coester,
chief executive officer of Coester
Appraisal Group. When working on
their own as independent appraisers,
almost 40 percent earn $250-$350 per
appraisal.
The use of AMCs surged when the
Home Valuation Code of Conduct
(HVCC) went into effect in May 2009.
Since then, numerous lenders and
independent appraisers have been
accusing appraisal management com-
panies of taking an unfair percentage
of appraisal fees while also producing
lower quality appraisalssupposedly
completed by grossly inexperienced
appraisersat higher prices than their
independent counterparts.
Quite a few negative misconcep-
tions about AMCs have been getting a
lot of media coverage, which is fueling
undue distress among lenders and
appraisers, said Coester. As an AMC,
we knew those claims were unfounded,
but just to be absolutely sure appraisers
felt the same way, we set up a survey to
get their feedback first-hand.
The survey, which was completed in
August 2010, tracks the responses of
5,384 licensed appraisers throughout
the U.S. The study revealed that over
half (52.4 percent) of respondents feel
that an ideal fee of $350 to $400 would
allow for the highest quality of work on
a conventional appraisal, and 45.3 per-
cent said that $400 to $450 would allow
for high-quality Federal Housing
Administration (FHA) appraisals. Nearly
78 percent of respondents stated that
the typical fees they were receiving
were enough for them to do their high-
est quality of work, more than 82 per-
cent feel that AMCs should keep a per-
centage of 15 percent or less, and
almost 17 percent felt that AMCs were
entitled to 15 to 30 percent.
For more information, visit www.coester-
appraisals.com.
HUD issues proposed rule
to solidify the FHA lender
indemnification process
The U.S. Department of
Housing & Urban Development
(HUD) has proposed new
regulations to strengthen
its authority to force certain lenders to
indemnify or reimburse the Federal
Housing Administration (FHA) for insur-
ance claims paid on mortgages that are
found not to meet the agencys guide-
lines. In addition, HUDs proposed rule
would require all new and existing
lenders with the ability to insure mort-
gages on HUDs behalf (Lender
Insurance mortgagee) to meet stricter
performance standards to gain and
maintain their approval status.
Last January, FHA announced a
series of policy changes to address risk
and strengthen the financial position of
its insurance fund. This announcement
will create a regulatory framework and
codify the legal authority FHA currently
has under the National Housing Act.
Its important that our expectations
are crystal clear, said FHA
Commissioner David H. Stevens. We
need to clarify which circumstances
well require indemnification and the
level of loan performance we expect
lenders to maintain.
For those lenders with special
authority to insure mortgage loans on
FHAs behalf, HUD seeks to force
indemnification for serious and mate-
rial violations of FHA origination
requirements such that the mortgage
never should have been endorsed by
the mortgagee in the first place just as
FHA would not have insured the mort-
gage on its own.
Specifically, these lenders may be
required to indemnify HUD if they
failed to: (1) Verify and analyze the
creditworthiness, income, and/or
employment of the borrower; (2) verify
the source of assets brought by the bor-
rower for payment of the required
downpayment and/or closing costs; (3)
address property deficiencies identi-
fied in the appraisal affecting the
health and safety of the occupants or
the structural integrity of the property;
or (4) ensure that the property apprais-
al satisfies FHA appraisal require-
ments. HUD may seek indemnification
irrespective of whether the violation
caused the mortgage default.
While HUD will seek indemnification
in cases of fraud or misrepresentation at
any time, the Department intends to
codify a reasonable time period for
requiring indemnification in cases
where the mortgagee failed to meet
FHA requirements. For those cases not
involving fraud or misrepresentation, it
has been HUDs long-standing practice
of requiring indemnification within
five years from the date of mortgage
insurance endorsement.
The date of endorsement is a fixed
date, and therefore has the benefit of
news flash continued from page 5
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e-mail: sales@calyxsoftware.com
visit: www.calyxsoftware.com
Please send resume to:
hr@mortgageinvestors.com
or call 877-215-9950
transfer of mortgage loans continued from page 6
General custom and practice in the
sale of mortgage loans involves three key
steps from a documentary perspective:
O Contract
In mortgage loan sale transactions,
there is almost always a contractual
agreement as between seller and pur-
chaser which: Clearly establishes the
parties intent to sell the mortgage
loans to the purchaser; identifies the
specific mortgage loans being sold by
use of a loan level sched-
ule; contains granting
language which states
that it conveys ownership
of the mortgage loans;
identifies the time of
sale; and specifies the
governing law for the sale
transaction (frequently,
the laws of the State of
New York are designated
by the parties as the gov-
erning law). These con-
tractual agreements typi-
cally also contain repre-
sentations and war-
ranties made by the sell-
er. An agreement of this
type is essential to estab-
lish the parties intent to
sell the loan, to actually
convey the loan to the
purchaser and to articu-
late the terms and condi-
tions of the sale. (Delivery
of the note and an assign-
ment of mortgage, while
important for the reasons discussed
below, do not in and of themselves
establish the parties intent and articu-
late the terms and conditions of the
sale.)
In a private label residential mort-
gage-backed securities (RMBS) transac-
tion, the relevant contractual agree-
ment is typically a pooling and servic-
ing agreement, which conveys the
mortgage loans from the depositor to
the trustee on behalf of the securitiza-
tion trust. Another relevant document
could include a separate mortgage loan
purchase agreement, under which the
mortgage loans are sold by the sponsor
to the depositor immediately prior to
the sale from the depositor to the trust,
with representations and warranties
that are assigned to the trustee. These
documents contain clear granting lan-
guage that conveys ownership of all of
the sellers right, title and interest in
and to the mortgage loans to the
trustee on behalf of the securitization
trust. There is a schedule or exhibit to
these documents that specifically iden-
tifies each loan sold under the agree-
ment.
O Delivery of Note
Physical delivery of the mortgage note
to the purchaser or its agent, together
with an endorsement of the note by the
seller in blank, are also key compo-
nents in the sale of mortgage loans for
several reasons. First, because mort-
gage notes are generally instruments
under the UCC, possession of the mort-
gage note by the purchaser in a valid
sale is generally sufficient to establish
that the purchasers ownership rights
are superior to the rights of any other
person in the mortgage loan. Second,
as an instrument, the note can be
transferred and the purchaser will be
recognized as the holder
in accordance with appli-
cable UCC provisions,
upon physical delivery of
the note to the purchaser
with an endorsement
(which may be in blank).
The question of whether a
mortgage note is a nego-
tiable instrument is fact-
specific, and the standard
transfer procedures are
designed to be effective
irrespective of whether it
is a negotiable instru-
ment. Third, since there is
generally only one physi-
cal note per mortgage
loan, delivery by the sell-
er to the purchaser effec-
tively prevents the seller
from engaging in any mis-
taken, improper or fraud-
ulent sale or pledge of the
mortgage loans to multi-
ple parties. Fourth, pos-
session of the mortgage
note may be needed for enforcement
of the note in the event of default,
including by foreclosure.
Notes may be delivered to the pur-
chaser with an endorsement in blank. It
is common for a mortgage note for a
mortgage loan that has been sold to
have stamped on it an endorsement to
the effect of Pay to the order of_____,
without recourse, signed by the origi-
nator or a subsequent purchaser. Such
an endorsement has the effect that any
subsequent transfer of the note pre-
sumptively only requires physical deliv-
ery (i.e., with no additional endorse-
ment). Therefore, where there are suc-
cessive purchasers to a note, the
endorsement in blank by any prior hold-
er is a sufficient endorsement for pur-
poses of the most recent purchaser. For
this reason, a mortgage note that has
been transferred numerous times typi-
cally will only show one endorsement,
which remains in blank. Importantly, for
all purposes for which an endorsement
of a mortgage note may be necessary or
desirable in connection with a sale of
the mortgage note, an endorsement in
blank is sufficient and is equally effec-
tive as an endorsement where the name
is filled in.
In private label RMBS transactions,
Stephen F.J. Ornstein
The question of
whether a mortgage
note is a negotiable
instrument is fact-
specific, and the
standard transfer
procedures are
designed to be effec-
tive irrespective of
whether it is a nego-
tiable instrument.
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being known to both HUD and the
lenders with the authority to self insure
mortgages. HUD believes five years is a
reasonable seasoning period for a
particular mortgage loan to either per-
form or go into default and for the
Department to ascertain whether origi-
nation errors were made. In addition,
this five-year period is not considered a
burden to lenders who might otherwise
face the possibility of indemnifying
insurance claims made on long-ago
endorsed mortgage loans.
The proposed rule will also require
those mortgagees with delegated lender
insurance authority to continually main-
tain an acceptable claim and default rate,
both to gain this special lender status as
well as to preserve it. HUD proposes that
all new unconditional direct endorse-
ment lenders who have the authority to
self-insure mortgages must demonstrate
a default and claim rate at or below 150
percent for the previous two years. This
standard would apply to the state/states
where the lender does business, rather
than a national default/claim average.
The present regulation defines an
acceptable claim and default as at or
below 150 percent of either: (1) The
national average rate for all insured
mortgages; or (2) if the mortgagee
operates in a single state, the average
rate for insured mortgages in the state.
The current regulation may make it
easier for a single-state lender to meet
the acceptable standard if that lender
operates in a state that has a high
default rate. In contrast, a mortgagee
would be disadvantaged by having its
claim and default rate compared to the
national average if the mortgagee oper-
ates in states with comparatively high
default rates, even if the mortgagee is in
full compliance with FHA requirements
and otherwise eligible for Lender
Insurance approval. HUD believes the
proposed methodology will more accu-
rately reflect mortgagee performance by
evaluating each mortgagee based on its
actual area of operations. FHA will con-
tinually monitor lender performance
rather than conduct an annual review of
each Lender Insurance mortgagee.
The FHA will also consider the two-year
default and claim performance of either
entity in the case of acquisition or merger
without requiring these entities to seek a
waiver. FHA, at its own discretion (without
any judicial or administrative action) also
clarifies that it has the authority to imme-
diately withdraw a lenders ability to self-
insure mortgage loans.
For more information, visit www.hud.gov.
SEC charges two State Street
employees with misleading
sub-prime mortgage info
The Securities & Exchange
Commission (SEC) has
charged a pair of employ-
ees at Boston-based State
Street Bank and Trust
Company with misleading investors about
their exposure to sub-prime invest-
ments. The SECs Division of
Enforcement claims that John P.
Flannery and James D. Hopkins mar-
keted State Streets Limited Duration
Bond Fund as an enhanced cash
investment strategy that was an alter-
native to a money market fund for cer-
tain types of investors. By 2007, how-
ever, the fund was almost entirely
invested in sub-prime residential
mortgage-backed securities (RMBS)
and derivatives. Yet despite this expo-
sure to sub-prime securities, the fund
continued to be described as less risky
than a typical money market fund and
the extent of its concentration in sub-
prime investments was not disclosed
to investors.
The SEC charged State Street in a
related case earlier this year and the
firm agreed to settle the charges by
repaying fund investors more than
$300 million.
Hopkins and Flannery misled State
Streets investors about the risks and
credit quality of a fund concentrated
in subprime bonds and other sub-
prime investments, said Robert
Khuzami, director of the SECs Division
of Enforcement. The SEC is commit-
ted to identifying and holding
accountable those who violated the
law and harmed investors through
subprime investments.
According to the SECs order insti-
tuting administrative proceedings
against Hopkins and Flannery, they
played an instrumental role in draft-
ing a series of misleading communica-
tions to investors beginning in July
2007. Flannery was a chief investment
officer who no longer works at State
Street. Hopkins was a product engi-
neer at the time, and is currently State
Streets head of product engineering
for North America.
According to the SECs order, the
misleading communications to
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13
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EXECUTIVE OFFICES:
108 Corporate Park Drive, Suite 301
White Plains, NY 10604
CALL:
Louis Tesoriero at (888) 329-GHMC
ltesoriero@ghmc.com
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investors related to the effect of the
turmoil in the subprime market on the
Limited Duration Bond Fund (estab-
lished in 2002) and other State Street
funds that invested in it. State Street
provided certain investors with more
complete information about the funds
subprime concentration and other
problems with the fund. These better-
notified investors included clients of
State Streets internal advisory groups,
which provided advisory services to
some of the investors in the fund and
the related funds.
The SECs Division of Enforcement
alleges that State Streets internal advi-
sory groups, one of which reported
directly to Flannery, subsequently
decided to recommend that all their
clients redeem from the fund and the
related funds. The pension plan of
State Streets publicly-traded parent
company (State Street Corporation) was
one of those clients. At the direction of
Flannery and State Streets Investment
Committee, State Street sold the funds
most liquid holdings and used the cash
it received from these sales to meet the
redemption demands of better
informed investors. This left the fund
and its remaining investors with large-
ly illiquid holdings.
In the settlement with the firm,
announced jointly by the SEC and the
offices of Massachusetts Secretary of State
William F. Galvin and Massachusetts
Attorney General Martha Coakley, State
Street agreed to pay more than $300
million to investors who lost money
during the sub-prime market meltdown
in 2007. State Street distributed those
funds to investors in February and
March. State Street additionally paid
nearly $350 million to investors to set-
tle private lawsuits.
When the SEC announced its settle-
ment with State Street in February, it
also announced that State Street had
agreedpursuant to a limited privi-
lege waiverto provide information to
enable the SEC to assess the potential
liability of individuals involved with
State Streets investor communications
about the fund.
The SECs case was investigated by
Robert Baker, Cynthia Baran, Deena
Bernstein, and John Kaleba. The SECs
litigation against Hopkins and Flannery
will be led by Bernstein, Kathy Shields
and Baker.
For more information, visit www.sec.gov.
FHFA releases data on
Fannie and Freddie
single-family mortgages
for 2001-2008
In an effort to inform
the current discussion
on the future of the
housing finance system,
the Federal Housing
Finance Agency (FHFA) has released
data on Fannie Mae and Freddie Mac
that compare the credit quality and
performance of the loans they acquired
relative to loans financed with private-
label mortgage-backed securities
(MBS).
Data on the Risk Characteristics
and Performance of Single-Family
Mortgages Originated From 2001-
2008 and Financed in the Secondary
Market documents the differences in
single-family, conventional mortgages
acquired by the government-spon-
sored enterprises (GSEs) versus those
financed through the issuance of pri-
vate-label mortgage-backed and
asset-backed securities (private-label
MBS) during the recent mortgage
lending and house price boom and
the ensuing bust.
Eighty-four percent of single-family
mortgages acquired by the enterprises
during 2001 to 2008 were made to
borrowers with FICO credit scores
above 660, while five percent were
made to borrowers with FICO scores
below 620. In contrast, 47 percent of
mortgages financed with private-label
MBS originated during this period
were made to borrowers with FICO
scores above 660, while 32 percent
were made to borrowers with FICO
scores lower than 620.
Over 82 percent of GSE-acquired
loans had LTV ratios at origination of 80
percent or less, while two-thirds of
mortgages financed with private-label
MBS had LTV ratios at or below 80 per-
cent, with that share increasing from 54
percent of 2001 originations to 81 per-
cent of 2008 originations. The pattern
of decreasing LTV ratios over time, most
pronounced for loans financed with pri-
vate-label MBS, is consistent with the
greater use of second liens to avoid
mortgage insurance on low-down pay-
ment mortgages, a practice that was
increasingly common into 2007 and
that contributed to the unusually poor
performance of loans with low LTV
ratios relative to past experience.
14
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Program of Events
(Subject to change)
Friday, December 3
2:00 p.m.-6:00 p.m.........................................................Registration Open
4:00 p.m.-5:00 p.m. ........................NAMB Membership Committee Meeting
4:00 p.m.-6:00 p.m. ..............NAMB Government Affairs Committee Meeting
5:00 p.m.-6:00 p.m. ..................................NAMB Ethics Committee Meeting
6:00 p.m.-7:00 p.m. ............NAMB By-Laws & Education Committee Meetings
6:00 p.m.-8:00 p.m. ................................NAMB Finance Committee Meeting
Saturday, December 4
7:30 a.m.-5:00 p.m. ......................................................Registration Opens
8:00 a.m.-9:00 a.m. ..............................Allison Jenkins of Hondros Learning
American Society for Asset Protection
8:00 a.m.-10:00 a.m. ......................................................Ethics (2 CE Hours)
Additional fee applies for NMLS and class materials. Limited seating. Register online
in advance to attend this class.
9:00 a.m.-9:15 a.m...........................................................................Break
9:15 a.m.-10:15 a.m. ......................A Presentation From Orawin Velz, Senior
Economist, Fannie Mae
10:15 a.m.-10:30 a.m. ......................................................................Break
10:30 a.m.-11:45 a.m. ................................A Presentation From the Federal
Housing Administration (FHA)
Noon-1:45 p.m. ......Lunch With Greg Frost: The Principles of Ethical Influence
Reciprocity Be the first to give, service, information, concessions.
Authority Establish your position through professionalism, industry knowl-
edge, your credentials, admitting weaknesses first.
Consensus Unleash people power by showing responses of many others, oth-
ers past successes, testimonials from similar others.
Liking Uncover similarities, areas for genuine compliments and opportuni-
ties for cooperation.
Consistency Start small and build with existing commitments toward volun-
tary choices.
Scarcity The rule of the rare emphasize genuine scarcity, unique fea-
tures, exclusive information.
The ethical use of influence means being honest and maintaining integrity.
Within these principles are triggers that cause people to say, Yes. These are the
teachings of Robert Cialdini, Ph.D., author of The Principles of Ethical Influence.
Greg Frost will present the psychology, establish the science, stipulate that sci-
ence can be learned, and then share the practical applications of the science in his
market-proven strategies, systems and tactics that he has used for years to grow his
business. Whats old is new.
1:45 p.m.-2:00 p.m. ........................................................................Break
2:00 p.m.-4:00 p.m. ............Video Workshop: Brian Stevens & Frank Garay of
Think Big Work Small
3:30 p.m.-4:30 p.m. ............................................FHA Mortgage (1 CE Hour)
4:00 p.m.-5:00 p.m. ..................Session Featuring Steve Richman, Marketing
Manager, National Spokesperson and Trainer With Genworth
4:00 p.m.-6:00 p.m.....................................Speed Dating Mortgage Style!
4:45 p.m.-6:45 p.m. ......................................Reverse Mortgage (2 CE Hours)
7:00 p.m.-9:00 p.m. ....................................Networking Cocktail Reception
Sunday, December 5
7:30 a.m.-5:00 p.m. ........................................................Registration Open
8:00 a.m.-11:00 a.m. ..................NAMB Government Affairs Panel Discussion
10:00 a.m.-1:00 p.m. ..............................Federal Law Education (3 CE Hours)
1:00 p.m.-6:00 p.m. ........................................................Exhibit Hall Open
6:00 p.m.-8:00 p.m. ....................................Networking Cocktail Reception
Monday, December 6
8:30 a.m.-12:30 p.m. ..................................NAMB Delegate Council Meeting
1:30 p.m.-4:00 p.m. ..................................................NAMB Board Meeting
For more information on the National Association of Mortgage Brokers, visit www.namb.org.
NAMB/WEST 2010
Saturday-Monday, December 4-6, 2010
MGM Grand Las Vegas
For more information, visit www.nambwest.com.
15
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2010 Inlanta Mortgage
A Message From NAMB
Government Affairs Committee
Chair Mike Anderson, CRMS
The Government Affairs team of the National Association of
Mortgage Brokers (NAMB) has been very active so far this year
and has had some significant impact with lawmakers and regu-
lators in Washington, D.C.
The most recent victory is the recently released appraisal inde-
pendence announcement from the Federal Housing Finance
Agency (FHFA) and Fannie Mae. NAMB has fought hard and had
several meetings with FHFA/Fannie Mae to stress the importance
of appraisal independence and portability. Well, they listen to us, and on Oct. 14,
the announcement was made and appraisal portability was included.
NAMB was invited to attend two very important meetings this year. The first
meeting was the Future of Housing Conference hosted by the U.S. Department
of the Treasury and the U.S. Department of Housing & Urban Development
(HUD). The intention of the meeting was to gather thoughts and ideas of the
future of the government-sponsored enterprises (GSEs) and housing finance in
general. NAMB presented a position paper on our thoughts for where the GSEs
role should be in the future, which can be found on the NAMB Web site,
www.namb.org.
We also stressed how we must get underwriting back to some sort of normalcy
and bring back some common sense. We discussed the overlays in underwriting
and stressed how they are slowing down the recovery of the U.S. housing market.
They made it clear that more meetings will be scheduled and that NAMB will be
invited back to the table on this very important issue.
The second meeting in September was with a very small group of industry
leaders held at the Treasury with Timothy Geithner, Secretary of the Treasury,
and the newly appointed head of the Consumer Financial Protection Bureau
(CFPB), Elizabeth Warren. You can all count on a new simplified combined Good
Faith Estimate (GFE) and Truth-in-Lending (TIL) no later than July of 2011. The
meeting went very well and NAMB was very instrumental in the proceedings of
the meeting and we received a lot of face time. The outcome of the meeting
was for a simple-to-understand GFE and TIL. NAMB stressed doing away with
the annual percentage rate (APR), which drew quite a bit of conversation that,
in the end, most agreed the APR is very confusing and very difficult to under-
stand and explain to a borrower. More meetings will be scheduled in the
months ahead and NAMB will be invited back to the table to participate.
We are also working extremely hard on the new Fed rule on loan originator
compensation. I cannot discuss the plans at this current time, but rest assured, we
are working on a plan. We are extremely concerned that this rule places mortgage
brokerage companies and their loan officers at a competitive disadvantage in the
marketplace. We have scheduled meetings with executive branch agencies to dis-
cuss our concerns, including the newly created Consumer Financial Protection
Bureau.
Now is the time to attend NAMB/WEST 2010 in Las Vegas in early December to
participate in the Government Affairs planning session where we will discuss our
goals and directives for the remainder of the year, especially now that we have the
results of Election Day. Your voices are important and please plan on attending for
your opinions matter to us.
I would like to close with a crucial cry and plea the loan originator has
predators preying upon us in the form of regulators and lawmakers who do not
understand our business. They are chipping away at our livelihood and our
futures every day. The number of loan originators has decreased considerably
from three years ago. According to Nationwide Mortgage Licensing System
(NMLS), there are approximately 143,000 licensed loan originators in America
today. Here is the sad part, of that 143,000, only approximately 5,000 are mem-
bers of NAMB yes, 5,000! This sends a signal to lawmakers! If you do not care
enough about your industry or profession to join it and protect your interests,
then why should anyone in Washington, D.C.? I can assure you that NAMB can-
not continue the fight on Capitol Hill with only 5,000 members. We need 20,000
members minimum to really be effective in a big way. We will not be able to
pay for the lobbyists to fight and represent our livelihood without more mem-
bers. A national association is very crucial when dealing with Washington, D.C.
and individual states cannot be as effective without a national force behind
them. NAMB has an excellent reputation on the Hill and Roy DeLoach is very
respected in Washington, D.C. I am afraid that without more members, we can-
not retain such a high profile person to lead the way. It cannot be a matter of
cost. NAMB dues are $120 for mortgage brokers and $50 for originatorsa bar-
gain price to protect your livelihood. My plea to you is to join NAMB and recruit
new members and we will do the fighting if you simply do your part and that
is Protect Your Industry and Join NAMB! Please visit www.joinnamb.org and
show how much you care about the profession you choose to make a living in.
Thank you,
Mike Anderson, CRMS, Government Affairs, PAC Chair and Board Member
National Association of Mortgage Brokers
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transfer of mortgage loans continued from page 10
note affidavit executed by the seller
would be delivered to the trustee which
affidavit would confirm that the seller:
1. Had owned the loan;
2. Had possession of the original note;
and
3. Had attached a true and complete
copy of the original note to the affi-
davit, and also that the original note
had been lost or destroyed.
The securitization governing docu-
ments by their terms would still neverthe-
less convey ownership of those mortgage
loans to the trustee, although the lack of
the original note might in some states give
rise to additional requirements that the
lender must comply with in connection
with a foreclosure (e.g., posting a bond).
With respect to mortgage loans where,
as of the time of the securitization, the
mortgage was held through the Mortgage
Electronic Registration System (MERS),
instead of delivering an assignment of
mortgage, the seller would transfer its ben-
eficial interest in the mortgage to the
trustee through MERS. In jurisdictions
where the note holder must be named as
the mortgagee of record in order to com-
plete a foreclosure, relatively simple steps
can be taken to accomplish this, thereby
permitting foreclosure if necessary
(although delays may occur).
Validity of original transfer
procedures
For the reasons described above, these
standard procedures are sufficient to
validly transfer ownership of the mort-
gage loans to the securitization trusts,
consistent with the clear and unam-
biguous intent of all parties to the trans-
actions (including the investors) at the
time. Specifically, use of an endorse-
ment in blank on the mortgage note is
fully consistent with a sale. Recordation
of an assignment of mortgage to the
securitization trust is not necessary to
evidence ownership of the mortgage
loan by the trust, and the delivery of an
assignment of mortgage in blank in
recordable form is sufficient to enable
the trust to become the mortgagee of
record if needed for foreclosure.
There may be additional steps required
at the time of foreclosure in order to com-
ply with procedural or documentary
requirements. For example, an assign-
ment of the mortgage may need to be
recorded to the securitization trust. Any
such additional steps would not convey
any new or additional ownership rights to
the securitization trust and would not
negate the sufficiency of the transfer pro-
cedures described above to convey own-
ership of the mortgage loans to the secu-
ritization trust at the time of issuance.
It should not be surprising that addi-
tional steps may be needed at the time of
foreclosure. The standard transfer proce-
dures described above are used in the con-
text of transactions between sophisticated
financial institutions and institutional
investors, who clearly mutually intend for
the transactions to be sales. As commercial
transactions, the steps taken are certainly
sufficient to legally convey ownership and
protect the rights of the purchaser, but do
not include additional steps not required
to convey ownership that would involve
additional time or expense. In contrast, the
foreclosure process is adversarial, and in
that context, it is understandable that
extra requirements could be imposed over
and above those necessary to convey own-
ership of the loan itself.
Is there a REMIC
qualification issue?
A few commentators have added to the
parade of horrors, a concern that the REMIC
would lose its qualification because it did
not own the mortgage loans. The underly-
ing premise to this argument is that the
actions taken to convey ownership of the
loans at issuance were ineffective and that
any subsequent step taken to supposedly
cure such deficiency (such as recordation
of an assignment of mortgage) would have
the effect of transferring the mortgage loan
to the REMIC after the 90-day period follow-
ing the issuance date during which transfers
to the REMIC are permitted, causing a pro-
hibited transaction tax. The simple response
to this argument is that the mortgage loans
have been legally conveyed to the securiti-
zation trust at the time of issuance, which
satisfies the requirements of the Internal
Revenue Code and the related Treasury
Regulations governing REMIC qualification.
