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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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Ours are 35% LESS.
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OUR RATES THEIR RATES
OFFICERS
Phone # E-mail
Frank Sena President (505) 474-6864 swhomeloans@yahoo.com
Wes Moore President-Elect (505) 275-0200 wes@superiormortgage-nm.com
Heidi Snow Vice President (505) 888-9500 hsnow@perennial-mortgage.com
Dennis Blomberg Treasurer (505) 896-4663 dennis@anothermortgageco.com
DIRECTORS
Brian Bagon (505) 221-6933 bbagon@lgmortgagebanc.com
Jenifer Duarte (505) 830-5085 jduarte@cltic.com
Kim Molina-Marquez (505) 998-5363 kim@trinitymtg.biz
STAFF
Theresa Castellano Executive Director (505) 480-8514 ceomom@spinn.net
Mike Walker Lobbyist (505) 250-3688 mwlobbyist@msn.com
NM 1
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Mortgage
PROFESSIONAL
N E W M E X I C O
M A G A Z I N E
Your source for the latest on originations, settlement, and servicing
New Mexico Association of Mortgage Professionals
P.O. Box 3967 O Albuquerque, NM 87190
Phone #: (505) 480-8514 O Fax #: (505) 994-0658
Web site: www.nmamp.org
Advisor Asset Protection Management Bank President Branch Manager Business Analyst
Business Development Manager
Client Relationship Manager Client Relationship Specialist Collateral Asset Manager
Commercial Loan Officer Corporate Sales Credit Analyst Inside Sales Legal
Assistant Licensing Assistant Loan Administration Manager Loan Originator
Mortgage Loan Processor Mortgage Originator National Account
Manager National Sales Rep PC Support Admin
Post Closing QC Expert Processor Regional Vice President REO Closer
Retail Branch Manager Retirement Planner Reverse Mortgage Specialist
Sales Manager Secondary Marketing Analyst Senior Loan Officer Senior Underwriter
Senior Vice President Software Engineer Underwriter Vice President
Wholesale Account Executive
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MAY 2010
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8:00 a.m.-6:00 p.m. each day
For more information on all NMAMP events, call (505) 480-8514
or visit www.nmamp.org.
NMAMP
Daily updated mortgage industry news
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NM 2
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Thursday, June 24, 2010
Friday, June 25, 2010
AAMB welcomes NAMB to beautiful Phoenix!
Come see the new NAMB President and the new NAMB Board installation, while
participating in some great networking opportunities. State delegates can also
participate in the NAMB Delegate Council Meeting.
Phoenix Airport Marriott

1101 North 44th Street Phoenix, Arizona 85008 USA

Rooms are $99 per night, and will be honored at the same rate if you wish to extend your stay.
Hotel Toll-Free: 1-800-228-9290
Visit www.NAMB.orgfor details.
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Value Nation: The Mortgage Meltdown and Appraiser
Selection By Charlie W. Elliott Jr., MAI, SRA
Regulatory Compliance Outlook: April 2010Escrow
Requirements for Higher-Priced Mortgage Loans
By Jonathan Foxx
SAFE Smart Testing, Education and Licensing: The Test
in the Bar By Paul Donohue, CRMS
The Secondary Market Overview: Predictions
By Dave Hershman
The NAMB Perspective
NMP Mortgage Professional of the Month: Steven A.
Milner, President and Chief Executive Officer of Mortgage
Concepts
FDIC Finds Fair Lending Violations Under ECOA for Credit
Reporting Fees By Terry W. Clemans
Trend Spotter: Why Tax Knowledge Matters
By Gibran Nicholas
Half-Empty? Half-Full By Donald E. Fader, CRMS
Ask Tommy: Your QC Expert By Tommy A. Duncan, CMT
Forward on Reverse: Reverse Mortgages for First-Time
Homebuyers By Atare E. Agbamu, CRMS
A View From the C-Suite: Redefining Going Green
By David Lykken
Will the Mortgage Industry Witness Another Influx of Non-
Traditional Lenders By Ed F. Wallace Jr., Ph.D.
Going Green and Stamping Out Fraud
By Tommy A. Duncan, CMT
Paperless Lending Offers Fraud Risk Mitigation
By Sharon Matthews
Paperless or Just Less Paper? By Erik Wind
Pieces of the P.I.e: Paper, Imaged and e-Documents
By Greg Smith
Eight Reasons Why E-mail Marketing Works for Mortgage
Brokers By Wendy Lowe
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April 2010
Volume 2 Number 4
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
Jennifer Moeller
Billing Coordinator
(516) 409-5555, ext. 324
jenniferm@nmpmediacorp.com
ADVERTISING
To receive any information regarding advertising rates,
deadlines and requirements, 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@nmpmedia-
corp.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.nationalmortgageprofessional.com. Any
subscription changes may be made to the attention of
Circulation via fax to (516) 409-4600.
Statements of fact and opinion in National Mortgage
Professional Magazine are the responsibility of the
authors alone and do not imply an opinion on the
part of NMP Media Corp. National Mortgage
Professional Magazine reserves the right to edit, reject
and/or postpone the publication of any articles, infor-
mation or data.
National Mortgage Professional Magazine is
published monthly by NMP Media Corp.
Copyright 2010 NMP Media Corp.
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A Message From NMP Media Corp.
Executive Vice President Andrew T. Berman
Going green? Paperless?
So when we thought of doing a special section on Going Green/Paperless, I assumed
wed be reporting on some great companies that have gone green and have experi-
enced great savings and an increase in productivity. Instead, I have been hearing night-
marish scenarios about $50 million-per-month mortgage operations spending in
upwards of five figures on paper and related dead-tree technology expenses. I am even
hearing stories about so-called paperless offices, where specific employees insist on
printing out PDFs so they can view their documents offline. However, most compa-
nies are trying to make the push towards paperless. It seems that the benefits, such as
savings, the ability to market yourself as a green company, increased productivity, better control over
your processes and document management, far outweigh the negatives.
In our Going Green/Paperless section, you will learn from Tommy Duncan, CMT that going paperless
is of great concern when it comes to fraud detection. The loss of wet signatures leaves room for would-
be fraudsters to take advantage of the system. Sharon Matthews shows how lenders are using technolo-
gy to analyze the data behind what you and I see on the screen to mitigate fraud. In the contribution by
Erik Wind, he shares with us how many are finding that while paperless might not be possible, there
are a great many benefits of just less paper. The section wraps up with a piece from Greg Smith of Xerox
where he shares information on his companys P.I.e (Paper, imaged documents and electronic documents)
program.
What business does a print publication like National Mortgage
Professional Magazine have featuring a section on going green? Are
we hypocritical?
Lets face the facts, while we are all getting more and more news from the Internet, the magazine format
still provides a medium that educates us about areas that we didnt know we should be in the know
about. This is evident by our increasing paid subscriber base (thats you and thank you!). Furthermore,
more than 70 percent of our readers choose to read our publication online (yes, even though 25 percent
of those choose to print it out).
On the road again
My first conference of this year was the recent Regional Conference of Mortgage Bankers Associations in
Atlantic City, N.J. and all I can say is, Wow! What a turnout! More than 1,400 attendees were on hand to
share in this magical experience. I am not talking about the plastic-fabricated magic that we were sur-
rounded by at The Trump Taj Mahal, but an organic magic created from the collaboration and networking
going on with the industrys best. The mortgage industry has filtered out the garbage and is left with the
proverbial cream of the industrys crop. And they were all there at The Trump Taj. Heres a shocker new
wholesale lenders! Overall, it was a great event that gave the feeling of a renewed sense of pride about
being a mortgage professional in 2010.
I hope you enjoy yet another edition of National Mortgage Professional Magazine. We are on the verge
of the one-year anniversary of this undertaking, and so far, have received nothing short of rave reviews.
The proof is in you, our readership, who turns to us for the latest in industry news, through both our
monthly print edition and our daily updated Web site, NationalMortgageProfessional.com. Im happy to
report that our blogger community is growing, as is the number of registered users on our site each day.
Again, I thank you for your support of our publication over the past year, and I raise my glass to toast
many more years to come.
Sincerely,
Andrew T. Berman, Executive Vice President
NMP Media Corp.
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
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The National Association of
Mortgage Brokers
7900 Westpark Drive, Suite T-309 O McLean, VA 22102
Phone: (703) 342-5900 O Fax: (703) 342-5905
Web site: www.namb.org
PresidentJim Pair, CMC
Mortgage Associates Corpus Christi
6262 Weber Road, Suite 208
Corpus Christi, TX 78413
(361) 853-9987
jimpair@namb.org
President-ElectWilliam Howe, CMC, CRMS
Howe Mortgage Corporation
9414 E. San Salvador Drive, #236
Scottsdale, AZ 85258
(602) 200-8100
billhowe@namb.org
Vice PresidentMichael DAlonzo, CMC
Creative Mortgage Group
1126 Horsham Road, Suite D
Maple Glen, PA 19002
(215) 657-9600
michaeldalonzo@namb.org
SecretaryGinny Ferguson, CMC
Heritage Valley Mortgage Inc.
5700 Stoneridge Mall Road, Suite 150
Pleasanton, CA 94588
(925) 469-0100
ginnyferguson@namb.org
TreasurerDon Frommeyer, CRMS
Amtrust Mortgage Funding Inc.
200 Medical Drive, Suite D
Carmel, IN 46032
(317) 575-4355
donfrommeyer@namb.org
Joe Camarena
The Mortgage Source
10120 Southwest Nimbus Avenue, Suite C-7
Portland, OR 97223
(503) 443-1060 O joecamarena@namb.org
John Councilman, CMC, CRMS
AMC Mortgage Corporation
2613 Fallston Road O Fallston, MD 21047
(410) 557-6400 O jlc@amcmortgage.com
Olga Kucerak
Crown Lending
8700 Crown Hill Boulevard, Suite 804 O San Antonio, TX 78209
(210) 828-3384 O olga@crownlending.com
Walt Scott
Excalibur Financial Inc.
175 Strafford Avenue, Suite 1 O Wayne, PA 19087
(215) 669-3273 O waltscott@namb.org
Don Starks
D.C. Starks Mortgage Associates Inc.
141 South Main Street O Bourbonnais, IL 60914
(815) 935-0710 O donstarks@namb.org
Marty FlynnPresident
(925) 831-3520, ext. 224
marty@ccireports.com
Tom ConwellVice President
(248) 473-7400
tconwell@credittechnologies.com
Daphne LargeTreasurer
(901) 259-5105
daphnel@datafacts.com
William BowerDirector
(800) 288-4757
wbower@confinfo.com
Mike BrownDirector
(800) 285-6691
mike.brown@ncogroup.com
Susan CataldoDirector
(404) 303-8656, ext. 204
susancds@cdsusa.net
Nancy FedichDirector
(908) 813-8555, ext. 3010
nancy@cisinfo.net
Sanford (Sandy) LubinDirector
(805) 481-3155
slubin@cbslo.com
Judy RyanDirector
(800) 929-3400, ext. 201
jryan@kroll.com
Tom SwiderDirector
(856) 787-9005, ext. 1201
tswider@creditlenders.com
Donald J. UngerDirector
(303) 670-7993, ext. 222
don@advcredit.com
NCRA Staff
Terry ClemansExecutive Director
(630) 539-1525
tclemans@ncrainc.org
Jan GerberOffice
Manager/Membership Services
(630) 539-1525
jgerber@ncrainc.org
President
Liz Roberts-Fajardo, GML
(702) 498-8020
lvlizrf@aol.com
President-Elect
Gary Tumbiolo, CMI
(919) 452-1529
garytumbiolo@aol.com
Senior Vice President
Sharon Patrick, MML, CMI
(386) 985-1620
howell@cfl.rr.com
Vice President/Northwestern Region
Jill M. Kinsman
(206) 344-7827
jill.kinsman@usbank.com
Vice President/Western Region
Tim Courtney
(760) 792-5620
desertranchrealty@hotmail.com
Vice President/Central Region
Candace Smith, CMI
(512) 329-9040
csmith@wrstarkey.com
Vice President/Greater Northeast
Region
Colleen-Therese McKeever, CMI
(646) 584-8332
colleenmckeever@aol.com
Vice President/Southeastern Region
Jessica Edmonston
(919) 414-3028
jedmon3601@yahoo.com
Secretary
Laurie Abisher, GML, CMI
(661) 283-1262
lauriea@gemcorp.com
Treasurer
Kay Talley, MML
(919) 846-4294
kay.talley@genworth.com
Parliamentarian
Hulene Bridgman-Works
(972) 494-2788
hulene137@yahoo.com
NAMB Board of Directors
National Association of Professional
Mortgage Women
P.O. Box 140218 O Irving, TX 75014-0218
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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The Mortgage Meltdown and
Appraiser Selection
Within the past couple of years, we have
experienced a complete meltdown of
our economy, the mortgage industry
and our banking system. As a result, we
have witnessed wholesale changes in the
way appraisals are purchased. Mortgage
brokers, loan officers and anyone else
with a financial interest in a transaction
are unable to purchase appraisals.
This requirement has
been imposed by Fannie
Mae, Freddie Mac and
the Federal Housing
Administration (FHA) on
all loans, either pur-
chased or made by them.
In todays market, that
represents most, if not
all, of the mortgage loan
market. In the past, Wall
Street was buying loans,
but that practice has
ground to a halt due to
all of the bad loans. As a
result, federally-backed
mortgages are practically
the only game in town.
There has been much
complaining by mortgage
brokers, loan officers
and even Realtors and
appraisers over this new
practice. Unfortunately, the change
comes at a time when loan volumes are
in the gutter, property values are in the
tank, home foreclosures are at an all-
time high, and the overall economy is
on the ropes. When we combine all of
these factors, it makes the origination of
a marginal loan difficult, to say the
least. Some say that these marginal
loans should not be made; others say
that these circumstances make apprais-
ers less accountable.
Many have complained about this
new process and the new rules. Is it
likely to change, or are we stuck with a
system where lenders and Realtors are
not going to be able to select and or
communicate with appraisers in the
future?
Before determining the answer, we
must consider the fact that our entire
financial system was in danger of going
down the tubes as a result of the mort-
gage meltdown. Practically everyone in
our society was damaged in one way or
another by the collapse of the system,
and, like it or not, most of the problem
stemmed from toxic mortgages. Due to
this catastrophic failure
of the system, our politi-
cal leadership cannot and
will not take this problem
lightly. While there is suf-
ficient blame to go
around, the consensus of
opinion is that inflated
appraisals were largely to
blame for the crack in the
monetary system. It will
not be easy going forward
for regulators and politi-
cians to relax appraisal
procurement rules set in
place by Fannie, Freddie
and the FHA. Specifically,
what may we expect in
this regard?
For starters, there is
likely to be a tightening
of the mortgage system in
months to come like we
have never seen. Interest rates are
going to increase, mortgage qualifica-
tion requirements will continue to be
rigid for many would-be borrowers,
and appraisal scrutiny will be tougher,
not lighter.
The powers that be are currently say-
ing that the root of the problem is
appraiser pressure being imposed by
those selecting appraisers, purchasing
appraisals and reviewing appraisals
and that these are the very people
standing to gain by collecting fees from
the closing of the loan transaction.
Further, appraisers, in some cases, are
accused of collecting fees on appraisals,
which they inflate just to insure that
continued on page 7 continued on page 6
While there is
sufficient blame to go
around, the consensus
of opinion is that
inflated appraisals
were largely to blame
for the crack in the
monetary system.
By Charlie W. Elliott Jr., MAI, SRA
Columbia Law School
study finds: Federal action
resulted in more defaults
and riskier lending
Federal action to exempt national
banks from state anti-predatory lend-
ing laws resulted in more defaults and
riskier lending compared to other
banks, found a study funded by the
National State Attorneys General
Program at Columbia Law School. At
the same time, the study found anti-
predatory lending laws enacted by
some to protect consumers from abu-
sive and unfair mortgage practices
saved many people from losing their
homes to foreclosure.
The implications of these results are
extraordinarily important, said James
Tierney, director of the National State
Attorneys General Program. This
report proves that that vigorous state
consumer protection laws make a posi-
tive difference for consumers through-
out the country. The federal govern-
ment must respect that clear fact.
The study, titled The Preemption
Effect: The Impact of Federal
Preemption of State Anti-Predatory
Lending Laws on the Foreclosure Crisis,
was conducted by researchers at the
UNC Center for Community Capital. It
found foreclosures and risky lending
increased as a direct result of the pre-
emption order enacted by the Office of
the Comptroller of the Currency (OCC)
in 2004.
Our research confirms that state
consumer protection laws worked, but
that when one group of lenders is
handed a regulatory free pass, they are
going to take advantage of it, said
Center for Community Capital Director
Roberto G. Quercia. In this scenario,
unfortunately, we see preemption shift-
ing the activities of federally insured
banks to riskier activities than they
would otherwise have pursued.
The research findings are the result
of two companion reports that offer the
first comprehensive look at loan quali-
ty and performance following the fed-
eral preemption of state laws in states
with and without strong anti-predatory
lending laws.
This research shows the need for
strong, consistent mortgage laws in
North Carolina and across the country,
said North Carolina Attorney General
Roy Cooper, who wrote the nations first
comprehensive state law combating
predatory lending as a state senator.
While our laws kept more homeowners
from risky loans than other states, our
communities are still suffering from too
many foreclosures. Washington needs to
let states set high standards and hold
unfair lenders accountable.
The order exempted nationally char-
tered banks and their subsidiaries from
most state laws regulating mortgage
lending, including stricter laws that had
been passed by some states to curb
abusive, predatory mortgage lending.
The center analyzed data from 2.5
million mortgages before and after fed-
eral preemption in states with and
without anti-predatory lending laws.
The mortgages examined were issued
from 2002-2006, and represent about
30 percent of U.S. mortgages rated sub-
prime or Alt-A and about five percent of
all U.S. mortgages during the period.
We believe these results provide
strong support for policy proposals that
will prevent regulatory loopholes, so
that borrowers can rely on the full pro-
tection that state laws afford them,
said Quercia.
For more information, visit
www.ccc.unc.edu/preemptioneffect.
California tops Interthinx
mortgage fraud risk
index for Q4 of 2009
Interthinx has released its quarterly
Mortgage Fraud Risk Report, covering
data collected during the fourth quar-
ter of 2009. The report includes an
analysis of national mortgage fraud
and indices for the four most common
types of mortgage fraud. It indicates
that most fraud types are on the rise,
with increases in the risk index for
occupancy fraud, employment/income
fraud, and property valuation. The lat-
ter is up more than 100 percent from
two years ago.
The study finds that California now
has the highest mortgage fraud risk,
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Heres what our customers are saying:
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scoring services
In July 2008, the Federal Reserve Board approved a final rule, which amends
Regulation Z (the Truth-in-Lending Act) and was adopted under the
Homeownership and Equity Protection Act (HOEPA). The new rule addressed and
defined higher-priced mortgage loans (HPML), a new category of mortgage
loans, while also providing additional protection to consumers.
1
Most require-
ments of the rule were to be implemented on Oct. 1, 2009.
Four key protections were provided to consumers:
O Borrower Ability: Lenders must take a borrowers ability to repay the loan from
income and assets other than the homes value into account when making the loan.
O Verification of Income/Assets: Lenders must verify the income and assets
they rely upon to determine repayment ability.
O Prepayment Penalty: Prepayment penalties are prohibited if the mortgage
payments can change in the first four years; and, for other higher-priced loans,
a prepayment penalty period cannot last for more than two years.
O Escrow Accounts: Lenders must establish escrow accounts for property taxes
and homeowners insurance for all first-lien mortgage loans.
HPML calculation
Determining if a loan is an HPML origination requires a calculation using a spe-
cific survey-based index, as follows:
The rules definition of an HPML origination captures virtually all loans in the
sub-prime market, but generally excludes loans in the prime market.
Effective date: April 1, 2010
The escrow account requirement must be implemented on April 1, 2010. This
deferral of the requirement until April 1, 2010 was given in order to provide orig-
inators sufficient time to set up escrow account procedures. Lenders must become
familiar with federal and state escrow account requirements.
Implementation dates
O Effective April 1, 2010, the lender will be required to set up an escrow account
for residential real estate-secured HPMLs.
O Effective Oct. 1, 2010, the lender will be required to set up an escrow account for
non-real estate-secured (principal dwelling) HPMLs (i.e., manufactured homes).
Escrow requirements
Effective with the dates indicated above for the respective types of HPMLs, the
Escrow Requirements for
Higher-Priced Mortgage Loans
lender must set up an escrow account for loans subject to the HPML escrow
requirements. Escrow mandates only affect first lien transactions. (Exception:
Escrow is not required for a condominium, if the condominium association main-
tains a master policy that covers the individual condominium units for items such
as homeowners insurance and property taxes.)
The HPML originations escrow account must be set up to pay items such as
property taxes and premiums for mortgage-related insurance (such as homeown-
ers insurance) that the lender has required.
RESPA requirements
Escrow requirements under federal law, such as under the Real Estate Settlement
Procedures Act (RESPA), must be implemented. RESPA provides detailed escrow require-
ments, escrow account calculation methodologies, and also some model forms.
2
Some salient RESPA requirements for escrow accounts
O Disclosure of the initial escrow account statement at the time an escrow
account is established.
O Annual escrow account disclosure.
O Certain limitations on how the escrow account is funded, ensuring that the
account is not overfunded with the borrowers money.
State requirements
State law places further requirements on escrow accounts. Some states exceed
RESPAs mandates in limiting the amount of the escrow cushion. Additionally, state
law might require the lender to pay interest on the amount in the escrow account.
Submit your questions
Do you have a regulatory compliance issue that youd like to see addressed in the
Regulatory Compliance Outlook Column? If so, e-mail your issue or concern to
Jonathan Foxx at jfoxx@lenderscompliancegroup.com.
Jonathan Foxx, former chief compliance officer for two of the countrys top publicly-
traded residential mortgage loan originators, is the president and managing director
of Lenders Compliance Group, a mortgage risk management firm devoted to provid-
ing regulatory compliance advice and counsel to the mortgage industry. He may be
contacted at (516) 442-3456 or by e-mail at jfoxx@lenderscompliancegroup.com.
Footnotes
1Compliance with the new rules, other than the escrow requirement, is manda-
tory for all applications received on or after Oct. 1, 2009. The escrow requirement
has an effective date of April 1, 2010 for site-built homes, and Oct. 1, 2010 for
manufactured homes
2See 24 CFR 3500.17, RESPAs Escrow Requirements section, for further informa-
tion on RESPA escrow requirements. The U.S. Department of Housing & Urban
Development (HUD) publishes a number of Public Guidance Documents that illus-
trate the proper way to fund and manage an escrow account.
Survey-Based Index
The rule establishes a category of higher-priced mortgage loans secured by a
consumers principal dwelling, defined as a first lien mortgage that has an
annual percentage rate (APR) that is 1.5 percentage points or more above the
average prime offer rate, or, if the loan is a subordinate lien loan, 3.5 per-
centage points above this Survey-Based Index.
The average prime offer rate index is based on a survey published by
Freddie Mac, and can be found on Freddie Macs website at the following tab:
Weekly Primary Mortgage Market Survey.
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CSBS and AARMR reach
settlement agreement
with CitiFinancial
The Conference
of State Bank
Supervisors (CSBS)
and the American
Association of
R e s i d e n t i a l
Mortgage Regulators (AARMR) have
announced a 35-state settlement, in which
CitiFinancial agreed to remit a $1.25 million
penalty. The agreement between state
mortgage regulators and CitiFinancial
was executed following an examination
conducted by the Massachusetts Division
of Banks to determine compliance with
state and federal consumer protection
laws. The examination found that
CitiFinancial had failed to report 91,127
residential mortgage loans to the federal
government as required by the Home
Mortgage Disclosure Act (HMDA). The res-
idential mortgage loans that were omit-
ted from CitiFinancials HMDA Loan
Application Register were originated
between 2004 and 2007. The failure to
report the loans was apparently caused
by an internal systems error at
CitiFinancial that went undetected until
the Massachusetts Division of Banks
examination.
HMDA remains the primary tool we
utilize to ensure compliance with fair
lending laws and regulations, said
Steven L. Antonakes, Massachusetts
Commissioner of Banks. By failing to
accurately report all required transac-
tions, CitiFinancial hampered our ability
to complete that assessment. Therefore,
this agreement will ensure that the sys-
tems, training, and appropriate over-
sight and controls are in place to avoid a
similar occurrence in the future.
Major terms of the agreement
include:
O CitiFinancial already resubmitting
corrected and complete HMDA
reports to the Federal Reserve
System for the years 2004-2007;
O CitiFinancial engaging an independ-
ent consultant to conduct a thor-
ough fair lending review to ensure
the data from the previously unre-
ported 91,127 mortgage transac-
tions does not in any way demon-
strate a pattern or practice of dis-
criminatory lending practices;
O CitiFinancial will thoroughly review
and substantially modify its internal
control procedures to ensure all
reportable HMDA transactions are
accurately compiled and reported; and
O CitiFinancial will remit a penalty
totaling $1.25 million to the 35 states
that are party to this agreement.
This settlement highlights the value
of state enforcement of federal con-
sumer protection laws, said Mark
with an index value of 222. Nevada,
which had the highest index for the
previous five consecutive quarters,
drops to second place with an index of
220, and is closely followed by Arizona
with an index of 211. Florida remains
in fourth place with an index of 179,
while Colorado is in fifth place at 153.
The occupancy fraud risk index
rose 16 percent since last quarter
the first significant increase in the
index since the fourth quarter of
2006. The magnitude of the quarter-
on-quarter increase suggests that
occupancy fraud risk will be a seri-
ous issue going forward, as continu-
ing price declines and get-rich-quick
schemes lure investors back into the
market and as builders face continu-
ing difficulty in moving unsold
inventory.