Under basic principles of tax law in which
substance is controlling over form, there is
no question that the REMIC at the time of
issuance was the owner of the mortgage
loans for tax purposes.
Conclusion
We believe that the recent allegations of
possible wholesale failures to convey own-
ership of mortgage loans to private label
RMBS trusts are baseless and unfounded.
All parties to these transactions, including
issuers, underwriters, trustees and
investors, clearly intended that the transac-
tions convey ownership of the loans to the
trusts, and appropriate steps were taken to
effect such conveyance in accordance with
well-settled legal principles governing
transfers of mortgage loans. Any attempts
to assert otherwise today are inaccurate
and uninformed, and, if left to stand
unchallenged, could cause substantial and
unwarranted harm to the economy.
Stephen Kudenholdt is co-chair of SNR
Dentons Capital Markets practice. His
practice includes residential and com-
mercial mortgage-backed securities and
other asset-backed securities, primarily
focusing on residential mortgage loan
securitization. He may be reached by
phone at (212) 768-6847 or e-mail
steve. kudenhol dt@snrdenton. com.
Stephen F.J. Ornstein is a partner in SNR
Dentons Capital Markets practice. His
practice concentrates on banking and
real estate law with an emphasis on
federal regulation of real estate.
Orenstein regularly counsels mortgage
companies, mortgage insurers, financial
institutions and others in complying
with mortgage and consumer lending
regulations. He may be reached by
stephen.ornstein@snrdenton.com.
the prevailing and nearly universally-
followed practice has been for the
endorsed notes to be physically deliv-
ered to the trustee, or to a custodian as
the trustees agent, at the closing of the
securitization.
Typical procedures include a require-
ment that the trustee or custodian pro-
vide an initial certification at closing and
a final certification a specified number
of days thereafter in order to confirm
the delivery of each mortgage note. Any
exceptions noted in these certifications
result in a repurchase obligation of the
seller within a specific period of time.
Significantly, these procedures require a
specific verification by the trustee or
custodian that it has in fact received the
physical notes for each loan listed on the
mortgage loan schedule. These proce-
dures make it highly unlikely that there
has been any widespread failure to
deliver the mortgage notes that simply
went undetected.
O Assignment of Mortgage
The final key step in transferring own-
ership of a mortgage loan is to provide
an assignment of mortgage in record-
able form to the purchaser. Typically,
the assignment is in blank so the name
of the assignee can be filled in later
prior to recordation. Because the mort-
gage follows the note, it secures the
debt for the benefit of the note holder,
and as between seller and purchaser it
is not necessary to record the assign-
ment in the name of the purchaser in
order to convey rights under the mort-
gage to the purchaser. However, in
order to exercise its rights under the
mortgage against the borrower follow-
ing default, it may be necessary, under
certain states law, that the purchaser
become the mortgagee of record.
Delivery of an assignment of mortgage
in recordable form in blank is intended
to enable the purchaser to become the
mortgagee of record by completing the
assignment in its name and submitting
it for recording. Because every record-
ing of an assignment of mortgage
involves a filing fee and other expens-
es, it is not unusual for these assign-
ments to remain unrecorded until such
time as is needed in connection with a
foreclosure of a specific defaulted
loan.
In a private label RMBS transaction,
the prevailing practice has been to
deliver an original-signed assignment of
mortgage in recordable form in blank.
In many cases, the securitization gov-
erning documents have not required
that the assignments of mortgage be
recorded in favor of the trust as a gen-
eral matter. Certification of receipt by
the trustee or custodian of the assign-
ments of mortgage has been required
under the same procedures as for the
mortgage notes.
Variations from the
above procedures
In our experience, we are not aware of
material deviations from the general
practice of delivering the physical
mortgage notes to the trustee or its cus-
todian. In some programs, delivery of
the notes was permitted to occur with-
in a specified period of time after
issuance, but subject to the overall pro-
cedures for checking in the notes and
providing a certification of receipt by
the trustee or custodian with repur-
chase required for any delivery failures
as described above.
In some cases, at the time of the
securitization it is known that the seller
will be unable to produce the physical
note because it had been previously
lost or destroyed. In that case, a lost
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MORTGAGE
PROFESSIONAL
TRUSTED
By Greg Schroeder
Right about now is the time when folks in the industry stop to reflect
on the year gone by and make their predictions for the coming year.
Given that the Mortgage Bankers Association (MBA) Annual Con-
vention & Expo falls just before this time each year, its not surpris-
ing that the reviews and forecasts reflect the mood of conference
attendees. At the 2008 show in San Francisco, the mood was bleak, if not suicidal! At
least half, if not two-thirds, of the industry was wiped out and protestors were literally
knocking at the door. Relief was the prevailing emotion at the 2009 San Diego show
relief to still be in business, relief that blame for the financial crisis was shifting towards
Wall Street, relief that people actually showed up to the conference.
Prior to last months MBA Annual Convention & Expo in Atlanta, Im not quite
sure what my prediction for 2011 would have been. This was the year of the regu-
lator, with the changes to the Real Estate Settlement Procedures Act (RESPA) going
into effect the beginning of the year, the Dodd-Frank Act passing a mere two
months before the show in October and Washington, D.C. showing no signs of
slowing down the winds of financial reform. With the Federal Reserve Banks
changes to yield spread premium (YSP) compensation going into effect in the sec-
ond quarter of 2011, Bank of Americas announced exit from wholesale, and early
predictions by analysts that interest rates will rise, one would assume that the mood
at this years show would be anything but optimistic.
However, after spending two solid days on the exhibit hall floor talking with
lenders and vendors alike, I can say, with a reasonable measure of certainty, that
2011 is going to be a good year for the mortgage industry. Folks are encouraged by
the growth the industry has experienced over the year, and they see the potential
for the industry to come back perhaps stronger than ever.
In regards to wholesale, there is every reason to believe that this channel is going
to come back in a big way over the next 18-24 months. I spoke with multiple lenders
who expressed a desire to either start up a wholesale division at their institution, or
to revive their now-defunct wholesale operations. And why shouldnt they? Its no
secret within the industry that brokers are, by far, the least expensive way to orig-
inate loans, and although the industry is expected to rebound even more, the need
to hold down costs, especially in light of the increased cost of regulatory compli-
ance, will remain a top priority for lenders across the board. Additionally, the reg-
ulations put in place to police brokers in a way that hadnt been done during the
mortgage bubble and the technology now available to lenders to proactively man-
age their brokers has made the wholesale channel perhaps the safest origination
method available.
Bank of Americas announcement that it was shuttering its wholesale division
threw lots of folks in a tizzy about the effect this would have on the resurgence of
wholesale. Whats interesting is not one person even mentioned the announcement
to me during the show. The truth is Bank of Americas exit from the channel actu-
ally opens the doors for both new and more active players to gain market share
and fuel the growth of the channel.
Given the exciting prospects for wholesale growth over the next two years, its
more important than ever for brokers to adopt the policies and procedures neces-
sary to demonstrate their status as true Trusted Mortgage Professionals and gain
their fair share of the business that is to come.
Greg Schroeder is president of Comergence Compliance Monitoring. To learn
more about how the Comergence Compliance Trusted Mortgage Professional pro-
gram can help, call (714) 495-4720.
Back on Track
Encouraging takeaways from this years MBA Annual Convention
The Desk Appraisal Review
Under the Microscope
This column is the second of three that
I am writing to bring attention to and
to extol the virtues of the three most
commonly used appraisal review
reports as quality control tools:
O The electronic appraisal review;
O The desk review; and
O The field review.
They are listed in the order
of the least comprehensive
to most comprehensive,
and this series of columns
is designed to assist the
reader in making the
proper decision as to
which review tool is best
for their given situation.
The desk review is a very
commonly used collateral-
assessment, appraisal-
review tool. It is used to cri-
tique the appraisal of real
property, typically on three
different occasions. The
first is the pre-funding
review, which typically
takes place immediately
prior to the closing of a
loan. This is arguably the
most critical of the times at
which an appraisal will be reviewed. If the
review is properly executed, it can prevent
the making of a loan on property where
the appraisal is flawed. This, by definition,
means that the review must be made
quickly. This factor works against quality to
a degree. The second occasion is the
post-funding, quality control sampling
review. This is typically done to satisfy
bank regulators, mandating that a sam-
pling of all appraisals be reviewed on
all closed loans. This is done, not to
prevent the making of a particular
loan, but to identify a weak risk man-
agement system or to put the spotlight
on incompetent or unscrupulous
appraisers. There is usually ample time
to perform the review, so there is little
pressure to do a quick or hasty job. The
third and last occasion requiring an
appraisal review is that of loss mitiga-
tion or foreclosure. Admittedly, this is
after the horse is out of the barn, but it
does provide the lender with informa-
tion that is helpful in making decisions
in managing slow paying accounts
and/or delinquent accounts. There is
also ample time to perform the review
without the pressure of a closing loom-
ing over the head of the
review appraiser.
The desk review is per-
formed by a human, as
opposed to the various
electronic applications
used today in appraisal
review. While it is not
always required that the
reviewer be a state-certified
appraiser, that is the most
common way that the
review is performed. In
some cases, regulations
require that the desk
review be performed by an
appraiser certified in the
state where the property is
located. Since the desk
review is prepared by a
human, one may expect a
level of logic and reason-
ing, not found in electronic reviews, to be
applied. Given the human element, one
may expect a superior product from a
desk review over that of the electronic
type.
Desk review standards vary in scope.
It is important that the lender know
how the review is to be performed.
Some of the variables of the desk review
include whether sales and subject prop-
erty data is confirmed, whether addi-
tional sales data is researched beyond
that which is included within the
appraisal, whether the reviewer simply
offers a pass-fail grade on the appraisal
or whether the reviewer offers a differ-
ent opinion-of-value of the subject, in
By Charlie W. Elliott Jr., MAI, SRA, ASA
Since the desk review
is prepared by a
human, one may
expect a level of logic
and reasoning, not
found in electronic
reviews, to be applied.
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I recently was able to attend the
Symposium on Mortgages and the Future
of Housing Finance hosted in
Washington, D.C. by the Federal Deposit
Insurance Corporation (FDIC) and the
Federal Reserve. The conference was a
huge disappointment to me. In fact, I
walked out after the first few sessions
because it seemed that the conference
was nothing more than another photo-op
for the government to say they are doing
something (while doing
nothing) about the mort-
gage and housing mess.
One thing that sparked
a fire inside of me was a
brief mention of Japans
Lost Decade. Japan went
through an asset bubble
collapse in the 1990s. The
government of Japan did
not have the courage to
require the Japanese banks
to write down their bad
loans and own up to their
losses. As a result, Japans
economy stagnated for 10
years as real estate prices
deflated and consumers
were reluctant to borrow
or spend money.
Compare this to America.
This is the end of 2010 and
our crisis started in 2007.
We are 30 percent of the way toward a
lost decade of economic growth in
the United States. Our country may
have another one, two or seven years
to go before we make it out of this
lackluster economic situation. Lets
appreciate the gravity of our situation:
There is a whopping $766 billion of
negative equity in the U.S. today. The
government does not want to force
mortgage lenders to write down this
$766 billion of negative equity because
if they did, most every financial institu-
tion in the U.S. would be bankrupt.
This $766 billion problem could take
years to resolve.
The government does not want to
figure out a creative way to arrange a
homeowner bailout by loaning home-
owners $766 billion to reduce their neg-
ative equity because of moral hazard
and free market concerns. To me, at
least, this seems hypocritical for two
reasons.
First, our government is willing to
run up trillion dollar deficits and
engage in trillions of dollars of quanti-
tative easing in the name of econom-
ic stimulus. Spending $766 billion to
wipe out the negative equity of millions
of homeowners seems like a small price
to pay compared to what we are doing
now with these enormous deficits cre-
ated by the U.S. Treasury
and quantitative easing
created by the Federal
Reserve. Perhaps nothing
would save us more
money in the long run or
stimulate our economy
more than spending $766
billion to wipe out nega-
tive equity; no matter
how repugnant this radi-
cal idea seems to those of
us who believe in free
market capitalism.
Secondly, $700 billion
is the amount that the
government loaned to
Wall Street firms, and the
U.S. Treasury is actually
making a significant prof-
it on their investment as
the Wall Street firms get
back on their feet. The
same can be said for homeowners with
negative equity. For example, what if
the government paid down a home-
owners negative equity in exchange
for a non-dischargeable future lien on
the homeowners earnings?
The bottom line is that our country
has three choices:
1. Remove all government intervention
in the housing market; in this case, the
housing market will most likely fix
itself after another five to 10 years of
struggle.
2. Continue with the ineffective blend
of free market capitalism and half-
hearted government tinkering that we
have been experiencing since 2007. In
this case, who knows when the housing
market will recover.
3. Fix the negative equity problem with
some form of large scale government
intervention. In this case, the housing
market may be fixed sooner rather
than later.
The bottom line is that it seems
clear that we are 30 percent of the
way toward a lost decade in the
United States with no plausible end in
sight. My question to you is what are
you going to do about it? You cannot
control house prices or economic
cycles. You cannot control the govern-
ment and what they do or do not do
about the negative equity situation.
However, you can control how you
yourself respond to the world you find
yourself in.
For example, you have three choices:
1. Get out of the mortgage business
entirely and find some other line of
work to generate an income for your-
self and your family.
2. Approach your mortgage career with
half the passion and ability that you
are capable of.
3. Approach your mortgage career with
100 percent of the passion and ability
that you are capable of.
When Wall Street and the financial
markets were crumbling in the fall of
2008, Warren Buffett said that if he
had the money, he would spend $700
billion to bail them out (aka, invest in
their future). Incidentally, the U.S.
government was the only entity on
earth that had the kind of resources
needed to arrange a large scale
bailout. The governments $700 bil-
lion bet is now paying off as Wall
Street firms are reporting record prof-
its once again and repaying their gov-
ernment loans.
As the mortgage industry goes
through one turbulent change after
another, you are the only one who has
the kind of resources needed to bail
yourself out (aka, invest in your future).
You have a treasure chest of passion
within you. It is up to you on where and
how to spend it. Do you believe in your
own future as much as the government
believed in the future of Wall Street? If
so, invest all of your $700 billion of pas-
sion and ability in your own future and
you will reap the profits.
Let me ask you two questions:
1. When will people in the United
States stop needing to live in homes,
and when will they stop using mort-
gages to finance their house pur-
chases?
2. When will people in the United
States stop needing to restructure their
personal finances and refinance their
mortgages?
If you can answer never to the two
questions above, you are a good candi-
date to invest 100 percent of your pas-
sion and energy into your career as a
mortgage originator. Remember the
three numbers we discussed in last
months column (The Three Numbers
That Really Matter, National Mortgage
Professional Magazine, October 2010
edition):
O $6.96 trillion of home equity remain-
ing in the U.S. equals plenty of peo-
ple can still qualify for financing.
O $1.56 trillion of mortgage volume in
2010; half the volume of the boom
years with half the competition
equals equal opportunity for you to
have a record year.
O Four million housing units sold on
an annual basis in one of the worst
years on record equals one top pro-
ducing Realtor is worth at least 32
annual referrals to you.
The bottom line is that it is 100
percent possible to make this the
best decade of your life, both per-
sonally and professionally. Dont let
Americas lost decade become your
lost decade.
Gibran Nicholas is the founder and
chairman of the CMPS Institute
(CMPSInstitute.orgNMLS Provider
ID# 1400384). The CMPS Institute
administers the Certified Mortgage
Planning Specialist (CMPS) designation
and has enrolled more than 5,500
members since 2005. Through CMPS,
Gibran empowers mortgage profession-
als with confidence, unique knowledge,
and dynamic marketing resources to
simplify compliance, increase their
competitive advantage, and generate
more business. Visit Gibrans blog and
Web site at http://gibrannicholas.com.
Visit author Gibran
Nicholass blog at
http://gibrannicholas.com
where he shares his insights
on economics, real estate and finan-
cial issues, including the current
mortgage and credit crises.
BY GIBRAN NICHOLAS
Dont Let Americas Lost Decade
be Your Lost Decade
The governments
$700 billion bet is
now paying off as
Wall Street firms are
reporting record
profits once again
and repaying their
government loans.
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Credit When Credit Is Due
The SAFE Act mandates that a mortgage loan originator (MLO) must continu-
ously demonstrate the financial responsibility, character and fitness such as
to command the confidence of the community. The new standard requires
you to submit to a review of your credit. Beginning Oct. 31, 2010, every state
licensed MLO shall furnish to the Nationwide Mortgage Licensing System and
Registry (NMLS) authorization to obtain a credit report.
Because of declining commissions throughout 2009, the credit rating of
many originators has taken a major hit. Some are worried about losing their
license upon review of their consumer report. Most state regulators are re-
luctant to take away someones livelihood solely because of credit. If your
credit score has dropped, include a letter of explanation with your annual
renewal. Provide good reasons why you can still command the confidence of
the community and you may get credit when credit is due.
Streamline the process: Know your deadlines
Nov. 1, 2010 credit report functionality was made available through the
NMLS. In the first two days, more than 23,000 individuals went into the sys-
tem and completed the Identity Verification Process (IDV), which authorizes
the NMLS to send a credit report to the state regulator on their behalf. With
end of year license renewal and the state deadlines for credit authorization
approaching, its time to focus on these two obligations.
You can streamline the process by completing both the credit request and
annual renewal in one shot. It is critical to check with your individual state
to determine both deadlines for license renewal and credit report authori-
zation, then simply combine the process. Go to www.mortgage.nation-
widelicensingsystem.org, then go to the MLO SAFE Requirements Compliance
Chart and read the renewal and credit report authorization deadlines care-
fully. It is different for every state and its your responsibility to know the
deadlines.
How to authorize credit
Even if you have previously provided credit authorization to your state, you
are required to complete the process again through the NMLS. Go to the NMLS
Resource Center and click on Credit Report for MLOs. The credit report fee
is $15 and the NMLS pulls a single bureau TransUnion Report with Vantage
Score. This is a soft pull and will not affect your credit score.
Your company can submit a credit report request on your behalf or you
can do it yourself. Either way, you must first complete the IDV process in
which you are asked a series of questions regarding your credit history, then
you attest to the filing prior to paying for the credit report request.
SAFE Smart credit request
There is no national automated standard or minimum credit score required.
The SAFE Act leaves determining the financial responsibility of licensees up
to each state regulator. If you are concerned about your credit, go to www.an-
nualcreditreport.com, request a copy of your TransUnion Report, and begin
cleaning up any derogatory marks. Remember: Know your deadlines because
its time for you to authorize credit when your credit is due.
Paul Donohue, CRMS is a 23-year industry professional and founder of Abacus Mortgage
Training and Education. Paul served on two NMLS working groups, establishing the new
national education protocols. Go to AbacusMortgageTraining.comto find out more
about your obligations for testing, education and licensure, or call (888) 341-7767.
Eighty-eight percent of enterprise-
acquired mortgages were fixed-rate
loans originated between 2001 and
2008 and ranged from 79 percent for
2004 originations to 96 percent for
2001 originations. Mortgages financed
with private-label MBS were predomi-
nantly adjustable-rate loans. These
loans comprised 70 percent of mort-
gages financed with private-label MBS
originated between 2001 and 2008 and
ranged from 53 percent of 2008 origi-
nations to 75 percent of 2004 origina-
tions. Adjustable-rate loans offer bor-
rowers lower initial payments in return
for less certainty about future pay-
ments. In the data analyzed here,
adjustable-rate loans perform worse
than fixed-rate loans in part because
some originators of adjustable-rate
loans evaluated borrower repayment
capacity using artificially low rates,
called teaser rates.
Roughly five percent of GSE-
acquired, fixed-rate mortgages and 10
percent of GSE-acquired ARMs were
over 90 days delinquent at some point
before the end of 2009. Roughly 20
percent of fixed-rate mortgages and 30
percent of ARMs financed with private-
label MBS were over 90-days delin-
quent at some point before year-end
2009.
For more information, visit www.fhfa.gov.
New legislation
introduced to quicken
short sale time frame
Legislation has been
introduced that would
require lenders and ser-
vicers to hasten the time it takes to
approve or disapprove a short title or
short sale. HR 6133, the Prompt
Decision for Qualification of Short
Sale Act of 2010, co-sponsored by U.S.
Reps. Robert Andrews (D-NJ) and Tom
Rooney (R-FL) is designed to assist
homeowners who are underwater on
their mortgages and have a buyer
reader to purchase the house at a
price which will net less than the cur-
rent payoff of that mortgage. HR 6133
would also require lenders to respond
to consumer short sale requests with-
in 45 days.
The short sale, which requires
lender approval, is an important instru-
ment for homeowners who owe more
than their home is worth, said Vicki
Cox Golder, president of the National
Association of Realtors (NAR) and owner
of a real estate company in Tucson,
Ariz. While the lending community has
worked to improve the size and training
of their short sales staffs, they still have
a long way to go on improving response
times.
The bill has been referred to the
House Financial Services Committee for
consideration.
Unfortunately, homeowners who
need to execute a short sale are severe-
ly hampered because lenders (loan ser-
vicers) are unable to decide whether to
approve a short sale within a reason-
able amount of time, said Golder.
Potential homebuyers are walking
away from purchasing short sale prop-
erty because the lender has taken many
months and still not responded to their
request for an approval of a proposed
short sale price. Many consumers have
mentioned that the delay in short sale
price approval exceeds 90 days, and in
many cases never arrives.
Your turn
invites you to submit any information on
regulatory changes, legislative updates,
human interest stories or any other
newsworthy items pertaining 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
preferred. The deadline for submissions
is the 1st of the month prior to the target
issue.
PROFESSIONAL
.TV
MORTGAGE
Coming in 2011!
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cases where the reviewer disagrees with
the appraisers opinion of value.
When is it appropriate to use the
desk review as an appraisal evaluation
tool? This question could be somewhat
open-ended like the one about how
long a mans legs should be. We have
all heard that a mans legs should be
long enough to reach the ground. The
answer, concerning the use of the desk
review, may be similar. When the desk
review should be used is unique to the
situation. It is the middle ground in
the review-appraisal toolbox, more
comprehensive than an electronic
review and less thorough than a field
review. Some lenders use it as a second
line of defense, when the electronic
review indicates a need for more
review of a given appraisal. While this
is probably the most used avenue to
the desk review, it is, by no means, the
only way to come to the conclusion
that a desk review should be per-
formed. Institutions subscribing to a
higher level of quality control may
require a desk review on all appraisals
prior to the closing of a loan.
Issues, such as cost, also enter into
the mix, concerning if and when an
appraisal review should be ordered for
a particular transaction. Desk review
cost is moderate, typically between
$100-$200, perhaps somewhere in the
neighborhood of half the cost of an
appraisal.
The desk review is covered in
Uniform Standards of Professional
Practice (USPAP). Under USPAP, the
reviewer must, when providing a review
without a reviewers value opinion,
state and/or identify the client, the
users, the purpose of the review, the
work under review, the date of the work
under review, the effective date of the
opinions and conclusions, the name of
the appraiser performing the appraisal,
the effective date of the appraisal
review, all extraordinary assumptions
and hypothetical conditions, how these
assumptions and conditions affect the
results, scope of the work, reviewer
opinions and conclusions and include a
signed certification.
Yes, as with all review tools, the desk
review is not without its shortcomings.
These include, in some cases, a lack of
independence and the possibility of
reviewer bias, as well as the absence of
a subject property and/or a compara-
ble-sales inspection. These issues, with-
in themselves, do not mean that a cred-
ible desk review cannot be performed
most of the time, however, considera-
tion must given to these weaknesses in
the product when other review tasks are
contemplated.
In reflecting upon the benefits
offered by the desk review, one
would not want to ignore the impor-
tance that the human element offers.
There is little substitute for logic and
reasoning provided by a human over
that of an electronic review system.
Having said that, the reviewer typical-
ly has not actually inspected the sub-
ject and comparable properties, as
would be the case with a more com-
prehensive appraisal review. The desk
review is a viable option for lenders
requiring a middle ground analysis of
an appraisal.
It should be further noted that there
will be times when the desk review
proves to be inadequate. In such cases,
a more comprehensive appraisal review
will be required. There is no substitute
for competent and experienced man-
agement overseeing and interpreting
the results of a desk review. Institutions
not having qualified in-house support
for this function should consider the
possibility of employing experts in this
field or outsourcing this function to a
reputable appraisal review firm.
Charlie W. Elliott Jr., MAI, SRA, is president
of Elliott & Company Appraisers, a nation-
al real estate appraisal company. He can
be reached at (800) 854-5889, e-mail char-
lie@elliottco.com or visit his companys
Web site, www.appraisalsanywhere.com.
value nation continued from page 17
Immediate needs drive most reverse
mortgage lending. Everyone knows that.
What everyone may not know is that
lending to meet immediate needs could
be very risky for seniors and for lenders
without good intelligence about seniors
long-run needs and goals.
The newly-mandated Financial
Interview Tool (FIT) is about digging a
little deeper for better home equity
conversion mortgage (HECM) prospect
intelligence to inform the lending deci-
sion-making. This critical insight per-
suaded the U.S. Department of Housing
& Urban Development (HUD) to impose
the National Council on Agings
(NCOAs) innovations in the new HECM
counseling protocol.
Why should reverse mortgage
lenders care about FIT (after all, it is a
counseling mandate)? Two words:
Intelligence and understanding.
To help seniors make better HECM
decisions, lenders need to be better
informed about seniors, and FIT pro-
vides that extra intelligence.
Since Sept. 11, 2010, every HECM
prospect counseled is given a FIT sum-
mary printout, which shows yellow
flag issues (risk factors) raised in coun-
seling and their implications for a bor-
rower to fully benefit from a reverse
mortgage.
Lenders can use these yellow flag
issues as cues for questions and conver-
sation with prospects. Lets look at a
yellow flag: Living alone.
This factor could prompt questions
such as:
O How much help do you have with
your daily activities, Mrs. Akuna?
O Who can you call when your health
changes suddenly?
O How lonely and isolated do you feel?
One implication for a live-alone per-
son is that they may be too dependent
on the reverse mortgage cash to pay for
services freely available to seniors with
spouses, partners, neighbors or relatives.
As NCOAs Barbara Stucki said, By
themselves, each of these issues may
not be a risk, but they can add up.
Add poor health to living alone,
and you have prospects whose finan-
cial needs may outrun their expecta-
tions, thus hurting their ability to
meet borrower obligations such as
paying property taxes, buying home-
owners insurance and maintaining
the home.