Despite a slight (four percent) quar-
ter-on-quarter decrease, the property
valuation fraud risk index is up 40 per-
cent over last year and up more than
100 percent from two years ago.
Schemes involving short sales, real
estate-owned (REO) inventories, whole-
sale flipping, and refinancing by bor-
rowers whose equity has been
impaired by falling real estate values
continue to drive this index.
Interthinx analysts expect lenders
to focus more closely on fraud risk mit-
igation as they work to emerge from
the downturn. This will help guard
against the potential for fraud as a
large number of adjustable rate mort-
gage loansespecially option ARMs
with negative amortization features
reset between now and the first quar-
ter of 2012.
Lenders have expressed their
appreciation for our investment to pro-
vide a more detailed analysis of the
data weve been collecting, said Kevin
Coop, president of Interthinx. Our
most recent report provides data that
lenders can use to anticipate and pre-
pare for trends that will impact their
risk mitigation strategies. The report
can ultimately make them more suc-
cessful at identifying fraud before loans
are funded.
The Interthinx Mortgage Fraud Risk
Report is fast becoming the primary
source of information about fraud risk
in the mortgage industry, and with
good reason, added Mike Zwerner,
senior vice president for Interthinx.
Interthinx has the depth of data to
identify, categorize, and help lenders
effectively mitigate mortgage fraud
risk. Using our own proprietary data
along with outside public data
resources, the quarterly report reveals
where mortgage fraud risk is occurring,
where it is migrating, and how
schemes are changing. Were pleased
that more institutions are relying on
our reports.
For more information, visit
www.interthinx.com.
news flash continued from page 4
The Test is the Bar
It made no sense to me. When I heard you could take the national test before sit-
ting for the 20 hours of pre-license education (PE), Im thinking what a regulatory
boondoggle. How could they draft up something this illogical? Then I learned it was-
nt a mistake; this disconnect was quite purposeful.
Rich Madison, the NMLS Director of Education Programs explained to our educa-
tion working group that, it is not pre-testing education, it is pre-licensing education.
He added, there is no connection between the education requirements of the SAFE
Act and the national test. This seemed curious to me. I knew it needed further ex-
ploration. What were they up to?
Education Minimized, the Test Emphasized
The twenty hours of required PE is designed to satisfy a bare minimum of MLO
competency requirements. The twenty hours only requires 8 hours of core education;
the remaining twelve hours is elective. Each state is allowed to use as many of these
elective hours for any state education it deems appropriate. It began to dawn on me
that education, though important, was not the focus of MLO competency validation.
Clearly, the bar of entry is the national test. It supplies the true capability meas-
urement for MLOs. The national test is designed to be both broad and deep. The test
covers 146 different areas of study. The test questions are interpretive in nature, re-
quiring a firm conceptual understanding of these subjects in order to score well. The
test is the bar and it is set quite high.
Test Break Down
The national test component entails 100 questions that include 10 un-scored questions
used for developmental purposes. The questions are all multiple choice and you will have
150 minutes for completion. The test is broken down into the following four categories.
O Federal mortgage related laws (35%)
O General mortgage knowledge (25%)
O Mortgage loan origination activities (25%)
O Ethics (15%)
My concern for brand new students of the mortgage industry is the MLO activities
section, which covers more that 62 separate subjects. A new person with no contex-
tual understanding of the business will naturally struggle in this area.
My concern for an experienced mortgage veteran is the federal law and the ethics sec-
tions, which explore 14 different federal laws and consumer protections. How long has
it been since you studied the HOEPA prohibitions? Do you understand the difference be-
tween providing ECOA based adverse action vs. FCRA based adverse action notices?
A SAFE Smart Approach
Dont think you are going to waltz into this test and ace it. The questions are filled
with double negatives and trip words designed to throw you off. This is first a read-
ing test and second, a knowledge bar.
The industrys new bar of entry is the 100-question national test. My SAFE Smart
advice to you is take a test specific 20-hour PE course first, then get a good exam prep
tool and buckle down to study.
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.com to find out more about
your obligations for testing, education and licensure, or call (888) 341-7767.
continued on page 9
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Heres what our customers are saying:
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PCSs high level of customer service ensures that my
loans close on TIME!
the loan closes and of continuing to get
business from the people who hired
them. Even when it is not true, the per-
ception is there, and, because of this, it
will be hard for regulators and legisla-
tors to allow business as usual.
In conclusion, it is not fair to any of
the self-respecting professionals con-
cerned, including lenders, appraisers
and Realtors, to be subjected to the
temptation to commit fraud or to be
positioned where the perception would
be that they are acting in a less-than-pro-
fessional manner. Neither is it fair to the
taxpayer for there to be a door for indus-
try participants to practice business in
such a way that the taxpayer is on the
hook to cover the cost of avoidable bad
loans. Nor is it fair to the borrower to pay
for an appraisal and a loan whereby he
or she is exposed to foreclosure due to
unscrupulous business practices.
Finally, it is not fair to the regulators,
who must enforce rules, to be put in a
position where there is opportunity for
fraud on their watch. Given all of the rea-
sons above, stricter rules are not only like-
ly to be implemented, but they are also
necessary to protect a system from which
we all benefit from as professionals.
value nation continued from page 4
If these rules eliminate a few bad
apples, so be it. In the past, the bad
apples had the advantage of siphoning
off business from those who follow the
rules. Under todays new system, the
playing field is level and the ethical pro-
fessionals will enjoy the business pro-
vided by our industry, without being
put in a position of their having to sub-
scribe to the same underhanded tactics
of the less-than-ethical practitioners in
order to earn a living.
Yes, stricter rules will come at a
price, but it is worth the investment. It
is a necessary cost of doing business
and it will serve to protect all of society
from the type of catastrophic events
that we have experienced and are expe-
riencing. Going forward, appraisers
must continue to be insulated from the
pressure of those having a financial
interest in loan transactions.
Charlie W. Elliott Jr., MAI, SRA, is presi-
dent of Elliott & Company Appraisers, a
national real estate appraisal company.
He can be reached at (800) 854-5889, e-
mail charlie@elliottco.com or visit his
companys Web site, www.appraisalsany-
where.com.
So whats the answer? Be knowl-
edgeable. That is why we teach the sec-
ondary markets as part of the Certified
Mortgage Advisor Program. Hedge your
bets. Make sure your business model is
diversified. Putting all your eggs in one
basket is never a good idea.
I asked Eric Holloman, our secondary
expert and the chief executive officer of
RateLink, about his view of the future.
He says that it is important to watch the
national news. For example, many loan
officers are trying to figure out why
their loans are getting underwritten to
death right now when the crisis should
be easing. Yet, if you read about Fannie
Mae repurchases and what lenders are
going through in this regard, it makes
perfect sense. If the loan is not perfect,
when something goes wrong, it is being
thrown back in their face. It is not only
about rates, it is about how someone
will have to navigate the process to
achieve the American dream of home-
ownership.
Dave Hershman is a leading author for
the mortgage industry with eight books
and several hundred articles to his credit.
He is also head of OriginationPro
Mortgage School and a top industry
speaker. Daves Certified Mortgage Advisor
Program can be found at www.webina-
rs.originationpro.com. If you would like
to stay ahead of what is happening in the
markets, visit ratelink.originationpro.com
for a free trial or e-mail success@hersh-
mangroup.com.
One word that says it all. We are con-
stantly trying to predict the future.
When you go on the street and meet
with real estate agents, they ask you,
What do you think will happen with
rates? When you set up your business
plan, it is all about know what will hap-
pen within several areas of the mar-
kets, such as refinances versus purchas-
es. Consider this prediction released
recently:
Refinances in 2010 will be down 52
percent and purchase mortgage vol-
ume will be down five percent from
2009, according to the latest projec-
tions from iEmergent, a Des Moines,
Iowa-based market research firm.
Others have predicted rising rates
this year and cite the following factors:
O The Federal Reserve Board with-
drawing from the mortgage-backed
securities (MBS) markets
O The Fed also starting to tighten
monetary policy as the economy
recovers. The Fed has already
increased the Discount Rate as a
symbolic gesture.
O The markets getting spooked by
large government deficits which will
fuel the threat of inflation. As the
government borrows more, this
forces rates up because of increased
supply in the bond markets.
Here is the problem. We cannot pre-
dict the future. One event tomorrow
could change everything. That is why I
have never been a believer in technical
charts. It is the fundamentals which are
important. Fundamentally, we are
heading into an economic recovery,
and if all goes well, rates will rise, but
not drastically. If the economy gets too
strong too quickly or steps back into a
recession, all bets are off. These factors
are so entwined that we never know
how they will come out. For example, if
the recovery is stronger, that means
higher rates because of the risk of infla-
tion. But a stronger recovery also
means that the deficit will start to
diminish more quickly and that could
translate into lower rates. Finally, if the
recovery is stronger, people will have
more jobs and buy more houses, which
makes it more likely that housing prices
are not falling and mortgages become a
favored investment again. Confused
yet?
Your job as an originator is to stay on
top of what is happening. Today, that
means every hour. You need not be
able to predict the future. However, you
should know what factors are in play
and what events are on the horizon that
could impact the markets. For example,
if you dont know that the employment
report is being released the first Friday
of every month, you cannot stay on
top of the markets. I get a text mes-
sage on my phone from RateLink
(www.RateLink.com) that provides
upcoming events, as well as changes
in the markets.
Once again, predictions are not only
about rates. The economy itself pro-
vides much suspense for us. For exam-
ple, I am surprised at how many origi-
nators are starting loan modification
efforts now. I have often said that loan
mods might be a great service from one
to four years. It is now almost two years
after I started saying that. Some see pre-
dictions of five million foreclosures to
come on a market and predict that loan
mods will be going strong five years
from now. But the fact is that a stronger
economy, along with low rates and a tax
credit, could shorten this period to 18
months. And that would be good for all
of us. Do I know the answer? No.
However, I do know the factors in play
that could change the time frame sig-
nificantly. Even the value of the dollar
becomes important because if the dol-
lar stays weak, this increases demand
from foreign investors. Basically,
American real estate is on sale. And the
sale is really great if you are from a
country with a strong currency.
Predictions
Refinances in 2010 will be down
52 percent and purchase mortgage
volume will be down five percent
from 2009, according to the latest
projections from iEmergent, a Des
Moines, Iowa-based market
research firm.
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NAMB Setting the Bar on
Professionalism in the
Mortgage Industry
A Message From NAMB President Jim Pair, CMC
If you did not attend the 2010 National Association of Mortgage
Brokers Legislative & Regulatory Conference in February, you missed
one of the very best conferences NAMB has sponsored that I have
ever attended. Every panel covered a topic that was crucial to our
industry, and the panelists were experts on the topics presented.
There was plenty of time for the attendees to address the panelists
with questions that were answered in a straightforward manner. The highlight of
the event was the luncheon where Federal
Housing Administration (FHA) Commissioner
David H. Stevens spoke to us. He provided us with
some important information, including discussing
the important role the mortgage broker plays in
the mortgage distribution channel.
Many of the attendees came up to me or
expressed in e-mails, the same impressions I had
of the conference. Much of the credit for such a
successful conference must be given to Jon Otto,
NAMBs director of government affairs. Jon and
the staff of NAMB were responsible for the organ-
ization of the conference, selecting the topics for
the various panels, arranging for the panelists to
speak and locking up Commissioner Stevens as our luncheon speaker. Many
thanks to Jon and his team for a conference that was well-planned, well-coordi-
nated, and as I said previously, one that was very informational on all the current
issues impacting our industry.
The Legislative & Regulatory Conference is just one of the many benefits for NAMB
members. It is the only conference NAMB holds that is restricted to NAMB members
only. As a member attending the conference, you are receiving information before
anyone else, as evidenced by Commissioner Stevens announcement at our luncheon.
In the current market environment, there are two more very important bene-
fits for NAMB members.
The Lending Integrity Seal of Approval sets you apart
from all the other loan originators. As a NAMB member
licensed under the SAFE Act and certified by your state asso-
ciation, you are qualified to use the Seal. By using the Seal,
you have pledged to abide by a strict Code of Ethics,
Professional Standards and Best Lending Practices, and a
NAMB grievance review process.
The Seal should be used in all in your advertising, busi-
ness cards, stationery, etc. You can go to www.lendingin-
tegrity.org and learn how to download the Seal for use in radio ads, print ads,
press releases and letters to your customers and prospects. There is even a video
that you can use in presentations to Realtors, business groups or other groups that
tells the story of the Lending Integrity Seal of Approval. The Seal will truly set you
apart from loan originators who do not qualify.
Besides qualifying for the Lending Integrity Seal of Approval, a NAMB member
may go one step further and obtain a designation. NAMB offers the Certified
Mortgage Consultant (CMC), the Certified Residential Mortgage Specialist (CRMS)
and the General Mortgage Associate (GMA) designations. Anyone receiving their
designation has distinguished themselves from other originators, even those
qualified to use the Lending Integrity Seal of Approval. Obtaining a NAMB-certi-
fied designation means you have passed a rigorous test, have experience in the
industry and met the necessary qualifying points to earn the designation. Go to
www.namb.org and click on the Certification tab and learn more about how you
can achieve the highest level of professionalism and really set yourself apart from
all other loan originators.
These are only a few of the benefits available to you when you become a NAMB
member. To learn more on how to become a member, go to www.namb.org and
click on the Membership button, scroll down to Join Now and click to join. You
will find all the information needed to join the only association working to pro-
tect our industry and the consumer.
Jim Pair, CMC is with Mortgage Associates Corpus Christi and is president of the National
Association of Mortgage Brokers. He may be reached by e-mail at jimpair@namb.org.
Certification? Certainly!
How Do You Know?
A Message From NAMB Certifications
Committee Chair Pava J. Leyrer, CMC, CRMS
I am sure everyone is buzzing with licensing requirements that all
loan originators for non-depositories have to complete in the next
two to four months. Whether we agree or not, it is the law and we
must comply with it to be licensed. The reason I bring this up is
because of standards and a basic thought process.
Do you know just the basics to do your job, or are you above the
curve and make it part of your profession to excel? To be licensed, you have the
required minimum in each state and must follow those. To receive a certification,
it is now your choice and opportunity to excel above the basics to a higher level
and set yourself apart from everyone else.
How do you know though which to choose? I have personally seen different
offerings for distinction and there are even more coming out now for various
topics. When I was reviewing those options and trying to decide, I looked at what
credentials and knowledge was needed. As I reviewed the NAMB certifications
and the goals set for them, I realized that this was more than just a pay for
paper certification. I was not buying the right to have the CMC (Certified
Mortgage Consultant) or CRMS (Certified Residential Mortgage Specialist) titles. I
had to work for them and know my profession and then prove it through a test
to gain those honors.
I have always been passionate about my industry and profession. It has been
an area that the experienced train and share with those wanting to break into our
industry. I believe that those of us still fighting for what we believe in and what
we have to offer our valued customers and communities, can also recognize the
importance of defining our knowledge and taking the next step to becoming cer-
tified and maintaining these certifications.
Take time today to know where you want to stand in this industry and how
becoming NAMB-certified can benefit you and your business.
Pava J. Leyrer, CMC, CRMS, is president and owner of Heritage National Mortgage
Corporation in Grandville, Mich., and Certifications Committee chair for the
National Association of Mortgage Brokers. She may be reached by phone at (616)
534-4993 or e-mail pava@heritagenational.com.
For more information on the National Association of Mortgage Brokers, visit www.namb.org.
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We make FHA and HVCC compliance easy
with our tools built around your business
We work with YOUR appraisers
Online automated appraisal ordering
Learn more about our services by calling,
Lorenzo Pugliano, President and CEO
at 631-299-2084.
www.platinumcreditservices.com
Heres what our customers are saying:
PCS appraisal management services allowed
me to create a virtual firewall between the loan
officers and the appraisers, yet still maintain
a high level of quality, fast, and accurate
appraisals
Bank of America is a strong propo-
nent of the home retention goals of the
Making Home Affordable program, and
we have placed HAMP at the center of
our broad-based mortgage modifica-
tion efforts, said Schakett. Recently,
we became the first servicer to formal-
ly agree to participate in the HAMP sec-
ond-lien modification program, further
demonstrating our commitment to
putting as many financially struggling
homeowners as possible into a more
affordable and sustainable situation.
Bank of America is also a leading
lender-participant in the Home
Affordable Refinance Program (HARP).
Nearly 152,000 Bank of America cus-
tomers have benefitted through the
enhanced loan-to-value and stream-
lined provisions of that prong of the
Making Home Affordable initiative. In
total, Bank of America helped more
than 1.1 million customers refinance
their home in 2009.
For more information, visit www.banko-
famerica.com.
NAHB poll shows
Americans firmly
support government
housing initiatives
Americans remain strong-
ly committed to federal
support for homebuyers,
according to a recent
survey of U.S. house-
holds conducted by the
National Association of Home Builders
(NAHB) by RT Strategies. Roughly 68 per-
cent of those polled said the government
should continue to support housing,
and 65 percent believe the govern-
ment should be doing more to keep
families from losing their homes to
foreclosure.
RT Strategies, is a non-partisan pub-
lic opinion polling firm based in
Washington, D.C. RT Strategies inter-
viewed a representative sample of
1,000 adults nationwide by telephone
using live interviewers on Jan. 29-31,
2010. The sample included 170 inter-
views with respondents from cell-
phone-only households.
Among those polled, some key
groups said the government should
continue to play a vital role in main-
taining a healthy housing market. For
example, 78 percent of all potential
homebuyers, including 81 percent of
renters intending to buy a home in the
near future, said the government
should continue to support housing.
Roughly 65 percent of homeowners
said the government also needs to do
more to keep families from losing their
homes. Support for more foreclosure
protection was not confined merely to
current homeowners. Among renters,
84 percent said the government needs
to do more to helped strapped borrow-
ers. This issue is particularly important
to women, with 71 percent supporting
Pearce, president of AARMR and Chief
Deputy Commissioner of the North
Carolina Office of Commissioner of
Banks. State regulators supplement
existing federal efforts and help ensure
consumer protections are rigorously
enforced. This settlement demon-
strates the ability of state regulators to
work together effectively to address
our systemic compliance concerns with
a large national lender.
State regulators have significantly
enhanced multistate cooperation in
recent years through projects such as
the development and launch of the
CSBS/AARMR Nationwide Mortgage
Licensing System (NMLS) and the cre-
ation of the Multi-State Mortgage
Committee to provide seamless super-
vision of mortgage companies operat-
ing in more than one state.
For more information, visit
www.csbs.org or www.aarmr.org.
Bank of America com-
pletes 12,700 permanent
HAMP modifications
Bank of America
has realized sig-
nificant gains
modifying mort-
gages through the governments Home
Affordable Modification Program
(HAMP). At the reporting deadline for the
U.S. Department of Treasurys February
2009 monthly servicer progress report,
Bank of America had quadrupled the
number of completed modifications for
its customers since the previous months
report.
More than 12,700 Bank of America
customers now have a permanent
Home Affordable modification, up
from nearly 3,200 a month earlier.
Another 13,700 permanent modifica-
tions are pending, meaning final
modified loan terms have been
approved and documents have been
sent for the customers signatures,
which will be their final step to a
completed modification.
In the past month, our concerted
customer outreach initiative has driven
a substantial increase in the rate of
conversions from trial to permanent
modifications, as we anticipated in our
recent reports of HAMP progress, said
Jack Schakett, credit loss mitigation
strategies executive for Bank of
America Home Loans. These results
are attributable to the resources
including expansion of our default
management staffing to more than
15,000and focus we have placed in
support of this and other homeowner-
ship retention programs.
Since January 2008, Bank of
America has helped 700,000 customers
with a loan modification through our
own programs and with trial and com-
pleted modifications through the
Administrations Home Affordable
Modification Program (HAMP).
news flash continued from page 6
greater foreclosure protection, com-
pared to 58 percent of men.
Keeping families in their homes is
also particularly important to first-time
homebuyers, as 78 percent of young
adults under age 30 support greater
foreclosure protection. And 69 percent
of adults who are 30-44, the prime age
range for move-up buyers, said they
support more foreclosure protection.
Overall, roughly two-in-three respon-
dents said they own their home. Among
renters, about two-in-three intend to
buy a home in the near future. In addi-
tion, 15 percent of current home own-
ers intend to buy a home in the near
future.
The poll asked respondents for their views
regarding the Worker, Homeownership, and
Business Assistance Act of 2009 that
extended a tax credit of up to $8,000 for
qualified first-time homebuyers purchas-
ing a principal residence. The legislation,
which was signed into law by President
Obama in November 2009, also author-
ized a tax credit of up to $6,500 for quali-
fied repeat homebuyers.
Overall, eight percent of those sur-
veyed said they intend to take advan-
tage of that credit, while another 24
percent who might have been interest-
ed in using the tax credit said they can-
not afford to purchase a home at this
time. Of the 33 percent of respondents
who said they are planning to buy a
home (both renters and current home
owners), roughly 17 percent said they
intend to use the tax credit.
Financial concerns continue to be
the greatest barrier to growth in the
housing market. Among renters nation-
wide who aspire to own their own
home, 39 percent simply dont have the
money to buy a home at this time, and
another 20 percent said the primary
obstacle is that they feel they cannot
qualify for a loan. Larger economic
issues also play a role, as 18 percent
said that job security is the greatest
obstacle they face in trying to buy a
home.
Weakness in the housing market
itself may be blocking some home own-
ers who would like to buy a new home,
as 29 percent of current homeowners
said their greatest obstacle to purchas-
ing another home is their inability to
sell their current home. Beyond that,
among current home owners who
aspire to buy a new home, seven per-
cent feel trapped by a mortgage that
exceeds the value of their current
home, 14 percent fear that the value of
a new home might fall after they make
the investment, and 13 percent say
home prices are just too high to allow
them to buy a new home at this time.
Forty percent of respondents said
their home is their most valuable
investment, twice the number who cite
any other single investment401k
accounts, savings accounts and CDs,
stocks and bonds, or mutual fundsas
their leading family investment.
For more information, visit www.nahb.com.
FICO finds disturbing
trends in consumer
credit behavior
FICO, a provider of
analytics and deci-
sion management
technology, has announced new find-
ings uncovered in the latest analysis
offered by its subscription service for
businesses, FICO Score Trends.
Reversing a long historic trend, mort-
gage default risk for consumers with
high FICO scores now exceeds their
credit card default risk, even though
most credit cards are unsecured credit
and mortgages are secured by real
estate. The company observed a paral-
lel rise in mortgage delinquencies for
higher-scoring U.S. consumers.
According to the analysis in FICO
Score Trends, recent repayment behav-
ior across the financial services industry
has shifted significantly from historical
trends. In 2008-2009, bankcard
accounts were just 1.6 times more like-
ly to become 90 days delinquent than
were mortgage loans. By comparison,
in 2005 bankcard accounts were more
than three times more likely to become
90 days delinquent. And for borrowers
scoring high on the FICO scores 300-850
score range, the level of repayment risk
actually has become greater for real
estate loans than for bankcards. In
2009, 0.3 percent of consumers with
FICO scores between 760-789 defaulted
on real estate loans, compared to 0.1
percent who defaulted on bankcards.
continued on page 17
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Each month, National Mortgage
Professional Magazine will focus on one
of the industrys top players in our
Mortgage Professional of the Month
feature. Our readers are encouraged to
contact us by e-mail at newsroom@nmp-
mediacorp.com for consideration in being
featured in a future Mortgage
Professional of the Month column.
This month, we had a chance to chat
with Steven A. Milner, president and
chief executive officer of US Mortgage
Corporation d/b/a Mortgage Concepts, a
company he founded in 1994. Milner
has been a retail loan officer since 1981.
He was born in Los Angeles, and at
the age of 12, moved to the East Coast
and his family settled in New York. They
moved around the state a bit, moving
from the Bronx, and then on to Bayside
and eventually, out to Long Island, set-
tling in Brentwood.
He graduated from Brentwood High
School in 1967 and went to college at
Farmingdale State College, where he
focused on engineering. Steven eventual-
ly switched over to the field of educa-
tion, where he became a school teacher
in the Brentwood School District on Long
Island.
In 1986, he formed
Mortgages Unlimited Inc., a
New York State-registered mort-
gage broker. In September
1994, Mortgage Concepts
became operational, and in
1997, became a New York
State-licensed mortgage banker.
Steven is actively involved with
the day-to-day operations of
each department in the compa-
ny, and is in constant commu-
nication with each department
manager who represents a
team of dedicated, highly-
skilled mortgage banking pro-
fessionals. Currently, Mortgage
Concepts is a licensed mort-
gage banker and is an FHA/VA
Direct Lender, in 18 states and growing,
providing retail mortgage lending and
reverse mortgage lending.
How did you first get started
in the mortgage industry?
As the Vietnam War began to escalate,
the federal government was giving
deferments to school teachers, so in
1969, I changed my major from engi-
neering to education. I enrolled in the
teaching program at Stony Brook
University and finished my degree
there. Ironically enough, I did my stu-
dent teaching at the elementary school
originally attended in Brentwood, N.Y.
I was in the education field for about
18 years, provisionally certified to
teach kindergarten through sixth
grade. In 1973, I got married, and at
the time, I was making $25,000 as a
school teacher and my wife was also
making around $25,000 annually as a
teacher. In 1978, my son, Scott, was
born and we immediately went from
making $50,000 a year to $25,000 a
year, as my wife became a stay-at-home
mom. The single income stream neces-
sitated that I start hustling around, con-
tinuing to go to school at night and
work part-time jobs, including a bas-
ketball coach, intramural coach, foot-
ball coach and student council advisor.
By 1981, I had tried every part-time job
just to make a few extra bucks, includ-
ing selling Amway products, while con-
tinuing my education at CW Post, study-
ing school supervision, as my goal was
to become a principal.
That same year, I went to refinance
my home. When we went for the refi,
the salesperson who took the applica-
tion also happened to be a teacher in
the Huntington School District on Long
Island. I said, Gee if you can do this,
I can do this too! I thought it was a
good idea to do loans part-time, giving
up all my other part-time jobs to focus
on just one thing. I asked if I could set
up an interview, and the following
week, came back and sat down to learn
what it was all about. I was told that
they did not do any training, and that I
would have to teach myself the busi-
ness. I was given a copy of the Fannie
Mae/Freddie Mac Seller/Servicer Guide,
which was about four inches thick, and
was told to go home and read it.
I came back the following week,
after reading the guide, and asked
exactly what the position entailed. At
that time, the 1003 was a one-page
document, front and back, not four
pages. I figured it seemed pretty easy,
as you had to be detail-oriented, which
I was already as a teacher. I said, Show
me the money! So, he offered me 125
percent commission. I could not
believe that I was going to be paid $125
for originating a $100,000 loan.
What people forget is that the 1003
was never designed for a loan officer to
complete it was designed for the
borrower to complete. Its not rocket
science. Unfortunately, we have made
it into rocket science, but it was always
designed for a borrower to complete
with respect to their income, assets,
credit, liabilities and so on. To me, it
was just a matter of establishing a rela-
tionship with a borrower, interviewing
them and collecting the information.
I decided to give up all of my part-
time jobs in 1981-1982 to just focus on
mortgages in a part-time capacity. In
life, we often come to a fork in the road
and must choose which side to take.
Sometimes, its the right fork and
sometimes its the wrong fork, and in
my case, I know I made the right deci-
sion. In deciding to give up all of my
part-time jobs, it created a great finan-
cial strain on my family income.
How did you find your new-
found interest in the mort-
gage arena in the beginning?
Being that I didnt recieve any train-
ing, I had to approach Realtors, attor-
neys, financial planners and account-
ants the old-fashioned way and hit the
streets. I did this from 2:30 p.m.-5:00
p.m. each day, after I left teaching. I
didnt give up teaching because I had
to still make a living. So I started to
take applications and go to school at
night because my objective was still to
become a principal.
The first 24 applications that I took
never closed in my first six months. It
was getting brutal, as I had lost my
part-time income and now was mak-
ing nothing in the mortgage field. I
was actually losing money because I
was incurring expenses bringing in
coffee, bagels and donuts and all that
stuff trying to establish relation-
ships with my contacts through net-
working.
Steven A. Milner, President and Chief Executive Officer
of Mortgage Concepts
To me, its not about making
millions, its about getting loans
closed the right way, assuring
to the best of our ability that
the loan is going to get repaid.
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Our goal is to help Mortgage Profes-
sionals close more loans with our
Credit Reporting Services, Mortgage
Processing Services, and Appraisal
Management Services.
Providing our Clients with Platinum-
Level World-Class Service is our
priority.
Platinum Credit Services, Inc. (PCS)
is more than just credit, with a full
scope of services for mortgage
lenders. At PCS, we pride ourselves
on providing the highest level of re-
spect and deserving gratitude to
our clients.
At PCS you will receive, knowledge-
able, courteous service from our staff
of skilled credit professionals. Our
combined management experience
is greater than 30 years of expertise
in the mortgage servicing industry. In
addition, PCS offers competitive pric-
ing and believes in providing the
client personal attention, in all as-
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Learn more about our services by
calling, Lorenzo Pugliano, President
and CEO at 631-299-2084.
www.platinumcreditservices.com
What was it that kept you in a
field where you were losing
money in?
Ive always believed that persistence
overcomes resistance, and I knew that
money was to be made in the mortgage
marketplace. I just lacked the proper
direction due to the absence of train-
ing. I vowed, at that point, that if I were
to ever have my own mortgage compa-
ny, I would train my salespeople and
provide them some direction. I had a
tremendous desire to succeed in this
business.
One day in school, I was giving a
test and took out some of my mort-
gage paperwork. One of the students
asked if I was into real estate, and he
suggested I meet his father who was
also in the real estate industry. My
students father had an office in
Queens, so we set up a meeting and
discussed some opportunities. He
was a real estate broker in Florida
and what he wanted to do was sell
me properties in Florida. I wasnt
interested in that, but he did intro-
duce me to his sales manager who
was running the mortgage brokerage
division. She offered me a 50 percent
commission. I signed on and was
finally starting to close loans. I would
solicit real estate agents, attorneys
and financial planners, primarily to
do purchase money business in the
Brentwood, Long Island, N.Y. area I
taught in. I would take applications
in local libraries, diners or wherever I
could meet clients.
In 1986, I received my doctorate in
mathematics and supervision, and was
ready to move on to the next step in
my career as a school principal. I was
making $45,000 as a teacher and
$115,000 selling mortgages.
In those days,
we didnt have cell
phones, and fax
machines were a
novelty. The only
real form of
advanced commu-
nication that I had
was a pager. In my
recorded pager
message, I said
that I would return their call in five
minutes. That became my trademark,
to call back within five minutes no
matter where I was. Thats how I ended
up developing my business, going from
five loans per month, to 10 loans, to 15
with nothing more than a stack of busi-
ness cards and the reputation of work-
ing hard, being responsive and deliver-
ing on my word.
Did your success in the mort-
gage field and the opportuni-
ty you saw to make money in
this field lead you to quit
teaching?
Yes, I came to yet another fork in the
road, and in 1986, I had the opportuni-
ty to open up a mortgage company with
two other partners in Bayside, N.Y.
When I left teaching, I gave up 60 per-
cent of my pension. If I had taught
another two years, I would have
received my full pension, but I had to
evaluate what was right at the time and
made my decision to go full-time into
the mortgage industry.
My two partners
worked the the Five
Boroughs, and I
worked Nassau and
Suffolk Counties on
Long Island. At any
given time, I would
have $30-$50 in
quarters in the
glove compartment
of my car and I
knew the location of every pay phone
on Long Island! Cell phones did not
exist.
Our primary business was purchase
money, all Realtor-based. I would
hand-deliver the commitments to the
attorneys, the selling agent, the listing
agent, and market myself to everyone
involved in the transaction. It became a
strictly referral-based business. I did
not know how to do consumer-direct
telemarketing or how to buy leads.
We eventually opened up a satellite
office on Long Island in Hauppauge,
N.Y. in 1991 and another larger office in
Bohemia, N.Y. in 1992.
We dissolved that corporation in
1994, due to a difference in opinion. I
wanted to become a mortgage banker
and my partners wanted to remain
mortgage brokers. We werent process-
ing our loans the way mortgage brokers
processed their loans, as we were using
the Citibank Mortgage Power Program,
the Williamsburg Power Program and
GreenPoint. Basically, wed fax the info
over to them and they would do the
loan. We were doing 125 loans per
month with one or two employees,
making a lot of money with very little
overhead, but I felt the industry was
changing and that we should become
mortgage bankers.
I formed US Mortgage Corporation in
1994, with the intent of opening up
and getting my mortgage broker regis-
tration approved by Oct. 1, 1994, which
I ultimately did, and during that time
period, I developed the logo for US
Mortgage Corporation or USMC. The
USMC name looked too much like the
United States Marine Corps, and I didnt
think I was getting the right message
across, so we made it d/b/a Mortgage
Concepts. We developed a unique sell-
ing proposition, which was Helping
You Make It Home, the slogan we used
on all of our business cards, Web site,
literature, etc.
continued on page 12
Mortgage Concepts is doing in
the neighborhood of $30-$35
million per month consistently.
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Why did you want to make
that change from mortgage
broker to mortgage banker?
I felt that I needed to control more of
the process, specifically, the underwrit-
ing of the loans. Additionally, I felt that
the future was in mortgage banking
and not mortgage brokering. We stayed
a broker until 1997, and then received
our banker license in 1988.
I developed a nice tight knit group of
retail referral-based loan officers, dong
business exclusively in Nassau and
Suffolk Counties, primarily receiving
business from the Realtor community.
Our business was consistently 90 per-
cent purchase money transactions.
I have always worked very hard at
this business, working 16-18 hours
every day. I have always told my staff
that I am like a Motel 6 I will always
leave the light on for you.
I started to see a change around the
last quarter of 2004, a very unusual
drop in originations that had pro-
gressed into 2005 that got much worse
in 2006. I eat, sleep and breathe this
business.
In 2004, there were no FHA [Federal
Housing Administration] loans on Long
Island to speak of because of the high
loan amounts, and the loan limits were
very low on FHA loans I had my Mini-
Eagle, but did not use it very often.
The one decision I made that saved
the company was that I never put one
sub-prime loan on my warehouse line.
I could have made a lot more money
like many other people did, but I
would rather make less and stay in
business.
Ive always had the philosophy that
bigger is not better better is better.
I think that philosophy has transcend-
ed through everything I do with
Mortgage Concepts. To me, its not
about making millions, its about get-
ting loans closed the right way, assur-
ing, to the best of our ability, that the
loan is going to get repaid. Weve
always consistently done 80-120 loans
per month, with an average size of
$400,000 per loan, and keeping the
economies of scale in place. Mortgage
Concepts is closing approximately
$30-$35 million per month consis-
tently.
In 2006, I felt that I had to change
my business model because I saw a
tremendous decrease in values in the
Long Island, N.Y. market, which is
where we are focused. Values were
decreasing, and it was affecting the
purchase money business. I love what I
do and I felt like I really needed to re-
invent Mortgage Concepts, which
required that I change from having a
one-dimensional business model,
which was primarily purchase money
out of Nassau and Suffolk Counties, to a
multi-dimensional mortgage company
doing business in other states.
In changing your model, how
did you attract new salespeople?
I changed and expanded my business
model and basically applied the J. Paul
Getty theory where Id rather have one
percent of 100, than 100 percent of one.
To do that, I decided to become licensed
in as many states as I possibly could, start-
ing in 2007. This way, I could attract sales-
people from all of the states we were
becoming licensed in. I felt that I was
strong on the operational side, from orig-
ination through closing. In terms of sales,
I had to create an opportunity in different
states by opening up corporate branches.
Many states still allow loan officers to
work out of their home, while others
require brick and mortar
locations. We are currently
licensed in 18 states, and
have our FHA and USDA
[United States Department
of Agriculture] approval.
We allow our loan offi-
cers to originate from
their homes or from their
brick and mortar offices,
but we process and
underwrite all of the
loans in our Bohemia,
N.Y. headquarters. I can-
not allow off-site process-
ing and underwriting.
Everything has to flow
through here, and now
with technology, that goal
is much simpler to accom-
plish. Currently, we have
approximately 140 sales-
people licensed in 18
states, but within just a
few weeks from now, we will be licensed
in 20 states. My goal by the end of the
year is to be licensed in 35-30 states and
not to expand without control. You have
to be able to control the quality of the
origination and maintain integrity of
the files which is challenging with a 10
percent unemployment rate.
Our loan officers do a compilation of
everything, including purchase money
and refinances on a referral basis, or
they do lead-based where they pur-
chase their own leads, but we do not do
any direct response marketing. Direct
response marketing can create an
underlying pressure from the loan offi-
cer through the underwriter to close
loans, to meet the economies of scale
and to meet the budgetary require-
ments of running a mortgage company.
Lets face it, if you are spending
$300,000-$500,000 per month on
advertising, you have to close a lot of
loans. That means you are going to be
putting a lot of pressure on salespeople
and on management to essentially
close loans without any regard for the
willingness of the borrower to repay,
and I think that philosophy has caused
the demise of many of the larger mort-
gage companies.
What is Mortgage Concepts
current minimum FICO score?
Its 620 across the board, but its proba-
bly going to go to 640. I think that you
are going to see that scores under 640
will have some very serious perform-
ance issues. There is a higher degree of
a borrowers unwillingness to pay, so we
are probably going to have to migrate
and have our own credit overlays and
transition to scores of 640.
One of my objectives is to obtain
Ginnie Mae approval by the end of the
year. Ive seen companies get Ginnie
Mae approval and use it to their disad-
vantage. They adapted a sort of kid in
the candy store type mentality. Certain
companies take their Ginnie Mae
approval and use it to do loans they
know are not going to perform. It
inevitably catches up with you when
you approve loans that should not be
approved.
Do you have any
particular business
philosophy you like
to impart upon
your salespeople?
Ive always felt that the
needs of the corporation
exceed the needs of the
individual. The needs
and longevity of the cor-
poration are more impor-
tant than what a Realtor
needs, a loan officer
needs and what a bor-
rower needs, because
without the corporation,
none of those aforemen-
tioned entities have any-
thing. We do not need to
sit here and talk about all
the mortgage companies
that are left with nothing
but some desks and
paperclips in their drawers. My objec-
tive has always been to stay in business,
and that means that if we are going to
stick around in the mortgage banking
business, we have to make good loans.
That is what we offer salespeople all
over the country the fact that we will be
in business. They have a future with us
at Mortgage Concepts. We are not going
to say yes to every loan, but you will
make a good living.
What do you consider the
next big thing for the
mortgage industry as a whole
that mortgage professionals
will need to embrace?
Being an ex-educator, I have always
been a proponent of education. I think
it is imperative that any loan officer
who speaks to a borrower must comply
with state-specific registration, educa-
tion and testing requirements. I think
that is huge, and it says a lot to any
future employer. When we get out of
high school and we go to college, we
pay to go to college and generally work
harder while at college. There should
be no difference when it comes to the
mortgage business. If you are going to
enter this profession, then you should
know the profession. You have to be
able to look somebody in the eye and
deliver what you say you are going to
deliver. I think this requires a change in
attitude, and a change in behavior with
respect to where business is coming
from.
Over the last four or five years, I was
never, quite frankly, a proponent of the
consumer-direct model, because I felt
there was a level of integrity missing.
Loan officers have to get that back and
have to re-establish that. I still feel that
as values begin to stabilize, there will
be tremendous opportunity for loan
officers to obtain business the old-fash-
ioned way of walking into the offices of
Realtors, attorneys, financial planners
and accountants, and be their purchase
money source for their borrowers.
I think that the loan officer who is
technologically advanced and educa-
tionally advanced will capture more
business going forward and that goes
with the infrastructure of mortgage
companies as well.
On the origination side, Mortgage
Concepts is 100 percent paperless. I think
it really enhances our ability to be more
efficient. I think loan officers need to do
that. With education comes knowledge
and confidence, and I think that is the
primary focus I would like to see loan
officers take. LOs cannot have this
dumping ground mentality that they
had years ago. If the borrower fogged a
mirror, they got a mortgage. That no
longer works and it is going to take some
behavior modification over the next few
years to change that mentality.
How do you use technology
to make sure that process of
vetting a loan does not slow
down the process? What kind
of technology does Mortgage
Concepts have in place to
make sure the process runs
smoothly?
Your first step is to communicate and
educate your loan officers on your phi-
losophy of doing business, and that is
where behavior modification comes into
play. They have to understand that we
are partners, and are all in this together.
As a loan officer, you have a responsibili-
ty to listen and provide a service for your
borrowers to the best of your ability.
Step two is from an internal infrastruc-
ture standpoint. We use many different
layers of services that are provided to us
on a technological basis regarding the
integrity of the file from evaluating
continued on page 15
The needs and longevity of the
corporation are more impor-
tant than what a Realtor needs,
a loan officer needs and what a
borrower needs because with-
out the corporation, none of
those aforementioned entities
have anything.
nmp mortgage professional continued from page 11
I eat, sleep and
breathe this busi-
ness working 16-
18 hours each day.
Im like the Motel
6, I will always
leave the light on
for you.
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one case created a $32 difference when
the fees are passed along to the con-
sumer, as a settlement services charge at
closing. That fee difference discriminates
against the unmarried co-applicants
based on marital status and is a violation
of the ECOA sections cited above.
From a processes perspective,
unmarried co-applicants were also
found by the FDIC examiners to have
some discriminatory issues. One of the
banks the FDIC noted on
the violations was due to
the requirement that
unmarried co-applicants
complete separate appli-
cations, while married
co-applicants completed
a single application. This
requirement is a violation
of the same standards
regardless of marital sta-
tus provisions of the
above sections.
While correcting the
pricing issue for ECOA compliance is fair-
ly simple: Make sure that whatever the
price a joint credit report is, the cost of
two individual credit reports equals that
same amount. Correcting the application
processes issue is something more com-
plex. The National Credit Reporting
Agency Inc. (NCRA) has discovered that
some loan origination systems (LOS) have
requirements that split unmarried co-
applicants into two separate applications
for processing. This varies from system to
system, and can even also vary pending
the current address status of the co-
applicants. On some systems, if the co-
applicants are currently residing at the
same address, they can be entered on a
single application. However, this is more
of a problem when the co-applicants are
residing at different locations at the time
of the loan application. Some LOS do not
have the ability to enter different
addresses for co-applicants on a single
application, regardless of marital status.
This can also be problematic with the
transfer of that data from the workflow
of the LOS, to the mortgage credit report-
ing agency, to the national credit reposi-
tories and back with the credit report. Of
course, with several different systems
In March, some New England area
banks received notice from the Federal
Deposit Insurance Corporation (FDIC)
New York Division of Supervision and
Consumer Protection that a recent
examination found potential violations
of the Equal Credit Opportunity Act
(ECOA) for Fair Lending violations per-
taining to the fees and processes
imposed upon consumers for the credit
reports related to their mortgage loans.
The credit reporting
practices in question have
been found to violate
ECOA Section 202.4 (a) of
Regulation B which pro-
hibits a creditor from dis-
criminating against an
applicant in any aspect of
the credit transaction on
the basis of marital sta-
tus. Further, Section
202.2(m) of Regulation B
defines a credit transac-
tion broadly to include
every aspect of an applicants dealings
with a creditor regarding an application
for credit or an existing extension of
credit (including, but not limited to,
information requirements; investiga-
tion procedures; standards of credit-
worthiness; terms of credit; furnishing
of credit information; revocation; alter-
ation or termination of credit; and col-
lection procedures). The preliminary
findings continue with citations from
Section 202.6(b)(8) of Regulation B
which requires that a creditor shall
evaluate married and unmarried appli-
cants by the same standards; and in
evaluating joint applicants, a creditor
shall not treat applicants differently
based on the existence, absences or
likelihood of a marital relationship
between the parties.
So, why are these credit reporting
practices setting off so many alarms?
From the fee structure perspective, it
is the difference in the price of the cred-
it reports that some banks have negoti-
ated with their credit reporting agencies
that give a price reduction to co-appli-
cants that are traditional joint credit
files (typically a husband and wife)
which is not available to non-traditional
co-applicants that are unmarried. This
discounted credit report fee, which in
FDIC Finds Fair Lending
Violations Under
ECOA for Credit
Report Fees
By Terry W. Clemans
continued on page 22
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different mortgage applications that a
borrower has to avoid potential for simul-
taneous applications for evaluating if the
borrower is paying their rent on time.. If
the borrower goes from paying $1,000
per month in rent to $3,000 per month
for a mortgage with almost an identical
income, they experience sort of a pay-
ment shock, and this is the type of thing
we train our salespeople to look for. We
have always verified the authenticity of
income through a 4506-T Form, even
when it was not trendy to do so.
There is a lot of technology avail-
able, and you must be willing to spend
the time, money and energy to imple-
ment these technologies into your sys-
tems so that you can ascertain any
inconsistent information in the file.
Very often, we find some inconsisten-
cies perpetuated not by the loan officer,
but by the borrower. Borrowers are
becoming more sophisticated these
days with technology in regards to bank
statements, pay stubs and appraisals.
What is your opinion of the
Home Valuation Code of
Conduct (HVCC)?
We have never let our loan officers order
appraisals. We have to ensure that there
is no contact between the borrower and
the appraiser, and the loan officer and
the appraiser. When we open the loan in
accordance with the MDIA [Mortgage
Disclosure Improvement Act] and HVCC,
we order the appraisal ourselves from
our approved appraiser list internally or
an appraisal management company.
When the appraisal comes in, it is
immediately underwritten, but we view
an automated valuation model [AVM]
and we use what is called a LARA Report
[LandSafe Appraisal Risk Analyzer] and
use a company out of Pittsburg that
does a reconciliation of values. We use
all three on every single appraisal to
ascertain not only the authenticity and
the accuracy of the value, but the accu-
racy of the comparable sales as well.
By having these measures in place in
our post-appraisal process, loan officers
who work for Mortgage Concepts know
we are going to use accurate appraisals.
How are you adapting to
changes with the Secure and
Fair Enforcement for Mortgage
Licensing Act (SAFE Act) and
licensing requirements? How
do you feel about the fact that
depositories do not have to
conform to SAFE Act require-
ments the way non-depository
lenders have to?
I am in total disagreement with that. I
think that loan officers, whether they
work for depository lenders or non-
depository lenders, should have the
same responsibilities. They have to
meet with the borrower, they have to
conduct an interview with the borrower
and they have to qualify the borrower
the proper way. Whether you are in
Mississippi, North Dakota or New York,
they should be required to take the 20-
hour SAFE Act course and the test.
Additionally, they should meet all regis-
tration, testing, education and financial
responsibilities that are state-specific
no different than any loan officer in
a non-depository bank. They are per-
forming the same tasks and responsibil-
ities in originating loans.
I have taken the 20-hour SAFE Act
course, and I work 18 hours a day. I
have taken the test and got a 97 on the
test, and I have taken every state edu-
cation requirement for every state that
Mortgage Concepts is licensed in. It is
an arduous and long process, but you
need to do it. I try to set the example
for my employees, along with Lenny
Ramirez, my vice president.
How have you managed with
the lack of warehouse lines
that exist right now?
My warehouse lines have a good
understanding of how I operate, from
the origination of the loan to the clos-
ing of the loan. I think the longest peri-
od of time I had a loan on the line was
32 days. I personally monitor my ware-
house aging report every night. I go
home with the report under my pillow
basically and when it hits 12 days, its
symptomatic of a problem in the back
office. I question why a particular loan
is on the line for 12, 14 or even 16
days. I think it is our whole operation
that has created a comfort level for our
warehouse lines. Not only did I obtain
a new warehouse in 2009, but my exist-
ing line was increased. Mortgage
Concepts is currently using approxi-
mately 70 percent of our warehouse
capacity, so we are well positioned for
growth.
My goal by the end of the year
is to be licensed in 35-30 states
and not to expand without con-
trol. You have to be able to con-
trol the quality of the origina-
tion and maintain integrity of
the files which is challenging
with a 10 percent
unemployment rate.
Ive always believed that per-
sistence overcomes resistance,
and I knew that money was to
be made in the mortgage
marketplace.
nmp mortgage professional continued from page 12
continued on page 16
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What lies ahead for the inde-
pendent mortgage banker?
I think that there are some challenges
and hurdles that the independent mort-
gage banker will face in the future.
Liquidity is a big issue with mortgage
bankers. I think the independent mort-
gage bankers are going to potentially
have a liquidity issue because investors
are going to look for reimbursement
from the independent mortgage
banker. I think thats a serious problem,
and I think we are just starting to see
the beginning of that now.
Mortgage insurance companies have
sent out investigative teams in an
attempt to avoid paying claims to an
investor that an independent mortgage
banker sold the loan to, and they are
denying these claims. That is one issue
with regard to push-backs.
Another issue regarding push-backs is
with Fannie Mae and Freddie Mac. They
are going to be pushing back over $21
million this year in buybacks for loans
that closed three or four years ago due to
their investigative reports. Many of those
are being pushed back because borrowers
have filed for bankruptcy and their tax
returns are inaccurate. Yet, at the time,
the loans were originated and closed, tax
returns were not needed. If they were
fraudulent acts, thats one thing, but
these push-backs are not due to fraud.
A majority of mortgage bankers have a
tremendous amount of investment in
their business emotionally, financially
from an infrastructure standpoint,
from a responsibility standpoint and they
take that very seriously. A good, responsi-
ble mortgage banker does not think just
about closing the loan. They think about
what happens before the loan is closed
and what happens after the loan is closed.
I think those challenges and hurdles
become more and more difficult to main-
tain because it is becoming increasingly
costly to run a successful independent
mortgage banking operation. I think that
sometimes, in their zest and zeal to meet
those requirements, they ultimately close
loans with some disregard for the ability
and willingness of the borrower to repay
because it becomes a financial issue.
I am always looking to do things the
right way, and sometimes, its at the
expense of developing sales. There is
always that balance of sales and opera-
tions, sales and operations that con-
stant balance that you look for and thats
the challenge a good independent mort-
gage banker has.
Any closing comments?
I think that there is still tremendous
potential for independent mortgage
bankers to stay in business and to do
good business. I think that, with respect
to Mortgage Concepts, we offer the ability
to become valuable partners with us. We
have a department that recruits teams of
highly-qualified loan officers and mort-
gage brokers who are interested in part-
nering with us. We are very detailed-ori-
ented about the entire hiring flow and
educational flow that these partner
branches or teams will have to follow in
order to integrate into our system. We
offer tremendous support. Our rates are
extremely competitive, so we give them
the tools and support to succeed.
We have zero tolerance for fraud
zero, and I stick to that like glue. Thats
very important to us and they must
understand that. One quote I often use,
is The future aint what it used to be.
I think Yogi Berra said that and people
have to get out of that mentality. They
have to know that we do things the
right way and if they are willing to do
that, then there is an opportunity for
them at Mortgage Concepts.
From a partner branch standpoint, the
industry needs to know that we have a
very expeditious opening, underwriting
and processing loan flow process. The loan
is opened within 24 hours and is under-
written within 72 hours. Commitments go
out immediately. Some lenders open the
loan, the processor works on the file for 30
days and then the file is given to the
underwriter for approval. We do it the
other way around. We open, underwrite,
give it back to the processor and they gath-
er the conditions and then we clear the
loan for closing. My staff at Mortgage
Concepts is second to none. Most of my
employees have been with me over 15
years, and they are very important to me.