FIT could also help lenders manage
reputation, litigation and financial risks
by giving them early warning and
opportunities to manage risks upfront.
For example, a FIT report might flag
poor health; more conversation might
uncover mental health issues. If they
are matters involving the seniors deci-
sion-making capacity, the lender could
(and should) work with counselor to
refer the prospect to mental health pro-
fessionals.
A HECM lenders failure to spot a co-
borrowers mental health problems
caused a New York Supreme Court
Judge to void a reverse mortgage in
December 2009 (The Doar Matter).
Before you say, Wait a minute. This
is not fair. We are lenders, not psychia-
trists! Here are the judges words:
the burden of knowledge must be
shifted to the mortgagee [lender] when
dealing with a reverse mortgage.
To carry this burden of knowledge
(knowing the reverse mortgage borrow-
er holistically), lenders and their loan
officers must understand seniors.
Questions, conversation and interac-
tions are more reliable means of know-
ing customers. No quantitative technol-
ogy (the idols of lending) can alter this
fact.
For 21 years, the industry lived
under the delusion that it understands
seniors and their needs. Lenders and
loan officers told themselves that All
FIT for Reverse Mortgage Lenders:
Part III
Why lenders must be FIT smart
21
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www.homeownershipaccelerator.com
The Smarter Way to Borrower. mar he S T
a celerra ac ppa i h s errs n
o o Borr y t a W er t r
m o r.c o t aat
. err. w o
fail to keep the property insurance
or taxes current.
O A lack of tools to verify the buyers
application information can open
the doors to fraud. If the buyer is
deceiving the seller, there is more
of a chance it will go undiscovered
until it is too late.
Buyer risks
O If the seller does not own
the property free and
clear, there is a chance
they could default on
the senior mortgage,
possibly sending the
property into foreclo-
sure. Having the pay-
ments made by the
buyer directed to the
senior lien through a
bona fide servicer can
eliminate this potential
problem.
O If the seller decides to
finance the buyer for a
short period of time,
then the buyer will
need to refinance at the
end of the term and
pay off the balance. If the buyer cannot
qualify for a refinance, they can be
foreclosed on by the seller.
Positives for buyers and
sellers
O The buyer is able to get a home
despite their credit history.
O The seller can set the demands of the
note and establish a monthly cash flow.
O The seller will likely get asking price
or better for the property because
carry-back loans open the door for
more potential buyers.
O Closing time is significantly reduced;
a carry-back loan could close in as
little as two weeks.
O There can be a tax deferral for the
seller when they report under the
Installment Sale Method.
O Should the seller ever want a lump
sum, they can sell the note to an
investor for cash today rather than
collect payments over a time period.
O If the buyer does default, the seller
could re-own the property at the
sales price LESS the downpayment.
Having intimate knowledge of the
property, this could be a risk worth
taking.
O Banks are paying very low interest
on depositors money. A lump sum
sale poses the dilemma of where to
invest the proceeds: The stock mar-
ket, more real estate, a savings
account? Current interest rates on
carry-back loans are very attractive.
Seller carry-back loans have been grow-
ing in popularity since mortgage compa-
nies have tightened the noose on poten-
tial borrowers. As even some of the most
creditworthy applicants are being turned
away by mortgage giants and banks, sell-
er carry-back loans are once again
becoming a realistic alternative to tradi-
tional mortgages.
Seller financing made
up 1.3 percent of sales in
California last year, up
from 0.4 percent in 2007,
according to a survey of
members of the California
Association of Realtors
(CAR). Thats a fair increase
over two years, but it
could be so much more.
There is a huge pool of
buyers out there that
could benefit from the
carry-back loan, but have
not been approached with
the idea because agents
either do not believe in it
or they just dont under-
stand it. Buyers are losing
a chance to purchase a
home, sellers are losing a
chance to sell and agents are losing out
on business.
By properly utilizing and understand-
ing the carry-back loan, everyone can be
a winner. However, before that can hap-
pen, all parties need to understand the
risks involved, and more importantly,
how to reduce those risks and even
sometimes eliminate them by hiring a
professional loan servicing company.
Seller risks
O The biggest risk for the seller is the
potential for the buyer to default on
the loan. The reason most buyers are
in the market for a carry-back trans-
action is because they are unable to
obtain a mortgage through tradition-
al means. Often, their credit scores
are low and they have a limited
amount of income and credit.
O Seller carry-back loans are often sec-
ond position or junior liens. The
buyers mortgage with the bank may
be in first position and have the first
right to any funds obtained through
a foreclosure or sale. This means the
carry-back loan could be completely
wiped out should the property go to
foreclosure.
O The seller is not only The Bank in
the transaction, but also The
Servicer. The interest, principal and
balance of the loan must be tracked
and recorded accurately. This can
become a huge headache should the
Borrower start missing payments or
Professional Servicing Companies:
The Key to Seller Carry-Back
Loan Survival
By Drew Louis
What many sellers
and agents forget
when discussing the
possibility of owner
financing is the
tedious act of actual-
ly servicing the loan.
How a professional
loan servicing company
can help
As you may have noticed, most of the
risk falls on the seller. But so do most
of the rewards. Minimizing the risks,
or eliminating them all together,
could lead to a very safe and prof-
itable investment for the seller, a new
home for the buyer, and a sale that
otherwise may have never happened
for the agent.
A professional servicing company
can offer full document disclosure,
review the terms of the loan, service
the loan, collect impounds for proper-
ty taxes, Homeowners Association
(HOA) fees and insurance, and even
pay the senior lien from the buyers
monthly payment to assure it is being
paid in a timely manner. All of these
services help minimize or even extin-
guish most of the risks involved with a
carry-back loan.
Full disclosure is extremely impor-
tant in todays economy. More than
ever before, lenders have been forced
to enforce rights and penalties, which
need to be clearly stated and under-
stood by the borrower. Electing to use
just a simple note and deed could
leave the seller in front of a judge
without the necessary proof that they
properly disclosed all that they should
have thats a huge risk.
Employing a professional servicing
company not only protects the sellers
investment, it can help structure it, as
well. Whether the seller wants to
obtain a lump sum in the near future
or collect monthly payments for the
long term of the loan, a professional
servicing company can help strategize
the best possible terms of the note
and then enforce them. The servicing
company can also help find buyers for
the note when the seller wants to
obtain cash.
What many sellers and agents forget
when discussing the possibility of
owner financing is the tedious act of
actually servicing the loan. The seller is
on the hook for accurately calculating
interest and principal, keeping track of
payment history, issuing federal and
state tax forms and many other time-
consuming tasks. Its not just sending a
bill and collecting a check.
In fact, part of the reason the seller
carry-back loan has developed a bad
reputation and has died out in the past
is because agents are not around to
help the seller figure out what to do
when the buyer misses a payment.
That would not be an issue with the
help of a professional loan servicing
company. All of the servicing needs of
the loan can be taken care of for as lit-
tle as $15 per month. The buyer and
seller can have a go-to resource for
questions for the duration of the loan;
and the agent gets positive remarks for
a successful transaction.
The revival of owner financing is a
second chance for agents to get it right,
sellers to take advantage of an opportu-
nity to establish a monthly cash flow,
and for buyers who have been denied
by the banks to purchase a home.
Employing a professional servicing
company brings the carry-back loan
one step closer to infinite survival.
Drew Louis is president of Del Toro Loan
Servicing Inc. He has been successfully
servicing loans since 2003 and has more
than 20 years of experience in the finan-
cial services industry. For more informa-
tion, call (619) 474-5400 or visit
www.deltoroloanservicing.com.
22
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UFMIP refunds
Since the new mortgage insurance premiums (MIPs) are in effect as of Oct.
4, 2010, many MLOs are asking what will happen to the excess premium on
a streamline refinance, since the new Upfront Premium is now one percent
of the loan amount. The recent ML 10-28 that gave us the new premiums
states: The cancellation policies defined in Mortgagee Letters 2000-38 and
2000-46 remain unchanged. To refresh your memories, ML 2000-38 reduced
the refund period from seven years to five years and ML 2000-46 stated:
If the refund amount exceeds the new upfront premium, the excess will be
sent directly to the borrower from the U.S. Treasury using FHAs disburse-
ment process.
I contacted the U.S. Department of Housing & Urban Development (HUD)
personally on this refund question, and they responded by saying that:
Currently, if excess unearned premiums remain after netting of the refund to
the new case number, then the funds are refunded to the borrower. However,
FHA is examining this process and may make changes in the future. The last
part of this statement tells us that the FHA is looking for a way to change the
guidelines allowing them to reduce the amount of the refund to the borrow-
er. These refunds can be very substantial especially for the high-cost areas.
Take a $500,000 FHA loan in California that closed in May 2010, where the
borrower paid a 2.25 percent premium in the amount of $11,250 and now
they want to do a streamline refinance. The refund they will receive for a
December closing will be, according to the chart below, 83 percent of the orig-
inal premium, which is $9,337. In this example, the new premium of one per-
cent will be $5,000, so they will receive a refund of $4,337 after collecting the
new premium at closing.
The cash back opportunity
Do try to take advantage of this opportunity, before the FHA finds a way to
take the refunds away! Most MLOs are analyzing their FHA streamline oppor-
tunities from a payment reduction perspective and havent considered this
FHA guideline as an incentive for homeowners to refinance! Go back through
your closed pipeline and review streamlines from this refund perspective.
Contact your clients who may not be saving as much as they would like to on
the payment, but stand to get a nice refund. In effect, this is like a cash-out
refinance opportunity. Presenting the proposed loan to your client in this way,
it makes a lot of sense (and dollars!) even if the savings on the payments
are not substantial.
Go FHA!
Jeff Mifsud is founder of Michigan-based Mortgage Seminars LLC, a former FHA
underwriter with 15-plus years of experience 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 Update on CLTV Changes
and UFMIP Refunds
CLTV changes
In the Federal Housing Administrations (FHA) recent Mortgagee Letter 10-36,
published in late October, the requirement that the combined loan-to-value
(CLTV) ratio not exceed the FHA geographical loan limit for both purchases and
refinances was eliminated. As this is a change that will affect only a small per-
centage of the FHA loans being originated, I debated as to whether or not I
should spend time clarifying this new guideline. In the end, I reasoned that
since in some markets this will make a difference to a home owner, mortgage
loan originators (MLOs) should be informed and clearly understand what this
FHA update states.
The wording FHA used in this Mortgagee Letter was potentially confusing. To
sum it up, heres what you need to know: The CLTV cannot exceed the applicable
LTV for your loan program, but it can exceed the geographical loan limit as long
as the FHA first does not.
For example, in Lexington, Ky., the maximum FHA loan amount is $271,050.
Lets say you have rate and term refinance of a first mortgage with a balance of
$265,000 along with a re-subordination of a second mortgage with a balance of
$15,000. The home in this scenario has an appraised value of $288,000. Provided
the borrower meets all other criteria, this scenario would meet the new guide-
lines because: Although the total of both loans ($280,000) exceeds the geograph-
ical limit if $271,050, the FHA first is below the geographical limit and the com-
bined LTV is 97.2 percent (which is below the allowable maximum LTV of 97.75
percent for rate and term refinances).
Year 1 2 3 4 5 6 7 8 9 10 11 12
1 0.9750 0.9500 0.9250 0.9000 0.8750 0.8500 0.8333 0.8167 0.8000 0.7833 0.7667 0.7500
2 0.7333 0.7167 0.7000 0.6833 0.6667 0.6500 0.6333 0.6167 0.6000 0.5833 0.5667 0.5500
3 0.5333 0.5167 0.5000 0.4833 0.4667 0.4500 0.4333 0.4167 0.4000 0.3833 0.3667 0.3500
4 0.3333 0.3167 0.3000 0.2833 0.2667 0.2500 0.2375 0.2250 0.2125 0.2000 0.1875 0.1750
5 0.1625 0.1500 0.1375 0.1250 0.1125 0.1000 0.0833 0.0667 0.0500 0.0333 0.0167 0.0000
Upfront Premium Refund Factors
Match Month & Year Since Closing To Determine Refund Rate
Month of Year
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WHOLESALE LENDING
www.LoanKinection.org
Booth #311
5627-10/10
www.sierrapacificmortgage.com
Booth #301 | www.franklinamerican.com
Equal Housing Lender; Franklin American Mortgage Company Inc. 501 Corporate Centre Drive Suite 400 Franklin, TN 37067. NMLS ID 1599. For mortgage
banking professionals only; not authorized for distribution to consumers. 10/27/10 G101027AD
you need to work with seniors success-
fully is trust. While trust is important
in working with seniors or non-seniors,
earning someones trust is not the same
thing as understanding them.
For the first time in the industrys
21-year history (thanks to NCOA and to
HUD), counselors are being required to
make the effort to understand seniors
and all their needs. It is a game chang-
er. It is a good thing. Wise lenders will
get the message and adopt FIT-like
processes to capture more prospect
intelligence and make better reverse
lending decisions. Others will whine
about over-regulation and return to
business as usual.
Could it be that a scathing U.S.
Government Accountability Office (GAO)
report to Congress on HECM counseling
last June and the Doar decision drove
HUD toward FIT and other tighter rules
in the new HECM protocol? Lenders
ignore these developments at their
peril.
Call it Atares first law of reverse
mortgage lending: Know your borrow-
ers beyond immediate needs. If you do
not, courtrooms and newspapers pages
could be very expensive places to find
out.
Atare E. Agbamu is author of Think
Reverse! and more than 140 articles on
reverse mortgages. Since 2002, he writes the
nationally-distributed column, Forward on
Reverse. A former director of reverse mort-
gages at Minneapolis-based AdvisorNet
Mortgage LLC, Agbamu has years of hands-
on experience marketing and originating
reverse mortgages. Through his advisory,
ThinkReverse LLC, Agbamu advises financial
professionals, institutions and regulators
across the country. In a 2007 national
report on reverse mortgages, AARP cited
Agbamus work. He can be reached by
phone at (612) 203-9434 and e-mail at
atare@thinkreverse.com.
Visit author Atare E.
Agbamus blog at thinkre-
verse.com for his thoughts
and insights on the reverse
mortgage marketplace.
forward on reverse continued from page 20
Call it Atares first law of reverse
mortgage lending: Know your bor-
rowers beyond immediate needs.
If you do not, courtrooms and
newspapers pages could be very
expensive places to find out.
Okay, enough of Marketing 101. What
about this crazy idea of social media? Lets
start with a definition: Social media is Web-
based communications which seeks to set
up a conversation; a relationship. They are
interactive, personal and something that
people invite into their lives. Contrast that
with advertising which essentially intrudes
into your customers lives. Think about it
people turn to their
Facebook page as an activi-
ty. Ads interrupt an activity
(say reading the newspaper)
to deliver their message. So,
if youre interested in really
maintaining or creating a
dialogue with customers
and prospects, then social
mediabe it a Facebook
fan page; a You Tube
Channel, or a blogmay
be for you. Use them to
offer practical advice that
your customers will want to
read and pass along, such
as tips on dealing with
some of the problems your
product solves. Businesses
that use social media to talk
about themselves (We had
50 people here for a terrific
sale on Wednesday) offer
nothing that anyone would
want to pass along. Before
you post that blog or tweet
that tweet, ask yourself, Is
this something someone
would want to share with a
friend? If the answer is yes, tweet away.
If its no, then tell your mother. As with
any marketing effort its not about what
you want to say, its about what your cus-
tomers want to hear.
Think of the social media world as
one giant cocktail party. When you go
to such functions, who do you end up
spending your time with? The person
who offers you an interesting conversa-
tion or the one who assaults you with
diatribes about themselves?
So, here are a few tips on whether or
not social media is for you:
O Do you or someone on your staff
have the time to devote at least five
hours a week (throughout the week)
to updating and monitoring social
media?
O Do you have access to a 20-year-old
who can do this for you, has exist-
ing experience on the Web and can
be trained on what you offer well
enough to essentially hold social
media conversations about your
business?
O Do you currently participate in
social media and enjoy it?
If you are feeling guilty, outdated or
downright dowdy because your business
is not using social media, consider this
column your safe island in the storm.
Just do it may work for Nike, but it has
no place in your marketing efforts.
The mere size and speed of social net-
working has made everyone sit up and
take notice. The mantra, If Facebook were
a country it would be the
worlds third largest is
enough to make any busi-
nesspersons heart beat
quicker. Or consider this
a recent Consumer Reports
State of the Net survey
said that two out of
three online U.S. house-
holds use social networks
such as Facebook and
MySpace, nearly twice as
many as a year ago.
Feeling the old guilt about
missing the boat creeping
into your brain? Stop it! I
promise this will be a guilt-
free read. So continue on
without fear.
If you get nothing else
from this column, take this
one thought: Just because
a marketing tactic exists, it
doesnt mean its right for
your business. Social media
is one of many ways to
reach your customers.
Some have been around
since the 1920s, when
young Allen Odell convinced his father to
allow him to put up small wooden road-
side signs to pitch their product, Burma
Shave. And some were invented within
the last few years like blogs, Facebook
business pages and You Tube channels.
They all work in some form or another.
But they wont necessarily drive the right
customers to your bottom line if they
dont suit your marketing objectives and
their needs. The real bottom line here is
that any marketing effort starts with the
answers to a few key questions:
O Who are your most profitable customers?
O What do they want from your business?
O How do you deliver it?
O Why would they come to you
instead of your competitors?
O Where do they go for information
before they buy?
O How can you make them into loyal
customers who come back and send
in their friends?
Essentially, I am asking you to decide
who you are, who you want to be in the
eyes of your customers and how you can
deliver what they want. Once you know
that, you can be a more intelligent mar-
keter on all fronts.
Social Media: Take Two Breaths
and E-mail Me in the Morning
By Andrea Obston
Think of the social
media world as one
giant cocktail party.
When you go to such
functions, who do
you end up spending
your time with? The
person who offers
you an interesting
conversation or the
one who assaults you
with diatribes about
themselves?
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Visit USACARES.ORG
and register to take the free
Military Family Housing
Education Certication Program
Bonds and
Errors & Omissions
800-958-BOND
www.oxley-goldburn.com
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Tel. 603.347.3005 www.icesigns.com
take two breaths continued from page 23
O Do you cater to the kind of customer
who can answer yes to the question
above?
O Do you understand that your picture
of the average social media user
may be way off?
A few facts here:
O The average user of social media
such as Facebook, LinkedIn or My
Space is more affluent and more
urban than the average American,
according to Nielsenwire.
O A profile of users of social media
from a site called Royal Pingdom
tells us:
O Those 35 to 44 dominate users of
social media.
O The average social network user is
37-years-old.
O LinkedIn, with its business focus, has a
predictably high average user age; 44.
O The average Twitter user is 39-years-old.
O The average Facebook user is 38-
years-old.
O The average MySpace user is 31-
years-old.
So what do you do next? Before sub-
scribing to the Just Do It principle, I
suggest you do two things:
1. Look long and hard at the customers
you want and how they use social
media; and
2. Become more literate about the cre-
ative uses of social media. Start by read-
ing two wonderful blogs: Mashable and
FreshNetworks. Get smarter; get more
comfortable with your choices and get
going in the way that best suits your
business.
No guilt no worries just bot-
tom-line communications. However
that looks.
Andrea Obston is president of Bloomfield,
Conn.-based Andrea Obston Marketing
Communications LLC. The firms expertise
includes strategic marketing audits, brand
development and marketing, public and
media relations, media training, Web sites
and Internet advertising. Its subsidiary,
Andrea Obston Crisis Management
(www.crisismasters.com), provides public
image crisis planning and management.
She may be reached at (860) 243-1447 or
e-mail aobston@aomc.com.
Daily updated mortgage industry news
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Get access to video
Countdown To Buy
launches private label
solution
Countdown To
Buy, an online
real estate mar-
ketplace, has announced the launch of
powered by Countdown To Buy, a pri-
vate label solution featuring the com-
panys online offer management and
negotiation platform. Being powered
by Countdown To Buy enables institu-
tions and real estate companies to
leverage their existing brand, while tak-
ing advantage of the benefits offered by
Countdown To Buys trusted platform
and hosted solutions.
In conjunction with the launch,
Countdown To Buy has entered into an
agreement with Diamante Cabo San
Lucas, a high-end golf resort featuring
some of the most spectacular proper-
ties the worlds golfing community has
to offer. The site went live on Sept. 20,
2010, and the first set of properties
ranging from $250,000-$2.2 million can
be viewed at http://diamante.count-
downtobuy.com.
We are excited to see the market-
place realization of Countdown To
Buys effectiveness in serving any trans-
action, whether it is a traditional, REO,
short sale, or now a specialized resort
sale, said Tom Furey, managing part-
ner of Countdown To Buy. Both
Countdown To Buy and Diamante Cabo
San Lucas strongly believe our core
principles of a fair, trusted and trans-
parent transaction, are the foundation
of any buyer-seller relationship.
Countdown To Buys online real
estate marketplace allows qualified
homebuyers to purchase properties
through an offer management platform
that automatically reduces the price
one percent per day until an offer
meets or exceeds the daily price.
For more information, visit www.count-
downtobuy.com.
First American Title
Insurance launches new
Mortgage Services Division
First American Title Insurance Company
has announced the launch of its new
mortgage services division, which is
designed to address the title, settlement
and valuation needs of residential origi-
nators with national retail platforms.
First American Titles Mortgage Services
Division supports many of the nations
largest financial institutions in pursuing
a national strategy for residential origi-
nation that focuses on speed, efficien-
cy, customer satisfaction and cost
reduction by providing custom closing
solutions, leveraging the strength of a
national underwriter, applying propri-
etary technology and tapping into the
extensive resources available within the
First American family of companies.
First American Titles Mortgage
Services division will replace two lega-
cy divisions of First American Title
Insurance Company: National Lenders
Advantage and Equity Loan Services,
both of which have been collectively
serving the residential lending market
since 1983. Over the next year, all
National Lenders Advantage and Equity
Loan Services operations and technolo-
gies will transition to First American
Titles Mortgage Services division.
In addition to a business strategy
focused on the distinct objectives of
each residential originator, Pat
McLaughlin, division manager of First
American Titles Mortgage Services divi-
sion, said: First American understands
that mortgage originators need more
than a central point of contact to be
competitive in a volatile market. Weve
listened closely to our clients and
invested in the technology, personnel
and infrastructure that our organiza-
tion needs to support complex relation-
ships with top national lenders. Our
newly formed division better represents
us as an innovative company with the
capacity and experience to successfully
deploy cost- and risk-reduction solu-
tions for the mortgage industry.
Robert Camerota, head of division
operations of First American Titles
Mortgage Services division, said: Service
is not only one of our core values, its
also what separates First American Title
Insurance Companys Mortgage Services
division from other providers. Because
we recognize that every touch-point
throughout the mortgage closing
process is important, our employees are
committed to delivering a superior expe-
rience on every transaction for both the
mortgage lender and their customers.
For more information, visit www.famort-
gageservices.com.
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Credit unions have the highest loan quality so far in 2010, based on post-
closing quality control audits performed by Quality Mortgage Services LLC
(QMS), a national compliance solution provider. In the study by QMS, nearly
50 percent of credit union loans are rated as Excellent whereas 34 percent
of bank loans were ranked Excellent and non-bank loans ranked 22 percent
in the Excellent category. These loans were audited for federal regulatory
audits, credit and collateral analysis, and mortgage fraud.
Non-banks took the lead in the Good ranking, where nearly 61 percent
of the loans had minor loan defects, but were very marketable on the sec-
ondary market. Banks ranked at 56 percent and credit unions ranked at 43
percent.
For the credit unions to score so well in the Excellent ranking, there is
a noticeable difference in the credit scores and ratios. The average credit score
coming from credit unions in 2010 is 761, whereas in 2009, the average credit
score was 772. Banks averaged a score of 755 for 2010 and 2009. The non-
bank credit score average came in at 737 for 2010 and 722 for 2009. Credit
unions maintained a high credit score average of 761 for loans that ranked
Good in 2010, while banks and non-banks had an average credit score of
736 and 710, respectively, in the Good category.
When analyzing the percentile of pooled loans for purchase on the sec-
ondary market, credit unions and banks ran very closely at 92.17 percent and
91.13 percent respectively of loans with low loan defects. Non-banks had
83.03 percent of mortgage loans with low loan defects, which is the same
percentile for 2009.
The credit union average back ratio is another measurement that sets
the credit unions loan quality apart from the other lending institutions.
The average back ratio for credit unions in the Excellent category cur-
rently came in at 33 percent where banks had an average of 36 percent and
non-banks had 35 percent average for back ratios. In the Good category,
credit unions maintained the lead with an average of 34 percent, banks
were at 36 percent and non-banks had a 41 percent back ratio average.
Credit union borrowers are financially a stronger borrower based on the
results of post-closing audits.
Credit unions and banks are very close in their averages for potential re-
purchases. Credit unions had a 7.09 percent ranking in the Fair category
where loan defects may warrant a repurchase claim. Banks had a 7.78 percent
Fair ranking and non-banks had a 14.21 percent loan defect ranking as
Fair that may provoke a repurchase.
When it comes to fraud for housing, credit union had a 0.75 percent rank-
ing in the Poor category, banks had a 1.10 percent ranking and non-banks
had a 2.76 percent ranking. This Poor category is where fraud for housing
was discovered during the post-closing audit. The Poor category has noth-
ing to do with a loan in default, but a ranking where the loan should have
never been made.
By Tommy A. Duncan, CMT
Sponsored by
Tommy A. Duncan, CMT is executive vice president of Quality Mortgage Serv-
ices LLC. For answers to your QC and FHA questions, please contact Tommy at
(615) 591-2528 or e-mail taduncan@qcmortgage.com. You may also visit Qual-
ity Mortgage Services LLC on the Web at www.qualitymortgageservices.com.
Scenes From the MBAs
97th Annual Convention & Expo
October 24-27 at the Georgia World Congress Center in Atlanta
Photo credit: Lauren-Ashley Luesing
The crew from a la mode inc. shows their support at the MBA Annual
Convention, (back row): Nick Solis, Chris Sullivan, Leonard Acquaye,
Jennifer Miller, Scott Kinnard, Molly Dowdy, Brad Eaton, Jason Dowdy
and Joe Buell, with (front row): Amanda Meredith, Christina Davidson,
Whitney Glass, Stephanie Wilder and Lacey Beardon
Greg Schroeder from
Comergence Compliance
Monitoring in Orange, Calif.
was on hand to detail his
companys product offerings
Chip Langley, CRMS; Thomas F. Duncan and
Tommy A. Duncan, CMT of Quality Mortgage
Services LLC were on hand to discuss
implementing quality control plans
Patrick Wolohan, Kris Barnes, Carson Mullen, Kat Ebeyer,
Kelly Taylor, Jim Anderson and Tom Hurst proudly represent
StreetLinks National Appraisal Services
Allen Johnson, Stephen Crowley and Grady
Petty from Advanced Data were on hand for
the MBAs 97th Annual Expo to share
information on their companys product
offerings
Mark Sike and Melissa Sike from
Credit Plus Inc. on the exhibit
hall floor of the Georgia World
Congress Center in Atlanta
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In our second annual 40 Under 40 feature, you will find a list of the top
mortgage professionals under the age of 40, as voted on by their peers, who
exemplify professionalism and top production in todays housing market.