We are a growing company, but we oper-
ate as a family unit.
I look forward to the challenges and
hurdles that lie ahead for Mortgage
Concepts and the industry as a whole. This
is a wonderful business and as I always say
Life is not about having what you want
it is about wanting what you have got.
nmp mortgage professional continued from page 15
LOs cannot have this dumping
ground mentality that they had
years ago. If the borrower
fogged a mirror, they got a
mortgage. That no longer
works and it is going to take
some behavior modification
over the next few years to
change that mentality.
The one decision I made that
saved the company was that I
never decided to bank sub-
prime loans I never put one
sub-prime loan on my ware-
house line. I could have a lot
more money like many other
people did, but I would rather
make less and stay in business.
17
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homes while they seek new employ-
ment. According to the proposed pro-
gram, loan servicers would reduce the
borrowers mortgage payment to an
affordable amount for up to nine months
while the homeowner looked for
employment.
The vast majority of new distressed
borrowers we are seeing involve the
loss of income, said John A. Courson,
MBA president and chief executive offi-
cer. This program is designed to buy
those borrowers time to find a new job,
after which they could hopefully quali-
fy for a loan modification.
Under the MBAs proposal, loan ser-
vicers that participate in this program
would reduce monthly payments to an
affordable level based on household
income. Borrowers would be initially eval-
uated for the forbearance program using a
model that assumes the borrower will be
re-employed within nine months of losing
his or her job at 75 percent of the borrow-
ers previous salary. The borrower would
be reevaluated as to employment and
income status every three months for a
total forbearance of nine months. Once
reemployed, the borrower would be eval-
uated for a modification under the Obama
Administrations Home Affordable
Modification Program (HAMP).
Recent statistics show that the aver-
age unemployed U.S. worker stays
unemployed for between six and seven
months, added Courson. That is a long
time for a borrower with a dramatic
drop in income to stay current on their
mortgage. Further, borrowers with such
a precipitous drop in income cant qual-
ify for most loan modification pro-
grams, so we are looking for ways to
allow those borrowers to keep their
homes while they look for another job.
MBA suggests that some participat-
ing servicers would need access to spe-
cial loans through the U.S. Treasury to
supply funds to servicers so they could
continue to advance payments to
investors during the extended forbear-
ance period. The program would need
to be voluntary and flexible due to
financial accounting considerations.
MBA created this program through a spe-
cial task force of its members. MBA also con-
sulted with Fannie Mae and Freddie Mac.
Recently, MBA representatives met with offi-
cials from the White House, the Department
of Treasury and the Department of Housing
& Urban Development (HUD) to present the
proposal.
For more information, visit www.mort-
gagebankers.org.
CMSA changes name to
CRE Finance Council
The Board of Governors of
the Commercial Mortgage
Securities Association (CMSA),
a trade organization dedicat-
ed to the commercial real
Were identifying lending industry
situations in FICO Score Trends that to
our knowledge have never been seen
before, said Dr. Mark Greene, chief
executive officer of FICO. Economic
instability is creating unknown risk in
lenders credit portfolios as well as
counter-intuitive trends in consumer
behavior. While the FICO 8 score contin-
ues to prove its unprecedented power in
rank-ordering consumers for risk, even
low-risk consumers are changing the
value they give different credit lines. As
the CARD Act goes into effect next week,
it likely will create additional, unhelpful
pressures on the banking business.
In FICO Score Trends, company
experts found new evidence that
lenders tightened their criteria for new
loans in 2008-2009 and began cherry
picking the kinds of borrowers to
whom they would extend credit.
Mortgage loans opened last year
between April and October reflected
significantly tighter standards than in
prior years. In 2005, nearly 46 percent
of consumers who opened a new mort-
gage had a FICO score less than 700. In
2008 this percentage had dropped to
just 25 percent of the newly booked
mortgage population. Other industry
sectors experienced similar shifts. In
the bankcard sector in 2005, 51 per-
cent of consumers with a new credit
card had FICO scores less than 700.
That percentage dropped to just 38
percent in 2008. As lenders tightened
their credit standards, it became corre-
spondingly more difficult for con-
sumers with delinquencies in their
credit histories and lower FICO scores
to qualify for additional credit.
FICO also examined FICO Score Trends
to learn how credit risk of real estate
loans and bankcards varied across U.S.
regions. The company found the most
dramatic shift in the Pacific region. In
2005, bankcards were 6.4 times more
likely to default than were mortgage
loans. That percentage dropped to only
1.3 times riskier in 2009.
Consumers in the midwest region
demonstrated the smallest relative
change. Bankcards were 2.5 times
more risky of default than were mort-
gages in 2005, but bankcards were just
1.5 times more risky of default by
2009. Borrowers in the Northeast con-
tinue to present the least amount of
default risk nationally for real estate
loans.
For more information, visit www.fico.com.
MBA proposes forbearance
program to help
unemployed borrowers
The Mortgage Bankers
Association (MBA) has
announced that it has
developed a concept
for a new forbearance program that
would allow qualified borrowers who
had lost their jobs to remain in their
news flash continued from page 9
continued on page 19
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indebtedness rules is also helpful in
these situations:
O Determining whether the mortgage
on a borrowers primary residence is
recourse or non-recourse in states
that have anti-deficiency statutes,
such as California and Arizona.
O Determining whether a
short sale or loan bal-
ance reduction through
refinance or modifica-
tion would be taxable
by the IRS as income to
the borrower.
O Determining whether
private mortgage insur-
ance (PMI), Federal
Housing Administrations
mortgage insurance pre-
mium (FHA MIP) or the
Department of Veterans
Affairs (VA) funding fee
is tax deductible to the
borrower.
While I am not suggest-
ing that you give tax or legal
advice, I am suggesting that
a working knowledge of
acquisition indebtedness
and other tax rules can help
you avoid placing borrowers
in loans that are not suitable
or otherwise defined as
predatory lending.
Example #2:
Downpayment funds for
a first-time homebuyer
O A husband and wife are gifting
$25,000 to their first-time homebuy-
er daughter for use as a downpay-
ment on her new home.
O A daughter can qualify for a better rate
on her mortgage if one or more of her
parents co-sign on her mortgage.
O The daughter is willing to purchase a
home after the expiration of the
$8,000 first-time homebuyer credit
because she doesnt think she will be
able to qualify for it if one or both of
her parents co-sign.
O A husband and wife are also in the
process of purchasing their own
home. They are willing to purchase
after the expiration of the $6,500
Many loan originators take the viewpoint
that knowledge of the federal mortgage
and housing tax laws is not necessary to
successfully originate loans. I completely
disagree. In fact, there are specific oppor-
tunities for you to generate more busi-
ness by understanding various mortgage
and housing tax concepts.
After all, the mortgage is inherently
a financial transaction. While mortgage
originators should not act as tax advi-
sors, they should structure loans that
are suitable for the borrower by under-
standing the tax consequences of vari-
ous mortgage and housing strategies.
At the very least, borrowers should not
be placed in a worse tax or financial sit-
uation after dealing with an originator
than they were prior to dealing with the
originator. This is consistent with the
goal of long-term, sustainable home-
ownership, is it not?
Consider these two examples where
a working knowledge of federal mort-
gage and housing tax laws would be
necessary for you to avoid committing
loan origination malpractice:
Example #1: Financing
the purchase of a
second home
O The consumer currently owns a pri-
mary home worth $500,000 with a
$100,000 mortgage.
O The consumer wants to purchase a
second home for $200,000.
O Many, if not most, loan originators
would structure the transaction in a
way that involves pulling equity out
of the borrowers primary home for
use as either a large downpayment or
to purchase the second home for
cash ($100,000-$200,000 of cash out).
The problem:
In this example, there would be three
main problems if a borrower pulls
$200,000 of equity out of their primary
home and refinances the mortgage to
say, $300,000:
O The borrower would not be able to
deduct the interest on any portion
of the $200,000 of cash-out as
acquisition indebtedness.
O If the borrower is not one of the six
million-plus Americans subject to the
Alternative Minimum Tax (AMT), they
would only be able to deduct the
interest on up to $100,000 of the
cash-out as home equity indebted-
ness, and would not be able to deduct
the interest on the remaining
$100,000 of cash-out
proceeds.
O If the borrower is one
of the six-plus million
Americans subject to
the AMT, they would
not be able to deduct
the interest on any of
the $200,000 of the
cash-out.
Assume the mortgage
carries a six percent inter-
est rate, and the borrower
is in a 25 percent federal
income tax bracket. The
inability to deduct the
mortgage interest would
cost the borrower $3,000
per year or $250 per
month. Put differently,
this would be equivalent
to putting the borrower in
a high-cost loan
defined by the Federal
Reserve Board as 1.5 per-
cent higher than the
Freddie Mac average rates
on first lien mortgages.
Putting the borrower in a
high-cost loan when lower cost alterna-
tives are readily available is traditionally
defined as predatory lending.
The solution:
Dont pull equity out of the primary
home, and instead, place the mortgage
on the second home that is being pur-
chased. In that case, 100 percent of the
mortgage interest would be deductible
to the borrower as acquisition indebt-
edness. In this example, the borrower
would save $3,000 per year or $250 per
month.
Loan originators who are familiar
with the acquisition and home equity
indebtedness rules can avoid commit-
ting malpractice and predatory lend-
ing as outlined above. This is a prime
example of why it is important for orig-
inators to understand certain federal
mortgage tax laws.
Knowledge of the acquisition
BY GIBRAN NICHOLAS
Why Tax Knowledge Matters
long-time residence homebuyer tax
credit because they think they wont
be able to qualify for it because they
are co-signing for their daughters
mortgage.
O Parents are unsure of where to get
the money for the $25,000 in gift
funds because they dont want to liq-
uidate their own cash reserves due to
their own homebuying situation.
The problem:
Many, if not most, loan originators are
unfamiliar with gift tax and homebuyer
tax credit rules and are likely to lead
the borrowers down a path of misinfor-
mation or making mistakes in structur-
ing either one or both of the transac-
tions in this example.
The solution:
By simply giving the borrower informa-
tion relating to the gift tax and home-
buyer tax credit, the loan originator can
literally save the borrowers more than
$20,000.
O The daughter can qualify for the
$8,000 first-time homebuyer tax
credit even if there are co-signors.
O The parents can qualify for the $6,500
long-time resident homebuyer tax
credit on the purchase of their home
even if they co-sign for their daughter
on the purchase of her home.
O The parents can save $5,400 in gift
taxes by writing two separate checks
for the $25,000 in gift funds to their
daughter.
O The parents can preserve their cash
reserves by pulling funds out of their
IRA without penalties to help their
daughter buy her first home (tax rules
allow you to pull $10,000 per account
holder out of an IRA, prior to age 59-
and-a-half, without penalty, to buy
your first home or help an immediate
family member purchase their first
home).
Again, I am not suggesting that you
give tax or legal advice. I am simply
suggesting that you help borrowers
avoid loan situations that are more
costly or otherwise not suitable for
their situation by having a working
At the very least,
borrowers should not
be placed in a worse
tax or financial situ-
ation after dealing
with an originator
than they were prior
to dealing with the
originator. This is
consistent with the
goal of long-term,
sustainable home-
ownership, is it not?
continued on page 22
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cial services industry, has announced
its collaboration with a local Haitian-
born doctor to support the families of
Croix-des-Bouquets, Haiti, a town of
8,600 on the Northern outskirts of Port-
au-Prince, and the rebuilding of its
Petit Chaperon Rouge School.
Dr. Fred Guerrier, a physician now
residing in the Tampa Bay area, has
returned there twice each year for the past
decade to provide free medical treatment
to individuals in Croix-des-Bouquets.
Severely damaged in the January earth-
estate capital markets finance industry
since 1994, has transformed CMSA into a
new organization that will serve all con-
stituencies within commercial real estate
finance. CMSA is now the CRE Finance
Council.
The creation of the Commercial Real
Estate (CRE) Finance Council reflects the
growing changes in global commercial
real estate finance, and the importance
its participants play in furthering the mis-
sion of this market. CRE Finance Council,
created by and for its members, will help
drive a vibrant, transparent and accessi-
ble commercial finance market, an inte-
gral part of the commercial real estate
industry that serves a central role within
the U.S. and global economies.
Our intention always is to be
responsive to our members and to the
markets changing course, and the CRE
Finance Council is a natural and logical
extension of this new course, said
Dottie Cunningham, chief executive
officer of the CRE Finance Council.
The CRE Finance Council initially will
include five ForumsCRE market partic-
ipants that drive the global commercial
real estate industry: investment-grade
bondholders, multifamily lenders, portfo-
lio lenders, servicers, and securities and
loan investors. Each of the Forums will
interact and address issues critical to its
business sector and work to achieve solu-
tions that serve a common purpose.
As these specialized Forums collabo-
rate, the CRE Finance Councils objectives
will be to represent all Forum partici-
pants, manage disparate and converging
views, advocate the consensus of posi-
tions to policy and lawmakers on behalf
of the industry, educate members, con-
tinue developing best practices, and
work toward the betterment of the entire
commercial real estate finance market.
We will always attempt to foster a
consensus on issues that are important
to our various stakeholders, said
Patrick C. Sargent, president of the CRE
Finance Council and partner with
Andrews Kurth LLP. Where the CRE
Finance Council finds consensus, it will
advocate; where it finds differences of
opinion, the Council will educate. Our
members want an adaptive, expanded
organization, forged by the successes
of its predecessor, but one that serves
all constituencies for our changing
industry. And we are very excited to
address the industrys challenges and
to advance our members objectives.
For more information, visit www.crefc.org.
Mortgage Contracting
Services contributes to
Haitian relief
M o r t g a g e
Contracting
S e r v i c e s
(MCS), a national field service company
providing property preservation,
inspections and real estate-owned
(REO) asset maintenance to the finan-
news flash continued from page 17
quake, the Petit Chaperon Rouge School
serves this community to educate its 475
elementary students and to additionally
supply them with a daily lunch. American
physicians and nurses also use the schools
clinic to give medical care to these families.
In a joint effort between MCS and
The Steans Family Foundation, an affil-
iate of MCS Holdings LLC, more than
$35,000 has been raised to assist Dr.
Guerrier in his actions to restore the
schools functionality. All donations are
directed at specific, local needs.
Our goal is to not make a single gift,
but rather to foster an ongoing relationship
with the people of Croix-des-Bouquets,
said Mike Carroll, chief financial officer of
Mortgage Contracting Services. MCS has
protected and preserved communities all
across the U.S. for 25 years, and is grateful
for the opportunity to assist this communi-
ty in need as well.
For more information, visit www.mcs360.com.
Study finds Latino
families deeply impacted
by foreclosures
The National Council
of La Raza (NCLR),
one of the largest
national Hispanic
civil rights and advo-
cacy organizations in the United States,
and the University of North Carolina at
continued on page 24
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Abacus Accounting
merges with Mortgage
Banking Solutions
Mortgage Banking Solutions (MBS) has
announced their union with San Diego-
based Abacus Accounting Services.
Abacus offers comprehensive book-
keeping services to mortgage banks in
the western United States. Warehouse
lenders have increased their require-
ment for all mortgage banks to quickly
produce financial statements.
Most owners of mortgage banks are
not great accountants and need help,
said David Lykken, managing partner
for strategic services at MBS. This will
be a tremendous service for mortgage
banks that are under increasing pres-
sure from warehouse lenders as well as
investors to get their numbers right.
I am delighted to join forces with
MBS, said Shelly Rogers, president of
Abacus Accounting Services. They are
the top mortgage banking advisory firm
in the country.
Rogers has extensive experience in
accounting. She holds a bachelors
degree in accounting and was an audi-
tor with a CPA firm. She is an expert in
accounting systems, as well as a veteran
in the mortgage business. She was an
owner of a mortgage lender, a senior
executive of a national mortgage bank,
and a consultant supporting the book-
keeping, accounting and audit needs of
mortgage banks.
Shelly has done an amazing job cre-
ating a best practices bookkeeping
platform for mortgage banks, said
Andy Schell, CPA, CMB, managing part-
ner for accounting services with MBS.
She has truly cracked the code to
offer outsourced bookkeeping. MBS is
the only firm that offers both expert
mortgage consulting and hands-on
bookkeeping. I am confident that the
integration of Abacus into MBS will give
us the ability to better serve our mort-
gage lending customers and expand
our outsourced bookkeeping service
nationally.
For more information, visit www.mort-
gagebankingsolutions.com.
PriceMyLoan (PML) and
Leads360 partner for lead
management solution
PriceMyLoan (PML) and Leads360 have
announced the completion of a bi-
directional integration between their
respective solutions. The integration
combines PriceMyLoans automated
underwriting and loan pricing engine
with Leads360s lead management soft-
ware to provide mortgage lenders with
a powerful platform for tracking, man-
aging and qualifying mortgage leads.
Lenders are looking for more effec-
tive ways of generating business, and
lead management is a crucial part of
their growth strategy, said Gigi
Campbell, national sales director for
PriceMyLoan. But lead management is
more complex than most lenders real-
ize. Given the increasing role of the
internet in mortgage lending, lenders
need to provide consumers with a sales
experience that is dynamic and meets
their heightened expectations.
The combined capabilities of
Leads360 and PriceMyLoan allows
lenders to drive their sales process more
effectively by receiving and distributing
leads in real-time, instantly checking
every lead for loan eligibility and pric-
ing, and providing an optimized cus-
tomer service experience. Lenders can
then provide an instant and targeted
sales offer, one that closely matches
what the consumer is looking for.
We want to streamline the sales
process and increase the number of
sales leads that become funded loans,
said Jeff Solomon, founder and senior
vice president of Leads360. The robust
integration that we created with
PriceMyLoan works towards this goal by
seamlessly embedding a powerful auto-
mated underwriting and pricing engine
into the front end of the sales process
to enable our mutual clients.
For more information, visit www.price-
myloan.com or www.leads360.com.
Mortgage Contracting
Services partners with
HomeTelos
M o r t g a g e
Cont r act i ng
Services (MCS),
a nationwide property preservation and
inspection services provider, announced
that it has partnered with Dallas-based
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#
Presidents First is a multi-state, full-service home mortgage
Banker dedicated to offering quality mortgage solutions with an
unwavering commitment to service. Having years of experience in
the mortgage industry, we understand whats important.
Presidents First is dedicated to providing our customers with
intelligent, innovative mortgage products at aggressive rates and
unparalleled service levels. Utilizing hands-on common sense
underwriting, expeditious closing strategies and personalized
account servicing, Presidents First is focused on helping our
customers to grow their business. Offering affordable lending
solutions for borrowers that deserve quality loan programs and
stability - its clear to see why Presidents First is Americas Leading
Wholesale Lender.

Presidents first
# Conforming Fixed
# FHA 203B
# FHA 203k
# FHA Streamline
For additional information Please contact us at:
1-877-773-7178
445 Broadhollow Road
Melville, NY 11747
# www.presidentsfirst.com #
# Call Now: 1-877-773-7178 #
Americas Leading
Wholesale Lender

Let Us Help Grow

Your Business!
# WHOLESALE AES WANTED #
including providing its clients with a
homeowner-friendly searchable network
of certified short sale agents, said Son
Nguyen, chief operating officer with
PartnerFirst. This partnership is truly a
first of its kind. We are setting the stan-
dard within the real estate industry in
how mortgage servicers and default serv-
ice providers connect with defaulting
homeowners through a nationwide
agent based solution.
The key to streamlining a short sale
is to have an educated and well-trained
agent network. Teaming up with
PartnerFirst allows ServiceLink to lever-
age PartnerFirsts extensive knowledge
of the real estate community and thor-
ough understanding of the short sale
process, said Scott Thompson, vice pres-
ident of realtor services for ServiceLink.
ServiceLink is excited about heading
down this path with PartnerFirst and
delivering meaningful advantages to all
of our mortgage servicer and mortgage
investor clients and to struggling home-
owners all across the country.
Embrace Home Loans
expands to accommodate
growth
Embrace Home
Loans, a direct
lender for Fannie
Mae and Freddie Mac, approved by the
Federal Housing Administration (FHA)
and U.S. Department of Veterans Affairs
HomeTelos to streamline communica-
tion between servicer clients and their
investors. The relationship involves MCS
integration with HomeTelos Property
Preservation/Field Services Web-based
platform for managing assets in pre-fore-
closure through real estate-owned (REO)
that automates workflow resulting in
real-time communication. This platform
includes an electronic bid submission
system that houses mission critical
preservation data for investors, such as
photo documentation, damages and
approvals.
The default servicing sector is very
time sensitive, so any opportunity to
shorten the time frame in the preserva-
tion approval processwhile not also
jeopardizing accuracyis paramount,
said Caroline Reaves, chief executive
officer of Mortgage Contracting Services.
Previously, MCS would send contrac-
tors to a property for obtaining a bid to
make repairs, which then involved man-
ual entry into MCS360, the companys
automated workflow application. A
processor would next review the infor-
mation for accuracy and, once validat-
ed, enter the dataline by lineinto
the HomeTelos system to be approved
or denied by an investor. The enhanced
solution eliminates the duplicity of
entering information into two distinct
platforms. Once obtained and reviewed
for accuracy, the bid automatically flows
from MCS360 to the HomeTelos system
for the processor to validate and then
transmit to the investor for approval.
HomeTelos is proud to team with MCS
on this strategic project so that together
we deliver more value to our shared
clients, said president of HomeTelos,
Stephen Polley. This economy is present-
ing new challenges to our industry daily,
and the open design of our platform
enables us to respond quickly to integra-
tion opportunities that improve transac-
tion quality, transparency and accuracy,
while enabling a more efficient and scal-
able workflow solution.
The integration enables MCS to now
submit bids to investors in real-time, as
opposed to the previous 24-hour delay
in processing. In eliminating manual
entry, accuracy of the information pro-
vided is improved, as are overall work-
flow efficiencies and associated costs.
And just as MCS maintains a scalable
infrastructure to support the needs of
any client, the HomeTelos platform has
the flexibility to respond to varying
demands in volume.
For more information, visit
www.mcs360.com or www.hometelos.com.
ServiceLink and
PartnerFirst join forces
for short sale solution
ServiceLink and
PartnerFirst LLC
have announced
an agreement where both companies
have combined resources to provide a
one-stop shop solution to national
mortgage servicers and homeowners
through the ServiceLink Short Sale
Agent Network. ServiceLinks clients can
confidently refer defaulting homeown-
ers to select a certified real estate agent
from the Short Sale Agent Network to
help them streamline the short sale
process.
PartnerFirst provides national mort-
gage servicers and default service
providers an outsourcing solution called
the Agent Management Services (AMS)
Platform. The AMS platform provides
agent training and Pre-Foreclosure
Specialist Certification (PSC), custom
client education modules, short sale lead
distribution management, a brand neu-
tral agent database, a Find an Agent
homeowner referral database, a Minority
Outreach Initiative (MOI), and a multi-
tude of homeowner contact solutions.
We are pleased to be handling agent
fulfillment services for ServiceLink continued on page 26
certification equips you with unique
knowledge about these and other feder-
al tax rules that can help you stand-out
from your competition, avoid predatory
lending situations, and generate more
business from clients, prospects and
referral partners.
Gibran Nicholas is the founder and
chairman of the CMPS Institute, which
administers the Certified Mortgage
Planning Specialist (CMPS) designation.
The CMPS Institute has enrolled more
than 5,500 members since its founding
in 2005. Gibran is also the chairman of
Published Daily, a customizable online
magazine, newsletter and marketing
service that helps professionals trans-
form their clients and prospects into a
referral-generating sales force. He may
be reached at (888) 608-9800, ext. 101 or
e-mail gibran@cmpsinstitute.org.
Visit author Gibran Nicholass
blog at http://gibranni-
cholas.com where he shares
his insights on economics, real
estate and financial issues, including the
current mortgage and credit crises.
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Thursday, June 24, 2010
Friday, June 25, 2010
AAMB welcomes NAMB to beautiful Phoenix!
Come see the new NAMB President and the new
NAMB Board installation, while participating in some
great networking opportunities. State delegates can
also participate in the NAMB Delegate Council Meeting.
Phoenix Airport Marriott

1101 North 44th Street

Phoenix, Arizona 85008 USA
Rooms are $99 per night, and will be honored at the
same rate if you wish to extend your stay.
Hotel Toll-Free: 1-800-228-9290
Visit
www.NAMB.org
for details.
trend spotter continued from page 18
knowledge of the gift and homebuyer
tax credit rules.
By understanding the federal mort-
gage and housing tax rules, you could
share generic information with borrow-
ers that is helpful to their situation. After
all, in the first example above, why
would originating a loan that costs the
borrower an extra $250 per month not
be considered predatory lending, while
other origination practices that have
exactly the same high cost to the bor-
rower would be considered predatory?
My personal opinion is that loan
originators have a moral and ethical
obligation to spot these issues, share
this information with their borrowers,
and then refer the borrowers to a tax
and/or legal advisor for specific advice
pertaining to their situation. As a con-
sumer, wouldnt you much rather deal
with an originator who is properly edu-
cated in this area than one who is not?
As a CPA, financial advisor or Realtor,
wouldnt you feel more comfortable
referring your clients to a loan origina-
tor who is familiar with these rules as
opposed to one who is not? Certified
Mortgage Planning Specialist (CMPS)
fair lending violations continued from page 13
involved, this is not as simple of a fix as
just making sure married couples no
longer receive a few dollars discount on
their credit report verses unmarried co-
applicants.
Mortgage originators should take
notice of this action and review their
credit report fee structures for this
issue, as well as their application
processes. While the spirit of the law
has not been violated, no one is being
denied credit based on marital status,
the law is clear and the FDIC seems
intent on pushing it to the letter with
regards to the equal treatment for
any aspect of the loan transaction
since they have referred some banks to
the U.S. Department of Justice for a
Significant Violation of the ECOA.
Terry W. Clemans is the executive direc-
tor of the National Credit Reporting
Association Inc. (NCRA). He may be
reached at (630) 539-1525 or e-mail tcle-
mans@ncrainc.org.
Visit the National Credit
Reporting Association Inc.
(NCRA) on the Web at
www.ncrainc.org.
We are now accepting nominations
for our upcoming feature,
The 25 Most "Connected" Mortgage Professionals ...
If you or someone you know has a high number of relevant Twitter
followers, seems to be connected to everyone in the mortgage
business (with lots of recommendations) on LinkedIn or is extremely
active networking through Facebook, log on to
NMPMag.com/mostconnected and send in your nomination today.
Are you connected?
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We are the lender, and nal decision maker, not a broker.
WE ARE NOT CREDIT SCORE DRIVEN,
We look for loans that improve a clients situation, in fact we recently increased our funding
capacity.
No Credit Score Minimum -- NO DOC and STATED Welcome In Certain Situations!
Residential & Commercial
Loan Amounts $50,000 to $2,000,000
Debt Consolidation, Foreclosure and Bankruptcy Buy-Out
First and Second Trust Mortgages
Never A Pre-Payment Penalty
Our 3 Point Lending Philosophy:
1.Loan must show tangible net beneft to borrower
2.Borrower must demonstrate some capacity to repay
3.Is the appraisal accurate? We are going to verify, not low ball your appraisal.
It's Just That Simple...
Visit our website or Call 877.353.2233 or For Faster Service
Please Fax Your Scenarios To 240.241.5160
www.WeApproveLoans.com
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Wells Fargo Wholesale Lending
There is a reason Wells Fargo Home Mortgage
is one of the nations leading wholesale lenders
Wells Fargo Wholesale Lending is well positioned to help you and your borrowers take
advantage of todays market opportunities with a suite of products and programs, including:
FHAloans
VAnancinglarger loan amounts and assumable loans
Reverse mortgagesWells Fargo handles your processing
1
Home Opportunities
SM
program
Guaranteed Rural Housing program(brokers do not need to be FHA-approved)
High Balance Conforming loans and High Balance FHA/VAloans
Our PerformanceWorks
SM
plan helps put you in control of your continued business success
And at our Brokers First

website, you can register loans, price/lock, obtain credit, submit for
Direct Express
SM
feedback nowuploadimageddocuments all in one convenient online location.
1. Borrowers must be at least 62 years or older. Prior Wells Fargo Home Mortgage
reviewand broker approval are required to originate FHAloans. Additional
approval requirements apply to originate reverse mortgages. Please contact
Wells Fargo Wholesale Lending for details.
This information is for use by mortgage professionals only and should not be
distributed to or used by consumers or other third parties. Information is accurate
as of date of printing and is subject to change without notice.
Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A.
2009 Wells Fargo Bank, N.A. All rights reserved. #68212 12/09-3/10
Contact us today to learn more.
www.brokersrst.com
The Foreclosure Generation docu-
ments the experiences of families who
are forced to leave their homes due to
a foreclosure. Families interviewed
generally had exhausted all available
resources in an effort to keep their
homes, were unable to secure assis-
tance from their mortgage servicer, and
often relied on relatives and friends for
shelter and assistance. Marital discord,
anxiety, depression, childrens poor
performance in school, financial loss,
and strained relationships between
parents and children were among the
consequences reported.
Our findings on the impact of home
foreclosures on families are disturbing,
said Roberto Quercia, director, Center for
Community Capital, University of North
Carolina at Chapel Hill. Children in par-
ticular experience problems in school
and are deeply affected by instability in
the home. More research is needed to
better understand the long-term impact
of foreclosures on our communities and
to find the best interventions to meet
those needs.
The Foreclosure Generation offers
policy recommendations to stabilize
the housing and financial situations of
families affected by foreclosure and
reestablish homeownership as a
wealth-building tool for Americans of
modest means. In particular, the report
points to the shortcomings of current
federal efforts and calls on federal pol-
icymakers to take bold steps to stop the
loss of wealth through home loss.
Interviews for this study were conduct-
ed by five non-profit community organi-
zations that belong to the NCLR
Homeownership Network and provide
housing counseling to Latinos: Southwest
Housing Solutions in Detroit; Visionary
Homebuilders in Stockton, Calif.; Tejano
Center for Community Concerns in
Houston, Texas; the Housing Education
Alliance in Tampa, Fla.; and the Dalton-
Whitfield Community Development
Corporation in Dalton, Ga.
For more information, visit www.nclr.org.
Your turn
National Mortgage Professional Magazine
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 pre-
ferred. The deadline for submissions is the
1st of the month prior to the target issue.
their home in the coming years, and it
calls for a bold response from federal
policymakers.
An estimated 1.3 million Latino fami-
lies will lose their homes to foreclosure
between 2009 and 2012, said Janet
Murgua, NCLR president and chief execu-
tive officer. This represents a shocking
loss of wealth and a major blow to com-
munity stability. This study brings to light
the human and social costs of foreclosure
and the urgent need for stronger govern-
ment intervention to help homeowners,
including those who are unemployed.
Chapel Hills Center for Community Capital
have released a report titled The
Foreclosure Generation: The Long-Term
Impact of the Housing Crisis on Latino
Children and Families, which uses inter-
views with Latino families who have suf-
fered a foreclosure to shed light on the
damage inflicted by the loss of their
home.
The report is the first to provide a
glimpse into the far-reaching impact
that record-high foreclosures are likely
to have on the millions of American
families and children expected to lose
news flash continued from page 19
Daily updated mortgage
industry news
Industry blogs
Write your own blog
Find loan programs
Discover local and
national events
Get access to video
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A PRMI Company
If you would like to learn more about our BranchPartner business model, please inquire:
http://frostmortgage.com/net-branch-national/
"I looked and looked. The numbers were better than
any I could nd. The transition was professionally
handled. We are in business, funding loans and have
already added another Branch.
- Chuck Walden, Dacula, GA
"We felt that the Frost/PRMI business model was the
most competitive out there, as we planned to transition
from brokering to banking. So far, everything has been,
as advertised. Very strong training and branch support.
- Ronnie Ray, Greenwood Village, CO
I've never worked for a lender with such a hard work-
ing closing department. I really appreciate all they do
to help keep my business running smoothly.
- Ryan Morrow, Palmdale, CA
"I was ready to ink a deal with a commercial bank. I
heard about the Frost/PRMI business model, ran the
numbers and signed up. Greg has been out here help-
ing me recruit, just as he promised. We have already
added 2 Branches and have 2 more in the hopper.
- Myles Hubers, Solana Beach, CA
"I've known Greg since 1992. After an exhaustive
search, I found the Frost/PRMI business model to be the
very best. I should easily double my income in 2010."
- Robert Shaffer, Lancaster, CA
I can't tell you how different this whole experience
has been. I'm now going out to celebrate; not that I
funded a loan, but that I didn't have to process the
le or beg the funder to review my conditions and
hope that it funded on time.
- Tim Ross, Valencia, CA
Regulation and Licensing Department, Financial Institutions Division #621 Branch License #00621
Multiple National Lenders
RESPA/Compliance Training
Weekly Production Training
Multiple Warehouse Lines
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You dont need to be a credit expert to
start your own Credit Repair business
Fortunately, with HTDI Financials Credit Services Or-
ganization (CSO) program, you will be able to handle
ALL aspects of your business except having to do the
actual repairs; we do that for you! We will train you on
how to handle these customers and you will have the
support you need every step of the way. We will make
you look like a Fortune 500 company even if you work
from home! YOU control how much money you make.
In fact, through our CRM, we give you the tools and
resources to harvest leads, manage prospects and mon-
itor their progress.
You dont have to spend tens of thousands of
dollars for start-up costs for your own Credit
Repair Company
Once you are set up in our system, you will get access
to software and tools that HTDI has spent over $1 mil-
lion on research and development. You dont need to
spend an arm and a leg to start building your own
credit repair business. Here is a quote from a mortgage
company located in upstate New York who spent
months of research before choosing HTDI:
Until last year, I owned a large mortgage com-
pany in upstate NY with over 125 employees. We
got hit hard during the mortgage industry crash
and had to close our doors. I was stuck in a posi-
tion with thousands of leads and customers that
couldnt get qualified for anything. I decided to
start looking for a way to capitalize on my left
over resources and help people in the process. I
called many other credit repair companies and
was very unimpressed. One west coast based
company was charging $15,000 and had nothing
but negatives written about them on the Internet.
Then I found HTDI. They helped me to get
started at the beginning of this year and it has
been great. I have not only made great money
helping people to repair their credit, but I have re-
financed 8 of them and helped 6 buy houses that
would have never qualified with the new guide-
lines. The software is very user friendly and all of
my clients, affiliates and Brokers have increased
business because of it.
Get those impossible to close deals
CLOSED!
As the number of loan programs are shrinking, the bar
on credit scores keep rising. This program will allow
your borrowers to become Mortgage Ready as soon
as 45 days. As one of our CSO stated:
I have many loan officers that are now able to
send their clients through the credit repair, raise
their scores, and then close the clients loan that
they couldnt close before due to bad credit! It
means more loans and more revenue for my loan
officers. Even better than that, it is very reward-
ing to be able to help a client regain their credit
and be able to get the loan they need.
Get started in a business that is booming
and shows no signs of slowing
The credit industry, as a whole, is one of the most pow-
erful and profitable industries in existence. With
loans, insurance and even employment taken into con-
sideration individuals credit picture, the credit indus-
try is getting bigger every day.
Inside the credit industry, Credit Services is helping by
assisting consumers with getting back on track by re-
moving unverifiable and inaccurate negative items
from their credit reports. As a CSO, you can benefit in
being in a profitable industry and helping clients with
their futures.
Ive been in the mortgage business over 22 years.
A year ago, as the mortgage crisis worsened, I
began trying to find a way to help clients who
needed a better credit profile in order to get a
mortgage. Fortunately for both me and my
clients, I stumbled on HTDI. After a year of ex-
perience, I can honestly say the success rate is
100% and client satisfaction is through the roof.
All of my clients have seen significant improve-
ments, and some have experienced breathtaking
jumps in their credit scores, even on the first
round!
From Day One you can be sure your back of-
fice (HTDI) has you covered. They will execute
their part of the job seamlessly, with precision,
on time, and with total consistency. All you have
to do is SELL the service! Just sign people up, col-
lect the money, and send HTDI the paperwork
they need to get started. If you simply focus on
selling the service, you will make lots of money,
the work will get done, and you will never have
to worry about unhappy customers.
Although I got into it as a part timer, I now realize
this is an excellent full time business opportunity.
(Frankly, these days its probably a better business
than the mortgage business!) You could easily make
six figures in the first year with a minimal invest-
ment of money. How many opportunities like this
exist these days? What you must invest is your time
SELL, SELL, SELL & SELL some more! Ulti-
mately, what you are selling is the professionalism
of HTDI, which is why this really rocks as a busi-
ness opportunity.
We average one of the highest fix/deletion rates in the indus-
try for the first 45 days of service. Shown below, in real-time,
is the average percentage of fix/deletes per round.
If you are going to get involved in Credit
Repair, be VERY CAREFUL
First you have Fair Credit Reporting Act (FCRA). The
FCRA holds credit bureaus and creditors to their report-
ing methods and has guidelines they must comply with.
There are numerous techniques that are used along with
similar laws to maximize results for each client. You must
know these laws inside out.
You cant forget Credit Repair Organizations Act.
(CROA). Just like the FCRA, the CROA hold credit repair
companies to specific guidelines as well. If you choose
HTDI Financial for your backend processing, we will en-
sure you maintain compliance.
Lastly, you have applicable State Laws. Depending on
the state you wish to conduct business in, you may
have a state Credit Services Organizations act to com-
ply with.
As an active member in good standing of the National
Association of Credit Services Organizations, you can
be sure that we take our job very seriously, making sure
you stay compliant and your clients.
Why some Mortgage Professionals fail
in Credit Repair while others
Make Serious Money
There is only one step you need to take;
visit www.startacreditrepaircompany.com or
call us at 877-877-4834 option 5.
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We are proud of the work weve accom-
plished and are pleased to be able to
add additional office space right here
in our local economy. The addition of a
new building in Providence not only
provides a space for our growing
Internet origination division, but also
provides the ability for our company to
add more local jobs in the future.
Currently, the company employs
more than 500 employees and has
been recognized for its excellence in
the workplace and devotion to commu-
nity service through numerous local
and national awards, reflecting the
lenders commitment to its strong val-
ues and to provide outstanding service.
For more information, visit
www.embracehomeloans.com.
LPS opens office in
Washington, D.C.
Lender Processing
Services Inc. (LPS),
a provider of inte-
grated technolo-
gy and services to
the mortgage and real estate industries,
has announced the opening of its
newest office in Washington, D.C. The
offices location is in the heart of the
nations capital, which gives LPS the abil-
ity to quickly respond to the needs of its
government clients and to increase its
presence by pursuing opportunities with
new government partners. LPS currently
has significant contractual relationships
with a number of federal agencies.
In todays challenging economic
environment, government agencies
need expert support and data to make
the most informed decisions, mitigate
risks and operate at peak efficiency,
said LPS Co-Chief Operating Officer Eric
Swenson. LPS proven, robust technol-
ogy solutions and extensive govern-
mental expertise can help agencies
quickly adapt to changing market con-
ditions and regulatory requirements
for optimal performance.
LPS services for the Washington,
D.C. market include mortgage consult-
ing, technology, data analytics and risk
management for portfolios, bench-
marking, due diligence and valuation.
For more information, visit www.lpsvcs.com.
Byte Software announces
StreetLinks integration in
BytePro Appraisal
Category
Byte Software has
announced a partner-
ship with StreetLinks
National Appraisal Services to offer a
full suite of compliant and warranted val-
uation products to their customers.
StreetLinks is a national appraisal man-
agement company (AMC), meeting all
Home Valuation Code of Conduct (HVCC)
and Federal Housing Administration
(FHA) compliance requirements and all
state and federal appraiser independence
regulations. The integration in BytePro
software speeds the process of ordering
an appraisal by connecting directly with
StreetLinks and eliminating duplicate
entry. StreetLinks is the only national AMC
that offers a 100% Loss Warranty of
Appraisal Quality and a Performance
Guarantee that actually pays if service
and quality levels fail.
StreetLinks offers industry-first Certificate
of Compliance and TILA-Trigger technology,
and performs a manual quality control
review of every appraisal to ensure under-
writer-ready reports. When Byte Software
customers order an appraisal report
through StreetLinks, they will find a new
prepayment processing system allowing
upfront payment for appraisals within
BytePro.
This integration is fully operational
today in BytePro and ready for Byte
Softwares customers to order appraisals,
stated Tony Ebeyer, StreetLinks chief oper-
ating officer. We look forward to provid-
ing Byte users with easy access to our
industry-leading, fully compliant apprais-
al solution.
For more information, visit www.byte-
software.com or www.StreetLinks.com.
Verisk Analytics acquires
Strategic Analytics
Verisk Analytics Inc.
has announced the
acquisition of Strategic
Analytics, a provider
of credit risk and
(VA), and an issuer for Ginnie Mae, has
announced it is expanding to accommo-
date current and future growth. The
company is moving its Internet origina-
tion division, which is currently com-
prised of 50 employees, to an 18,000-sq.
ft. building in Providence, R.I.
As a company, Embrace Home
Loans has experienced significant
growth, said Kurt Noyce, president of
Embrace Home Loans. Most recently,
weve added several new retail branch-
es along the eastern seaboard and com-
pleted a substantial acquisition to fur-
ther increase our geographic footprint.
heard on the street continued from page 21
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Will the borrowers credit score and ratios make any difference in my
overall quality control performance?
The credit score and ratio may affect the risk you or the lender takes when funding
the loan, but as long as you stay within the underwriting requirements, you will be
fine. However, your quality control may be graded on how well the loan is packaged.
Lets compare non-bank lenders (non-supervised mortgagee) and bank lenders
(a supervised mortgagee).
As of the writing of this article, non-banks average credit score was 731 for
2009 and 732 for 2008, with ratios 23/33 percent for 2009 and 24/38 percent for
2008. Non-banks improved their Excellent risk ranking from 12.06 percent in
2008, to 24.48 percent in 2009, an improvement of 94.69 percent. Non-bank
lenders were able to decrease their credit score average by one point and continue
to improve significantly in an Excellent risk ranking. The only noticeable change
was lowering the back-end ratio from 38 percent to 33 percent. The front-end ratio
only decrease by one percent from 2008 to 2009.
Banks, on the other hand, had an average credit score of 764 in 2009 and 748
in 2008, with a ratio of 24/33 percent in 2009 and 28/40 percent in 2008. Banks re-
quired an average 16-point increase in their average credit score. This resulted in
significant improvements in loans meeting the Excellent risk ranking that went
from 29.81 percent in 2008, to 41.76 percent, an increase of 40.09 percent. Granted,
the non-banks had a larger increase; however, they had fewer loans at 23.48 per-
cent where banks had 41.76 percent of loans meeting the Excellent risk rank-
ing. Banks significantly decrease their front-end and back-end ratios to obtain
such high numbers. Banks had ratios at 28/40 percent in 2008 and 24/33 percent
in 2009. As the numbers show, banks reduced their risks by requiring higher credit
scores and lower front- and back-end ratios which resulted in higher percentages
(41.76 percent) of their loans ranking Excellent in risk.
Lets compare non-bank brokers (non-supervised loan correspondents) and bank
brokers (supervised correspondents) in the same area of risk. A brokers average credit
score for 2008 was 725 and 721 for 2009, with ratios of 27/38 percent in 2008 and
25/36 percent in 2009, improving their Excellent risk ranking from 15.18 percent
in 2008 to 26.31 percent in 2009. This is a 73.32 percent improvement in Excellent
rankings. Brokers were able to achieve this by reducing their credit requirements,
rather increasing the credit score and decreasing the front-end ratio to from 27 per-
cent to 25 percent, and reducing the back-end ratio from 38 percent to 36 percent.
Brokers performed exceptionally well as compared to other mortgage entities.
The bank broker average credit score increased from 749 in 2008 to 761 in 2009,
a 12 point rise for getting a loan. The average qualifying ratio went from 24/36
percent in 2008 to 22/33 percent in 2009, and saw very low improvement in the
number of loans qualifying for the Excellent ranking. Bank brokers had 27.62
percent in 2008 and 28.85 percent in 2009 of their loan ranking Excellent, only
a 4.45 percent improvement.
Therefore, brokers prove that a higher credit score does not necessarily mean that
the risk is reduced. However, ratios appear to be where your loan will fall as it comes
to risk. This data is available to the mortgage industry to study. You may compare the
performance of different mortgage banking operations and compare overall indus-
try reviews by going to www.qcmortgage.com. The data may change as Quality
Mortgage Services continues to close out 2009 quality control reviews and audits.
By Tommy A. Duncan, CMT
Sponsored by
Tommy A. Duncan, CMT is executive vice president of Quality Mort-
gage Services 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 Quality Mortgage Services LLC on the Web at
www.qualitymortgageservices.com.
We have all heard that a quick and easy
test to determine a persons general
outlook is to show them a glass half
filled with water and ask them to
describe whether the glass is half
empty or half full. It seems that those
with an upbeat and optimistic outlook
generally tend to describe the glass as
half full, and those with a darker and
more pessimistic view tend to describe
the glass as half empty.
Just how accurate this
test is remains to be seen,
but perhaps it is time for
us in the mortgage indus-
try to assess our present
situation with a hopeful
eye to the future. This
may be difficult, given
the surge of proposed
legislation and expansion
of regulations on both
the state and national
level, but the fundamen-
tals of the industry have
not changed.
When I began my
career in the mortgage
industry, rates were in the
double digits and the
nation was in the grips of
a recession fueled by
rampant inflation in the
late 1970s compounded
by high unemployment.
However, in the midst of
these market conditions,
people were still buying homes. It was
also during this period that the mort-
gage broker channel began to develop
in earnest, ultimately becoming the
primary channel of origination
throughout the country.
Today, the industry is facing differ-
ent challenges. While the country is
experiencing high unemployment,
both inflation and the rate environ-
ment remain low. We have a presi-
dent who is calling on banks to lend,
while his regulators are applying the
brakes. No responsible originator
wants to see a return to the lending
policies that precipitated the housing
and economic crisis, but there is a
balance that needs to be achieved
between the mortgage industry and
its regulators.
The housing industry has led the
United States out of more than one
recession and our industry is well-posi-
tioned to assist now in that regard.
Unfortunately, originators are facing an
unrestrained and enthusiastic legisla-
tive and regulatory atmosphere which
is robbing the system of badly needed
capacity. Lets face it, regulators need
to regulate and they have not escaped
the crisis unscathed. Products and pro-
grams came into the marketplace that
should have never seen the light of day
because some regulators failed to iden-
tify the market risk associated with the
originate to distribute
model adopted by large
financial institutions and
Wall Street. They have
been called to testify
about their shortcomings
on this issue and the
response has been to sup-
port a complex system of
overregulation.
Now the pendulum
has swung too far in the
other direction, leaving
Joe Six Pack and other
Americans like him with
little or no access to cred-
it, further exacerbating
the problem. Regulators
continue to demonize
originators for delivering
products that we had
every reason to believe
had been vetted by indus-
try watchdogs. While it is
apparent that a small
contingent of bad actors
originated inappropriate
products, by and large, the crisis was
precipitated by faulty programs. This
was a crisis of product, not producers.
The real question is when will a
responsible regulator or legislator
stand up and say, Clearly we have
overcompensated and our con-
stituents are suffering because of
this? While we have never been
unregulated, there is such a thing as
too much regulation and it appears
that we are well past the tipping point
in that regard. The rise of the non-
depository origination channel was
based on service and choice. There is
little evidence that banks and non-
profits are ramping up production
capacity to serve the mortgage needs
of Americans. Instead, service has
declined and depository lenders are
eager to serve the top of the mortgage
chain with little concern for the falter-
ing middle class.
By Donald E. Fader, CRMS
No responsible orig-
inator wants to see a
return to the lending
policies that precipi-
tated the housing
and economic crisis,
but there is a balance
that needs to be
achieved between the
mortgage industry
and its regulators.
continued on page 30
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uidity, stability and affordability to the
U.S. housing and mortgage markets.
Fannie Mae is ready to accept loans
with notes dated on or after Feb. 18,
2010 with mortgage insurance from
Essent. Freddie Mac anticipates being
ready to accept business from Essent by
April 1, 2010. Both GSEs will be com-
municating directly to lenders regard-
ing the timing and process.
The GSEs approvals officially
launch our entry into the mortgage
insurance business and enable us to
begin supporting qualified borrowers,
said Mark Casale, president and chief
executive officer of Essent. Weve
heard from lenders, borrowers and
state regulators that there is a real
need for a strong, new mortgage insur-
ance company, and were pleased to
support this critical segment of the
housing finance market.
We appreciate the efforts that
Essent has made during the past year
to meet our eligibility requirements
and obtain their qualified mortgage
insurer approval to serve Fannie Maes
seller/servicer network, said Carlos
Perez, Fannie Mae vice president of risk
management. We are pleased to have
a new mortgage insurance partner to
offer much needed capacity to our
market.
Freddie Mac is pleased to have
approved Essent as a new qualified
mortgage insurer, said Daniel Kelly,
director of mortgage insurer relations
for Freddie Mac. Essents entry comes
at a time of real need in the market for
mortgage insurance capacity.
The charter of the GSEs requires that
loans with a loan to value ratio in
excess of 80 percent have additional
credit support to protect the GSEs
against losses. The most common form
of this credit support is private mort-
gage insurance, which pays an insur-
ance benefit to the lender, or investor
in a mortgage loan, in the event of a
foreclosure or certain other circum-
stances arising from a default and
resulting in loss to the insured.
Mortgage insurance is backed by pri-
vate capital, and is subject to strict
state regulation. By providing mort-
gage investors with protection from
credit losses, mortgage insurance from
Essent helps families purchase or refi-
nance a home when they cannot afford
a large downpayment.
For more information, visit www.essent.us.
StreetLinks QC team
becomes fully USPAP
certified
StreetLinks National Appraisal Services
has announced that its entire quality
control team, consisting of more than
100 staff members, has successfully
capital management solutions to con-
sumer and mortgage lenders. As part of
the Interthinx business unit of Verisk
Analytics, Strategic Analytics will pro-
vide customers advanced solutions and
professional services critical to loss
forecasting and the stability of the U.S.
residential mortgage market.
The Strategic Analytics solution and
application set will allow our customers
to take advantage of state-of-the-art
loss forecasting, stress testing, and eco-
nomic capital requirement tools to bet-
ter understand and forecast the risk in
their credit portfolios, said Kevin Coop,
president of Interthinx. These tools are
applicable and are currently deployed
in all verticals of consumer lending,
including automotive, credit card, and
student loans, and mortgages.
Through Strategic Analytics,
Interthinx will offer various mortgage
risk analytics products. The Mortgage
Risk Model (MRM) gives retail lenders
access to a comprehensive mortgage
loan-level databaseincorporating the
vast majority of non-agency loans for
the residential mortgage-backed securi-
ties (MBS) market. Forecasting technol-
ogy is available to incorporate signifi-
cant measures of origination quality,
maturation effects, and environmental
factors into analytics tests that tradi-
tional roll-rate modeling methodolo-
gies cannot effectively capture.