Despite the rough waters of the U.S. economy and the ever-shifting land-
scape known as the mortgage industry, these 40 individuals have persevered
in a time of great uncertainty.
In assembling this list, we at National Mortgage Professional Magazine
took some criticism when we began this endeavor. Many felt a list of this
nature ignored many, and others felt that a list of this type is a thing of the
past, while some even cited age discrimination, but we firmly stood by our
decision to assemble this group. Like their industry pioneers before them,
these individuals are the ones who carried the torch of professionalism in
the year 2010, fighting the daily barrage or regulatory and legislative pres-
sure and negative coverage by the mainstream media as the culprits for the
collapse of the U.S. economy. However, they forge forward, as they contin-
ue to lead by example and set the bar for education, professionalism and
excellence in the mortgage industry.
Wed like to congratulate all of the following individuals named to our 40
Under 40 listin no particular order but alphabeticaland thank all the
nominees for their participation in our second annual 40 Under 40: The 40
Most Influential Mortgage Professionals Under 40 feature.
Timothy Baise
Top Flite Financial
President and Chief Executive Officer
As president and chief executive officer of Top Flite Financial, an
Inc. 5,000 company, Timothy Baise, CMC has been changing the
lending industry, one person at a time, by being and staying in
compliance with state and federal laws. While riding the edge or
operating in grey areas may make for more short-term income, riding the
straight and narrow line will produce long-term relationships, solid results and
a permanent home for its employees and that is exactly what Timothy has done
with Top Flite Financial. While most lending companies are downsizing or clos-
ing their doors altogether, Top Flite Financial has been increasing its revenue
and has expanded its operations through the toughest economic times the mort-
gage industry has ever seen, all this under the direction and leadership of
Timothy.
Raymond Bartreau
Best Rate Referrals LLC
Chief Executive Officer and Founder
Raymond Bartreau is chief executive officer and founder of Best
Rate Referrals LLC in Las Vegas, Nev., a marketing company spe-
cializing in the mortgage industry. In 2010, Best Rate Referrals
was named one of the fastest-growing companies in the country.
Don A. Blaize
Franklin American Mortgage
Mortgage Specialist
Don A. Blaize, mortgage specialist with Franklin American
Mortgage, has demonstrated his ability to be a leader within his
community and state through his involvement with the
Mississippi Association of Mortgage Brokers (MAMB) following
Hurricane Katrina. Don has been involved with local organizations to promote
homeownership in his respected community.
Joe Bowerbank
Loan-Score Decisioning Systems
Senior Vice President of Marketing and
Strategic Alliances
Joe Bowerbank has more than 15 years of marketing manage-
ment experience in the technology and mortgage banking sec-
tor, helping to launch marketplace solutions, grow organiza-
tions, obtain technology adoption and build brands. He is a company-building
marketing professional who understands what it takes to catapult growing
ventures to the next level. Currently, Joe is the senior vice president of mar-
keting and strategic alliances at Loan-Score Decisioning Systems, an Irvine,
Calif.-based AUS vendor. Before joining Loan-Score, Joe was the vice president
of marketing at Portellus Inc. Prior to Portellus, he headed marketing strate-
gy at Commerce Velocity Inc., a mortgage AUS vendor, and prior to his time
with Commerce Velocity, Joe was the director of marketing and market adop-
tion at Electronic Distribution Networks Inc. (EDN), a software communica-
tions provider serving multiple vertical markets. Joe sits on California State
University, Fullertons UEE Advisory Board for their sales and marketing pro-
gram course development.
Chris Brown
Certified Mortgage Planners
Mortgage Loan Originator
Chris Brown, a mortgage loan originator with Certified Mortgage
Planners, is changing the landscape of what a mortgage profes-
sional is and does. He is actively involved as an advocate for the
mortgage industry through serving his fellow loan officers
through the Mortgage Revolution, but he is also fully engaged with serving agents
through REBar Camps, establishing Mastermind Groups, and coaches agents to
help their marketing and business development.
Douglas Calabrese
Terrace Mortgage Company
Regional Operations Manager
Douglas Calabrese is the regional manager for Terrace Mortgage
Company in Tampa, Fla. where he oversees compliance and
implements guidelines with varying investors and agencies. In
addition to his full time position at Terrace Mortgage as regional
operations manager, Douglas currently holds the position of treasurer for the
Mortgage Bankers Association of Tampa Bay and supports The Childrens Home in
Hillsborough County.
Adam Calvery
a la modes Mortgage Solutions Division
President
Adam Calvery is the president of a la modes Mortgage
Solutions Division, managing the companys full line of com-
pliance and quality control tools. His focus is spearheading
the Mercury Network vendor management platform (VMP),
which has just reached a volume milestone of 10,000 appraisal transactions
per day.
Craig Doriot
LoanSifter Inc.
Founder and Chief Technical Officer
Craig Doriot is founder and chief technical officer of LoanSifter
Inc., a mortgage pricing engine and consumer direct application
process that has helped revolutionize mortgage technology, and
who has previously created other successful Internet-based ven-
tures. LoanSifter has grown from its first customer in 2006, to servicing more than
670 mortgage-related institutions to date. Under Craigs guidance, LoanSifter has
pioneered the growth of pricing engines to help reach consumers on their terms
with auto-quoting, e-mail campaigns, rate tables, open house flyers, consumer
pricing portals and rate alerts.
Derek Egeberg
Academy Mortgage Corporation
Branch Manager
Derek Egeberg, a branch manager with Academy Mortgage
Corporation in Yuma, Ariz., is a consummate professional who is
always willing to offer support and knowledge to the industry and
loan officers across the country. He has been a supporter of The
Mortgage Revolution since its inception and has spoken at both Mortgage
Revolution events in Atlanta and New York. Derek fields frequent calls and
responds to message board posts from originators around the country. His focus
on creating a positive experience for his borrowers and referral partners helps to
improve the image of loan officers and our industry as a whole. He also worked
behind the scenes to help propel a major, industrywide legislative effort into the
forefront earlier this year. Derek Egeberg is a great loan officer, a great leader and
a great friend to many in our industry!
Chris Frost
Frost Mortgage Banking Group
Vice President and Operations Manager
Chris Frost attended New Mexico State University, majoring in
finance. He had worked part-time in commercial banking for
three years to put himself through college. Chris spent a total of
seven years in banking, culminating as assistant vice president
and branch manager of the Bank of Albuquerque. He made his move to mortgage
banking and Frost Mortgage Banking Group in December of 2002. Chris has been
a top loan originator, sales trainer, sales manager, and now serves as Frost
Mortgage Banking Groups vice president and operations manager. Under his
watch, Chris has helped grow the company from five local branches to 21 nation-
al branches encompassing 13 states. His team continues to strive for the division-
al goal of 35 branches and $100 million per month in fundings.
Steve Grant
Credit Plus Inc.
President
Steve Grant joined Credit Plus Inc. 20 years ago and has served as
the companys president for the past 13 years, directly overseeing
the companys sales and operations functions. Under his leader-
ship, Credit Plus has grown from 10 employees to 125 and has
experienced a 1,650 percent increase in sales. He is often called upon to author
industry articles for his keen industry foresight.
Annie Gulosh
Northwest Mortgage Advisors
Mortgage Advisor
Born and raised in the Pacific Northwest, Annie Guloshs passion
for the community is the driving force behind her desire to
become a leader in the mortgage industry. Annie is a mortgage
advisor with Portland, Ore.-based Northwest Mortgage Advisors,
and the founder and visionary behind www.365ThingsPortland.com, where she
posts a new idea for something to do in the Portland, Ore. area on a daily basis,
whether it be a restaurant or coffee shop to check out, a theater or park to visit, a
special event to look into, and more. Her grasp of the subtleties of real estate, as
well as her compassion and commitment to her clients and their goals, is what sets
her apart as a mortgage professional. Annie understands that the key to a perfect
transaction is mutual trust and partnership, and considers her clients valuable
assets to a winning team.
Bryan Harlan
Benchmark Mortgage
Loan Officer
Bryan Harlan is an award-winning MBA and senior executive with
demonstrated success as an entrepreneur, CEO, trainer and mort-
gage consultant. Co-founded, organized and currently manages a
national mortgage banking corporation with nearly 60 branch
offices throughout the U.S. Bryan is experienced in strategic planning, business
and product development and marketing execution. A goal-directed change agent
and a skillful team builder with a sense of urgency, Bryan thrives on P&L respon-
sibility and driving top-line revenue growth, as well as bottom line profitability. As
the broker of record for Benchmark Mortgage, Bryan holds the prestigious
Certified Mortgage Consultant (CMC) designation awarded by the National
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Association of Mortgage Brokers (NAMB). This designation has only been awarded
to approximately 1,100 mortgage professionals in the country, based on experi-
ence, education and industry leadership.
Andy W. Harris
Vantage Mortgage Group Inc.
Owner
In the industry for nearly nine years, Andy W. Harris is the owner of
Lake Oswego, Ore.-based Vantage Mortgage Group Inc. and 2010
president of the Oregon Association of Mortgage Professionals
(OAMP). As a passionate owner and high-producing originator, Andy
took the market challenges head-on and motivated in 2007 with new DBA when every-
one was doing the opposite. Vantage Mortgage Group has been profitable as a startup
company not only every year, but in every quarter since 2007. Vantage Mortgage fea-
tures unique and innovative origination and marketing systems with paperless pro-
cessing. Andy has an excellent reputation in the and his personal articles and motiva-
tional pieces have been published nationally in different industry outlets.
Jason Hammer Helmer
Jacob Dean Mortgage Inc.
Loan Originator
Jason Hammer Helmer is well-known for introducing strategies
on how to get more business and make more money with the
2010 Good Faith Estimate (GFE). Jason has been a speaker at mul-
tiple Mortgage Revolution events, and currently mentors a nation-
al audience of originators through his Webinars at RateAlert. Jason is a loan orig-
inator with Jacob Dean Mortgage Inc., in addition to serving as a business devel-
opment consultant for Hammer Solutions LLC.
Greg Holmes
Credit Plus Inc.
National Director of Sales and Marketing
Greg Holmes joined Credit Plus Inc. four years ago as the south-
east regional sales manager and was promoted to the position of
national director of sales and marketing last year. Greg leads a
team of regional sales managers and account executives. He has
more than 15 years of experience in the credit-reporting industry and has been an
integral factor to Credit Plus success helping grow the company by 20 percent and
maintain profitability despite a weak economy.
Stewart Hunter
Benchmark Mortgage
President/Co-Founder
Stewart Hunter, along with Bryan Hunter, co-founded Benchmark
in August of 1999, and currently serves as company president. The
holder of a BBA degree in Business Administration from Louisiana
Tech University, Stewart is quite a visionary and has led the charge
in Benchmarks rapid expansion. Stewart oversees Benchmarks expanding base
of 167 branches, working closely with Gil Holloway on new branch partnerships
and business development. Stewart also oversees the companys underwriting,
funding, closing and secondary market divisions, as well as Benchmarks new
products department. He also supervises daily branch and client support func-
tions. For two years prior to Benchmark, Stewart was owner/operator of a branch
for The Mortgage Factory in Frisco, Texas. He managed 10 mortgage consultants
with Bryan Harlan, and assisted in the opening of satellite branches in Baton
Rouge and Shreveport, La. In the mid-1990s, Stewart also worked for Landmark
Mortgage where he met Bryan Harlan. Stewart was a top-producer at Landmark
for two consecutive years, earning awards for being number one in the company
for both units and volume. He was also inducted into the Presidents Club.
Mat Ishbia
United Wholesale Mortgage
Mat Ishbia is executive vice president of United Wholesale
Mortgage (UWM) and is primarily responsible for growing UWM
from 20 employees servicing $140 million in mortgages in 2006,
to more than 200 employees closing more than $2 billion in mort-
gages in 2009. Recognizing the need for a workflow process that would serve bro-
kers in record time, the company has grow into one of the top 10 Federal Housing
Administration (FHA) lenders in the country.
Mark Madsen
Raintree Mortgage
Online Communications Manager
Mark Madsen is the online communications manager for Raintree
Mortgage in Las Vegas. Mark is the owner of an expansive list of
nationally-recognized industry Web sites, including
MortgageRevolution.info, MyFHAMortgageblog.com, Lenderama.com
and WannaNetwork.com. Mark has been publishing articles online about homeowner-
ship education since 2005. While there are several responsibilities required of an in-
house social media manager, Marks primary role is to write mortgage-related con-
tent online for the purpose of building trust new with clients and agents. With more
than six years of experience online building social networks, developing blogs, study-
ing search engine optimization (SEO) and writing for the industry, Mark also coach-
es his real estate partners through the setup and successful implementation of their
Internet marketing campaigns.
Kevin Marconi
United Fidelity Funding
Chief Operating Officer
Kevin Marconi is the chief operating officer of United Fidelity
Funding LLC, a national wholesale and retail mortgage banker.
Started as a de novo lender in 2007, United Fidelity now funds
more than $1 billion annually. When others turned their backs
on the wholesale business subsequent to the mortgage meltdown, Kevin began to
focus on it, making third-party originators (TPOs) his primary business channel.
Matthew McCabe
Loan Resolution Corporation
President
Matthew McCabe is president of Loan Resolution Corporation (LRC)
in Scottsdale, Ariz. LRC has grown from three to 120 employees in
just three years. Matthew was actively involved with the opera-
tional development of LRC, and is now focused on priority client
boarding and process improvement through streamlining the companys short sale
and modification operations. LRC has ranked as the largest short sale vendor in the
United States by file volume and number of contracts. LRC has contracts with the
government-sponsored enterprises (GSEs) and the nations top five servicers.
Gabe Minton
Motivity Solutions Inc.
Chief Strategy Officer
While working at the Mortgage Bankers Association (MBA), Gabe
Minton spearheaded the furtherance of the Mortgage Industry
Standards Maintenance Organization (MISMO). Gabe has worked
tirelessly to help standardize the way technology data is utilized in
the mortgage industry, which has been adopted by most technology vendors and
lenders. From his time with Ultraprise, to the MBA, to Mortgage Cadence, and now
as chief strategy officer of Motivity Solutions Inc., Gabe has been an advocate and
leader for automation, control and standards for the mortgage industry. Gabe uti-
lizes his in-depth business experience, leadership and software engineering expert-
ise to drive the strategic planning process and develop third party alliances and
relationships, while strengthening Motivitys technology products and initiatives.
Gibran Nicholas
CMPS Institute
Chairman and Chief Executive Officer
Gibran Nicholas is a professional writer, speaker and an entrepre-
neur. Since 2005, he has been the chairman and chief executive
officer of the CMPS Institute, a national organization that certifies
mortgage bankers and brokers. Gibran has personally trained
more than 6,000 financial professionals across the country, including CPAs, attor-
neys, financial planners, bankers and mortgage brokers.
Amanda Niles
Summit Mortgage
Mortgage Consultant
Amanda Niles, mortgage consultant for Summit Mortgage in
Portland, Ore., is a high volume producer on pace to close more
than 150 mortgage loans in 2010. She has worked as a mortgage
broker/banker for nine years and is active in giving back to the
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community. She donates her time, resources and money to numerous organiza-
tions, including CandleLighters Childhood Cancer Foundation, a charity for chil-
dren fighting cancer; St. Andrew Nativity, a charity for educational scholarships;
and Care & Share through the Kerala Association of Washington, which raises
money for life-changing eye surgeries for children in India.
Patrick P. Palmer
Pinnacle Capital Mortgage
Northwest Division President, Regional
Production Manager
Patrick P. Palmer, Northwest Division president/regional produc-
tion manager, has helped grow Pinnacle Capital Mortgage from
50 employees to 700 within only two years as the president of
Alpine Mortgage Planning. Patrick oversees day-to-day sales and operations with-
in the company and has 15 years of experience in the mortgage lending industry.
Patrick was the co-founder and chief executive officer of Alpine Mortgage LLC in
Lake Oswego, Ore. Patrick has been a Mortgage Banker since receiving his bache-
lors degree in Business and Economics from Western Oregon University in 1995.
Jason J. Pidgeon
New England Federal Credit Union
Mortgage Loan Officer
Since Jason J. Pidgeons start at New England Federal Credit Union
in 2001, he has not stopped wanting to learn and be involved.
After a few years of involvement in the Vermont Mortgage
Bankers Association, he was nominated for the position of vice
president of the association and currently serves as association president.
Additionally, Jason has become one of a few loan officers in Vermont to obtain his
Accredited Mortgage Professional (AMP) designation through the Mortgage
Bankers Association (MBA). In 2009, his annual loan production was 521 loans for
$93,260,802, with one assistant and one processor.
Joseph Puthur
Mortgage Coach
President
Joseph Puthur is the president of Mortgage Coach, re-inventing
the industrys most trusted selling strategy to embrace the
Internet and mobile revolution. Joe and the Mortgage Coach
team have released two ground-breaking products in the last 12
months; Ratewatch and Edge. He is most known as founder and former chief
executive officer of Lasso Technologies, a startup launched just after his 19th
birthday, that pioneered bringing loan origination software online. In 2005, Ellie
Mae, the makers of Genesis, Contour, Encompass acquired Lasso Technologies to
create Encompass Anywhere, the online version of Ellie Maes flagship product.
Philip Rasori
MCT Trading
Principal and Chief Operating Officer
Phil Rasori is a principal and chief operating officer with MCT
Trading, a risk management firm that brings big bank capital
markets performance and execution to mid-sized lenders. Phil
and his homegrown analyst team have driven MCT growth,
quadrupling the company in size over the past two years. Phil has continuously
developed and improved the MCT HALO model over the past eight years. In the
course of his work, he pioneered a number of hedging metrics that have since
become de facto industry standards. Phil has also developed one of the indus-
trys first iPhone/SmartPhone apps for mortgage hedging. In addition to his work
in the mortgage industry, Phil is a central figure in a benevolent large micro
lending project in Kenya that has just celebrated a 10-year anniversary.
Stephen Ribultan
DocMagic Inc.
Executive Sales Manager
At a young age, Steve Ribultan, currently executive sales manager
of DocMagic Inc., has worked for several leading mortgage tech-
nology companies, including Commerce Velocity, Portellus,
OpenClose, and presently DocMagic. In particular, and in the
wake of numerous new regulations, Steve has been instrumental in introducing
technology solutions to tackle new compliance issues to his clients and partners.
Steve is a non-year veteran of the mortgage software industry.
Rick Richter
Gold Star Financial
Rick Richter is executive vice president of Ann Arbor, Mich.-based
Gold Star Financial. Rick has been ranked the number two loan
officer in Michigan and number 22 in the U.S., and oversees 300-
plus loan officers raising productivity by nearly 400 percent in the
last two years. Rick created and was responsible for Gold Stars sales and client
management system contributing to the company becoming an Inc. 500 compa-
ny, and a growth forecast of more than 1,000 employees in 2011 making Gold Star
the fastest-growing financial company in the state of Michigan over past two
years.
Dawn Robinson
PrimeLending
Senior Vice President of National Production
Dawn Robinson, senior vice president of national production for
PrimeLending, is actively involved in the mortgage industry and
spends time in Washington, D.C. lobbying for industry causes.
Dawn was recently selected and has graduated from the
Mortgage Bankers Associations Future Leaders Program. She has grown up in
PrimeLending, serving as an assistant branch manager, to loan officer, to vice
president of secondary of product development and investor relations, to her cur-
rent role with the company as senior vice president of national production. Dawn
has watched PrimeLending been close $500 million in a year, to more than $7 bil-
lion year-to-date in 2010.
Rene F. Rodriguez
MortgageDashboard
Chief Executive Officer
As chief executive officer of MortgageDashboard, Rene F.
Rodriguez is responsible for leading one of the U.S. home
finance industrys leading mortgage technology firms. His
unique methodology and approach to leadership and team-
building have been indispensable to MortgageDashboard as it has innovated
through the recent economic downturn. The firm is currently releasing version
4.0 of its loan origination system (LOS) and is poised to increase market share
rapidly as the industry enters its recovery. Before assuming his current role,
Rene was founder and chief executive officer of Volentum, an enterprise edu-
cation and consulting company specializing in the application of The Next
Generation of Change Making to deliver practical ways for individuals and
groups to grow and renew themselves even as they engage and profit from
recurring change. Prior to Volentum, Rene was CEO of Rapid Change, a con-
sulting firm that trained more than 50,000 people and whose training and
tools were named a Best Practice in three Fortune 250 companies, and chief
learning officer, founder and former dean of the Corporate University for a
national mortgage bank.
Rick Roque
Menlo Company
National Manager of Business Development
Rick Roque was formerly a senior management team member at
Calyx Software and is currently a mortgage technology and acqui-
sitions consultant. He assists both technology and mortgage firms
in meeting the needs of consumers throughout the mortgage
lending process. Having spoken at more than 50 mortgage conferences over the
last two years, including the first ever mortgage liquidity conference in Africa in
2009. Rick leverages his technology, process and mortgage lending expertise to
grow adoption and top line revenue growth for his clients. At the present time,
Rick leverages this consultative background on acquisitions and strategy for Ellie
Mae in Pleasanton, Calif.
Adam P. Smith
The Colorado Real Estate Finance Group Inc.
President
Adam P. Smith is president of The Colorado Real Estate
Finance Group Inc., a commercial and residential real estate
finance firm. During his career, he has helped thousands of
clients, both individuals and corporations, in their goals
regarding real estate finance, as well as both personal and corporate finance
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and has personally written billions of dollars in mortgage and finance deals.
Adam lectures regularly on contact management and marketing to col-
leagues in the real estate, mortgage, insurance and financial fields. He has
taught classes for several of the countrys largest real estate companies,
countless title companies and many regional real estate boards. He has also
taught technology classes for several Colorado Association of Realtors (CAR)
events. The Colorado Real Estate Finance Group Inc is a member of the
Denver/Boulder Better Business Bureau with a perfect record for as long as
they have been such, and is a multiple recipient of the BBB Gold Star Award
and was nominated for the 2009 Torch Award for Marketplace Trust. Adam
was also nominated for the BBB Board of Directors in 2008.
Andrew Soss
Stewart & Soss Mortgage
Founder and President
Andrew Soss is the founder and president of Stewart & Soss
Mortgage, a full-service mortgage banking company located
in San Jose, Calif. Andrew operates a seven employee opera-
tion and had personal production of $42 million in 2009,
and is on pace to break $100 million in volume in 2010. Andrew is presi-
dent-elect of the California Association of Mortgage Professionals, Silicon
Valley Chapter and as the Government Affairs Committee chair, he has vis-
ited Washington, D.C. to lobby members of Congress on behalf of the inde-
pendent mortgage professional.
John Glen Stevens
ENG Lending
Branch Manager
John Glen Stevens is the current president of the Utah
Association of Mortgage Brokers (UAMB) and branch manager
for ENG Lending in Utah, with branches, in Draper and St.
George, Utah. He is the delegate for the state of Utah to the
National Association of Mortgage Brokers (NAMB) Delegate Council, and is serv-
ing as 2010 co-chair of the NAMB/WEST Committee. Previously, John owned his
own company, Stevens & Shumway LLC. He serves on the Library Board for the
City of Pleasant Grove, and ran for a seat in the Utah House of Representatives
in 2010.
Louis Tesoriero
Guaranteed Home Mortgage Company, Inc.
Branch Development Manager
Louis Tesoriero tripled funded loans for another mortgage com-
pany, from $30 million to $100 million, in just four months prior
to joining Guaranteed Home Mortgage Company Inc. At
Guaranteed, as business development manager, Louis has
opened 15 new branches in his first two years with the company. Louis is respon-
sible for the nationwide recruitment of full branch operations and the integra-
tion of their organization into Guaranteed Home Mortgage. In addition to finding
new organizational opportunities, Louis also serves as a liaison for existing loca-
tions to ensure branch retention and a seamless interface with Guaranteeds cor-
porate headquarters.
Drew Waterhouse
Hammerhouse LLC
Managing Director and Chief Executive
Officer
Drew Waterhouse has 15 years of experience in mortgage
headhunting and supporting strategic growth initiatives.
During his career, Drew has lead and managed large teams
with a publically-traded mortgage bank and a depository with a focus on
building out production, leadership teams and value platforms. In 2008,
Drew established Hammerhouse, a national recruiting and strategic growth
partner, to help clients expand revenue by adding experienced mortgage pro-
fessionals that focus on purchase business and have created sustainable rela-
tionships with referral partners and past customers. Hammerhouse currently
supports an organic expansion for clients, which includes private equity firms
entering and expanding in the market, as well as traditional mortgage
bankers and depositories, with a focus on model matching and effecting high
levels of retention.
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Fix & Flip Lending
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Submit your scenarios at WeApproveLoans.com or call (877) 353-2233.
NEW PROGRAM
The Next 40 Mortgage
Professionals to Watch
Due to the hundreds of submissions we received for our 40 Under 40 list,
there are those who are making serious waves in the industry who could not
be overlooked. They, like those on the 40 Under 40 list are the leaders of
this industry for years to come, so keep an eye out as well for the following
innovators and originators as they continue to shape the industry:
O Shane Backer ..........................GFI Mortgage Bankers, Senior Loan Officer
O Alex Barnett ..................Integrity First Financial Group, Principal Partner
O Jason Berman ................................................J. Berman Group, Principal
O Vladimir Bien-Aime............................Global DMS, Chief Executive Officer
O Mark Bolour ..............Bolour Associates, Chief Executive Officer/Principal
O Josh Bopp..................................................................Focus IT Inc., Owner
O Tim Elkins ........................................PrimeLending, Senior Vice President
O Scott Estlund ..............First Choice Mortgage, Senior Mortgage Consultant
O William K. Farrar................................................Flagship Financial Group
O Lisa C. Forgony ..........................Mortgage Resources of South Florida Inc.