The acquisition will also provide
Interthinx customers access to the
mortgage-backed securities/asset-
backed securities (MBS/ABS) Securities
Forecasting Service (SFS), as well as
accurate cash flow, conditional pay-
ment rate, conditional default rate, and
loss severity projections for lenders and
investors to price and trade mortgage
assets with high efficiency.
Strategic Analytics advanced model-
ing software uniquely transforms data
from one of the largest repositories of
loan-level mortgage data into usable
business intelligence, said Joe Breeden,
president of Strategic Analytics. We are
excited to become part of the Verisk
Analytics and Interthinx team. This affil-
iation will significantly boost our objec-
tive of providing mission-critical credit
risk management solutions to our cus-
tomers worldwide.
For more information, visit www.strate-
gicanalytics.com, www.interthinx.com or
www.verisk.com.
Essent Guaranty
approved by GSEs as
qualified MI provider
Essent Guaranty Inc., a mortgage insur-
er, has announced that it has been
approved as a qualified mortgage
insurer by Fannie Mae and Freddie
Mac. The two government-sponsored
enterprises (GSEs) are chartered by
Congress with a mission to provide liq-
heard on the street continued from page 26
Taiwan has seen the future of retire-
ment security: There are reverse mort-
gages in it. And it plans to help its
first-time homebuyers think reverse
early, a notion I have been pushing
here for years. Addressing a national
conference on reverse mortgages in
December 2009, Chang Chin-oh, a pro-
fessor of land economics at National
Chengchi University in Taipei City,
Taiwan, mentioned an intriguing
aspect of an evolving Taiwanese
reverse-mortgage model:
The program will also encourage
young people to start planning a home
purchase early for retirement [my
emphasis].* Let me repeat: Plan a
home purchase early for retirement!
In Think Reverse! (2008) and in sever-
al articles I wrote before the book was
published, I argued that, in an era of
uncertain retirement cash flow sources,
our home equity, thanks to reverse
mortgages and other equity take-out
products, has become a new pillar of
retirement security.
The long-term solvency of Social
Security is in doubt as is Medicare.
Companies are bailing out of their
pension obligations and pushing
employees to take responsibility for
their own retirement finance through
401(k)s and other vehicles. And 401(k)s
are tied to the vagaries of financial
markets. From 1998-2008, we experi-
enced at least four significant financial
crises, with the mother of all financial
crises in 2008.
As we slowly dig ourselves out of
the rubble of the 2008 financial earth-
quake, fresh thinking in retirement
finance is needed. Reverse capacity,
through reverse mortgages, has to be a
part of a new retirement finance cal-
culus. A recent fact sheet from the
Center for Retirement Research at
Boston College left no doubt about the
emerging role of reverse capacity in
retirement:
Given the bursting of the housing bub-
ble, it is tempting to forget how impor-
tant housing is to the portfolios of older
Americans. Indeed, housing prices did
collapse. . However, even after the
decline, housing equity remains a cru-
cial component of the assets of most
households. **
For decades, the retirement planning
industry and policy leaders have been
urging Americans to save for retirement.
That is sound traditional advice. And to
that, I add a complementary new call:
Build reverse capacity!
So, what is reverse capacity in the
context of retirement cash flow plan-
ning and management? I propose three
related definitions:
O First, it is the net home equity that is
convertible into cash via reverse
mortgages.
O Second, it is the cash and non-cash
value inherent in a reverse mort-
gage loan.
O And third, reverse capacity is the
life-planning and estate manage-
ment value peculiar to reverse mort-
gage loans.
A full study of reverse capacity and
its implication for retirement finance in
the 21st century will be the subject of
my next book. For now, to build reverse
capacity, young families should plan
their home purchase early and not use
their home as a piggy bank to pay for
non-emergency pre-retirement con-
sumption. Using the tax code, Congress
should create incentives to support
reverse capacity building. It is good
public policy.
As a nation, the earlier we embrace
this idea (that is, reverse mortgages for
first-time homebuyers and intentional
reverse capacity building), the more
secured retirement cash flow will be for
most homeowners who may not have
enough disposable cash for direct tradi-
tional savings.
Knowing that there is a reverse
mortgage in their future, first-time
homebuyers can plan to aggressively
Reverse Mortgages
for First-Time Homebuyers
continued on page 30
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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 mortgage
companies perform best when they focus on
whats important: their customers. We are
industry veterans and FHA specialists who
understand that every application is precious.
We treat each file with the respect and
urgency it deserves. Even better, at REMN,
same-day approvals are guaranteed.*
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
Its about
time.
completed the 15-hour 2010 Uniform
Standards of Professional Appraisal
Practices (USPAP) training course.
StreetLinks has 10 times the num-
ber of QC staff as I had when I managed
one of the countrys largest captive
appraisal management companies,
said StreetLinks Chief Executive Officer
Steve Haslam. We focus on delivering
the highest quality underwriter-ready
appraisals that shorten our clients
application to funding time. This sim-
ply cannot be achieved by using auto-
mated QC scrubbers deployed by tradi-
tional AMCs.
USPAP is the generally accepted per-
formance and ethical standards for the
appraisal profession. It is administered
by the Appraisal Foundation, a
Congressionally-authorized non-profit
organization that fosters professional-
ism among appraisers by setting quali-
fications and standards.
Manual QC review of each appraisal
is unique in our industry, said Mike
Floyd, StreetLinks chief corporate
appraiser. Most of our competition
relies on automated scrubbers which
are incapable of assessing the apprais-
ers commentary and logic. StreetLinks
performs an intensive line by line
examination of each report for con-
formity with Freddie, Fannie, FHA,
USPAP and lender specific underwriting
guidelines. Our goal is to deliver under-
writer-ready reports to our clients the
first time, resulting in more efficient
operations, faster loan approvals and
superior loan performance.
StreetLinks provides appraisals
nationwide that are fully compliant
with Federal Housing Administration
(FHA), Home Valuation Code of Conduct
(HVCC) and all other current and pend-
ing regulations. An innovator in the
appraisal management marketplace
with its industry-first Certificate of
Compliance and TILA-Trigger technolo-
gy, StreetLinks performs manual quality
control review of every appraisal.
For more information, visit
www.streetlinks.com.
Specialized Asset
Management partners
with RealtyTrac on
foreclosure listings line
Specialized Asset
Ma n a g e me n t
LLC ( SAM) , a
provider of asset
marketing and
disposition serv-
ices to mortgage lenders, servicers and
investors, has announced that it has
partnered with RealtyTrac, an online
foreclosure marketplace for default,
auction and bank-owned properties.
The partnership gives additional mar-
ket exposure for foreclosed property
listings provided by Specialized Asset
Management, displaying them promi-
nently to RealtyTracs three million
unique monthly visitors.
Marketing our REO assets to
RealtyTracs three million unique
monthly visitors provides us with addi-
tional marketing visibility to help liqui-
date our REO assets, said Rudy Krupka,
vice president of real estate-owned
(REO) at Specialized Asset Management.
Our strategic partnership with
RealtyTrac will assist our agents in pro-
moting the properties to interested
buyers across the country.
Homebuyers and investors using
RealtyTrac can easily make online
offers or inquiries on the SAM-provided
REO properties. Users can click on the
Bank-Owned tab on any RealtyTrac
search results page and look for proper-
ties with the Request Info button.
Many of our users are specifically
interested in purchasing bank-owned
properties, and we want to give those
users every opportunity to find and
purchase those properties, said Rick
Sharga, senior vice president of
RealtyTrac. This exciting new partner-
ship with Specialized Asset
Management does just that by deliver-
ing a new pool of REO properties that
our users can more easily purchase.
In 2009, a record 2.8 million homes
received a foreclosure filing. This repre-
sents a 21 percent increase in total fil-
ings from 2008. The number of foreclo-
sures is expected to increase significant-
ly in 2010 as millions of option
adjustable-rate mortgages (ARMs) and
Alt-A mortgages reset in the next 12 to
18 months and double-digit unemploy-
ment plagues the national economy
this year.
For more information, visit www.sam-
reo.net or www.realtytrac.com.
Catalizador finalizes
acquisition of
MortgageDashboard
Catalizador Private Equity Fund, a team
of venture capitalists that includes Jim
McMahan, Stewart Hunter and Bryan
Harlan of Benchmark Mortgage, has
announced the completed acquisition
of MortgageDashboard, an on-demand
loan origination software system
enabling paperless mortgage process-
ing for lenders, credit unions and
banks. Catalizador took control of
continued on page 31
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Thursday, June 24, 2010
Friday, June 25, 2010
AAMB welcomes NAMB to beautiful Phoenix! Come see the new NAMB President and the
new NAMB Board installation, while participating in some great networking opportunities.
State delegates can also participate in the NAMB Delegate Council Meeting.
Phoenix Airport Marriott

Rooms are $99 per night, and will be honored

at the same rate if you wish to extend your stay.
Hotel toll-free: 1-800-228-9290
Visit www.NAMB.org
for details.
Qualifed Candidates with a proven track record will get:
Guaranteed Salary
Full Benefts Package
Bonus based on proftability of branch offce.
Assistance with recruiting and training team.
Call Dane Basham today 888-544-0034
Gateway Mortgage Group is seeking
more leaders to run a retail branch ofce.
If I was in the market to become a branch manager or work as a loan ofcer, Dane would be on the short
list of friends I would contact. His positive attitude is infectious. You cannot have a conversation with Dane
and NOT be motivated. November 28, 2006
Andrew Berman, Executive Vice President, The Mortgage Press
was a consultant or contractor to Dane at Gateway Mortgage Group LLC
At one time, seven out of every 10
loans was originated by an independent
originator. That number is closer to two
out of 10 loans today. Is there a contin-
uing role for the non-depository mort-
gage loan originator? To quote Sarah
Palin, You betcha. The quality of the
current product will hasten the day
when mortgage-backed securities (MBS)
will not be considered toxic assets and
the depository lenders will once again
recognize the value that independent
originators can and do provide.
Effective and efficient service is prized
by every industry, and that is what we
do by giving our customers what they
expect and deserve. Our size makes us
nimble in the marketplace, allowing us
to react more rapidly to changes and
our knowledge base creates value for
depositories looking to grow a produc-
tion and servicing platform.
I heard an airline pilot give a talk
to a civic group years ago, and he
ended by taking questions from the
group. One member asked him about
flying in bad weather that dictated
instrument flight rules. His response
was this, It may sound strange, but I
am more comfortable in those condi-
tions than a clear sunny day when
everyone is out flying. When the
weather turns bad, you know that you
are up there with professionals
seasoned men and women with the
skill it takes to fly and land a plane in
all kinds of conditions.
The weather has turned bad in the
mortgage arena and many have turned
back, but today, I am proud to be fly-
ing with professionals men and
women who give their best to serve
their customers. These professionals
share a commitment to the industry
who serve their customers with integri-
ty. We are not asking for a pass. We
dont want an atmosphere of zero reg-
ulation. We just want the opportunity
to help our borrowers, neighbors and
friends make the right choice when it
comes to the largest financial decision
they are likely to make in their lives.
Is the glass half full? Is the glass half
empty? You have to decide, but I
encourage you to drink deeply from
the well of optimism and confidence.
Donald E. Fader, CRMS of Kinston, N.C.-
based SMC Home Finance. He has served
on the board of directors of the
National Association of Mortgage
Brokers, and has served the North
Carolina Association of Mortgage
Professionals as president. He may be
reached by phone at (252) 523-5800 or
e-mail dfader@smchf.com.
half empty? half full? continued from page 27
build reverse capacity by attacking
mortgage principal balance every
month with little extra payments.
Some would argue that keeping princi-
pal robust to generate interest deduc-
tions to reduce income and taxes is a
good thing in a persons high-earning
years. It is a very persuasive argument
and it has merits. But tell your first-
time homebuyers to attack principal
relentlessly with small extra payments
and build reverse capacity because
their retirement security some day
might depend on it.
As intentional reverse capacity build-
ing becomes widespread, it may also
encourage non-homeowners to view
homeownership differently and more
favorably because it can be shown that
homeowners can amass a six-figure
nest egg via home equity faster than
through traditional savings methods.
The circumstances of two couples I
served in August 2003 convinced me of
the power of this idea. In an October
2003 article I wrote, The Fate of the
Glenns: Your Equity or Your Freedom
in The Mortgage Press, I told their sto-
ries. Here is the gist:
Paul and Paula Glenn*** were at a very
low point physically and financially. To
save their home, their loan officer sent
them to me for a reverse mortgage
solution. Because of their large forward
lien and the lower county-by-county
FHA (Federal Housing Administration)
loan limits at that time, I couldnt help
them. They probably lost their home.
By contrast, John and Abbie
Stevens***, also weighed down by finan-
cial and health problems, had sufficient
home equity. We were able to pay off
their creditors and leave them with
$20,000 in a growing HECM (home equi-
ty conversion mortgage) line of credit.
They had sufficient cash for groceries
and for their medications in the comfort
of their home.
My experience with the Glenn and the
Stevens families persuaded me that
home equity, tapped judiciously
through reverse mortgages and other
equity take-out products, will play a crit-
ical role in retirement cash flow man-
agement in this century and beyond.
If you can buy a home with the
understanding that it is also a pillar of
your retirement security and you plan
to hold on and build home equity one
mortgage payment at a time, you will
be fine, even if Wall Street goes off the
cliff again. The Taiwanese seem to have
grasped this idea from the get-go, and
they plan to put it into their reverse
mortgage model, slated for rollout later
this year.
On Dec. 16, 2009, Taiwan held a
major reverse mortgage conference in
Taipei City. Invited were many reverse-
thinking folks from government, busi-
ness and academia. One of the design-
ers of our 20-year-old HECM program
was invited to share the American
experience.
The Taiwanese are thinking more
holistically about reverse mortgages.
To encourage Taiwans growing elder
population to use reverse mortgages,
they may be subsidizing their program
more generously than we have ever
done here in the U.S. They believe its
social and economic benefits will
more than pay for the subsidy their
government will provide. Again,
Professor Chang:
If the policy [reverse mortgage] is car-
ried out successfully, it will ease the
governments financial burden and
have a positive impact on the local real
estate industry.*
Taiwans approach contrasts with
our governments tepid support for our
HECM program, as shown by Congresss
refusal to give the FHA $800 million
subsidy it asked for in June 2009 to
shore up the HECM insurance fund
because of falling home prices.
For 20 years, the HECM program has
been a success, without a need for pub-
lic subsidy, thanks to hefty mortgage
insurance premiums, conservative actu-
arial assumptions and robust house
prices for much of that period. When
our financial system broke down in
2008 and property values crumbled,
HECM insurance risk managers figured
an $800 million subsidy will help main-
tain the program.
Congresss knee-jerk turn-down
forced FHA to slash HECM cash advances
by 10 percent in October 2009, as well
as recent principal limit cuts and an
insurance premium increase. These
cash advance cuts and insurance premi-
um increases are sapping demand for
HECMs and depressing origination activ-
ities in an industry that could supply
cash to help Congress deal with escalat-
ing entitlements and mounting national
debt. It is penny smart, dollar dumb.
You do not have to be a rocket scien-
tist to understand that if we encourage
more seniors to use their reverse
capacity through reverse mortgages,
just as Taiwan plans to do, they will be
using their own assets. If we discourage
them, as Congress seems to have done
by refusing a small subsidy relative to
the multi-trillion-dollar bailout of Wall
Street, they will turn to far more
expensive public sources for supple-
forward on reverse continued from page 28
young families should plan
their home purchase early and not
use their home as a piggy bank
to pay for non-emergency pre-
retirement consumption.
continued on page 32
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EXECUTIVE OFFICES:
108 Corporate Park Drive, Suite 301, White Plains, NY 10604
CALL: Kelley Berkheiser at (443) 418-7213 or
Louis Tesoriero at 888-329-GHMC.
www.joinguaranteed.com
Branch Program for Professionals
IT'S ALL WE DO.
You've Decided to Make a Move...
5 Questions You Must Ask!
1. Have they been branching for nearly 2 decades or did they just start yesterday?
2. Are they more concerned with replacing fallen retail origination than in working with
you to expand your business?
3. Will they support your marketing eorts or simply wish you luck?
4. Are they going to license your branch in multiple states or simply tell you to refer your
out-of-state loans to home oce?
5. Will they pay you next day or are you going to hear, "we'll get back to you"?
Call Louis Tesoriero or Kelley Berkheiser today and nd out why Professionals Join Guaranteed.
leader of its New York Metro sales
team.
O Sarah Hulbert has been appointed
senior vice president, reverse mort-
gages for Seattle Mortgage Company.
O Doug Criscitello has been sworn in
as chief financial officer for the U.S.
Department of Housing & Urban
Development (HUD).
O Ted Tozer has been sworn in as the
newest president of the Government
National Mortgage Association
(Ginnie Mae).
O Primary Capital has hired Jan
Davidson as branch manager of the
companys Cornelius, N.C. branch.
O Stephen Staid has been named
executive vice president of customer
relationship management for Saxon
Mortgage Services Inc.
O Robert Griffith has been appointed
chief operating officer for mortgage
insurance business for Radian
Guaranty Inc.
O First American CoreLogic has
announced the hiring of Susan
Allen as vice president of strategic
relationships, responsible for AVM
development, cascades and valua-
tion strategies.
O Robert J. Voll has been named
MortgageDashboard last fall when the
technology firm lost an important line
of credit and was on the brink of
insolvency.
MortgageDashboard was as a Web-
based mortgage banking software solu-
tion for loan originators by Jorge Sauri
almost a decade ago. At one point, the
company was serving a user base of
over 3,000 customers nationwide.
We were attracted to
MortgageDashboard when a group of
private investors with significant mort-
gage industry backgrounds introduced
us to the technology and called it the
best completely online, Web-based
loan origination software on the mar-
ket, said Jim McMahan, managing
partner of Catalizador. Our fund looks
to the future of the housing finance
industry and this web based loan soft-
ware is the way loans will be originat-
ed going forward.
Catalizador Private Equity Fund stepped
in to recapitalize MortgageDashboard to
allow it to continue operations and began
the acquisition process. Now that it has
been completed, MortgageDashboard has
become one of the few mortgage technol-
ogy firms operating today that has its flag-
ship product in use as a mission critical
application at the institution run by its pri-
mary investors.
Sauri has remained with the compa-
ny he founded and is now the compa-
nys chief developer and chief informa-
tion officer, where he continues to pro-
vide breakthroughs in innovation and
works to simplify the technology
required by mortgage brokers and
bankers alike.
David Childers has been tapped as a
primary strategist and the companys
vice president of sales. He has 10-plus
years of experience working with mort-
gage brokers and bankers, assisting
them with developing their businesses,
creating winning strategies, and execut-
ing their visions to become successful
organizations.
Were seeing tremendous adoption in
this market for three primary reasons,
Childers said. First, lenders appreciate the
comprehensive audit trails we provide our
customers, which allows them to remain in
full compliance with all FDIC, GLB and
Sarbanes Oxley requirements for data secu-
rity and borrower privacy. Secondly, we
maintain a SAS-70 secured environment
monitored and controlled by an independ-
ent third party for the industrys best disas-
ter recovery solution. Finally, our SaaS
mortgage banking software puts our cus-
tomers data in a secure online environ-
ment that they can access anytime from
anywhere. MortgageDashboard is the solu-
tion our customers are looking for now.
For more information, visit
www.MortgageDashboard.com.
Mortgage Professionals
to Watch
O Advanced Data has announced the
addition of Carleen Swanson as
heard on the street continued from page 29
Carleen Swanson
Sarah Hulbert
continued on page 32
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heard on the street continued from page 31
national director of sales and mar-
keting for The StoneHill Group.
O Taylor Capital Group Inc. has
announced several new hires for its
new Cole Taylor Mortgage division,
including Phillip M. Miller, group
senior vice president, secondary
marketing; Daniel J. Ervin, senior
vice president, national sales man-
ager; Rebecca J. Bussineau, senior
vice president, director of credit;
and Alan Holsztynski, senior vice
president, information technology
director.
O The National Groups, parent com-
pany of National Default Servicing
LLC, has announced the addition of
Mitchell Oringer as senior manag-
ing director of real estate-owned
and loss mitigation operations, and
Richard T. Fikani as managing
director of default services.
O CCG Catalyst has named Thomas D.
Switzer as a partner and senior con-
sultant.
O Berkadia Commercial Mortgage
has hired Matthew Case as an assis-
tant vice president for the compa-
nys Los Angeles office.
Your turn
National Mortgage Professional Magazine
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tion, events, passages, promotions, per-
sonal or professional occurrences that
seem appropriate and/or other pertinent
data to the attention of:
Heard on the
Street/Mortgage
Professionals to Watch
column
Phone #: (516) 409-5555
E-mail:
newsroom@nmpmediacorp.com
Note: Submissions sent via e-mail are
preferred. The deadline for submissions
is the 1st of the month prior to the tar-
get issue.
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mentary income. At a time of rampant
national, state and local governments
debts, approving FHAs HECM subsidy
request was the rational option, but
Congress blew it.
We may have the most advanced
reverse mortgage program in the
world, but we have something to learn
from Taiwan.
Notes
*Cabinet will finish reverse mortgage
study next year by Ted Yang, Taipei
Times (Dec. 17, 2009, page 12 or
www.taipeitimes.com/News/biz/archive
s/2009/12/17/2003461169).
** NRRI Fact Sheet No. 1, March 2010
(http://crr.bc.edu/images/stories/Just%2
0the%20Facts/nrri_fact_sheet.pdf).
***Names made up to conceal identities.
Author and columnist, Atare E. Agbamu,
CRMS is director of reverse mortgages at
Minneapolis-based AdvisorNet Mortgage
LLC. A member of the BusinessWeek Market
Advisory Board, Agbamu is author of Think
Reverse! and more than 130 articles on
reverse mortgages. Through his advisory
firm, ThinkReverse LLC, Agbamu advises
financial professionals, institutions and reg-
ulators across the country. In a 2007 nation-
al report on reverse mortgages, the 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 30
Who's Left in Wholesale?
We are constantly getting requests from our readers asking "Who's Left
in Wholesale?" In response to this question, we are proud to announce
our second annual "Who's Left in Wholesale" Lender Directory.
To get listed in our
"Who's Left in Wholesale" Lender Directory today,
visit NMPMag.com/whosleftinwholesale
or call (516) 409-5555, ext. 4.
Become a NationalMortgageProfessional.com Blogger!
It's free and easy. Just head on over to NMPMag.com, register and
follow the link in the upper right hand side of the page to
become a blogger on our site today!
Got an opinion? Want to share your
thoughts on the industry?
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Major East Texas Mortgage Fraud Scheme: Out of Florida
203(k) Rehab Loan Program: Foreclosures Present Challenges, Opportunity
NMLS and State Testing for Mortgage Professionals
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Theres more than one way for a compa-
ny to go green. In this months article, I
would like to redefine what going green
should mean to every C-Level executive.
To set the stage for what I am talking
about, ask yourself the following questions:
O Beyond having a profitable business,
what else is important to you?
O How would you define the ideal envi-
ronment for your business (and I am
speaking of an internal
business environment)?
O Do you enjoy what you
are doing and the way
youre doing it?
When we work with
our clients, we stress the
importance of not only
being profitable, but also
enjoying the journey.
When there is profitabili-
ty, plus a sense of pur-
pose and enjoyment in
our business, we create
an environment where
most of our employees
will love coming to work.
For me, that is what
going green is all about.
Before I get too far
into this article, I need to
establish a basis of under-
standing related to the
psychology of color for
those who may not be
aware of this. Consider
the following:
O Red is the most emotionally intense
color, red stimulates a faster heartbeat
and breathing. One thing that is sure
to get any C-Level executives heart
beating fast is to see their companys
profit and loss statement that depicts
the business losing money or operat-
ing in the red. It is an attention-get-
ting color which is why the color red
is used for depicting losses.
O Black is the color of authority and
power. It is popular in fashion because
it makes people appear thinner and
therefore more attractive. It is stylish
and timeless. Likewise, operating a
business in the black is considered
stylish by any standard.
O Green is the easiest color on the eye
and reportedly can improve vision.
It is a calming and refreshing color.
Isnt it interesting that our U.S. cur-
rency is shades of green. Green sym-
bolizes nature, and studies show
that it is the most conservative color
and one that implies wealth.
While there are numerous other col-
ors included in the psychology of col-
ors, these are the only ones of impor-
tance as it relates to this article.
We all know what it
means when a company is
in the red and when a
company is in the black.
But what I want to intro-
duce to you as you read this
article is another dimen-
sion of how to think about
your business in the finan-
cial sense of the word. It is a
dimension beyond just
operating in the black. It
is the concept of operating
your business in the green
beyond just being prof-
itable each month.
As a leading national
business management con-
sulting firm with a promi-
nent mergers and acquisi-
tion (M&A) division, we reg-
ularly receive calls from
business owners wanting to
sell their businesses. When
we probe the reasons why
they want to sell, we com-
monly hear things like:
O I have been struggling with my busi-
ness, and I am tired and want out.
O I dont own this business, this business
owns me, and I want my life back!
O This has ceased to be fun I want
to do something different.
On a side note would you agree with
me if I said any company like that would
not be considered green? They usually
are marginally profitable or not profitable
at all. They are not fun to go into every day
of each week and none of the employees
are relaxed, calm or feeling refreshed. It is
more like the life is being drained out of
them. Heck, most of us have worked at a
place like that and never would go back to
that kind of existence because that is all it
is a bare bones existence.
When I get a call from a business
owner like this telling me they want to
sell their business for one of the above
reasons, I always recommend that we
first start working on the business to get
the business turned around at least
enough so the business is attractive to
someone looking to purchase a company.
This is classic turnaround management
stuff that we do, day-in and day-out with
our consulting business. What is amazing
is that as soon as we get the business
turned around and operating in the
black, and even operating in the green,
the business owner who retained us is no
longer interested in selling the company.
Hey, who can blame them! Anyone that
has owned and operated a business that
is operating beyond just being in the
black, but is now operating in the
green can tell you that it is fun to come
to work each and every day and it is
something you want to keep. Few things
are as rewarding as owning and operating
a business at which you are making
money, living life to the fullest and creat-
ing an environment where there is great
quality of life for yourself, and hopeful-
ly, for your employees.
For many in the mortgage industry, last
year was a very good year financially, but
not many operated in the green it
was not an enjoyable journey. And, as we
look into what the rest of 2010 has in store
for us, we know the business environment
is growing increasingly challenging. We are
dealing with higher capital requirements,
higher interest rates, decreasing home
sales, fewer refinances and a tsunami of
new regulations coming at us and now,
an increase in healthcare costs! Yet, with
all of that (and I am going to suggest
because of all that), I see more opportuni-
ty than ever to be outrageously successful
in the months and years ahead.
Keep in mind what I have been say-
ing for the past six months more
money will be made in the next five
years (by the few that survive) than was
made by all the companies that have
operated in the previous 25 years. And,
I will add to this bold statement, that
the vast majority of those companies
By David Lykken
When there is prof-
itability, plus a sense
of purpose and enjoy-
ment in our business,
we create an environ-
ment where most of
our employees will
love coming to work.
For me, that is what
going green is all
about.
Redefining Going Green
continued on page 36
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And these were just two of the
notable events. All in all, in 1995, the
mortgage industry witnessed either the
entrance or newly-initiated major
growth plans of a large national retailer,
two large automakers, a huge part of the
life insurance industry, the two largest
container manufacturers, and the two
largest independent con-
sumer finance companies.
At the time, this was an
invasion to beat any others
we had ever seen in any
industry. Never, to our
knowledge, had companies
of such differing base indus-
tries or companies of such
huge combined size gone
after a single industry seg-
ment in so short a time. It is
astonishing, and should be
so recorded in business his-
tory books, that the mort-
gage business in one year
drew in K-Mart, GM, Ford,
Prudential, Metropolitan,
American Can, Owens-
Illinois, Household Finance
and Beneficial.
At the time, American
Cans mortgage chief Ken
Berg said, The industry is
just now being recognized.
When we first went to Wall
Street, people said, Whats a mortgage
banker? I think today theyve found out.
Indeed, as they find out most things,
Wall Street discovered mortgage bank-
ing most pleasantly by collecting fees
and most recently by the collapse of the
mortgage industry.
In many areas reviewing the past
may give us a light on the future. As was
the case in 1995, non-traditional
lenders entered a fragmented market.
Likewise, could a new group of non-tra-
ditional lenders be in the stages of cap-
turing market share and taking over
where banks, savings and loans, and
credit unions have either exited the
business, purposely reduced their mar-
ket share, or tightened credit require-
ments, thus limiting the borrowers
ability to obtain a mortgage?
In a recent Wall Street Journal arti-
cle, Karen Tally identified one such
non-traditional banking company that
is filling the void left by these financial
institutions. Walmart expects a 50 per-
cent increase this year in the number of
the companys stores offering bank-like
services. This increase would give the
retailer 1,500 money centers which is
a little less than one for every two
Walmarts in the country.
The mortgage business has undergone
some odd changes. For a long time, it
was viewed as the irrevocable turf of
the thrifts. That is no longer true.
Mortgage lending has also usually
been profitable, but never a perfect busi-
ness. Portfolio lenders had a fairly high
profit potential, but also fairly high risk.
Mortgage bankers had less
risk, but also less potential
to build gross dollars of
profit, and therefore, less
potential to grow. Today,
these fundamentals have
changed, partly because of
an active secondary mar-
ket and the array of high
yield, high-risk loan pro-
grams placed into the mar-
ket over the past few years.
Finally, the mortgage
business was seldom one
to attract outsiders. It
was regulated and frag-
mented. Government con-
trolled who could create a
mortgage loan and where,
and who could own a
lending institution. Every
town and village usually
had an ample supply of
lenders. In the heyday of
U.S. business expansion,
the allure was in manufac-
turing and selling the products that
would fill a home, not supplying the
funds to buy the empty shell. Now these
fundamentals have changed most of all.
Changes in the mortgage business
have been part of the overall change in
the financial services industry. In fact,
the mortgage business has been affected
more than any other financial industry
segment by the half-steps that deregula-
tion took, as well as laws and guidelines
which seemed at times to change with
the wind. Because of those changes,
financial service companies have scram-
bled to use every available loophole in
the law that would allow them to put in
place a nationwide delivery system, to
get a jump on the competition. Mortgage
banking, unregulated by the federal gov-
ernment as banks and thrifts were,
became one of the most popular loop-
holes for traditional lenders in the early
and mid-1980s. In 2010, loopholes may
be becoming most popular among non-
traditional players.
Abruptly, the action among the non-
traditional players heated up in 1995. K-
Mart made clear some of its intentions to
become a very big mortgage company.
General Motors Acceptance Corporation
made two acquisitions which, by year-
end, made its servicing portfolio the
largest in the United States.
Will the Mortgage Industry
Witness Another Influx
of Non-Traditional Lenders?
In the heyday of U.S.
business expansion,
the allure was in man-
ufacturing and selling
the products that
would fill a home, not
supplying the funds to
buy the empty shell.
Now these fundamen-
tals have changed
most of all.
By Ed F. Wallace Jr., Ph.D.
continued on page 37
MIACs new site offers
easier access to
asset valuation info
Mortgage Industry
Advisory Corporation
(MIAC), a provider of
FAS 157 fair market
valuations, mort-
gage risk hedging and accounting solu-
tions, has announced the rollout of the
first phase of its new corporate Web site,
www.MIACanalytics.com, a tool the com-
pany says will make it much easier for
mortgage market participants to find
information critical to their success.
Valuation experts at MIAC have been
publishing a wealth of information and
posting it online for over a decade. The
new site will make this material more
accessible to the industry.
We are making it easier for people
to find the information they need to be
successful, said Younes Aouad, a sen-
ior vice president in MIACs technology
strategies group, who is heading up the
Web effort. The new site brings mort-
gage industry news and information to
them rather than making them go in
search of it, and puts forward our best
content.
The new site separates content areas
by business channel, making it easier
for customers to navigate directly to the
news or commentary they are interest-
ed in. For example, MIACs Generic
Servicing Assets (GSAs) are available for
download into MIAC Analytics and
viewable on the Web site. Industry
news is also provided in real-time from
the industrys largest publications,
making the site a clearinghouse for up-
to-date information. In particular,
MIACs solutions are focused on
addressing and managing interest rate
risk identified in the recent Interagency
Advisory on Interest Rate Risk
Management press release. For
instance, professional commentary
from industry experts on industry top-
ics can now find this information on the
MIAC Web site. MIAC brings more than
20 years of experience as the industrys
leading independent pricing specialist
and software solution to bear on the
issues that are of critical importance to
banks and other holders of illiquid
assets.
For those working in the mortgage
space, the MIAC Web site allows you to
follow one link and find everything you
need, said MIAC Principal Paul Van
Valkenburg. Our site is now one of the
industrys leading resources for CFOs
facing challenges with asset valuation
and risk management.
For more information, visit
www.MIACanalytics.com.
LoyaltyPrint 2.0 adds
premier closing gifts to
site enhancement
LoyaltyExpress has announced its
LoyaltyPrint Version 2.0 site release,
dramatically empowering loan officers
and real estate professionals with an
enhanced collection of high-quality
closing gifts. Now when users cus-
tomize greeting cards and postcards for
direct mailings to customers, prospects
and partnersclosing gifts can be
selected to powerfully convey distin-
guishable appreciation.
LoyaltyPrint site enhancements
include: Personalized address stamps
with attractive and practical homeown-
ers address stamp packaged in a wood-
en box with engraved logo; magazine
subscriptions with personalized 4 x 4
mailing labels (on cover of each issue);
gift card sets of either 24 postcards or
15 premium cards (birthday, thank you,
holiday, moving, and other events);
brownies, cookies and a mix of each
from market-leading confectioner; can-
dles; household items and tools,
including gardening, barbecue and
highway kits; and calendars (hanging,
desk, and journal formats).
LoyaltyExpress has distinguished
itself on high-quality standards and
methodologies in the one-to-one mort-
gage-marketing industry, said Chief
Executive Officer Jeffrey Doyle. Our
market-leading programs and services
allow our clients to cost-effectively
incorporate world-class communica-
tions. Im especially delighted to roll-
out the magazine subscription gift. Its
a great product to generate long-lasting
appreciationand referralswith
every edition.
LoyaltyPrint users can select from
popular magazine titles in the home
and personal finance categories. On
every magazine cover, a four-by-four-
inch mailing label features the loan
officers/agents photo, company logo,
contact information and a short
greeting.
For more information, visit www.loyalty-
express.com and www.loyaltyprint.com.
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Visionary Apps launches
new lead generation
tools for iPhone, iPad
and iTouch
With the new lead
generation fea-
ture of Visionary
Apps Complete
Foreclosures and
Complete Homes apps for the iPhone,
iPad, and iPod touch, real estate profes-
sionals can obtain featured advertise-
ments targeting potential homebuyers,
sellers and those searching for foreclo-
sures. This new targeted lead generation
program puts qualified real estate profes-
sionals into the direct referral database of
both the Complete Homes and Complete
Foreclosures apps, which have been
ranked in the top 10 most downloaded
Free Business Apps in the iTunes App
Store.
By purchasing zip codes for regions
of interest, real estate professionals
immediately receive exclusive adver-
tisement space on the Complete
Foreclosures and Complete Homes
apps. When the app users search for
foreclosures and homes in a certain zip
code or by GPS location, they will also
see an advertisement from the real
estate agent who purchased that zip
code, positioning the agent as the local
expert and giving them qualified leads.
According to Daniel Burrus, founder of
Visionary Apps, the Complete Realty
Suite will drive a revolution in how
people shop for, buy, and sell real
estate using the ever-evolving features
of their smart phones.
Only one agent is displayed per zip
code for each app, creating exclusive
referral territories that enable real
estate agents to effectively lock out
the competition. Complete Realty app
users see full details on the participat-
ing agents, including their picture, pro-
file, e-mail address, phone number and
Web site address.
For more information, visit CompleteRealtySuite.com
or www.VisionaryApps.com.
AllRegs announces new
NMLS-approved courses
to fulfill SAFE Act
requirements
AllRegs has announced
the approval of four con-
tinuing education cours-
es by the Nationwide
Mortgage Licensing System & Registry
(NMLS). These new NMLS course approvals
follow the approval of AllRegs Pre-
Licensing course, the 20-Hour Mortgage
Originator SAFE Comprehensive (Course
Number 1013). AllRegs became an
Approved Education Provider (#1400024)
by the NMLS on July 7, 2009.
The following AllRegs courses have
been approved for continuing education:
One-Hour SAFE Elective: Fair Lending
The Essentials (ID#: 1255); Two-Hour
SAFE Ethics: Fraud and Fair Lending
Consumer Protection (ID#: 1256); Two-
Hour SAFE Non-Traditional Mortgages:
FHA and Guaranteed Rural Housing (ID#:
1257); and Three-Hour Safe Federal Law:
ECOA, HMDA, TILA (ID#: 1258).
The Secure and Fair Enforcement for
Mortgage Licensing Act (SAFE Act) man-
dates a minimum of 20-hour pre-licens-
ing (PE) and eight-hour continuing edu-
cation (CE) courses in every state. In
order to satisfy these requirements,
courses offered to state-licensed mort-
gage loan originators must be
approved by the NMLS. Continuing
education courses must include at
least: Three hours of federal law and
regulations; two hours of ethics, to
include instruction on fraud, consumer
protection and fair lending issues; two
hours of training related to lending
standards for the non-traditional mort-
gage product marketplace; and one
hour of elective credits.
We are happy to announce that
AllRegs has received NMLS Approval for
eight hours of SAFE Act continuing edu-
cation courses, said Dan Thoms, senior
vice president for AllRegs. These cours-
es have been added and made avail-
able to all AllRegs Education Package
subscribers. Now organizations have
more reason to invest in education
through AllRegs.
The NMLS has established six criteria
that a course must satisfy to gain
approval. These criteria dictate that a
course must possess learning objec-
tives, have sufficient material, be of
sufficient difficulty and length, be
delivered in an environment conducive
to learning and have a defines start and
end time. AllRegs arsenal of NMLS
approved courses has successfully met
all criteria.
For more information, visit www.allregs.com.
Citi to pilot Foreclosure
Alternatives Program to
assist distressed borrowers
CitiMortgage has announced the Citi
Foreclosure Alternatives Program, a
new pilot initiative that will allow dis-
tressed CitiMortgage borrowers to avoid
foreclosure and remain in their homes
for six months by agreeing to sign over
their property deeds to CitiMortgage at
the end of that period. In addition, Citi
will provide relocation assistance to aid
the borrowers transition to another
residence at the end of the program.
This expanded deed-in-lieu-of-foreclo-
sure program, the latest in
CitiMortgages series of initiatives to
help distressed borrowers, is being
piloted in Texas, Florida, Illinois,
Michigan, New Jersey and Ohio.
At CitiMortgage, were committed to
finding every solution possible to help
families facing foreclosure. However, the
reality is that not every homeowner has
the financial ability to remain in their
home, said Sanjiv Das, chief executive
officer of CitiMortgage. The goal of the
program is to help homeowners make a
smooth transition into the next chapter
of their lives. The Foreclosure
Alternatives Program is another tool in
our ongoing efforts to find creative, inno-
continued on page 36
4. Stick with your strengths
A wise person knows their strengths and
an even wiser person knows their weak-
nesses. Unless you are an accountant,
you probably didnt start your business
because your strength was bookkeeping
and accounting. You most likely started
your business because you enjoyed orig-
inating loans, helping people get into
homes and, yes, making money.
5. Manage to your strength,
hire to your weakness
Focus on that which you do well. If your
strength is originating loans, why not
hire someone to do your bookkeep-
ing/accounting? Hire someone to han-
dle that which you either dont enjoy
doing or you are not good at usually
they are one and the same. However,
doing so will not abdicate your respon-
sibility for you to manage by the num-
bers (see number two above).
6. Make sure your business
is on a secure foundation
There are stormy days ahead for our
industry, and for our economy. Invest
the time now to make sure your busi-
ness is on a solid foundation, so when
the climate turns ugly, you and your
company will be operating green
safe, calm, relaxed and secure.
David Lykken is president, mortgage strategies
and managing partner with Mortgage
Banking Solutions. David has more than 35
years of industry experience and has garnered
a national reputation. David has become a
frequent guest on FOX Business News with Neil
Cavuto, Stuart Varney, Liz Claman and Dave
Asman with additional guest appearances on
the CBS Evening News, Bloomberg TV and
radio. He may be reached by phone at (512)
977-9900, ext. 101 or e-mail dlykken@mort-
gagebankingsolutions.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.
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Daily updated mortgage industry news
Industry blogs
Write your own blog
Find loan programs
Discover local and national events
Get access to video
a view from the c suite continued from page 33
will not just be operating in the black,
but will be operating in the green.
So, how does a business owner start
operating in the green? Here are six
basic essentials necessary to do so.
1. Get a plan for what is
coming
I am sure that youve heard the expres-
sion, A failure to plan is a plan to fail.
What is coming at our industry is going
to require diligent planning. My recom-
mendation is for you to not do this in a
vacuum, but rather, hire industry
experts that have a good understanding
of the lay of the land to help you
chart your course. While there are plans
that everyone should adopt, each plan
is unique to each company based upon
their business model.
2. Manage by the numbers
Whether a business is expanding or
contracting, any successful business
owner will tell you that it is essential
that you know your numbers, your
income and expense numbers, on a
month-to-month basis. Borrowing from
a religious bumper sticker I saw, consid-
er this: Know (your) numbers, know
(your) business and conversely No
numbers, no business. You would be
surprised how few business owners
truly know their numbers, much less
manage by their numbers. Dont make
that mistake with your business. Dont
be afraid to get consulting firms like
ours involved with you to help you
focus on the right numbers.
3. Keep your costs vari-
able as much as possible
Fixed costs can kill your business in a
contracting or volatile market. The more
elastic you can make your expenses, the
easier it will be to manage your prof-
itability. Remember your income has
always been the variable number. Make
sure your expense numbers are as well.
Outsourcing aspects of your operations
like bookkeeping/accounting or even
back office fulfillment can make such a
difference in bottom line.
vative ways to help our customers across
a variety of difficult financial situations.
In exchange for the deed on their
property, CitiMortgage will allow borrow-
ers to stay in their homes for a period of
up to six months. At the end of the six
months, the borrower will turn over the
property deed to CitiMortgage, and
CitiMortgage will provide a minimum of
$1,000 in relocation assistance to the
borrowers. Citi will also provide reloca-
tion counseling by trained professionals
and will cover certain monthly property
expenses if Citi determines that the bor-
rower can no longer afford them.
Payment of utilities costs will be the
responsibility of the borrower. Other
costs incurred by the borrower, such as
homeowners association and escrow
fees, will be determined on a case-by-
case basis considering the borrowers
specific financial circumstances. As part
of the agreement, borrowers must main-
tain the property in its current condition
and agree to bi-monthly meetings dur-
ing which trained relocation profession-
als will help the borrower prepare for
the next chapter of their lives.
Before a borrower enters the
Foreclosure Alternatives Program, they
must first be evaluated for a permanent
mortgage modification. For those who
do not qualify for a modification or
another solution, CitiMortgage will
explore the possibility of a short sale in
which the company might accept a
buyers offer for less than the outstand-
ing amount of the mortgage. If a short
sale is not feasible, then the borrower
may be considered for the deed-in-lieu
program. In addition, in order to be eli-
gible, homeowners must hold first
mortgages with a clear title owned by
CitiMortgage, occupy the property, and
be at least 90 days delinquent on their
mortgage payments.
As it evaluates the progress of the pilot
program, CitiMortgage will assess whether
or not to expand the program to other parts
of the United States. The initial pilot is
expected to help as many as 1,000 families.
We hope others in our industry will
join us in helping distressed borrowers
across the country, said Das. By helping
avoid the foreclosure process, which can
be very stressful and distracting, and
keeping people in their homes long
enough to make an orderly transition to
the next stage of their lives, we are also
supporting neighborhood revitalization
and stabilization efforts, which are cru-
cial to the nations economic recovery.
For more information, visit www.citi.com.
Interthinx unveils its
Conditioned Valuation
Model product
Interthinx, a provider of risk mitigation,
fraud detection and regulatory compli-
ance tools for the residential mortgage
industry, has announced the launch of
its Interthinx Conditioned Valuation
Model (CVM) product, automated valu-
ation technology and analytics tem-
pered by a professional property
inspection. This new approach to prop-
erty valuation will provide lenders and
servicers with a powerful choice that is
more accurate than an AVM (automat-
ed valuation model) and less expensive
than BPOs (broker price opinions).
AVMs have become an industry
standard and a valuation tool many
rely on without question.
Unfortunately, excessive AVM usage
may have contributed to an epidemic
of overvaluation fraud, said Kevin
Coop, president of Interthinx. And val-
uation fraud is not diminishing. Our
Mortgage Fraud Risk Report from the
third quarter of 2009 confirmed prop-
erty valuation fraud risk is up 46 per-
cent from a year ago. With the new
CVM, Interthinx can deliver affordable,
real-time condition-based property val-
ues to the lending and servicing com-
munities.
The Interthinx CVM is strategically
positioned along the continuum of
existing property valuation products
between AVMs and BPOs. At a cost
lower than a standard BPO, the
Interthinx CVM allows for more reason-
ably priced and comprehensive due
diligence for businesses requiring more
information than a conventional AVM
can offer.
The CVM starts with an AVM that
uses MLS (Multiple Listing Service) and
public data to factor current market
conditions for the greatest accuracy.
Then, the CVM applies an adjustment
based upon an exterior inspection of
the property and neighborhood by a
professional third-party inspector. The
CVM report includes photos of the sub-
ject property, neighborhood condition,
a condition-adjusted value, and market
price trends.
The CVM promises to advance
mortgage due diligence to a new level,
said Mark Chapin, chief valuation offi-
cer for Interthinx. The CVM combines
powerful valuation analytics that fac-
tors property condition by an objective
third-party to produce an accurate,
transparent property valuation at a
cost-effective price.
For more information, visit
www.interthinx.com.
FNC releases new apprais-
al review technology
FNC Inc. has released a new product
designed to make appraisal review
more efficient. The Web-based work-
flow software, GAAR Viewer, works
hand-in-hand with one of FNCs flag-
ship products, the Generally Accepted
Appraisal Rules (GAAR)software that
new to market continued from page 35
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Visit UnitedNorthern.Jobs, email info@UnitedNorthern.Jobs
or call (888) 600-8808 ext 1.
United Northern is Seeking Highly
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Virtual Mortgage Loan Ofcers (VMLOs)
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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-
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Northern Mortgage Bankers, Ltd. Direct FHA Endorsed Lender
The primary focus of these money
centers is to attract the lower-income
customers who do not have a signifi-
cant banking relationship, which the
federal government estimates to be one
in four U.S. households.
In Talleys article, she quotes Jane
Thompson, president of Walmart
Financial Services in saying, We think
banks are not as interested in this cus-
tomer and have a lot of other things on
their plates, so we see a lot of space to
service customers basic financial needs.
At the present time, the Walmart
money centers generate three million to
five million transactions per week.
Although Walmart has tried and failed to
obtain a bank charter in the past, fearing
the company could force the bank it con-
trols to lend to preferred parties and not
to its competitors, who is to say that
times will not evolve to let Walmart, as
well as other non-traditional powerhous-
es, into the mortgage arena if for nothing
more, but to try and serve a segment of
the population which otherwise is start-
ing to be culled out of the mix despite
superior credit scores and the ability to
repay a mortgage.
As we all know, financial institutions
must comply with federal, state and
local requirements for lending, as well as
banking services. However, many areas
of the country are underserved in these
areas which could open the door for
non-traditional companies to enter a
market.
It will be interesting to see who may
or may not enter the mortgage indus-
try over the next few years. I would
estimate the character of any entrant
will be that of bigness. This, in part, is
due to the capital it takes not only to
start an operation, but to also main-
tain it until production levels can be
reached, which sets the company into
a self-sufficient mode.
With all that has happened in the
financial sector and the new proposed
regulations, it could possibly be anoth-
er cycle that will place non-traditional
companies at the forefront of the
industry as it did in the 1990s.
Ed F. Wallace Jr., Ph.D. is the chief inte-
gration officer for Docu Prep Inc., a
nationwide provider of closing docu-
ments and initial disclosure services,
including secure electronic delivery
tools, loan analysis testing, and dynam-
ic selection of documents, bar coding,
secured and certified eSignatures and
eMortgages via LOS interfaces, Web serv-
ices and standalone systems. He may be
reached by phone at (801) 574-2919 or
e-mail ewallace@docuprep.com.
influx of non-traditional lenders? continued from page 34
scours appraisal reports for any regula-
tory compliance violations, as well as
inconsistencies and excessive adjust-
mentspossible indicators of unsup-
ported values and/or fraud.
This thorough, automated review
tool serves as an assistant to the under-
writer or reviewer, providing instant
results of potential issues, said Gwen
Magrisso, GAAR project manager.
Designed to save time for reviewers
and cut costs for banks, GAAR Viewer
presents an on-screen view of the
appraisal report with any rule firings
and related fields on the appraisal
report form highlighted in red.
Reviewers, underwriters, QA profes-
sionalsany users of GAAR Viewer
can hover their cursor over the high-
lights to reveal the rule reference num-
ber and description of the potential
violation.
The result of using GAAR Viewer is a
more accurate appraisal review and
ultimately a more reliable appraisal
report, said Karen Mogridge, FNCs
product manager for collateral data
and analytics. For lenders, that means
greater confidence in the property val-
uation on which their loans are sup-
ported.
FNCs GAAR is a first-level, total col-
lateral review system that can enable
users to review all appraisals pre-clos-
ing to help ensure well-documented
valuations.
Where QC once stopped at minimal
compliance guidelines, reviewers can
now use this state-of-the-art technology
to automate a much deeper review
faster than ever before, said Kathy
Coon, FNCs chief appraiser. GAAR is
critical because its risk rules allow QC to
go far beyond the minimal compliance
and risk guidelines of years past.
For more information, visit www.fncinc.com.
The Accurate Title Group
releases GFE Calculator
The Accurate Title Group LLC has
announced the release of its TAG Good
Faith Estimate Calculator (TAG GFE).
This exciting new product comes in
response to the Real Estate Settlement
Procedures Act (RESPA) and its revisions
to the Good Faith Estimate (GFE) and
HUD-1 Settlement Statement. The TAG
GFE provides instant, accurate calcula-
tions for purchase, refinance and home
equity transactions in all 50 states and
all counties for title insurance premi-
um, endorsements, CPL fees, search,
closing fees, recording costs and trans-
fer taxes.
We quickly assessed the available
market and saw an opportunity to
divert our IT priorities to leap frog the
competition on fee disclosure, said
ATGs Chief Information Officer Mike
Cullen. It is exciting to streamline the
development of technology to provide
more accurate, detailed and compre-
hensive fees faster than any other prod-
uct available today. We see this as a
step towards a fully automated, instant
HUD-1.