O Steve Gatti ......................Mortgages Unlimited Inc., Mortgage Consultant
O Shaun Guerrero ........................................The Legacy Group, Loan Officer
O Chad Thomas Hagwood ....................Beech Street Capital, Executive Vice
President of Originations
O Mark J. Hanna..............................Directors Mortgage Inc., Chairman/CEO
O Nicole Marie Hudson ....................Interactive Financial, Vice President of
Sales and Marketing
O Stephan Kachani ......Loan Oak Fund, Vice President of Sales & Marketing
O Kory Kavanewsky ................CMG Mortgage Corporation, Branch Manager
O Ryan Kohl........................................Express Capital Mortgage Inc., Owner
O Dino Lack ............................Wells Fargo Home Mortgage, Vice President,
Wholesale Support Technology and Information Office
O Owen H. Munton ........................Prime Mortgage, A Division of Magnolia
State Bank, Vice President
O Zubin Nagpal..................................Home Lending Source, Vice President
O Travis Hamel Olsen ....Loan Resolution Corporation, Chief Operating Officer
O Shelly Panzarella ......................Primary Residential Mortgage Inc. (PRMI)
O Matthew A. Pineda ......................Castle & Cooke Mortgage LLC, President
O Shawn Presnell ..................American Mortgage Centers, Branch Manager
O Marty Preston ................................Benchmark/mymortgagepro, Partner
O Ron Riemer..................GFI Mortgage Bankers Inc., Vice President of Sales
O Clinton R. Rockwell........BuckleySandler LLP, Mortgage Banking Attorney
O Bill Rogers..................................Homeowners Financial Group, President
and Founding Partner
O Josh Shein ............Great Oak Lending Partners, Managing Partner/Owner
O Kyra Sommerville ..............................Inlanta Mortgage, Branch Manager
O Zach South............................................Best Rate Referrals LLC, President
O Kurt W. Strandson......................Radiant Mortgage Inc., President/Owner
O Brian Swanson..........................Bank of Internet, Senior Vice President of
Residential Lending
O Ernest Tepman..........................New American Funding, Branch Manager
O Tory Tarsitano ....................Capital Financial Bancorp, Owner/Originator
O Julie Toler ................Certified Mortgage Planners, Relationship Manager
O Ray Vinson III ................................Vinson Mortgage Group, Founder and
Chief Executive Officer
O Dean Wegner ........................................W.J. Bradley, Mortgage Originator
O Jordan Weimersheimer ....Equity Mortgage Lending LLC, Branch Manager
Josh Weinberg
First Choice Bank
Director of Compliance
Joshua Weinberg is a nationally-recognized speaker, author,
trainer and leader in the mortgage industry, specializing in
compliance and technology. He works closely with the Federal
Reserve where he was asked to participate in pre-rule making
design discussions of new Truth-in-Lending Act (TILA) disclosures; with the U.S.
Department of Housing & Urban Development (HUD), working closely with the
Department on Real Estate Settlement Procedures Act (RESPA) concerns; and is
a member of the Registered Institutions Working Group for the Nationwide
Mortgage Licensing System (NMLS) and many industry associations. Josh is cur-
rently director of compliance for First Choice Bank, a state-chartered, Federal
Deposit Insurance Corporation (FDIC)-regulated bank in New Jersey, and he
consults privately for mortgage banks and some of the top mortgage technolo-
gy vendors in the country. Previously, Josh was in charge of compliance for
Calyx Software and prior to that, he owned and operated a mortgage brokerage
in San Francisco, Calif.
Andrew WeissMalik
360 Mortgage Group
Chief Operating Officer and Vice President
Andrew WeissMalik is chief operating officer and vice president of
Austin, Texas-based wholesale lender, 360 Mortgage Group. With
10 years of mortgage industry experience in secondary marketing
and IT, Andrew served as vice president of secondary marketing at
Castle & Cooke Mortgage. His responsibilities there included managing the firms
loan purchase programs, hedging strategies and IT implementations. Prior to that,
Andrew was involved in secondary marketing activities at Echelon Mortgage and
McAfee Mortgage (formerly Home Mortgage).
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heard on the street continued from page 24
DartAppraisal.com chosen
by HomeTelos for appraisal
services and partners with
McKissock for online
appraisal education
DartAppraisal.com,
a national provider
of residential real
estate appraisals, has announced that
HomeTelos LP has selected the company
as their appraisal services provider for
the newly awarded U.S. Department of
Housing & Urban Development (HUD)
single family residential portfolio.
HomeTelos LP, a Dallas-based real estate
services and technology firm and
approved GSA schedule contractor, was
selected to provide new and advanced
marketing strategies to sell HUDs single-
family residential homes in five regions,
covering 25 states and additional U.S. ter-
ritories. A quick and accurate appraisal
valuation is a key element to the execu-
tion of selling strategies for the portfolio
HomeTelos manages.
The geographic area covered by
HomeTelos services under these contracts
includes Alabama, Arkansas, Colorado,
Delaware, District of Columbia, Florida,
Georgia, Illinois, Indiana, Kansas, Kentucky,
Louisiana, Maryland, Mississippi, Missouri,
New Mexico, North Carolina, Ohio,
Oklahoma, Pennsylvania, South Carolina,
Tennessee, Texas, Utah, Virginia and West
Virginia, including Puerto Rico and the U.S.
Virgin Islands.
Our experience in working with Asset
Managers for REO valuations makes this
a natural partnership, said Darton Case,
president of DartAppraisal.com. Since
2006, DartAppraisal.com has specialized
in REO appraisals. We specifically train
our key REO appraisers annually to
ensure compliance with all regulations,
understanding of the latest changes and
avoidance of common reporting errors.
As part of the companys commitment
to quality control, DartAppraisal.com has
trained hundreds of appraisers through-
out Texas and Georgia on the specifics of
real estate-owned (REO) valuations.
Additionally, DartAppraisal.com recently
introduced DartAdapt quality control
technology to on each appraisal to attain
the highest level of accuracy.
DartAppraisal.com has also announced
the launch of Dart Academy, a partnership
with McKissock LP to offer online options
to appraisers for continuing education and
pre-licensing/upgrade purposes nation-
wide. McKissock LP is a nationally-recog-
nized online provider of appraisal educa-
tion, with approved courses available in all
50 states and three U.S. territories.
Tracey Meldrum will serve as the
DartAppraisal.com vendor coordinator
overseeing the launch and implementa-
tion of Dart Academy. Meldrum was
recently added to the team to provide
additional resources to the companys
expanding appraiser panel.
DartAppraisal.com has relied on
McKissock for educational services
since 1996, when Case himself began
updating his continuing education
credits both online and in classes
through the company. In 2006, as the
number of properties in foreclosure
mounted, DartAppraisal.com prepared
its appraisers in several cities to follow
U.S. Department of Housing & Urban
Development (HUD) real estate-owned
(REO) appraisal guidelines with
McKissock by offering a full day course
on the subject.
For more information, visit www.dartap-
praisal.com, www.hometelos.com or
www.mckissock.com.
Veros integrates with a la
modes Mercury Network
for compliance and
appraisal ordering
a la mode has
announced that Veros
Real Estate Solutions
has integrated their VeroSELECT and
Valuation Risk Management (VRM) prod-
ucts with Mercury Networks vendor
management platform. The integration
connects Veros platform clients with the
largest network of real estate appraisers
and appraisal management companies
(AMCs). The services will support real-
time appraisal order placement, apprais-
al order payment processing, status
updates through the order cycle, and
delivery of the completed appraisal
report in MISMO 2.6 format, and elec-
tronic appraisal submission in full com-
pliance with the Federal Housing Finance
Agencys (FHFA) mandated Uniform
Collateral Data Portal (UCDP). UCDP is
being implemented by Fannie Mae and
Freddie Mac as part of a greater loan
quality initiativethe Uniform Mortgage
Data Programin order to provide sell-
er/servicers with common requirements
for appraisal and data delivery, ultimate-
ly improving loan quality and trans-
parency across the board.
The plug-in between Mercury
Network and Veros provides platform
users with the ability to connect to the
appraisers desktop software as well as
place orders directly to AMCs using
Mercury Network as their vendor man-
agement platform. Additionally, the
plug-in enables appraisal reports to be
delivered to the Veros systems using
fully compliant MISMO XML, which in
turn, will allow the report data to flow
directly to the UCDP.
As a result, this connection will pro-
vide users with the ability to streamline
compliance and enhance quality assur-
ance. Business and workflow rules
(which are executed on the appraisers
desktop from within the Mercury
Network plug-in) preprocess the
appraisal report before it is delivered
to the Veros system.
This integration with Veros perfect-
ly positions our two companies to
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We offer Wholesale and Retail Branches
Call 877-882-8069
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www.BestRateReferrals.com
MRev Hits New York
On the weekend of Oct. 15-17, National Mortgage Professional Magazine had the
pleasure of attending another Mortgage Revolution event at the Westchester
Marriott in Tarrytown, N.Y. MRev founders, Mark Madsen, Mark Green and
Brian Larrabee were assisted with the New York show by fellow North Easterner,
Jason Klaskin. Working with some very helpful sponsors, such as Credit Plus Inc.,
Mortgage Coach, Mortgage Planner CRM, Top of Mind Networks and Estate of
Mind, the industrys top originators had a chance to hear from some of the best
trainers in the industry, including Dave Hershman, Rene F. Rodriguez, and Joe
Puther, as well as hearing from a huge list of experts on topics ranging from
social media, to video marketing, to sales management.
The biggest takeaway from the event ... invest time in helping others
build their business ... get paid huge dividends. In addition, attendees
learned tips on creating viral videos, time management tools and all
enjoyed some great networking opportunities.
Stay tuned to MRev.org for details on future events.
Anny Havland fields
questions during her
session on video marketing
Rene F. Rodriguez
discusses the traits
of leadership
during his session
Dave Hershman explains
how making a commitment
to your industry will pay
dividends during his lively
session
Jonas Kruckeberg
delivers his
session on video
and how to
effectively use it
to boost your
business
Chris Brown explains how
to use social media to gain
business during his Social
Media 101 presentation
Khai McBride
delivers his
presentation on
sales management
and customer
retention
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www.CBspecialty.com
Visit UnitedNorthern.Jobs, email info@UnitedNorthern.Jobs
or call (888) 600-8808 ext 1.
United Northern is Seeking Highly
Qualied, Experienced Mortgage
Professionals To Grow as We Grow
Operations Manager
Production Manager
Senior Underwriter
Virtual Mortgage Loan Ofcers (VMLOs)
In-House Mortgage Loan Ofcers
(MLOs)
Team Leaders/Sales Managers
United Northern Mortgage Bankers, Ltd. Corporate NMLS ID# 7230 New York State Banking Dept. - Licensed Mortgage Banker License #100724 New Jer-
sey Dept. of Banking and Insurance Mortgage Lender License #L0046623 Pennsylvania Dept. of Banking Mortgage Lender License #20887 Connecti-
cut Dept. of Banking - Mortgage Lender - License #20372 Massachusetts Div. of Banks and Loan Agencies - Mortgage Lender & Mortgage Broker License
#MC5070 North Carolina Commissioner of Banks Mortgage Lender License #L140365 South Carolina State Board of Financial Institutions Supervised Lender
License #S7,461 Florida Dept. of Financial Institutions - Mortgage Lender - License #ML0700679 Senior Security Home Advantage is a lending area of United
Northern Mortgage Bankers, Ltd. Direct FHA Endorsed Lender
achieve several of our shared priorities,
such as forward-thinking compliance,
and high-quality finished appraisal
reports, said Adam Calvery, a la
modes president of mortgage solu-
tions. Were excited about the implica-
tions this development has for our
respective customers.
Veros platforms are designed to
intelligently order, receive, review and
route appraisals, broker price opinions
(BPOs) and automated valuation mod-
els (AVMs) as well as other forms of col-
lateral valuations and analytics.
Were delighted to be working with
Mercury Network, said David
Rasmussen, senior vice president of
sales and operations for Veros. The
ability to seamlessly connect with
Mercurys diverse network of appraisers
and AMCs all the way through the valu-
ation chain to the secondary market
creates an industry efficiency where
everyone wins.
For more information, visit
www.veros.com or www.alamode.com.
Fiserv renames its
servicing platform
LoanServ
Fiserv Inc. has announced
the renaming of its Loan
Servicing Platform to
LoanServ. As a single-platform, real-time
solution, LoanServ combines mortgage
loans, consumer loans, indirect financing,
home equity loans and lines-of-credit and
distressed-loan functionality into one core
system so that all of a borrowers retail
loan relationships can be supported on
one platform, creating efficiencies and
convenience for financial institutions.
Most recently known as the Loan
Servicing Platform from Fiserv, LoanServ
grew out of the companys MortgageServ
solution which at the time was the first
Web-enabled, real-time solution for all
aspects of mortgage servicing and man-
agement. As the financing needs of bor-
rowers evolved over the past decade,
Fiserv invested in a development strate-
gy to add support for not only home
equity loans and lines of credit but for
other retail loan products as well. As a
result, LoanServ is the only servicing sys-
tem that has integrated support for all of
these financing instruments.
The name change is a significant
statement about our vision, said
Thomas Gorman, president of Loan
Servicing Solutions, Fiserv. One of our
greatest challenges is ensuring that prod-
uct innovation is not only a good idea
but is also a fundamental contribution to
business process improvement. LoanServ
is a powerful solution that ultimately
offers a diverse range of financial institu-
tions greater control over their opera-
tions and more flexibility to support
products, policies, regulatory changes
and customer relationships.
Designed to support any size or type
of institution, LoanServ can be
deployed at a range of financial organ-
izations, from entrepreneurial loan
servicing operations to the largest
financial institutions. By reducing dis-
parate technology systems and redun-
dant interfaces, and integrating online,
real-time transaction processing and
workflow automation into a single soft-
ware system, LoanServ allows banks,
credit unions, specialty lenders and
investors to add loans to their portfo-
lios while reducing costs, increasing
productivity and creating opportunity.
For more information, visit www.fiserv.com.
forms new REO and set-
tlement services network
Insurance Company
has announced the
formalization of First
Americans National Title Insurance
and Settlement Solution (FANTISS) net-
work. The FANTISS network provides a
central point of contact to assist
lenders in closing large volumes of real
estate-owned (REO) transactions
through First American Title Insurance
Companys network of local offices
nationwide. FANTISS team members
provide lenders with a single point of
contact throughout the settlement
process, allowing for a greater level of
simplicity and efficiency when closing
multiple-property portfolios.
Through the FANTISS network,
lenders closing multi-property REO port-
folios will experience standardized and
consistent processes, communication,
technology, underwriting and pricing.
Further, First American Title has a
national underwriting staff dedicated to
working directly with the FANTISS net-
work, which allows lenders to efficiently
resolve any title-related issues that may
arise during the REO sales process.
We are offering a unique and branded
solution that benefits both lenders and
their home-buying customers, said Mike
Conway, eastern division president for
First American Title. With todays high
volume of REO sales transactions, tradi-
tional regional providers offer little stan-
dardization and can simply be over-
whelmed. By utilizing the FANTISS net-
work, national lenders will experience the
convenience of working with a single point
of contact while buyers will receive the
same quality and personalized service that
they have come to expect when working
with First American Title Insurance spe-
cialists at the community level.
For more information, visit www.firstam.com.
LenderLive Network
continues to expand
L e n d e r L i v e
Network Inc., a
provider of business process outsourc-
ing and technology to the financial
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A View From the C-Suite
Never before has it been more critical
that you carefully and conscientiously
consider your business strategy. We are
in unprecedented times. What has
worked in the past is not going to work
in the future, at least to the same
degree. Everything has changed! Unless
you recognize it and deal with it intelli-
gently, I predict you could be forced out
of business. And the most painful part
of that will be watching those who
wisely choose the right strategy not
only just survive, but thrive making
record profits. I predict
that some of the compa-
nies that will survive will
surprise you, and even
more surprising will be
the ones that dont. Just
look at the Mortgage
Lender Implode-O-Meter
(www.ml-implode.com) if
you doubt this.
Some of you reading this
may be old enough to
remember the TV show
Kung Fu from the 70s, and
you may recall The Master
(Poe) telling Caine to Choose
wisely Grasshopper. Never
have there been so many
forces out there in the
industry seemingly working
against us. It seems, at
times, as though the cards are stacked
against us. This is especially true when you
consider the tsunami of regulations coming
at our industry, along with a growing num-
ber of foreclosures potentially driving home
values down even further and therefore
challenging any potential lift we could see
from ongoing refinancing activity. So, read
and consider carefully the following and e-
mail me your thoughts.
At the recent 97th Annual Mortgage
Bankers Convention in Atlanta, I had
the privilege of speaking on a panel
where the discussion centered on the
title of this article, Growth Strategies in
a Down Market. Some of the content
for this article came from my presenta-
tion and predictions that I made as a
panelist.
First of all, lets talk about the almost
certainty of a down market. With
interest rates being in the low fours and
a high threes, doesnt it seem a bit illog-
ical that we should be in a down mar-
ket. I can understand why some might
ask the question: How can this be? As
the then presidential candidate Bill
Clinton so aptly put it, Its the econo-
my stupid! With interest rates at his-
toric lows, I can see how some may
have the mistaken notion that we could
have another refinance boom.
While refinancing activ-
ity has been brisk in recent
months, representing as
much as 80 percent of
some companys pipelines,
I predict that refinance
volumes will drop signifi-
cantly next year. The key
culprit preventing any kind
of refinance boom is home
values and unemployment
or under-employment. The
fact is that we, as a nation,
are still recovering from a
hangover from the last
drunken refinance binge
that created an unprece-
dented housing bubble
now burst that has resulted
in property values falling
by as much as 40 to 50 per-
cent in some markets. Even more conse-
quential is that there is a high probability
that we could still see another 15 to 20
percent drop in property values in some
parts of the country before we hit bottom
and start any kind of a recovery.
However, property values will not
begin to stabilize and improve until the
overriding issues of unemployment and
under-employment are solved. That,
plus we need to work through a huge
and growing existing housing inventory,
are the results of a growing number of
foreclosures. Until all of these issues are
addressed and are behind us, there will
be no recovery. Government spending
has failed to lift us out of this morass.
Consider the fact that, at the time of this
writing, 23 percent of all existing home
sales is made up of foreclosures. It is
anticipated that percentage will grow to
as much as 40 percent, possibly more,
before we have finally turned the corner.
So, when considering your strategy for
2011, my first recommendation is for you
to plan for an overall industrywide slow
down in the market that could continue
into 2012. If you plan accordingly and I
am wrong, you will do fine. However, if
you do not plan for a down market and
we do in fact experience a down market,
you could find yourself out of business.
But before assuming I am offering a
gloom and doom outlook for the next
year and beyond, please read on.
What I find most interesting about
what is going on in the marketplace
today is the amount of capital flowing
into the mortgage industry. What are
investors seeing as the opportunity? To
put it in perspective, allow me to remind
you of a scene from the movie Forrest
Gump where Forrest and Lt. Dan rode
out the hurricane in the Gulf of Mexico.
When they returned, they discovered
that all of the other shrimp boats had
sunk. The competition was wiped out
gone! They were one of the few survivors.
The short of the story is that they capital-
ized on the demise of others and made a
fortune. It is important to keep in mind
that, in the midst of turmoil, there is
always opportunity and the greater the
turmoil, the greater the opportunity. So
ask yourself: How much turmoil has this
industry experienced recently? And then
ask yourself the corresponding question,
How much opportunity exists for those
that can recognize it and capitalize upon
it via the right strategy? How do you
spell E-X-T-R-A-O-R-D-I-N-A-R-Y?
One of the first questions asked of me
when I spoke at the 97th Annual MBA
Convention in Atlanta was, David, with
all of your consulting experience, what
are some of the biggest issues and poten-
tial opportunities facing our industry?
Here is how I responded:
It certainly could be said that new regu-
lations, such as the Dodd-Frank bill, along
with higher capital requirements are some
of the biggest issues facing our industry
today, but these two issues are actually
bringing about what I believe is a far big-
ger issue and corresponding opportunity. I
believe the biggest issue facing our indus-
try is a capacity crisis and here is why.
While it is true that the industry loan vol-
umes have, and will, most likely continue
to drop over the next 12-18 months, what
is dropping even further is the number of
industry participants left to serve the con-
sumers real estate financing needs.
Back to the movie Forrest Gump all
of the shrimp boats have sunk and I am
not just referencing companies but also
think of all the individuals who have left
the industry as well. I went on to say:
Consider the fact that as many as 50-60
percent, or as high as 70 percent in some
cases, of those taking the new Nationwide
Mortgage Licensing System test are failing
to pass the first time. And that doesnt take
into consideration all of those who are
being denied licenses due to poor credit.
Simply put, it is distinctly possible, if not
almost certainly probable, that we, as an
industry, will not have enough licensed
persons now to take loan applications
from the consumers seeking residential
financing, whether it be to purchase a new
home or to refinance an existing home.
Again, how do you spell E-X-T-R-A-O-
R-D-I-N-A-R-Y opportunities?
This could mean a number of things
for you and your business strategy. It is
essential that you have a strategy to deal
with more loan volume than you can
handle. The absence of such a strategy
could have disastrous consequences in
spite of the fact that it looks like you are
prospering even in a down market.
Almost everyone understands that too
little business will certainly put a compa-
ny out of business, but far fewer under-
stand that too much business can do the
same and actually do so faster one is
the result of an obvious demise and the
other is a far more subtle demise.
The following are two strategy rec-
ommendations that I am suggesting
you consider before you find yourself
taking on more business than you can
handle. The following two recommen-
dations will help you avoid the subtle
greed trap that has blinded many
from the subtle demise of not knowing
when enough (volume) is enough.
O First, you have to establish a well-
thought-out strategy in advance by
using detailed financial planning mod-
els to determine how much volume
your company can handle before
blowing up. If you dont have a good
By David Lykken
Predictions and Strategies in a Down Market
What has worked in
the past is not going
to work in the future,
at least to the same
degree. Everything
has changed!
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financial model, create one or call a
consulting firm to help you build one.
They can mean the difference between
life and almost certain death.
O Second, I cannot stress enough the
importance of having good systems
that provide you empirical data
(intelligence) of what is going on
within your company at each and
every stage, and in each and every
department. By good systems, I
mean both computer and opera-
tional systems that effectively moni-
tor all activity at every level and at
every stage of your operations. And,
all of this data from your systems
should be fed back into your finan-
cial model (usually a detailed
spreadsheet) so you dont fall prey
to the trap of taking on more busi-
ness than you can actually handle.
Again, greed commonly blinds us
from accurately seeing the juncture of
where volume goes from being a bot-
tom-line blessing to becoming an over-
all disaster that blows up your compa-
ny. There are any number of strategies
you can employ to effectively manage
this situation, but it all starts by having
good systems built and operating in
advance that feed accurate information
into a good financial model that is
closely monitored by management.
Another issue that I see in the course of
consulting to hundreds of clients across
the country is that many good originators
or companies that are good at loan origi-
nations lack the skill set or discipline to
effectively build (much less monitor) their
systems or their financial model. An effec-
tive strategy in this case would be to retain
a consulting firm to help you manage
those areas of your business that you are
not good at managing or that you inten-
tionally choose not to manage. On an
increasing basis, my own consulting firm
is ask to build financial models for com-
panies and then play a key role as a con-
tract executive management team that
monitors these critical areas. Oftentimes
we can do so, and as the saying goes, bet-
ter, faster, cheaper, than you trying to
learn how to do it yourself. As any busi-
ness coach will tell you, its important to
know what youre good at, but its even
more important to know what youre not
good at and surround yourself with the
necessary resources to shore up those
areas that youre not good at or that you
may not have the time to deal with on a
day-to-day basis.
Another strategy that I recommend you
consider is taking your business to the next
level by moving up the food chain. By
this, I mean if you are operating as a mort-
gage broker, you need to become a mort-
gage banker. If you are operating as a mort-
gage banker, but are still selling loans on a
best efforts basis, you need to move up
the food chain and start selling directly to
the agencies on a mandatory basis. Trust
me, once you learn how, you will find that
the risks are actually less selling on a
mandatory basis than on a best efforts
basis. And, if you have bought the lie that it
is difficult to find capital partners (investors)
to invest the necessary capital to take your
business to the next level, dont lose heart.
There is more capital looking to invest in
our industry than ever before. But its high-
ly unlikely that an investor is going to walk
through your front door and say, I want
invest money in your company. So, you do
need to know how to go find them (the
investor) and be trained and equipped to
tell your story and present your business
opportunity in such a way so as to cause
them to see the value of making an invest-
ment in your company and eventually writ-
ing you a check. Again, a key component to
raising capital is having an excellent finan-
cial model that accurately portrays (models)
how your business income and expenses
occur at various stages or volumes.
While this may be a down market year,
it does not have to be a down and out mar-
ket for you if you employ the right strategies
some of which I have suggested above. As
always, I welcome your feedback on this or
any article. Also I recommend that you lis-
ten to my weekly radio program, Lykken
on Lending that can be heard by going to
www.LykkenOnLending.com. Each week,
we discuss one of the hot topics within the
industry, as well as providing you with an
update on interest rates, legislative initia-
tives, and even tips on how to become more
profitable.
David Lykken is president of mortgage strate-
gies and managing partner with Mortgage
Banking Solutions. He has more than 35
years of industry experience and has gar-
nered 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 appear-
ances on the CBS Evening News, Bloomberg
TV and radio. He may be reached by phone
at (512) 977-9900, ext. 101 or e-mail
dlykken@mortgagebankingsolutions.com.
To listen to author David
Lykkens online radio show,
log on to www.blogtalkra-
dio.com and type in Lykken
on Lending in the Search box on the
right-hand side of the page.
greed commonly blinds us
from accurately seeing the junc-
ture of where volume goes from
being a bottom-line blessing to
becoming an overall disaster that
blows up your company.
2011: The Year of Big Decisions
If we think 2010 was a tough year, then
hang on because 2011 is going to be
fast and furious. With all of the legisla-
tive and regulatory changes coming
within the next 18-24 months, we will
not be able to sit back and hope it all
works out for the best.
Yes, there is some good news all
loan officers, no matter who you work
for, are now going to be paid on an
equal compensation program. Unlike
in the past, either one side or the other
had an advantage, but now compensa-
tion becomes one set of guidelines
starting April 1, 2011.
Loan officers, effective
April 1, 2011, will be paid
off the loan amount only,
plus any bonuses devel-
oped by companies, with
nothing involving fees, pro-
grams or interest rates.
The broker/owner is
going to have to plan for
all of the following:
1. How is my company
going to be paid?
2. How much is my com-
pany going to make on
the loan?
3. How much does it cost
for me to originate the
loan?
4. What is my compensa-
tion program going to
look like?
5. Am I going to have a
bonus program and how
is going to be structured?
6. Is my company going
to be a broker, banker or
a hybrid?
7. How do I attract good producing loan
officers?
8. Can I stay competitive?
9. Am I going to be able to meet all of
my deadlines on my own, or do I need
outside help?
10. How do I make sure I keep my loan
officers within Nationwide Mortgage
Licensing System (NMLS) timelines and
requirements?
11. Have I met all of the minimum
wage and labor requirements?
12. What is your mortgage origination
projections for 2011?
Now that you have answered
these questions, you are ready to sit
down and develop your own busi-
ness plan for 2011. In the past, we
have never had to experience the
number of challenges in developing
a plan for 2011. It may be over-
whelming, but as the old anecdote
says, How do you eat an elephant
one bite at a time. The year 2011
may one of the most challenging
years to date, but it is going to be
one of the most exciting and fun
years as you develop your company
into the fighting machine it has to be
to survive. Dont give up.
As you look at the overall market,
in 2006 there were 1,800 mortgage
companies in the state of Illinois
alone and a total of
18,000 loan officers. In
2011, we will see less
than 700 companies and
approximately 5,000
loan officers in Illinois.
How does that make you
feel? It should make you
feel fantastic as you are
a survivor who has less
competition to deal with
and you will have a
greater opportunity with
the right plan to gain
increased market share.
Everyone predicts that
the banks are going to
take over the market, I
can assure that has been
said at least five times since
1986. Mortgage brokers
and mortgage bankers
continue to survive and
develop their own market
and niche. Why, because
they are innovative and are
filled with an entrepre-
neurial spirit. So, lets be
aware of what others are doing, but lets
develop our own plan for survival and
increase our presence. Remember, no
matter what the market was doing,
good or bad, the mortgage customers
came to you, the mortgage broker
and mortgage banker, because you
were more knowledgeable, persist-
ent in getting a loan and more eco-
nomical.
As a mortgage broker and a mort-
gage banker, we also one other thing
that no financial institution can sat
and that is we are licensed profes-
sionals be proud of that.
Once you have figured out how to
navigate your business through what
lies ahead in 2011, I hope youll pon-
der what you can do in terms of help-
By Marve Stockert
Remember, no mat-
ter what the market
was doing, good or
bad, the mortgage
customers came to
you, the mortgage
broker and mortgage
banker, because you
were more knowl-
edgeable, persistent
in getting a loan and
more economical.
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Member FDIC
Helping you do more.
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When the team at National Mortgage
Professional Magazine asked me to
write an article for their November
2010 issue, I was thrilled because I am
literally brimming with ideas on how to
help businesses succeed
in the upcoming year.
But Josephine, you ask,
How can we grow when
the industry is still reeling,
when our teams have
shrunk, guidelines have
tightened, and our lives are
still in seeming disarray?
Well, sit back, pour yourself
some coffee (although you
may not need the caffeine
after you read this article),
and enjoy the below out-
line of five action steps Ive
listed to help you succeed.
I. Sharing is caring
We all have a unique
value or talent that we
bring to the business
world, and the minute we
share that with others is
the minute we become more successful.
How often has a business tip youve
picked up from a friend or business
acquaintance given you just the right
amount of knowledge or confidence
you needed to close new business? An
exchange of ideas and information that
you have learned from business experi-
ences not only makes you and the one
you are sharing this information with
richer, it also establishes a quality busi-
ness relationship, which results in more
closed business.
Im a longtime, successful entrepre-
neur and I know this works from expe-
rience. For example, most recently, I
have taken this concept and decided to
help people in my immediate commu-
nity who are wondering, How can I be
that expert the media calls on and
interviews? Many people dont know
where to start and the tips I pass along
at no charge have resulted in net closed
business of more than I could have
even imagined.
II. Smaller is better
Pick a part of your business where you
want to see huge growth and pursue it
with complete focus, and dont tell me I
want to see huge growth in my bottom
line, because what Im talking about will
result in an increase in your bottom line.
For example, you could say that you want
your processing times to become more
efficient, your people to buy more into
your vision, your team to work as a unit
instead of a hodge podge of unconnected
efforts, your lenders to
understand you and your
clients more, your commu-
nity and local media to
respect your market
knowledge, or numerous
other goals.
When you focus on
these smaller items,
individual items that you
can work on very specifi-
cally, you will in turn see
growth in your bottom
line. Find coaches, cur-
riculum, trainers, advis-
ers, and others who can
help you focus on these
things in your business,
and watch the seemingly
miraculous growth.
III. Steady on
Sometimes, its simply
about pursuing, very diligently and
effectively, those things that you do
best, or even about being the one
organization that is still there in the
aftermath of tragedy.
An organization I work with, the
CMPS Institute, is a pretty great exam-
ple of this concept. CMPS founder and
chairman, Gibran Nicholas, has stayed
firm to the original intentions of the
company, to be the standard of excel-
lence in the mortgage industry, and the
leading training and certification
organization in the mortgage industry
for mortgage professionals who want
market-based training and to be a part
of something wonderful and bigger
than themselves. CMPS members were
very loyal to the Institute through the
last couple tumultuous years, and
Gibran was faithful to them, continual-
ly churning out relevant and timely cur-
riculum. CMPS members hold their des-
ignation proudly and tell the Institute
they are proud to be associated with an
organization that has upheld its reputa-
tion and continued steady on through
industry crisis.
When you are true to your company
and yourself, when you show people
that you are here to stay in the ebb and
flow of this industry, they will gravitate
to you, and you will see growth.
ing the industry at large. The greatest
opportunity to make a far-reaching
impact comes when many small com-
panies band together as one. Whether
thats through getting involved in a
trade association, making an appoint-
ment with your legislator, taking con-
tinuing education classes or attend-
ing industry events, we all have many
opportunities, and the responsibility,
to not only see to it that our compa-
nies endure, but that our industry
thrives as well.
So as we enter the year 2011, we
have a lot to look forward to as long
as we are willing to make the diffi-
cult decision and put together a
plan that is real and obtainable. We
will continue to be under attack, but
we have survived 15 years of new
regulations and we continue to be
here, so they cannot do much more
to hurt us.
Marve Stockert has been executive direc-
tor of the Illinois Association of
Mortgage Professionals (IAMP) since
1996. Prior to that, he was involved in
the retail, wholesale and servicing
aspects of the mortgage business, pri-
marily in the state of Illinois. He has
been involved in legislative issues on the
state and federal issues. Marve resides
in Chicago and can be reached by
mstockert@iamp.biz.
Embrace These Five Actions
and Grow in 2011
By Josephine Nicholas
remember that the
key to leveraging
social media for busi-
ness is to use it as a
platform to provide
your network with
valuable, timely and
relevant information.
bank can operate in all 50 states with-
out being licensed in all of them, which
means nearly six figures or more than
$65,000 in savings per licensed mortgage
broker per year. This can add up to an
enormous annual savings for a mortgage
company, depending on the number of
states in which they do business. Also,
some banks are in trouble
and the Federal Deposit
Insurance Corporation (FDIC)
wants them cleaned up,
which also makes this an
attractive option. The down-
side to this option is that, no
matter how well -capitalized
a mortgage company is or
how much the deal will help
the bank, regulators may not
allow such a deal to move
past initial conversations
because in the end, they
often do not want to see a
mortgage company buy a
bank.
O Starting a bank: This
option requires a large
amount of capital to
get started ($15 mil-
lion-$30 million). It is
also very difficult and
extremely time con-
suming to get approved
by federal regulators.
O Applying for your own Full Eagle FHA
direct lender license: This is incredi-
bly difficult to pursue from scratch
because in order to meet the criteria
required for federal approval, a com-
pany needs experience, infrastruc-
ture and a back-office among others.
Approval can take a long time to
obtain and the process can be
extremely time-consuming.
O Becoming a branch of a federally-
chartered bank: By doing this, the
mortgage company becomes part of
the bank. The benefit is that the
mortgage company becomes a
direct lender, but the downside is
that the mortgage company owners
must essentially walk away from
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what others have seen and thinking about
it in such a way that nobody has thought
about it, thereby creating an innovative
idea. This initiative then creates a spark of
change, which leads to improvement in
whatever area of humanity they are con-
tributing to with the idea theyve created.
Others look at these situations and see
only the desert around themdry,
empty, hot and an environment in which
its virtually impossible to succeed. If you
are, instead, someone who is willing and
able to convert a new idea or invention
into a successful innovation, you will see
tremendous growth in 2011.
I firmly believe that the great upside
to the massive amounts of tragedy
weve seen is that men and women who
felt stuck in certain positions and afraid
to pursue their dreams are now free
if not forcedto pursue their passions.
The economy has forced people to re-
evaluate their priorities, reassess their
skills and pursue entrepreneur mind-
sets without being held back by a job to
which they feel tied down. If you are
facing changes, take a moment to look
at things with the entrepreneurs hat
on, and see how that helps you grow.
Market changes have also caused a
significant shift in the needs and wants of
consumers across the board. In any
industry, an innovative entrepreneur
who identifies and addresses this shift
creates an unbeatable connection with
consumers. Deep inside us all, we have a
desire for our vendors to know our
names, and to supply our needs because
they anticipated them before we even
voiced them. When we address this
desire and do everything we can, at our
own expense, to instill trust in skeptical
consumers, we will see a significant
upturn in growth.
Josephine Nicholas runs her own PR
agency, Insert Catchy Headlines. She spe-
cializes in mapping out individualized
media campaigns, and offers a compre-
hensive array of services to handle the
diverse PR needs of her clients. Her
clients have appeared regularly as local
media experts, and have also appeared
in other national and local media out-
lets, including, but not limited to,
MSNBC, Fox Business News, CNN, and
NPR; in the Wall Street Journal, Reuters,
The New York Times, The Washington
Post, Financial Advisor Magazine,
Financial Planner Magazine, CPA
Magazine, and various entertainment
and lifestyle outlets. Josephine is pas-
sionate about giving back to others, and,
together with siblings Gibran, Jaad and
Jihan, runs Party with a Purpose, the
Nicholas familys non-profit arm. She
may be reached at by e-mail at
josephine@icheadlines.com or by phone
at (734) 385-6170.
IV. Embrace change and
dont waste your time
They say insanity is doing the same
thing over and over and expecting a dif-
ferent resultI find too many people
that are doing this in their businesses.
Holding onto old mentalities, ways of
doing business, preconceptions, mar-
keting strategies, and so on, will get you
nowhere but left behind. Its important
that we dont waste our time in 2011.
For example, lets take women in exec-
utive positions, or as leaders, are any of us
still stuck in the old mentality in this regard
or are we recognizing that, as more people
are looking at alternative forms of income,
we are seeing more and more women
make the leap towards being an entrepre-
neur and taking leadership roles across the
board? Along with their market knowl-
edge, women have a tendency to ask the
most personal of questions in a natural
way, and this sets the stage for relationship
building; we know that true relationships
with clients, vendors and peers are the
foundation of any successful business, and
that relationship building is an essential
skill for growing in this market.
Growing in 2011 will require that we
dont waste our time with the old ways
of thinking and embrace change.
Speaking of change, how many of you
are using the new social media tools
Facebook, Twitter, and more? If you are
not, commit to using one or more of these
tools going forward. When you do, remem-
ber that the key to leveraging social media
for business is to use it as a platform to pro-
vide your network with valuable, timely
and relevant information. In this age of
information overload, people are constant-
ly being bombarded with an overwhelming
flow of information and noise. This means
that people dont need more information
they need relevant information. If you
are the one providing it to them, it elevates
your value and transforms your network of
friends, clients and prospects into a referral-
generating sales force.
Also, if you are in management,
embrace change when it comes to how
you relate to your employees; those who
succeed and grow in 2011 will be those
taking a regular pulse of their employees.
Be well aware of the unique value contri-
butions your team members make, and
you will be uniquely equipped to position
employees in just the right places in the
company where they will thrive; thereby
growing your business. Remember, com-
panies that grow are companies that con-
sistently change with their environment
and grow to meet the needs of their mar-
kets, engendering customer loyalty.
V. Get rid of the desert
mentality and think like
an entrepreneur
An entrepreneur specializes in seeing
The New Mortgage Company:
Changing Your Business to Thrive
in Todays Market
Its no secret that these have been tough
times for the mortgage industry. When the
real estate market began its meltdown,
everyone pointed fingers: Was it the fault
of the Realtors? The lenders? The brokers?
Needless to say, the brokers took the
brunt of the criticism and became a scape-
goat of the market crash. Brokers were get-
ting a bad rap, making it
more difficult to be a seri-
ous option to customers.
Federal and state regula-
tions were becoming more
stringent so brokers were
required to do more paper-
work and find new
approaches to their work. If
that wasnt enough, it start-
ed to become more clearer
that lenders were going to
cut back on the number of
brokers they usedor stop
using them altogether.
It was obvious there were
going to be big changes
ahead for our industry. To a
certain extent, it was
inevitable. But how is a
mortgage company to sur-
vive, let alone thrive, in this
kind of environment?
The first step is to
accept the changes on the
horizon. Mortgage compa-
nies that are running a
clean and reputable oper-
ation should be able to adjust and move
with the market. But flexibility is key,
and in some cases, changing with the
market could mean changing your busi-
ness model altogether.
One way to do that is to become a
direct lender. If the brokers become the
lender, they can offer more options and
better service to their customers and help
insure that they wont be shut out by
lenders. But with a major change like this
comes many daunting challenges, from
learning to do business on a new software
system, to educating employees that the
shift is a positive one and not negative.
There are several ways to become a
direct lender and adapt to todays econ-
omy. Each one has its own pros and
cons. Here are a few of the options:
O Buying a bank: A federally-chartered
By Joshua Shein
Mortgage companies
that are running a
clean and reputable
operation should be
able to adjust and
move with the market.
But flexibility is key,
and in some cases,
changing with the
market could mean
changing your business
model altogether.
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their company and hand ownership
over to the bank.
O Consolidating or merging with an
established direct lender: A direct
lender will already have the infra-
structure and warehouse capacity in
place to offer a variety of loans.
Ideally, the mortgage company brings
additional state licensing to the table,
as well as the ability to bring in a larg-
er volume of customers. This option
requires a lot of legwork because the
mortgage company will have to apply
for lender licenses in every state in
which they operate, and all the licens-
es must become effective at the same
time in order to close on the merger.
Merging with a lender involves lots of
lawyers, state licensing agencies, paper-
work and meetings, meetings and more
meetings. Thats after finding a strong
candidate for a merger. One place to
look for a partner is through a trusted
compliance and regulatory attorney. Just
as they work to keep the mortgage com-
panies in compliance, they may also
know of an FHA Full Eagle direct lender
who runs a clean operation and is look-
ing to make a change or expand.
With a merger or any of the other
options, shifting from mortgage broker
alone to both broker and direct lender
will require compliance and software
updating, training all employees on the
new systems andperhaps the most
challenging changea major shift in
corporate culture.
The broker mentality used to be, and
for some still is, that there are an infi-
nite number of lenders to go to try to
get the loan approved and the product
mix is diverse. The brokers approach is
focused on the sales cycle, as well as
analysis and collection of data and doc-
umentation, but not necessarily the
final underwriting or decision.
But when a mortgage company
becomes the lender, its employees must
look at every loan and every borrower dif-
ferently, as if they were lending out money
from their own pockets. This can be a chal-
lenge for processors and loan officers who
are more accustomed to moving quickly
through high volumes of loans and having
numerous options of lenders with whom
they can broker a loan.
It is also a difficult adjustment for bro-
kers who are accustomed to shopping
around for the lowest rates and best deal
to fit any situation, to now find themselves
limited to one rate sheet and only the
loan products that their company offers.
But it is important to remind these
employees that, on the upside, they can
work more efficiently, spend less time
searching for the best product and close
deals faster.
Still, it is a tremendous challenge for
the culture. Making the shift takes lots of
phone calls, meetings, discussions and
even lots of arguing. It takes a lot of
repeating the same message over and
over and over again. It means reminding
employees that it is no longer an option to
go somewhere else because the rate is
slightly better or because one lender did-
nt approve a loan, but that they can talk
to the underwriter and all the people who
will handle their loan from beginning to
end or from origination to close. And
reminding them that this is a good thing
because the loan is controlled in-house
and they can close loans faster.
It also means making compliance
changes: Figuring out what new docu-
ments and disclosures will be needed
as a direct lender to close a loan, what
a loan submitted from an originator
will look like and how to streamline the
process of submissions. A new software
system may also be required to move
loans through the system in a succinct
and cohesive manner.
Then, the mortgage company must
work hard to educate its employees
about the procedures necessary to close
deals and train them on new software
systems, while assuring them that with
every loan going through the same soft-
ware package, workflow will improve.
It may take lots of Webinars, confer-
ence room training sessions, coaxing
and coddling to make them see these
the positives, but as employers, it is our
job to show it to them. When a mort-
gage company also becomes a lender, a
lot of new, scary things are thrown at
the employees, but new and scary can
also be very good.
As the shift takes place, many bro-
kers will likely realize they want to
work with a mortgage company that is
also a direct lender. And even with the
change, their job will remain much the
same: Locking loans, submitting loans
and addressing conditions on loans.
In the end, some employees will leave,
while others will stay. Some new ones may
also come along. Many will recognize that
there are not many other options out there
because there arent many brokerage firms
left these days. They will likely recognize
that change is a good option, and in this
market, it may be the only option.
Joshua Shein is chief executive officer of
1st Maryland Mortgage Corporation
d/b/a Great Oak Lending Partners in
Timonium, Md. He founded the compa-
ny more than nine years ago and recent-
ly led Great Oaks merger with 1st
Maryland Mortgage Corporation, which
made the company a FHA Full Eagle
direct lender. He may be reached by
jshein@greatoaklending.com.
Mortgage Professionals:
Where Are You Headed in 2011?
Do you feel like you have been treading
water ever since the housing bubble burst? If
you have, where is that getting you? It comes
down to this: If you arent progressing, youre
regressing. Thats just the way it is.
The key to growing your business in
this market is implementing a proac-
tive strategy. Being reac-
tive in this economy will
kill you and marketing is
the best way to combat
the dire market and grow
despite industry trends.
Often, when things get
bad, businesses react by
cutting their marketing
budget. It seems like a good
idea, and you start saying,
I could pay bills off, people
wont respond anyway,
etc. The problem with that
theory is, if you market,
people will respondand
actually in higher numbers
than if the economy was
booming. But why?
Most businesses slash
their marketing in hard
times. But if you dont, all
of the people who need mortgage serv-
ices will contact you because youre the
only message out there.
So, what does that mean going for-
ward? Lets look at how you can take
your business on an upward journey in
2011. Here are three important strate-
gies you can immediately implement to
get moving in the right direction.
They may not be flashy, but these
classic marketing techniques are
proven to work and why fix some-
thing that isnt broken? The key to suc-
cess in this medium is diligence, so be
ready to commit. Single serving efforts
in these areas are a waste of money. By
the same token, if you apply them in a
consistent schedule, they flat-out work.
1. Direct mail:
Maximizing your return
on investment (ROI)
There are many options these days in the
direct mail industry (letters, flyers, door
hangers, etc), but the most effective and
time-tested way to increase name recogni-
tion and get new leads is postcards.
Postcards deliver results because there is no
envelope to open and the designs are (or at
least should be) readily eye-catching. This,
at minimum, ensures that your prospect at
least views your message, even if the card
eventually ends up in the trash. When cre-
ated with a solid strategy, a postcard cam-
paign goes a long way towards solidifying
your credibility in the community.
The fact is 79 percent of
households read or skim
direct mail advertising,
according to the 2010 DMA
Statistical Fact Book.
Moreover, an International
Communications Research
study found people were
31 percent less likely to
ditch unopened mail than
delete unopened emails,
and 45 percent said they
found direct mail less
intrusive than e-mail.
When you send out
postcards, you boost visi-
bility, a necessary element
of an effective marketing
campaign. When you send
out ads or invitations
through the mail, about 80
percent of your prospects
give you the chance to woo them. With a
quality call to action and compelling
copy, you will see a great response.
Also, its important to choose the
right marketing firm to handle your
direct mail campaign. Be sure to find
one that is willing to share previous
samples of their work. Also, ask if they
will work with you on the design (i.e.
give you free revisions, listen to sugges-
tions, etc.). It is often helpful to select a
firm that handles printing and mailing
in-house. This can save you money on
postage because they mail in bulk.
2. Networking
The dreaded word networking. Not
always a pleasant experience, but its a
must-add to our list as another great form
of marketing, especially in the financial
industry. It may be intimidating for some
people, but the effort is well worth it. The
benefits really do outweigh the awkward
moments of attending mixers. Simply
having lunch with a few real estate agents
can be a huge boost to your business.
No amount of direct mail ads or an
amazing Web site design can fully con-
vey who you are to your prospects.
By Joy Gendusa
Being reactive in
this economy will kill
you and marketing is
the best way to com-
bat the dire market
and grow despite
industry trends.
Gain ground in the new year with practical
marketing growth strategies
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Abacus
No Time Left To Fail!
No Time Left To Wait!
888-341-7767
GetYourEd.com
Theres only timefor onething:
Mortgage Training and Education
There have now been over 82,000
failed attempts at the SAFE Act Tests!
We know what it takes to succeed.
Call us now to talk it over.
While there is still time.
your vision and convince them that your
business plays a role in this market. If all
goes well, you could see a significant differ-
ence in traffic just based on these individu-
als recommendations. Thats not too scary.
So direct mail and networking are Elvis
and The Beatles. They are the classics, but
what is the next big thing? Well, it wont be
on stageitll be on the computers and
every smart phone in the building.
You probably guessed it! Its social media.
For the more timid networkers among us,
online social networking is a dream come
true. Its also effective, which is nice bonus.
3. Social media
Social media is great for posting funny pic-
tures and interesting anecdotes from your
day, but is it really a viable growth strate-
gy for expanding your business in 2011?
Quite simply absolutely!
According to the 2009 Realtor
Technology Survey, 84 percent of real
estate agents engage in social media to
some extent. If you want their business,
you go where they are, and for the vast
majority of them its social media.
Two social media sites prime for tar-
geting real estate agents are Facebook
and LinkedIn. Facebook wins the popular
vote, according to the same study, with
78 percent of respondents saying they use
the Internet colossus. LinkedIn, a busi-
ness networking site, comes in at a very
respectable 58 percent.
Signing up for these sites is free, and using
them is actually quite simple. Register for an
account and take a few minutes familiarizing
yourself with the site and you will immedi-
ately be more comfortable with it.
For Facebook, you want to create a Fan
Page for your business to give realtors the
opportunity to connect to you. Also, search
for groups that may contain prospects. For
example, Real Estate Agents Dallas might
turn up a networking group of profession-
als for the Dallas area, and it would be a
great place to meet potential clients.
On LinkedIn, its even easier to make
business connections because thats the
whole point of its existence! It allows you to
build connections with other professionals
and also get recommendations from past
clients to build your credibility. Use it to
post news and articles about your business.
Remember, nobody likes blatant adver-
tising on social media. If you want to suc-
ceed, you need to offer valuable content
that subtly promotes your business. This is
especially true for Facebook and less so for
LinkedIn. Informative articles, facts, trivia
questions and contests are great ways to
involve people and market your business.
Dedicate yourself to executing these
three growth strategies, and youll be on
the right track to grow your business in
2011. This is a fantastic place to start, but
always remember to implement a com-
plete marketing plan that integrates each
marketing element to get the most for your
marketing dollar. Of course, you could
always just keep treading water and hope
things work out, but do so at your own risk.
Its never too early to start planning
ahead for 2011. Grab the reins to your
success and enjoy the ride.
Joy Gendusa is chief executive officer and
founder of PostcardMania. She began
PostcardMania in 1998 with nothing but a
phone and a computer and zero invest-
ment capital. By 2008, revenues reached
nearly $19 million and the company now
employs more than 150 people, prints four
million and mails two million postcards
each week representing more than 40,000
customers in over 350 industries. For more
information, call (800) 628-1804, ext. 342
or visit www.postcardmania.com.
There is something about your physical
presence that lends credibility and
trustso be real and not too sales-like.
Search for mortgage professional groups
and look over the events they host in your
area. Some of the best ways to establish
contacts in the community can be found
through these events. While youre at it,
read Keith Ferrazzis book on networking,
Never Eat Alone: and Other Secrets to Success,
One Relationship at a Time. He is a power
networker, but even the most timid can
gain valuable lessons from his insights.
Remember, there is no more power-
ful form of marketing than word-of-
mouth. People trust their peers far more
than they trust advertisers. Networking
gets people talking about you. And thats
a necessity, since many mortgage profes-
sionals rely heavily on referrals.
If you are disinclined to put yourself out
there in the networking field, try to strate-
gize. Who will make the biggest impact for
your business? Find out who the big influ-
encers are in your community that can
spread the word about your company.
Select two or three individuals in your
area who are well-connected to the real
estate industry and introduce yourself to
them. Invite them to lunch, tell them about
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REGISTER NOW ON THE WEB SITE
www.NAMBWEST.com
Attend the
2010 NAMB/WEST
Conference
Mortgage Brokers and Loan Originators
Visit
www.NAMBWEST.com
for updates.
December 4-6, 2010
at the
MGM Grand
Las Vegas!
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industry, has announced the company
has moved to larger office space to
accommodate recent, as well as future,
growth. The company has increased its
office square footage from 25,000 to
73,000 and has also more than dou-
bled its workforce during the last year.
As demands for mortgage services
increase, we needed to position our
company to handle that growth, said
Rick Seehausen, president and chief
executive officer of LenderLive. This
additional space enables us to meet
that goal as well as helps us be well
poised for the future.
LenderLive is very active in provid-
ing comprehensive and component
based fulfillment services to lenders of
all sizes. The company has experienced
rapid growth in all areas of its business
including contract underwriting, clos-
ing coordination, doc prep, and title
and closing services.
For more information, visit www.lender-
live.com.
Great Oak Lending
announces merger with
1st Maryland Mortgage
Great Oak Lending
Partners has announced
that it has merged with
1st Maryland Mortgage
Corporation of Damascus, Md. The merger
makes Great Oak a direct lender with the
ability to fund up to $25 million a month
in loans. Great Oak was ranked number
one in Maryland for reverse mortgage pro-
duction and volume for the fiscal second
quarter of 2010 by RMInsight, a provider
of data and analysis for the reverse mort-
gage industry. It has also been recognized
as one of the fastest-growing reverse mort-
gage companies nationwide. Great Oak
provides traditional mortgages on new
homes and investment properties, as well
as refinancing and reverse mortgages.
The merger combines 1st Maryland
Mortgages seven employees with Great
Oaks 58 full-time employees. The new
company plans to hire an additional
20-30 people by the end of the year.
As part of the merger, Joshua Shein
was promoted to president and chief
executive officer of the new company.
The combined company will be called
1st Maryland Mortgage, but will oper-
ate under the name Great Oak Lending
Partners. Financial terms of the deal
were not disclosed.
This merger will allow us to meet
all of our customers needs in-house,
from underwriting to closing to funding
loans, Shein said. These additional
services and our predicted growth over
the coming months reinforce our posi-
tion as a major player in the mortgage
industry.
Great Oak Lending has three offices
in Maryland and operates in seven
other states. The company plans to be
operating in another seven states by
the end of the year.
For more information, visit www.greatoak-
lending.com or www.greatoakreverse.com.
Aklero Risk Analytics
formed to serve loan
quality market
Aklero Process Solutions,
a provider of automated
data and document valid-
ity assurance for the
mortgage industry, and
Hall Underwriting & Consulting, a
mortgage risk analysis firm, have
merged to form a new company, Aklero
Risk Analytics Inc. The result of this
merger is a state-of-the-art loan quali-
ty and risk analytics company, combin-
ing Akleros Q-Close loan quality and
risk analytics platform with Hall
Underwritings experienced mortgage
loan quality analysts and forensic
underwriters.
Under the terms of the merger,
Aklero Process Solutions and Hall
Underwriting & Consulting will each
remain wholly-owned subsidiaries of
Aklero Risk Analytics. Aklero Process
Solutions President and CEO Brian
Fitzpatrick will serve as CEO of Aklero
Risk Analytics and Hall Underwriting
CEO Clayton Greenfield will serve as
president and chief operating officer.
This merger is symbolic of what the
mortgage industry needs to properly ana-
lyze risk and ensure loan quality: A com-
bination of experienced forensic analysts
and intelligent automation, Fitzpatrick
said. Loan quality is the keystone to the
industrys recovery. As a result of this
merger, were now uniquely positioned
to set the bar when it comes to ensuring
loan file integrity and mitigating mort-
gage risk. We look forward to working
with players of all segments of the mort-
gage industry who share our goal.
The integration of our expert under-
writing and forensic analysis staff with
Akleros automated deficiency detec-
tion and risk analysis tools have
enabled Hall Underwriting to take its
underwriting and quality audit services
to a whole new level. There are several
companies out there that can under-
write and perform mortgage loan qual-
ity control audits, but the combination
of this unique technology and our
expert analysts creates a solution that
quite frankly is unprecedented in this
industry and trumps the competition,
said Greenfield.
For more information, visit www.aklero.com.
Altisource forms origination,
modification and loss
mitigation partnership with
Members United
Altisource Portfolio
Solutions, a provider
of knowledge process services related to
real estate mortgage portfolio manage-
ment, asset recovery management and
GSF Wholesale -
The Safe Place for
your business!
Protect your loans with GSF
Contact the Client Relations Manager today at
1-877-494-4448
or service@gsfsales.com
Originating and closing loans these days can be very challenging. Lengthy
turn times, inexperienced underwriters, and high costs can contribute to
fewer closed loans.
GSF Wholesale is the safe and secure place for all of your business.
Our experienced staff is dedicated to ensuring your loans are protected.
With seasoned underwriters, efcient quality control department and
competitive pricing, GSF Wholesale is focused on you and your business
every day to meet the challenges of the new lending environment.
GSFSal es. com
42
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Demonstrate your higher
standards by joining today!
4LTILYZOPW)LUL[Z!
EsIablish and mainIain your company's proIle
- Never Ill ouI a broker package againl
GeI a compeIiIive edge on your compeIiIion
- Proudly display Ihe coveIed TMP seal
- Borrowers can veriIy your IrusIworIhiness online
ProIecI yourselI Irom Ines in sIaIe audiIs
- We'll Irack your L.O. licenses
GeI Red Flags ComplianI
- Follow our easy IemplaIe
EsIablish your QC Policy
- Use our QC Procedures TemplaIe
SIarI your own Blog
- Easy Io seI up and use
Leads Irom cusIomers who are looking Ior you
- Premium lisIings Ior our members
All this and more is
included in your membership.
Introducing the Trusted Mortgage Professional Program!
APPLY TODAY!
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Consumers want to work people
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Trust starts by setting higher
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Brought to you by:
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Consumers want to work with people
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Trust starts by setting higher
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customer relationship management, and
Members United Corporate Federal
Credit Union, an $8.9 billion financial
institution that provides wholesale
investment, credit, payment and corre-
spondent services to approximately 2,100
credit unions, have established a strategic
alliance to support Members Uniteds
credit union members.
The alliance with Altisource, one
of the nations leading mortgage serv-
ice providers, was established to help
Members Uniteds 2,100 member
credit unions navigate through these
turbulent economic times, said Kevin
Brauer, senior vice president of mem-
ber relations for Members United.
Through this alliance, Altisource will
offer its origination, modification,
loss mitigation and real estate servic-
es, as well as technology, to credit
unions to help them effectively man-
age their distressed loans and mort-
gage application processing needs.
Using the power of aggregation, this
alliance will allow our members to
improve service and performance
while also reducing costs.
Altisource leverages its 20-year
servicing heritage and more than
3,000 employees to provide products
and services to some of the most
respected organizations in their indus-
tries, including one of the nations
largest sub-prime servicers, govern-
ment agencies and many lenders, ser-
vicers, investors, financial services
companies and hedge funds across the
country.
Due to the unique nature of each
members business, an off-the-shelf
solution would not address our needs,
said Tim Bruculere, vice president of
lending for Members United. We
interviewed several companies, and
Altisource was the only provider who
understood our needs and offered tai-
lored solutions across our member
community.
For more information, visit www.alti-
source.com or www.membersunited.org.
Mortgage Professionals
to Watch
O James Bennett has been named
president of the Nevada region by
Stewart Title.
O Michael Dimech has been named
head of operations at Total Mortgage
Services LLC.
O Chris Knowlton has been promoted
to the position of vice president of
technology and marketing of Inlanta
Mortgage and Inlanta has also added
John Malinger as its new underwriter.
O Radian Guaranty Inc. has announced
the hiring of Brien J. McMahon as
chief franchise officer.
O Embrace Home Loans has named Louis
Centrella and Wayne Ferguson as loan
officers for its Wilmington, Del. branch.
O Meredith Boyd has been named
director of sales for Kirchmeyer &
Associates.
O The Collingwood Group has
appointed Mary Lou Christy as the
companys senior vice president.
O Solidifi U.S. has named Mark
Critchfield and Tony Laurito as vice
presidents of business development.
O Peter G. Butler has been named
vice president of national sales for
LenderLive Network Inc.
O Chad Thomas Hagwood has joined
Beech Street Capital as executive
vice president of origination.
O BluFi Direct Mortgage has announced
the promotion of Ken Emminger as its
new senior vice president and the hir-
ing of Kimera Hobbs as its new
human resources manager.
O Joe Drum has been appointed exec-
utive vice president of WFG National
Title Insurance Company.
Your turn
invites its readers to submit any infor-
mation, events, passages, promotions,
personal or professional occurrences
that seem appropriate and/or other per-
tinent data to the attention of:
Heard on the
Street/Mortgage
Professionals to Watch
column
Phone #: (516) 409-5555
E-mail:
Note: Submissions sent via e-mail are pre-
ferred. The deadline for submissions is the
1st of the month prior to the target issue.
James Bennett
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StreetLinks SCORes with
new underwriting and
risk assessment tool
StreetLinks National
Appraisal Services has
announced the launch
of a new underwriting and risk assessment
appraisal review product, StreetLinks
Comparable Opinion Report (SCORe).
SCORe will provide lenders with a reliable
second opinion of the validity, accuracy
and appropriateness of the comparables
utilized in an original appraisal. SCORe is a
limited-scope, USPAP-compliant review
completed by an independent appraiser
with experience and geo-competency in
the subjects specific market.
Automated valuation models (AVMs)
rely on flawed or limited public data,
while out-of-market appraisers lack local
market knowledge and have no access to
local market data (MLS), said Steve
Haslam, StreetLinks chief executive officer.
The only reliable way to validate the com-
parable selection and the credibility of an
appraisal is by utilizing a second local
appraiser with the knowledge, tools and
data available to do so. SCORe accom-
plishes this at a speed and price far more
attractive than other credible and compli-
ant appraisal review products.
SCORe utilizes an independent, unbi-
ased, local-market appraiser to review the
comparables selected in an original
appraisal. The SCORe appraiser, who is
proximate to the subject property with
access to the local market MLS, researches
the data to provide a second opinion of the
appropriateness and quality of the compa-
rables selected by the original appraiser.
SCORe results provide underwriters and risk
managers the confidence and/or credible
criticism about the validity of the compara-
ble selection which is the nucleus of the
appraisal process and the ultimate deter-
minant of the final value opinion. A SCORe
report that contradicts the original apprais-
ers comparable selection can also serve as
an FHA or HVCC compliant basis for lenders
to responsibly appeal the original appraisal
or to order a replacement appraisal.
www.streetlinks.com/SCORe.
Fairway Independent
Mortgage announces full
suite of fulfillment services
Fairway Independent
Mortgage Corporation
has announced that it is rolling out a full
suite of fulfillment services for financial
services companies who want to grow
their mortgage lending operations, but
may lack the capital, resources or infra-
structure to do so. As a fulfillment serv-
ices provider, Fairway Independent
Mortgage will be leveraging its experi-
ence and capital as a nationwide, full-
service mortgage banker. The company
funded over $3.5 billion in mortgage
loans in 2009 and is on pace to either
meet or exceed that volume in 2010.
By outsourcing their underwriting, pro-
cessing and document preparation needs
to Fairway Independent Mortgage,
lenders, banks and credit unions can
expand their mortgage lending operations
while saving money and enjoying the ben-
efits of Fairways state-of-the-art technolo-
gy, fraud prevention tools, appraisal man-
agement services, and expert staff.
Fairway can also help financial institu-
tions maintain compliance with regulatory
changes such as the Dodd-Frank Wall Street
Reform and Consumer Protection Act.
The company will be offering four
different business solutions.
Fairway Advantage is an entry-level of
participation is for the originator who
only wants to provide minimal docu-
mentation, such as a loan application,
credit and income documentation and
rate quotes. Fairway processes and
underwrites the loan, reviews title docu-
ments and prepares the closing package.
Fairway Direct is designed for origina-
tors with minimal mortgage lending
experience who can provide mortgage
application and supporting documenta-
tion from borrowers and complete the
initial disclosures to meet regulatory
compliance. Fairway completes process-
ing of the loan application by underwrit-
ing the loan, reviewing title documents,
and preparing the closing package.
Fairway Traditional is a traditional
third-party originator (TPO)/lender rela-
tionship in which the lender originates
and processes the loan, including ordering
the appraisal and title work. Fairway pre-
pares the closing documents, schedules
the closing date and table funds the loan.
Fairway Correspondent is for originators
that want to fund their own loans through
bank deposits or warehouse credit lines,
Fairway performs the credit and collateral
analysis and readies the loan to close.
Following closing, the loan goes to Fairways
post-closing department, where Fairway
obtains any additional documentation, per-
fects the purchase of the loan and delivers
the loan into the secondary market.
For more information, visit www.fair-
wayindependentmc.com.
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CallFURST Audio Conferencing enables your mortgage company to communicate
immediately. We have a versatile suite of products that can support meetings of any size. We
offer Reservationless Audio Conferencing, Operator Assisted and Event conferencing all with
24 x 7 x 365 live help available.
How mortgage companies are using CallFURST Audio Conferencing
I Branch manager meetings
I Sales training and coaching
I Addressing problems with active loans in the pipeline
CallFURST Web Conferencing can be used to conduct live meetings, perform training,
provide remote help or give presentations via the Internet. In a web conference, each
participant sits at his or her own computer and is connected to other participants via the
internet. CallFURST live help is available 24 x 7 x 365.
How mortgage companies are using CallFURST Web Conferencing
I Borrower presentations
I First time homebuyer webinars
I Software and systems training for employees
We offer:
CallFURST Video Conferencing supports features such as Video Reservations, video
streaming and the latest technology allowing you to connect with end users regardless of
their platform or technology. Video conferencing is key to keeping business connected as
travel budgets tighten and the time we have to get things done is ever-decreasing. Using
Video Conferencing, you can be sure you have access to more personal attention and
training through our team of video experts, the latest in product innovation and proven
service and reliability to ensure your message is successfully communicated.
How mortgage companies are using CallFURST Video Conferencing
I Presentations to large groups
I Educational programs for branch ofces
I Software and systems training for employees
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helps to improve your company's communications,
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solutions for Mortgage Companies
new to market continued from page 43
Advanced FICO Analytics
Incorporated into
Experians MBS solution
FICO, a provider of ana-
lytics and decision man-
agement technology, has announced that
Experian Capital Markets is adding, as an
option, the most advanced FICO credit
score to its CreditHorizons for Securities
solution. Sellers and investors of mort-
gage-backed securities (MBS) use
Experians CreditHorizons for Securities
to surmount the limitations of loan-level
data when analyzing credit risk in MBS.
The addition of the FICO Score, branded
by Experian as the Experian/FICO Risk
Model, will give RMBS managers, mar-
keters and investors deeper insights for
evaluating creditworthiness of the
underlying mortgages in non-agency
loan pools.
CreditHorizons for Securities is used
to improve pricing strategies on the sell
side, while helping buyers make invest-
ment decisions with greater confidence
and improve risk management. The
FICO Score brings an added dimension
of predictive power, enabling users to
better assess risks of delinquencies and
defaults from securitized mortgages.
Investors benefit from using fresh
FICO scores instead of scores calculated
when loans were originated, since
recently reported changes in borrowers
credit behavior will likely change their
credit risk.
FICO is the dominant provider of
credit scoring solutions to the mortgage
industry, said Jordan Graham, executive
vice president of scores at FICO. As an
extension of this position, we are excited
to offer more comprehensive solutions to
support the needs of the secondary mar-
ket and securitization process for US
mortgages. We believe this combination
of Experian Capital Markets and FICO
solutions will increase investor confi-
dence and make for a more efficiently
functioning market.
For more information, visit www.myfico.com.
Wolters Kluwer offering
lenders new mortgage
information kits
Wolters Kluwer
Financial Services
has announced the availability of the com-
panys new mortgage application and pro-
cessing kits. The kits can be used by
lenders to educate borrowers on the
mortgage process, helping them to
improve their financial literacy. The kits
can also help lenders expedite the appli-
cation process in order to close more
loans; ensure disclosures are compliant
and provided to borrowers as required;
and make sure marketing activities are
consistent across branches.
Both the application and processing
kits can be customized to a lenders
specific business, marketing and brand-
ing needs. The application kits can be
provided to borrowers in English or
Spanish. A standard mortgage applica-
tion kit includes a letter outlining the
benefits of working with the lender for
their mortgage needs, a loan applica-
tion with easy-to-follow instructions, as
well as several consumer education
pieces. The application kit helps edu-
cate borrowers upfront by providing
consumer education materials from
how to select a mortgage to closing cost
information. To help the lender ensure
compliance with federal disclosure
requirements, the kit also includes the
U.S. Department of Housing & Urban
Developments (HUD) Settlement Cost
Booklet and The Consumer Handbook
on Adjustable Rate Mortgages.
Once the application is complete, a
lender can have Wolters Kluwer
Financial Services send the borrower a
mortgage processing kit. The kit contains
all of the compliance disclosures and
ancillary documents specific to the bor-
rowers loan that are required by federal
law to begin processing the mortgage.
Wolters Kluwer Financial Services
assembles the processing kit on behalf of
the lender by collecting borrower data
from them via the companys Secure
Document Exchange (SDX) service and
printing, assembling and mailing the kit
directly to the borrower from the com-
panys secure fulfillment center.
By outsourcing these compliance, ful-
fillment and distribution activities to
Wolters Kluwer Financial Services, lenders
can make their production and origina-
tion functions more flexible, adaptable,
and nimble while reducing cost and com-
pliance risk, said Jason Marx, vice presi-
dent and general manager of the compa-
nys Mortgage business line.
For more information, visit www.wolter-
skluwerfs.com/kits.
a la mode launches new
eSignature service
a la mode has
announced a ded-
icated client serv-
ice team for enterprise users of its docu-
ment eSigning solution, SureDocs. This
expansion is a response to rapid
SureDocs adoption among large
lenders and originators, who have
selected SureDocs because of the
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W E A R E R E M N W H O L E S A L E
At REMN, we understand that theres nothing
ordinary about focusing on whats important:
our customers. We recognize that continued
business from our satisfied customers is the
lifeblood of our business. We believe that every
application is precious and treat each file with
the respect and urgency it deserves.
Even better, at REMN, same-day approvals
are guaranteed. We promise extraordinary
service in an ordinary world.
Real Estate Mortgage Network, Inc. is located at 499 Thornall Street, Second Floor, Edison, NJ 08837. NMLS #6521. This information is for use by mortgage professionals only and should not be distributed to or used by consumers or third
parties. Information is accurate as of date of printing and is subject to change without notice.
* Same-day decisions guaranteed if file is received by 11 a.m. EST.
Learn more at www.remnwholesale.com
Were not
afraid to be
different.
unlimited usage pricing policy and the
built-in automation needed for larger
scale operations. All SureDocs clients,
regardless of volume, have unlimited
24x7x365 phone support from a la
modes headquarters in Oklahoma
City, Okla. access to a large training
library, and free online classes. Now
SureDocs enterprise customers will
gain even more services, including
access to a personal account represen-
tative who will assist them with inte-
gration, training, and other needs
unique to larger clients.
Were excited to provide this new
level of service to SureDocs enterprise
customers, said Adam Calvery, presi-
dent of the a la modes mortgage serv-
ices division. Were proud of our long
standing reputation for excellent serv-
ice and around the clock live expert
help, and this new level of service is a
natural evolution for our growing base
of enterprise customers.
SureDocs is the document eSigning
solution designed specifically for the
mortgage lending industry, both in fea-
tures and in pricing policies. Unlike
error-prone solutions that require man-
ual signature tagging, SureDocs recog-
nizes disclosure forms and automatical-
ly places signature tags. This automa-
tion eliminates the wasted time associ-
ated with resending documents for
additional signatures or initials.
www.alamode.com/suredocs.
The Work Number
launches Point in Time
service for retro income
verification
The Work Number,
a s er vi ce of
Equifax, has announced the companys
newest product, Point in Time, a retro
income verification service that validates
and documents a borrowers employment
and income at the point of loan funding.
Point In Time was created to respond to
market demands for loan level documenta-
tion to investigate repurchases and mort-
gage insurance rescissions.
According to Freddie Mac, a top
underwriting deficiency seen in their Q1
2010 reviews of performing and non-per-
forming loans is income misrepresenta-
tion, resulting from inaccurate or insuffi-
cient data and calculation errors at the
time of loan origination. The volume of
loans being returned for some type of
data deficiency is significant. Through the
second quarter 2010, Fitch estimates that
the four largest U.S. banks have received
$10.7 billion in pending repurchase
requests from Fannie Mae and Freddie
Mac alone. And, government-sponsored
enterprises (GSEs) are requesting that
defective mortgages be repurchased at a
more rapid pace, which will put greater
resource strain on lenders needing to
prove underwriting due diligence.
The Work Number developed Point
in Time to help lenders, insurers and
investors manage the increasing vol-
ume of unstable loans by automating
and streamlining retro income verifica-
tion for the quality assurance process.
The system serves as an important tool
for lenders by delivering timely and
precise income data to confirm original
verification information.
As repurchase activity and
instances of fraud both continue to
rise, exact documentation is essential
in order for lenders to avoid excessive
obligations or undisclosed mortgage
debt, said Janet Ford, senior vice pres-
ident of The Work Number. Point in
Time offers a retro income verification
review that lends transparency to the
underwriting efforts that were per-
formed at the time of origination.
Point in Time uses a custom, automat-
ed workflow designed to capture and
reuse employer data by tracking and doc-
umenting agent progress and findings.
With permissible purpose, it can also
access The Work Numbers unique
employer database of current and histor-
ical payroll data for more rapid delivery.
Point in Time presents a cost-effective
method to quickly re-verify a borrowers
income at the point of loan funding with-
out compromising data security.
For more information, visit www.equifax.com.
Wipro Gallagher Solutions
introduces loan processing
outsourcing tool
Wipro Gallagher Solutions
(WGS), a provider of
cost-effective, end-
to-end loan origination technology
and fulfillment services for mortgage
lenders, has combined its fully host-
ed and managed origination system,
NetOxygen Cirrus, with its loan pro-
cessing services to form a complete
end-to-end loan fulfillment and servic-
ing platform. This new business line
enables lenders to focus their efforts
on generating revenue, while using
WGS to perform the loan fulfillment,
loan sub-servicing and vendor man-
agement tasks.
WGS new offering was designed to
be a part of a long-term strategic solu-
tion for mortgage lenders as opposed
to a temporary way to cut costs. Among
other benefits, the outsourcing plat-
form: Reduces operational costs;
increases speed to market; and
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www.windvestcorp.com
new to market continued from page 45
improves customer service and the
ability to quickly adjust for production
peaks.
Flexibility is the key component of
the WGS solution; our customers are
able to utilize WGS for complete end-to-
end fulfillment or for specific functions
within the loan process, said Anil
Raibagi, general manager and business
head at WGS. This new platform also
provides our services on a variable pric-
ing structure, enabling clients to gain
the maximum skill sets.
www.gogallagher.com.
DocuSign signs
partnership to promote
real estate transaction
productivity
DocuSign has announced
that it has entered into
a partnership with
Mosaic Corporation, a business process
optimization firm specializing in
paperless back office workflows, where
the DocuSign electronic signature serv-
ice will be integrated with the docSTAR
Broker Central real estate software
product to create an end-to-end docu-
ment and transaction management
solution specifically tailored for resi-
dential and commercial real estate
brokerages.
Broker Central is a paperless docu-
ment and transaction management
solution tailored specifically for the real
estate market. It allows real estate pro-
fessionals to efficiently and effectively
manage real estate documents to drive
paperless transactions, improving cus-
tomer satisfaction and the bottom
line, said James Kingery, president of
Mosaic Corporation. Now with the
inclusion of DocuSign, the number one
electronic signature service in real
estate within docSTARs Broker Central,
real estate brokerages have a complete
document and transaction manage-
ment solution to better succeed in a
highly competitive real estate market
while making significant inroads with
green initiatives.
Broker Central is a collaborative soft-
ware-as-a-service (SAAS) offering from
Mosaic and docSTAR, a leader in docu-
ment management software solutions. It
was developed to layer transparently on
existing workflows, minimizing interrup-
tions in productivity. Broker Central
securely scans and stores paper docu-
ments, along with critical electronic
files, allowing for immediate retrieval.
With the integration of the DocuSign
electronic signature service, docSTARs
Broker Central will provide real estate
professionals the ability to manage the
entire real estate transaction from the
Web from offer to closing completely
paperless.
docSTARs Broker Central offers a
green, fully optimized, end-to-end elec-
tronic document and transaction man-
agement solution for residential and
commercial real estate brokerages and
marketing centers.
docSTARs Broker Central users will
join more than 30,000 real estate pro-
fessionals eliminating paper and expe-
diting real estate transactions with
DocuSign. Rather than driving across
town to get a signature or forcing
clients to find a fax machine, real estate
professionals use DocuSign to execute
agreements with buyers and sellers
electronically. With real estate forms
signed in minutes, not days, DocuSign
and docSTARs Broker Central will help
real estate professionals achieve higher
sales, increase client satisfaction and
maintain a competitive edge. Safe and
secure, the DocuSign electronic signa-
ture process is also easy to use and
legally compliant.
www.docusign.com/brokercentral.
CoreLogic and Blueberry
join forces on mortgage
fraud prevention tool
CoreLogic has announced
the integration of its
LoanSafe Fraud Manager
Suite with Blueberry Systems RELAY loan
production platform. LoanSafe Fraud
Manager is now directly integrated into the
RELAY workflow, so that acceptable loans
continue through unimpeded while prob-
lematic loans are automatically directed to
the appropriate user. As a result, RELAY
users will now enjoy a higher mortgage
fraud prevention rate with fewer resource
requirements.
There are three facets to data
integrity, said Lloyd Booth, Blueberry
Systems president. Completeness, accu-
racy and truthfulness. Traditionally, LOS
vendors have focused only on the first
two. Even if the data entered is complete
and remains intact, garbage in is still
garbage out. Loan data still needs to be
authenticated at some point, especially
as todays lenders are struggling to
regain the trust of investors. Our inte-
gration with LoanSafe Fraud Manager
addresses the truthfulness of loan data,
and will help lenders regain that trust.
Blueberry Systems has made a
major step toward moving fraud pre-
vention to the front of the loan produc-
tion process, said Tim Grace, senior
vice president, fraud analytics for
CoreLogic. Integrating LoanSafe Fraud
Manager into the mortgage workflow
enables lenders to comply with Fannie
Mae, Freddie Mac, and other mortgage
investors requirements while signifi-
cantly reducing the need for human
interaction. This integration makes
mortgage loan processing faster,
cheaper, and optimally efficient.
In contrast to most systems that
present an outdated database of
record, RELAY employs a universal data
model, using its proprietary Conductor
technology, to integrate various sys-
tems and applications into a single
workflow, eliminating data silos and
the need for duplicate or staggered
data entry. And while most systems
only make the most recent loan data
available at any given time, RELAYs
universal data model makes available
the various states of data as the loan
evolves, in real time, and highlights dis-
crepancies. The bottom line is much
higher data quality that prevents costly
pricing variances and buybacks.
For more information, visit www.blue-
berrysystems.com or www.corelogic.com.
DataVerify products
seek to eliminate
short sale and
overvaluation fraud
DataVerify has enhanced
its fraud management
platform, DRIVE (Data Risk Intelligent
Verification Engine) to help mortgage
lenders identify and avoid potential short
sale and property flipping losses. As the
housing industry continues to struggle, short
sales have become more commonplace. A
homeowner sells his property for less than
the outstanding balance on the mortgage,
to avoid foreclosure and to permit the
lender to receive some return on the invest-
ment. At the same time, property flipping
cases have also been accelerating, primarily
as a result of depreciating property values.
Our customers tell us these new tools
are working and the reason why they
work is because we apply what we learn
from our customers own experiences,
said Steve Halper, president of DataVerify.
DataVerify has incorporated a nation-
al building permit dataset into DRIVE.
Currently containing 88 million permits
on properties in more than 4,000 cities in
the U.S., this data will allow lenders to
greatly reduce the amount of time and
resources spent manually calling individ-
ual building departments to request per-
mit data on a specific property.
The new short sale and property flip-
ping fraud detection capabilities from
DataVerify meet and exceed all stated
industry needs today, said Halper.
www.dataverify.com.
Your turn
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:
Note: Submissions sent via e-mail are
preferred. The deadline for submissions
is the 1st of the month prior to the target
issue.
At United Northern, we give you the freedom to originate and succeed with our winning team.
About working with United Northern Mortgage Bankers
Ongoing training and consultation with top industry executives
Access to in-house marketing services
Pricing support desk to ensure maximum profitability on each
loan, while maintaining a competitive advantage over the street
Proven leading-edge technology (built on Encompass 360
technology)
Virtual office support
Licensing and regulatory compliance services
An in-house team to monitor SAFE Act compliance
In-house underwriting
Most loans underwritten in 24 to 48 hours
Multiple valuation tools to research value
In-house valuation desk to help ensure accurate
values and responsive turnaround time
Multiple established warehouse lines
Limited room available for established Team Leaders and
Licensed Mortgage Originators. Become part of an
established 30-year Mortgage Banker with
a proven track record and success.
Learn about the great opportunities
available by making an appointment with
United Northern Mortgage Bankers Executive
Vice President Julio de Cardenas by calling
888-600-8808, ext. 1 or by e-mailing info@unitednorthern.jobs.
United Northern Mortgage Bankers, Ltd. Corporate NMLS ID# 7230 New York State Banking Dept. - Licensed Mortgage Banker License #100724 New Jersey Dept. of Banking and Insurance Mortgage Lender License #L0046623 Penn-
sylvania Dept. of Banking Mortgage Lender License #20887 Connecticut Dept. of Banking - Mortgage Lender - License #20372 Massachusetts Div. of Banks and Loan Agencies - Mortgage Lender & Mortgage Broker License #MC5070
North Carolina Commissioner of Banks Mortgage Lender License #L140365 South Carolina State Board of Financial Institutions Supervised Lender License #S7,461 Florida Dept. of Financial Institutions - Mortgage Lender - License
#ML0700679 Senior Security Home Advantage is a lending area of United Northern Mortgage Bankers, Ltd. Direct FHA Endorsed Lender
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Appraisal Management
Company
We are a premier National Appraisal Company since 1970.
We have a complete product line for your entire organization.
We guarantee HVCC and FHA regulatory compliance.
Let our experience work for you. The way valuations should be.
Coester Appraisal Group
7650 Standish Place, Suite 107 Rockville, MD 20855
www.coesterappraisals.com
(888) 485-1999 Ext. 2
Branch Recruitment
Continuing Education
Contact Management/CRM
Branch Manager
Branch Manager
Freedom Mortgage Corporation, The BEST Branch Solution, Period.
Freedom Mortgage Corporation
www.fmbranch.com
info@fmbranch.com
800.220.9498
iServe offers a complete product mix - aggressively priced, with
hassle-free service & turntimes. Branching & Loan Offcer
opportunities available nationwide. For a change, focus on
production, quick closes & a good night's sleep!
iServe Residential Lending
www.iservelending.com
afriedman@iservelending.com
415-298-2500
Be in business for yourself, but not by yourself. Join GSF Mortgage's
Professional Branch Network. Enjoy freedom and stability and reap
the rewards. Signing bonus for Branch Managers, retain 100% of
your commissions. Absolutely NO files fees, NO splits
GSF Mortgage
15430 W Capitol Dr. Brookfield, WI 53005
1-877-494-4448
www.gsfprobranch.com
Find out what Guaranteed can do for you.
Branch Program for Professionals. It's what we do.
Guaranteed Home Mortgage Company, Inc.
108 Corporate Park Drive, Ste 301
White Plains, NY 10604
888-329-GHMC www.joinguaranteed.com
Established in 1993 and headquartered in Waukesha, Wisconsin,
Inlanta Mortgage is a multi-state mortgage banking company com-
mitted to delivering superior service to our branch clients.
For more information, call 262-513-9853 or visit www.inlanta.com.
Inlanta Mortgage
W229 N1433 Westwood Drive, Suite 103
Waukesha, WI 53186
www.inlanta.com 262-513-9853
United Northern Mortgage Bankers......888-600-8808
Limited room available for established Team Leaders and
Licensed Mortgage Originators. Become part of an established
30-year Mortgage Banker with a proven track record and success.
RealEstateBestJobs.com....................201-489-0256
Currently working with various bankers & federally chartered banks.
Seeking established, new branches & Loan Officers Nationally. We
are a top recruiting firm handling all types of mtg positions.
WorkCenter CRM ....................................877.498.6888
A CRM & contact management solution designed for mortgage
professionals. Automated campaigns & LOS synchronization make
WorkCenter an intuitive timesaver for staying in touch with clients.
Church Financing
Church Purchase & Construction $100,000 to $2,500,00
Church Refnance & Cash Out Churches all 50 states
75% of Appraised Value 20 Yr. Fixed Rate
CONCORD CHURCH FINANCE
NATIONWIDE FINANCING FOR CHURCHES
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800-926-0399 Fax: 858-756-8108
Brokers United ........................................877-710-0948
Consulting & Branch opportunities. Exclusive opportunities with a
top Federally Chartered Bank, Mortgage Banker and/or Mortgage
Banker/Broker Platform. Email Jeff Flees at jeff@brokersunited.net.
Closing Gifts
Increase your Loans,Get the Edge & Generate More Referrals!
Offer your clients a 5 Day 4 Night Cruise certificate for Two to Mexico,
the Bahamas or the Western Caribbean (up to a $1798.00 value) only
when they close a loan with you. Only $159.00 per certificate!!
Cruise4Two-Loan Incentives
1-866-541-8077
www.Cruise4Two.com
Compliance Consultants
The first full-service, mortgage risk management firm
in the country, specializing exclusively in mortgage compliance.
Pioneers in outsourcing solutions for mortgage compliance.
Our Compliance Team Will:
Leverage your existing employees.
Improve your productivity.
Collaborate on projects.
Make the most of your current technology.
Bring innovation to your company.
Be a strong cultural fit.
Free you to focus on your core competencies.
Give you access to world-class expertise.
Lower your total operational costs.
LENDERS COMPLIANCE GROUP
167 West Hudson Street - Suite 200
Long Beach | NY | 11561 | (516) 442-3456
www.LendersComplianceGroup.com
Theres only one avenue to guaranteed appraisal performance!
With a commitment to doing business the RIGHT way, StreetLinks
is bringing real value as a PARTNER, not a vendor.
We attract and retain the best appraisers Our appraisers set
their own fees and our peer-to-peer approach attracts appraisers
that simply wont work for other AMCs
IQ Select proprietary order assignment methodology assigns
based on proximity, service and quality not lowest fee!
100% Manual Quality Control every report is manually
pre-underwritten by a USPAP certifed appraisal underwriter
Certifed compliance with appraiser independence requirements
AND INTRODUCING SCORe - a revolutionary approach to
appraisal validation. Credible 2nd opinions on comp selection
from licensed, local appraisers. Stop Guessing. Start Knowing!
StreetLinks National Appraisal Services
(800) 778-4788
www.StreetLinks.com
sales@streetlinks.com
NMLS approved 20 hour Prelicensing Education
NMLS approved Continuing Education
Live Classroom Instruction, Web Delivery and Private Events
The SAFE-Smart ExamCram, Powerfully Innovative Test Prep
Abacus Mortgage Training and Education
PO Box 780
Summerfield, NC 27358
888-341-7767 www.GetYourEd.com
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Education
North Lake College - Specialized Education In Mortgage Banking.
Earn An Associates Degree in Mortgage Banking From the First Fully
Accredited Mortgage Banking Degree Program in the U.S. For
Information About Our 30 Year Program email:kbaker1@dcccd.edu.
North Lake College
5001 North MacArthur Blvd, Room T-231-C
Irving, TX 75038
(972) 273-3467 http://www.northlakecollege.edu/
Direct Mail
Specializing in Official Snap Packs for Greater Open Rates
Envelope Mailers, Business Reply, Postcards and Much More
Targeted Mortgage Lists with Many Selects
Complete Design, Printing and Mailing Services
Your Complete Mortgage Marketing Solution.
Call Us Today!
(800) 922-9860
www.envisiondirect.net/catalog/mortgage.htm
Document Preparation
Document Preparation (SaaS)
ProClose provides compliant closing documents and software for
Residential Mortgage Lending. Created with closers in mind,
we help make a lenders staff more efficient and supported.
Mortgage Banking Systems - ProClose
1360 Beverly Rd. Ste 200, McLean, VA 22101
800-783-2283 sales@proclose.com
www.ProClose.com
Mortgage Loan Closing Document Preparation & Compliance Services
Fulfillment Services Including Pre-Funding Review & Post-Closing
Interfaces with Leading Loan Origination Software Systems
Foreclosure Loss Mitigation Services
Robertson | Anschutz
800-343-7160
sbertrand@radocs.com
www.radocs.com/info.html
Mortgage Loan Closing Document Preparation & Compliance Software
Loan Documents and Compliance Web-based/SaaS Easy to Use
Intuitive Secure and Reliable Integrates with Leading LOS
Free Setup and Support Extensive Compliance Audits
Docs on Demand
800-343-7160
stephen.bertrand@docsondemand.net
www.docsondemand.info
Errors and Omissions
Insurance
Doc Management
DocVelocity is an end-to-end paperless solution designed to sim-
plify the loan origination experience. Imagine having all your doc-
uments in the loan process as electronic files, all online, from pre-
approval to closing. DocVelocity provides: Fast and easy loan
delivery to any lender Automatic doc sorting, naming and filing
Real-time online document sharing for anyone you choose
Friendly and intuitive user interface No start-up fees, and free
training and support. DocVelocity addresses important compli-
ance issues while giving your office the competitive advantage of
being paperless. It streamlines all aspects of the mortgage
process and most important, it does so in one easy-to-use and
inexpensive package. Its newest version, DocVelocity 2.5, adds
over 50 new features and enhancements to make the best paper-
less office even better. DocVelocity is the flagship product of
Paperless Office Solutions, Inc., a wholly owned subsidiary of
Flagstar Bancorp. Visit www.docvelocity.com to find out more.
DocVelocity
www.docvelocity.com
(877) 362-8356
sales@docvelocity.com
Events
The Expo for Real Estate Professionals"
For ongoing Networking Events throughout the year please visit
www.nycnetworkgroup.com.
NYC Real Estate Expo LLC
Anthony Kazazis - Director
apkazazis@optonline.net www.nycrealestateexpo.com
646.210.2545 914.763.8008
Hard Money/Private Lending
ACC Mortgage, Inc.
932 Hungerford Drive #6 Rockville, MD 20850
240-314-0399 240-314-0336 fax
WeApproveLoans.com
We are doing traditional subprime lending, fix & flip lending and
hard money lending.
Income Verication Services
Advanced Data
(800) 537 - 0458
www.advanceddata.com
verifications@advanceddata.com
Advanced Data is a leading national provider of data services,
streamlining income and employment verification with proprietary
software. Clients can submit 4506-T directly through Encompass360.
Also ask about our AVM and flood services!
CB Malaga Insurance Services LLC......877-245-5887
Insurance broker providing errors & omissions (E&O)
insurance to mortgage brokers and bankers. All loan types.
Available in 22 states. www.CBspecialty.com
Windvest Corporation ............................877-285-0777
Specializing in rehab loans for property investors in So. CA.
Up to 60% ARV, 12.99% fixed rate, 3.5-5 points, 1 yr. term.
Fast & professional service since '94! Visit windvestcorp.com!
Platinum Credit Services, Inc.................631-299-2084
Tax return vertification (4506 tax transcript done in less than
24 hours in most cases). Call Lorenzo Pugliano, President
and CEO at 631-299-2084.
Continuing Education
Time is running out...are you ready?
Pass the S.A.F.E. Act Test, meet your 20 hours of Pre-licensure,
and complete the 8 hours of Continuing Education you need
The Ultimate Test Prep Kit and Test Prep Boot Camps Cover
everything to pass the S.A.F.E. Act Test on your frst try.
20-hour Pre-licensure - Packed with everything to successfully
complete your pre-licensure requirements.
Continuing Education - Exciting, NMLS approved courses that
meet your Continuing Education needs and build your business.
MSS Learning Center
(800) 963-1900
www.MortgageSuccessSource.com
Email: info@MortgageSuccessSource.com
Best Rate Referrals ............................................800-811-1402
Mortgage marketing company with decades of combined expe-
rience providing quality leads, mailers, lists and dialer products.
www.bestratereferrals.com & www.mortgageleads.org
Bookmark this!
Access these
listings online at
nmpmag.com/directory_list
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Title
Intracoastal Abstract Co. Inc. ................516-358-0505
Privately owned & operated full service title insurance agency
in NY, NJ and FL, with affiliates throughout the US & Canada.
Escrow Agent in Florida. www.intracoastalabstract.com.
Retail Branch
Are you a broker/owner or current branch manager looking to
expand your business into Mortgage Banking with FHA capabilities?
Then our PARTNER BRANCH ADVANTAGE program is perfect
for you. We are offering you all the benefts of partnering with an
established lender while still enjoying your independence.
Mortgage Concepts is a nationwide FHA Direct Lender with a 16
year long reputation of excellence.
YOUR SUCCESS IS OUR SUCCESS!
For more information contact THOMAS R. SIRICO, Vice President
of Business Development at (917) 923-1472 or email at
tsirico@mortgageconcepts.com.
We look forward to sharing our services with you!
(800) LOANS-15
www.mortgageconcepts.com
Regulatory/Compliance
Comergence Compliance Monitoring is the mortgage industrys only
Complete broker desk management software and outsource solution
for TPO management and monitoring. We can supplement lenders in-
house management and monitoring resources departments.
Comergence Compliance Monitoring, LLC
630 The City Drive South, Suite 205 Orange, CA 92868
Office: 714-740-9000
www.ComergenceCompliance.com
Secondary Marketing Consulting
Broker to Banker Services.com ..........(951) 746-3075
We complete your applications for approval
Save the time and hassle
contact: brokertobankerservices.com
Loan Incentives
Increase your Loans,Get the Edge & Generate More Referrals!
Offer your clients a 5 Day 4 Night Cruise certificate for Two to Mexico,
the Bahamas or the Western Caribbean (up to a $1798.00 value) only
when they close a loan with you. Only $159.00 per certificate!!
Cruise4Two-Loan Incentives
1-866-541-8077
www.Cruise4Two.com
Loan Origination Systems
Calyx Software, the #1 provider of mortgage solutions is dedicated
to offering reliable and affordable software that streamlines, inte-
grates and optimizes the loan process. Find out how PointCentral
can streamline your business and create compliant processes today.
Calyx Software
800-362-2599
sales@calyxsoftware.com
www.calyxsoftware.com
End-to-end LOS system for multi-channel lending.
PreQual thru Interim Servicing. Includes all back-office functionality;
Underwriting,Secondary Marketing,Post Closing and much more
SaaS, ASP and Client Server delivery options.
Mortgage Builder Software
24370 Northwestern Highway, Suite 200
Southfield, MI 48075
800-460-5040 www.mortgagebuilder.com
Loan Management Systems
Xetus ....................................................877-GO-XETUS
XetusOne is a powerful, easy-to-use loan management system
that streamlines loan processing. Our affordable SaaS applications
are lenders #1 choice for origination, subordination & modification.
50
Jumbo
Sign up with the
Premier Jumbo Lender
www.ingloans.com
877.464.0555, option 2
Move your Jumbos to a better neighborhood. ING Mortgage is
your home for Portfolio loans up to $3,000,000. We offer aggressive
pricing and simple guidelines in all 50 states.
Big Loans. Low Rates. Great Value.
Leads
Our network attract over one million visitors per month. Our paid
lead program as well as our free lender directory will help you con-
nect with targeted new consumer traffc from with high-intent con-
sumers searching online for the right mortgage lender.
MortgageLoan.com
SM
www.mortgageloan.com 877-390-4750
MortgageLoan.com is the largest online directory
for mortgage professionals and a favorite of
consumers shopping for mortgage loans.
Reach affluent and creditworthy consumers who are in-market and
ready to transact. Bankrate is a consumer direct Web site, NOT a
lead aggregator. Qualified leads for every sized budget, and pay
only for performance. No set up fees! No contracts! No risk!
Reach self directed, highly qualified consumers that are actively
searching for mortgage loans
Geo-targeting reach the right consumers in the right markets
Our proprietary Advertiser Portal gives you complete control
over your campaigns, budgets, and performance reports.
YOU determine your daily/weekly/monthly budget
Pay only for consumers who click on your listing
NO cancellation fees
Try us risk-free! Call 561-630-1257
or visit www.bankrate.com/cpcprogram/ for more details.
Internets Leading Consumer Mortgage Marketplace
Attracting over 7 million unique
consumers every month
www.Bankrate.com 561-630-1257
AAA Refi Leads.....AAA Refi Leads.....AAA Refi Leads
Learn how I went from failure to success by mailing cheap refi
letters from home, closed 71 loans & made $248,954.62 last yr.
Ill show you exactly how I did it. Go to: www.Refi-Leads.NET
Wholesale/Correspondent
BankFinancial ..........................................800-894-6900
We have money to lend for apartments, $250M to $2MM, up to
75% LTV. We offer competitive rates, fees & terms. Were com-
mitted to helping you and your clients close the deal. Call us.
The Resource Registry is a directory of lenders (wholesaler or retail that
are recruiting), affiliated services and resources that is seen
by more than 191,181 active Professionals.
Call 888-409-9770 ext 4. to register your company.
If your ad was here, you would be seen by 191,181 Mortgage
Professionals looking for resources to help them in their business.
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Wholesale/Residential Wholesale/Residential
Flagstar Wholesale Lending, a division of Flagstar Bank, is one of
the nations largest wholesale and correspondent mortgage
lenders, providing the technology, products, service and support
that independent mortgage brokers, correspondents, and bankers
need in todays mortgage arena. In the ever-changing environ-
ment of mortgage banking, Flagstar takes pride in accommodat-
ing the specific needs of each customer. At Flagstar, we under-
stand that you need every available advantage to stay ahead of
the competition. This is why we provide multiple technology
options to meet your needs to register, lock, underwrite, close,
fund and deliver your loans. Our wholesale website
(wholesale.flagstar.com) and the loan processing tool Loantrac
provides our customers with the functionality that make it easier
and faster to close loans, saving you time and money! Visit whole-
sale.flagstar.com to learn more.
Flagstar Wholesale Lending
www.wholesale.flagstar.com
(866) 945-9872
WLSC@flagstar.com
We offer competitive pricing and fast turn-times for FHA, VA,
Conventional, and USDA programs without having a retail pres-
ence in the industry. We are a wholesale lender with 22 years of
experience and believe in exceptional service.
Terrace Mortgage
4010 W. Boyscout Blvd., Suite 550
Tampa, FL 33607
866-934-4631 www.terracemortgage.com
Wholesale Reverse Mortgages
For Licensed Mortgage Brokers in NY, NJ, CT, PA and FL
No HUD Approval Required Live Help Desk
Will Provide Training at Our Office or Yours
48 Hour Underwriting - Get Paid Within 48 Hours of Funding
NATIONWIDE Equities
Nationwide Equities Corporation
201-529-1401
www.nwecorp.com
REGISTER NOW ON THE WEB SITE
www.NAMBWEST.com
Join the 2010 NAMB/WEST Conference
December 4-6, 2010 at the MGM Grand Las Vegas!
Visit www.NAMBWEST.comfor updates.
For more details on Exhibiting and Sponsorship, please contact
Kinsley at 303-798-3664 or registration@kinsleymeetings.com
Exhibitors will receive a complimentary ad in the
December issue of the National Mortgage Professional
Exhibitors and Sponsors
Lykken on Lending is a weekly 60-minute show hosted by mortgage veteran of 37 yrs, David Lykken, along
with special guest Alice Alvey & Joe Farr as well as featured special guests. Each week we provide our
listeners with up-to-the-minute information of what is happening in mortgage and housing industry.
Sign-on weekly at nmpmag.com/lykkenonlending
Call 888-409-9770 ext 4.
to register your company.
52
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DECEMBER 2010
Saturday-Monday, December 4-6
NAMB/WEST 2010
MGM Grand Las Vegas
3799 Las Vegas Boulevard South
Las Vegas
For more information, call (703) 342-5900
or visit www.namb.org.
FEBRUARY 2011
Sunday-Wednesday, February 6-9
Mortgage Bankers Associations Commercial
Real Estate Finance/Multifamily Housing
Convention & Expo 2011
Manchester Grand Hyatt San Diego
One Market Place
San Diego, Calif.
or visit www.mortgagebankers.org.
Tuesday-Friday, February 22-25
Mortgage Bankers Association National
Mortgage Servicing Conference & Expo
Gaylord Texan Hotel & Convention Center
1501 Gaylord Trail
Grapevine, Texas
MARCH 2011
Wednesday-Thursday,
March 23-24
Mortgage Bankers Associations National
Policy Conference
Hyatt Regency Washington on Capitol Hill
400 New Jersey Avenue NW
Washington, D.C.
Sunday-Wednesday,
March 27-30
Mortgage Bankers Associations
National Technology in Mortgage Banking
Conference & Expo
The Westin Diplomat Resort & Spa
3555 South Ocean Drive
Ft. Lauderdale, Fla.
Sunday-Wednesday, March 27-30
Fraud Issues Conference
The Westin Diplomat Resort & Spa
3555 South Ocean Drive
Ft. Lauderdale, Fla.
APRIL 2011
Sunday-Wednesday, April 3-6
2011 National Association of Mortgage
Brokers 2011 Legislative & Regulatory
Conference
Hyatt Regency Washington on Capitol Hill
400 New Jersey Avenue NW
Washington, D.C.
or visit www.namb.org.
MAY 2011
Sunday-Wednesday, May 1-4
Secondary Market Conference & Expo
The New York Marriott Marquis
1535 Broadway New York, N.Y.
Mortgage Bankers Associations Loan
Production Conference
The New York Marriott Marquis
1535 Broadway New York, N.Y.
Commercial/Multifamily Servicing &
Technology Conference
Chicago Marriott Downtown Magnificent Mile
540 North Michigan Avenue
Chicago, Ill.
Mortgage Bankers Associations Legal
Issues/Regulatory Compliance Conference
Boca Raton Resort
501 El Camino Real Boca Raton, Fla.
OCTOBER 2011
Sunday-Wednesday, October 9-12
98th Annual Convention & Expo
The Hyatt Regency
151 East Wacker Drive Chicago, Ill.
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.
COMPANY WEB SITE PAGE
Abacus Mortgage Training and Education .......... www.getyoured.com ....................................19 & 39
ACC Mortgage .................................................. www.weapproveloans.com ....................................30
ACT Appraisal .................................................. www.actappraisal.com ........................................20
American Toner & Ink ...................................... mortgagecompanyspecialist@amertoner.com ..........5
Bank of Internet USA........................................ www.bankofinternet.com ....................................32
BankFinancial .................................................. www.broker.bofi.com ..........................................36
Best Rate Referrals, LLC .................................... www.bestratereferrals.com ..................................32
Caliber Funding ............................................................................................................................20
CallFurst Conferencing...................................... www.callfurst.com ..............................................44
Calyx Software ................................................ www.calyxsoftware.com ................................10 & 32
CB Malaga Insurance Services LLC ...................... www.cbspecialty.com ..........................................33
CMG Mortgage, Inc. .......................................... www.homeownershipaccelerator.com ....................21
Comergence Compliance Monitoring, LLC .......... www.comergencetrustedmember.com ..........17 & 42
Crednology Inc................................................. www.crednology.com ..........................................36
Envision Direct ................................................ www.envisiondirect.net/catalog/mortgage.htm ......15
First California Mortgage Company .................... www.firstcaldictionary.com ..................................32
Flagstar Wholesale Lending .............................. www.wholesale.flagstar.com ....................Back Cover
Franklin American Mortgage ............................ www.franklinamerican.com ..................................23
Freedom Mortgage .......................................... www.fmbranch.com ......................Inside Back Cover
Frost Mortgage Lending Group .......................... www.frostmortgage.com/nmp ................................6
Gateway Mortgage Group, LLC .......................... www.gatewayloan.com ........................................32
GSF Mortgage Corporation ................................ www.gsfprobranch.com ................Inside Front Cover
GSF Funding .................................................... www.gsfsales.com ................................................41
Guaranteed Home Mortgage.............................. www.joinguaranteed.com ....................................13
I.C.E. Inc./Infinite Creative Enterprises, Inc......... www.icesigns.com ................................................24
Inlanta Mortgage.............................................. www.inlantapartners.com ....................................15
iServe Residential Lending, LLC ........................ www.iservecompanies.com ....................................4
Kinecta Federal Credit Union ............................ www.loankinection.org ........................................23
Lender411, Inc................................................. www.lender411.com/register ................................21
MBSauthority.com............................................ www.mbsauthority.com ........................................21
Mortgage Concepts .......................................... www.mortgageconcepts.com ................................12
Mortgage Investors Corporation ........................ hr@mortgageinvestors.com ..................................10
NAMB/WEST .................................................... www.nambwest.com ....................................40 & 51
NAPMW .......................................................... www.napmw.org ..................................................31
Nationwide Equities Corp. ................................ www.nwecorp.com ..............................................11
NetMore America Wholesale.............................. www.netmoreamerica.com ..................................16
Oxley & Goldburn Insurance, Inc. ...................... www.oxley-goldburn.com ....................................24
PB Financial Group Corp. .................................. pbfinancialgrp.com ................................................7
ProClose.......................................................... www.proclose.com ................................................7
Quality Mortgage Services ................................ www.qcmortgage.com ....................................7 & 25
REMN (Real Estate Mortgage Network)................ www.remnwholesale.com ....................................45
Ridgewood Savings Bank .................................. www.ridgewoodbank.com ......................................8
Sierra Pacific Mortgage .................................... www.sierrapacificmortgage.com ............................23
StreetLinks National Appraisal Services .............. www.streetlinks.com/SCORe ....................................9
Terrace Mortgage Company .............................. www.terracemortgage.com ..................................43
United Northern Mortgage Bankers Ltd. ............ www.unitednorthern.jobs ............................ 33 & 47
USA Cares ........................................................ www.usacares.org ................................................24
Windvest Corporation ...................................... www.windvestcorp.com ........................................46
Xetus Mortgage Corporation.............................. www.xetus.com ....................................................6
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