The TAG GFE is a user-friendly tool
that is helping ATG quickly grow its
national market share by simplifying
GFE and HUD-1 preparation for high
volume mortgage and home equity
processors. It also ensures GFE compli-
ance and advises lenders of how fees
are customarily split between sellers
and buyers throughout the country,
enabling lenders to confidently quote
and close purchase transactions nation-
ally. When ATG provides the settlement
services in combination with the TAG
GFE, a lender is assured of accurate dis-
closures.
For more information, visit www.accurate-
group.com.
a la mode releases
National Appraisal Fee
Reference to meet
compliance needs
a la mode inc. has released the first
public edition of The Appraisal Fee
Reference (AFR). The AFR is the author-
itative national analysis of independ-
ent appraisal fees, and is just one of the
monthly data sets published as part of
a la modes Appraisal Industry Analytics
practice. Using the data from hundreds
of thousands of verified and validated
appraisals, the AFR reports the median
appraisal fees for each of the 3,221
counties and districts in the 50 states,
the District of Columbia, Puerto Rico
and Guam.
For compliance with the U.S.
Department of Housing & Urban
Developments (HUDs) new 2010
RESPA rules and the revised Good
Faith Estimate (GFE), the AFR gives a
lender a defensible basis for estimat-
ing closing costs on a GFE for loans
using independent fee appraisers.
Lenders utilizing the Mercury Network
also receive additional data sets for
GFE compliance.
Knowing whats customary or com-
monly expected is only the first step. As
in any business, only the person per-
forming the actual work would be able
to say what is reasonable or required
for a specific request, said Dave
Biggers, a la modes chairman. In real
estate thats especially true since every
property is different. The key is that the
AFR provides lenders and appraisers
alike a logical, legally defensible start-
ing point for that fee discussion and for
GFE estimation.
As for the actual report, the
February 2010 edition of the AFR
reveals several interesting fee statistics.
For example, the most expensive coun-
ties to get an appraisal were not in the
major cities. Instead, the 50 most
expensive locations were dominated by
counties in Alaska, Hawaii, and
Wyoming. Of the locations with the
continued on page 41
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Going Green and
Stamping Out Fraud
The quality control and fraud detection
arena is excited about the going green
concept for the mortgage industry because
it is leading the way for a decrease in mort-
gage fraud, such as identity theft and for-
gery. The problem with going paperless is
the fact that so many documents require
signatures known as wet ink. There are
two types of signatures other than wet ink:
Electronic signatures and digital signatures.
An electronic signature
is merely signing a digital
pad or screen that cap-
tures an electronic signa-
ture, trying to replicate a
wet ink signature and
place it on a document.
We have all done this at
the store when we make
purchases with bank
cards and credit cards.
The advantage is that it is
convenient and easy to
use. The disadvantage is
that the signature pad
has a low pixel ratio and
does not provide a
smooth read/write as wet
ink, the electronic signa-
ture can be stored in a
database and can be cap-
tured or stolen, the elec-
tronic signature rarely
matches a wet signature,
and a persons identity is
rarely validated prior to signing and sig-
natures are not compared.
Because of the primitive technology
of the electronic signature, it is difficult
for the forensic auditor when looking
for forgery or identity theft. Electronic
signatures, however, will be short-lived,
because of other technologies on the
horizon that are more secure and less
prone to identity theft.
A digital signature is different from an
electronic signature because there is no
signature. A digital signature is issued
from a secure platform involving other
technologies that produces an individual
number for a person that represents that
persons legal signature and identity.
Think of it like a social security number,
account number or a bar code that iden-
tifies you. The digital signature is more
secure than an electronic signature
because the identity is already validated
and verified through the vetting process
of issuing the security certificate for the
digital signature. Also, to use a digital sig-
nature requires other passageways,
including log in accounts to networks and
software, in order to sign a
document digitally, thus
adding more layers of secu-
rity and identity verifica-
tions. The digital signature
is usually installed on an
electronic tape on a card
like a hotel key or credit
card. When the digital sig-
nature is used, it usually
requires a PIN (personal
identification number) in
order for it to activate as a
legal signature, yet another
layer of security that elec-
tronic signatures do not
require. Therefore, every
page of a document leaves
a digital thumbprint as
documents are accessed.
This is a fraud investigators
dream.
The disadvantages are
many because of the host
of technology support
and technology staff to make it work.
Digital signatures requires the produc-
tion of card keys and the hardware to
burn the binary code to the electronic
tape. If you lose the card, you cannot
sign digitally until a new card is issued.
The advantages are that it is the most
secure identity protection available. A
thief will have to utilize a host of tech-
nologies and electronic intrusion hard-
ware and systems in order to commit
fraud using a digital signature.
I know of one incident of fraud that
involved a digital signature.
Someone with similar access was
able to access documents already digi-
tally signed via a network and software
access. The individual copied and past-
ed a different digital signature and
placed it on other documents. This
means that the digital signature can be
lifted, however, the date could not be
changed. If a document required dual
digital signatures, the dates would have
to match or be within tolerance for the
execution of the document. Also, the
documents left a digital thumbprint
and were traced back to the theft. Even
though, the digital signature was lifted,
the electronic trail was made.
The future of signatures could possibly
come in the form of fingerprints or retina
scans. In Iraq, pictures of ones ears and
digital voice capturing were used as a
means of identity verification for verify-
ing individuals. Technology will make the
wet signature obsolete at this point, the
demand for signatures other than wet sig-
nature will only come as demand is made
and as technology becomes less expen-
sive and more available.
Tommy A. Duncan, CMT is executive vice
president of Quality Mortgage Services
LLC. He may be reached by phone at
(615) 591-2528, ext. 124 or e-mail tadun-
can@qcmortgage.com.
Visit co-author Tommy A.
Duncan, CMTs Quality
Mortgage Services LLC Web
site at www.qualitymort-
gageservices.com for more informa-
tion on quality control programs and
compliance solutions.
By Tommy A. Duncan, CMT
Paperless Lending Offers
Fraud Risk Mitigation
The mortgage industry has embraced
paperless lending, bringing a some-
what unexpected, but critical benefit to
the marketanother line of defense
against mortgage fraud.
The benefits of going electronic, sav-
ing time, reducing costs and improving
accuracy are being realized by lenders
across the industry. This is evidenced by
their increased reliance on electronic
documents. Today, more than 80 per-
cent of the loan documents volume
flowing through the pipelines of the
largest lenders is electronically enabled,
meaning that if the borrower chooses to
keep it electronic, the documents will
never paper out. That compares to
about 40 percent just a few years ago.
Those benefits are what drew
lenders to the technology, undoubted-
ly, but they are not the only catalysts for
the hefty adoption rates. Lenders have
learned to manage and track their per-
formance based on the critical metrics-
based data from their electronic data
streams and the associated transaction
data. Banks are sending more data
electronically, and that makes the data
much more accessible to applications
their service providers offer to protect
against fraud.
An increased focus on
fraud risk mitigation
Fraud risk mitigation-related due dili-
gence is no longer considered overkill,
especially in the wake of the mortgage
fallout of the past few years. It is a
matter of business self-preservation, a
defense against losses. In addition, it
is not just a single department that
has embraced electronic documents,
but several departments, all across
banks.
Mortgage executives now realize
that paperless lending makes fraud
harder to commit, and easier for
lenders to identify. There can be no
doubt that mortgage fraud is on the
minds of executives and about the
important role e-documents play in
fraud risk mitigation. Many lenders
acknowledge that they are taking steps
to mitigate fraud risk.
To that end, several companies have
released products designed to help
lenders mitigate risk without hamper-
ing loan origination volumes at a time
when every loan is valued at a premi-
um by the institution. These products
are working. However, until recently,
there has not been a solution to
address settlement agent fraud.
By Sharon Matthews
The digital signature
is more secure than
an electronic signa-
ture because the iden-
tity is already validat-
ed and verified
through the vetting
process of issuing the
security certificate for
the digital signature.
As the owner of a software company,
Ive created systems for a variety of
clients designed to automate their daily
operations. Prior to moving into the
21st century (or 20th, for some), Ive
seen organizations try to solve prob-
lems with rooms of filing
cabinets, or having a log
book for just about every
scenario you can think of.
For most, building a
case for computerizing a
paper system is pretty
easy, since those mired in
piles of paper realize, this
isnt going to work much
longer. When I start talk-
ing to a new client about
new technologies avail-
able to them, I never men-
tion the word paperless,
Im a bigger fan of the
words automation and
efficiency, but going
paperless is often more
hype than anything else.
This is great, were going paperless!
Ill often hear. These are the ones so
excited because theyre moving into a
science fiction environment where
everything is brought on-screen. They
often just returned from a conference
where some self-proclaimed expert dis-
cussed the benefits of a futuristic,
green, utopian society. Theyre looking
to run before they crawl.
On the other hand, there are those
who get nervous when hearing the
word paperless. Ironically, theyre
nervous because they picture the same
environment as the excited ones. But
they dont see themselves being able to
fit into an environment with no paper.
The reality is, automation and better
technology are not synonymous with
paperless. Online storage of documents
and data is a great idea for various rea-
sons: It creates a central unit of storage
so that no one is searching for a lost
document or updated log book.
Duplication of documents and double
entry is eliminated. It also guards
against physical disaster. If a system is 39
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ment agent partners, it is possible to
automate due diligence on every docu-
ment that flows into the loan file from
third parties, as long as those docu-
ments are electronic.
The move to paperless has made it pos-
sible to access the data beneath the docu-
ments and use it to perform diligence
checks that absolutely reveal fraudulent
activity related to third party partners.
Vendors are realizing this, and I expect the
industry to see more collaborative solu-
tions in the future. These new process
workflows, like eLynxs
Electronic Closing Network
(eCN) offering, address the
need by providing trans-
parency between a lender
and every approved vendor
they work with. This makes
it easy to see exactly who
the lender partners with
and what is happening to
the HUD-1 as the process
progresses, aiding in regula-
tory compliance.
Electronic mortgage
lending has led to the cre-
ation of an industry-wide
infrastructure that enables
closing documents to be
exchanged among the bor-
rower, lender, title under-
writer, settlement agent
and other business part-
ners, flawlessly, seamlessly
and transparently. That
makes it very hard for
fraud to hide.
Its also making it pos-
sible for lenders to take
back control of the clos-
ing process in a way that centralizes all
of the information and connects the
partners with an online hub.
As more lenders utilize such systems,
theyll find it easier to run automated
analytics prior to a loan closing. They
will know who is responsible for closing
each loan and connect with closing part-
ners in a secure fashion. Internal sys-
tems will connect, sharing data seam-
lessly and collaborating to reconcile the
HUD-1 and re-disclose as necessary as
the loan moves through the pipeline.
Over time, settlement agents will build
reputations that are backed by perform-
ance data and lender partner grading sys-
tems that will allow originators who use
these systems to benefit from each others
experience. Fraudsters would be marked
once and blocked by all, at the same
time, the best agents would get effortless
promotion across the industry.
Few would question that technology
platforms that are intuitive, help lend-
ing institutions remain vigilant in the
fight against fraud, and are transpar-
ent, have a place in the mortgage busi-
ness. But with the regulatory scheme
Where fraud still hides in
the mortgage transaction
Statistics indicate that fraud is almost
always perpetrated with collusion from
parties inside the institution, either
employees of the bank or other parties
who work with the bank. With dozens
of participants involved and virtually
unlimited opportunities for ill-gotten
gains, mortgage lending is particularly
vulnerable to scams.
I have been impressed with the technol-
ogy that has begun to reach the market
several are adept at sniffing
out fraud related incidents
to third-party originators or
by collateral valuation
providers. Missing in the
process, however, were the
closing agents, the people
lenders trust to bring the
transaction to fruition.
Having consulted with
many of our clients, it
appears that lenders
assumed that because
they maintained control
of the closing documents,
the risk from fraud was
low. That perception has
proven to be wrong. Our
analysis shows that the
risk is high, even very late
in the loan origination
process, right up to the
closing table. Thats
because once loans go to
the closing agent, lenders
yield control and subject
themselves to risk from
several sources. For
instance, mistakes in
data entry or unconventional business
practices often undermine the closing
process, jeopardizing lenders.
Too often, the lender finds out about
the fraud after the deal has closed and,
occasionally, after it is funded. The clos-
ing process, most of us would agree,
lacks transparency.
Recognizing the vulnerability of
lenders, the U.S. Department of
Housing & Urban Development (HUD)
has handed down rules governing set-
tlement services agents. Lenders have
been tasked with scrutinizing these
players. This will uncover some bad
players, but identifying a source of
fraud that late in the process is, by no
means, a best practice.
How electronic
documents have made
it easier to spot fraud
To prevent settlement agent fraud, the
lender has to monitor the whole process
in the overall loan origination workflow.
To do that effectively requires automa-
tion. While its not possible to task a sys-
tem with 24-7 surveillance of settle- continued on page 40
that lenders and their business partners
are charged with adhering to, the stakes
are higher and the need for a solution is
more pressing.
Technology solutions are now avail-
able to help lenders deal with this envi-
ronment and succeed. They were
enabled by the hard work of mortgage
technology professionals, but also by
the lenders who had the courage to
begin sending those first documents
out electronically instead of on paper.
Sharon Matthews is president and chief
executive officer of eLynx in Cincinnati,
Ohio. She has more than 20 years of
executive experience running profitable
large technology and software compa-
nies. She may be reached by e-mail at
sharon.matthews@elynx.com.
Today, more than 80
percent of the loan
documents volume
flowing through the
pipelines of the largest
lenders is electronical-
ly enabled, meaning
that if the borrower
chooses to keep it elec-
tronic, the documents
will never paper out.
That compares to
about 40 percent just
a few years ago.
Paperless or Just Less Paper?
backed up off-site (a very easy thing to
do these days), it is completely protect-
ed in the event of a fire, flood or other
damaging events.
Even if an organization succeeds in
going completely paperless (a rarity indeed),
they cannot control vari-
ables outside of their own
organizational unit. Here
are some examples:
O A real estate company
that negotiates short sales
uses a system I designed to
produce all of the paper-
work needed for a short
sale proposal that gets sub-
mitted to the lenders. If a
lender also uses a paper-
less system, documents
can be sent electronically
from their office directly to
the lender. What if a lender
requests the documents to
be mailed with an original
handwritten signature?
How about the buyer or seller who
doesnt have Internet access and needs
to receive the documents in a more
traditional format?
O Another system I designed is used by
firms who try to reduce property
taxes on behalf of the homeowners
they represent. The system produces
all the necessary documents elec-
tronically. However, most taxing
authorities (school districts, towns,
counties, etc.) are far away from
such automation. One appeal
process requires the tax reduction
firm to produce five copies of the
same document to be distributed to
various different taxing authorities.
In an effort to improve this, an e-fil-
ing system was created. This system
made a number of programmers
happy by giving them work to do
(for the tax reduction firms and tax-
ing authorities), but only resulted in
the elimination of one set of the
By Erik Wind
The reality is,
automation and
better technology are
not synonymous with
paperless.
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fire, flood or gross inefficiency to motivate
you to make the move. But if you already
are at that point, and you want to go
paperless because thats the buzzword at
a recent conference, think again. In fact,
think three or four times and make sure
its going to benefit you in the end.
Erik Wind is the president of EWDC, a soft-
ware company based in Farmingdale, N.Y.
Erik has created various software applica-
tions for the real estate industry for the pur-
pose of short sales, property tax reduction,
and is one of the developers of GeoData
Plus, a leading real estate data company in
New York State. He may be reached by
phone at (516) 882-6930, e-mail
erik@ewdc.net or visit www.ewdc.net.
documents. Case in point, the firms
are still required to print the same
documents, but now have an addi-
tional requirement with the e-filing.
If your offices system is not computer-
ized to the extent where all documents
and data are centrally stored and secure-
ly backed up, find a way to do so sooner
than later. Off the shelf software may
suit your needs for surprisingly less than
what youd expect. If you need something
developed specifically for your organiza-
tion, software developers (like any other
business) are likely to charge less now
than what theyd charge in previous years
simply because their business is slow too.
Dont wait for disaster in the form of a
tions can image or scan the files into an
electronic loan folder, or they can out-
source this step to a third-party vendor
that can also extract relevant, necessary
data from the files. Once the data is
extracted, lenders can manage the imaged
files in a more organized fashion further
increasing efficiency. In addition, online
imaging capabilities enable a collabora-
tive, all-access view of the loan files where
other mortgage loan constituents can
quickly review and accept documents,
thereby improving turnaround.
A recent imaging technology being used
by the mortgage industry is the DataGlyph,
which is very similar to a barcode tag. By
using a sophisticated tag, placed on the first
page of the paper stack that is scanned into
an electronic loan folder, files can be
indexed quickly and automatically. For
example, Wisconsin Mortgage Corporation
is using this new technology as a way to
reduce labor and paper costs. The tags can
store important data and offer redundancy
when damaged or tampered. They also
ensure the document is stored in the prop-
er location within the electronic folders so
Wisconsin Mortgage can upload documents
without the use of a scan cover sheet.
Electronic documents
As the final piece of the P.I.e, a true elec-
tronic mortgage (or e-mortgage) would
require that the loan files are never
signed on paper. From the outset of the
loan process, with the initial application,
to the final step of sending the loan fold-
er for archiving, files are living documents
within the electronic loan folder. With a
true e-mortgage solution, files within a
loan document can be tagged with meta
data, which enables system comparisons
and greatly reduces costly processes of
comparing image docs to data systems.
E-mortgages more securely complete
loan transactions, thereby protecting con-
sumers personal financial information, in
accordance to federal regulations. With
todays collaborative loan processing tech-
nologies, security measures have been put
in place to guarantee financial data
remains confidential and safe. For exam-
ple, some e-mortgage technology providers
offer a secure, personal electronic signing
room for loan documents to be signed.
Rather than a typical disclosure or closing
process where borrowers sign a significant
amount of paperwork to finalize the loan,
an electronic signing room enables them to
view the files electronically in the closing
room and sign with an electronic signature.
By providing each individual party
with unique authentication credentials,
these e-mortgage technologies can lock
down documents and track changes
while ensuring only designated parties
are able to view and sign the documents.
Get your piece of the P.I.e
According to a recent survey of mortgage
lenders conducted by Xerox Mortgage
Services, 31 percent of survey partici-
pants believe it will take less than five
years for the mortgage industry to
process more than 50 percent of all loans
as an e-mortgage. Another 44 percent
believe it will take five to seven years.
These survey results confirm that the
market is striving for a paperless solution
to improve efficiencies and reduce costs.
Until the mortgage industry is ready
to go completely paper free, which, due
to regulations, may not be for some
time, paper light loan processing can
be achieved by using various compo-
nents of the P.I.e. Imaging and scanning
technology that transforms hard copy
files into electronic documents allows
documents to be instantly circulated to
necessary parties to streamline process-
es and turn loans faster.
Guild Mortgage Company, headquar-
tered in San Diego, Calif., is one organi-
zation that has already taken the e-
mortgage leap, beginning the process
of a secure, convenient way to deliver,
sign, store, access and manage the life-
cycle of its loan documents. The solu-
tion is targeted at helping Guild
decrease costs associated with storing,
printing and mailing hard copy loan
documents and has increased pull-
through rates. The e-mortgage process
also allows Guild to comply with the
Real Estate Settlement Producers Act
(RESPA) that mandates the tracking and
management of disclosure documents
within 72 hours.
Make your checklist
Lenders already working with the P.I.e, or
those considering advancing their organ-
ization through new technology purchas-
es, need to consider their technology
roadmap when selecting a vendor.
Companies can easily create a checklist
of requirements that should include sup-
port for future paperless strategies, such
as e-mortgages, e-signature and e-vaults.
Solutions must be flexible to incorporate
other pieces of the P.I.e, such as imaging
and DataGlyphs. With these require-
ments in hand, an organization can be
prepared to make a long-term decision
on its vendor partners.
By understanding the components of
the P.I.e, an organization can focus on its
next steps for going paperlesswithout
being overwhelmed with the need to
move straight from traditional loan pro-
cessing to pure electronic loan process-
ing. As they say, the pie is ready.
Greg Smith is vice president and general
manager for Xerox Mortgage Services, for-
merly Advectis Inc., provider of BlitzDocs,
a widely-used solution for electronic mort-
gage document collaboration. He can be
reached at greg.c.smith@xerox.com or
visit www.xerox-xms.com.
Its no question that the mortgage industry
is in a state of transition. To overcome the
obstacles and survive market turmoil,
lenders must face the realities of the market
and evolve their processes to become as effi-
cient and cost-effective as possible. In recent
years, an increasing number
of mortgage companies
have committed to going
paperless. Companies are
moving toward paperless
offices at different speeds
and are often working with
a combination of paper,
imaged and electronic docu-
mentsor P.I.e.
By having a holistic view
of the entire mortgage loan
process and a better under-
standing of each component
of the P.I.e, organizations
can streamline processes
and ensure their outsourced
partners will meet the
demanding needs of the cur-
rent market environment
and make their operations
as efficient as possible.
Paper
The mortgage industry
has long recognized that
mounds of paper fill
offices and overflow
desks. These paper files are, at times,
necessitated by government regula-
tions, such as the Electronic Signatures
in Global and National Commerce (E-
SIGN) Act. At other times, they are
required by lenders who have not yet
evolved to paperless processes and rely
on hard copy files to get work done. In
any case, it is no mystery what makes
paper so difficult to manage.
Loans consist of multi-page documents
and formssuch as applications, earnings
verifications, statements, tax forms, credit
reports, appraisals and contractsthat
need to be prepared,
accepted and processed. As
this process occurs, paper
piles upfilling cabinet
space, requiring additional
postage fees and taking a
toll on the environment. In
the end, traditional paper
loan folders can generate
an excess of $100 each to
maintain for just two years.
Even worse, as the loan
matures, even more costs
can mount with archiving
and retention fees.
As lenders continue to
become aware of the
increased costs associated
with paper, they realize the
need to reduce the paper
portion of the P.I.e. In an
effort to do so, organiza-
tions are leveraging online
collaborative technologies
to share loan information.
Imaging
On-demand imaging serv-
ices and capabilities can be used in a
variety of ways to evolve organizations
to a paper-free office environment.
From origination to post-closing, files
can be quickly and easily shared online
to drive efficiency, increase productivity
and reduce costs.
Once paper files are received, organiza-
Pieces of the P.I.e: Paper,
Imaged and e-Documents
By Greg Smith
According to a recent
survey of mortgage
lenders conducted by
Xerox Mortgage
Services, 31 percent of
survey participants
believe it will take less
than five years for the
mortgage industry to
process more than 50
percent of all loans as
an e-mortgage.
41
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Can't Miss Event For Anyone Involved In Credit!
Don't miss this HIGH OCTANE training conference cov-
ering crucial topics such as Advanced Sales, Marketing,
Client Support, Qualifying Prospects, FICO Scoring,
Time Management, Compliance...and MORE!
Did you know? Majority of businesses that we consult
with are out of compliance.
Network with other credit professionals at the Welcome Reception on Friday
night and the NACSO Banquet lunch on Saturday.
Make sure to stay for our bonus business coaching session for a "Question &
Detailed Answer Panel." This session will last as long as it takes!
Space is limited at the resort
Do not delay registration!
www.NACSO.org/conference
Avoid big mistakes most
companies make.
Maximize client satisfaction.
Qualify prospects efficiently.
Understand scoring cards.
Be profitable and be compliant!
AND MUCH MORE!
Learn How To:
lowest fees, appraisers in Ohio were
represented disproportionately, with 18
of the bottom 50 slots being taken by
counties in the state. Four nearby
statesPennsylvania, Kentucky,
Illinois, and Wisconsinalso had three
to four counties each in the bottom 50.
The East North Central census divi-
sion, comprising Illinois, Indiana,
Michigan, Ohio, and Wisconsin, ranked
at the very bottom of the nine divisions
nationally, with a median fee of $300.
The Pacific division was most healthy
overall for appraisers, with a median of
$400. When looking at the larger census
regions, the West and South fared best
for appraisers with median fees of $375
and $350, respectively. The Midwest
and Northeast did more poorly, with
both showing medians of $325.
Nationwide, the median observed
appraisal fee was $350, with an average
of $351.
For more information, visit
www.alamode.com.
Stewart Lender Services
now offering short sale
and deed-in-lieu services
Stewart Lender
Services (SLS), a
wholly-owned sub-
sidiary of Stewart
Title Company, has
announced a comprehensive solution
to help mortgage servicers meet the
requirements of the Home Affordable
Foreclosure Alternatives (HAFA) pro-
gram. HAFA provides additional options
and incentives to borrowers, servicers
and investors who utilize a short sale or
deed-in-lieu to avoid costly foreclosures.
SLS is an industry leaderoffering
mortgage servicers an effective alter-
native to costly in-house processing,
said Jason Nadeau, SLS president and
chief executive officer. Our Home
Retention Services group has now
developed a solution for mortgage ser-
vicers seeking an efficient means for
complying with HAFA requirements.
Using an experienced and proven
FDCPA-compliant Borrower Contact
Center and fully integrated workflows,
we can handle properties throughout
the distressed asset continuumloan
modification, short sale, deed-in-lieu,
foreclosure, asset management and
dispositionimproving communica-
tion among all parties and accelerating
transaction completion.
Borrowers can transition from the
failed loan modification to a short sale
option, and further on to a deed-in-lieu
of foreclosure in the event the short
sale is unsuccessful.
To compress the time for completing
a short sale, or implementing a deed-
in-lieu, SLS title and settlement teams
work up front to identify any potential
title issues and necessary third-party
payoffs to immediately begin curative
title work. This assists in investor and
mortgage insurance negotiations and
ensures that hurdles in the transaction
are cleared prior to the receipt of an
offer to purchase the property or trans-
fer of deed.
The SLS Short Sale Management Center
combines experienced professionals and
proven technology to improve the speed
and effectiveness of short sale transac-
tions. The Center relieves servicers of the
time-consuming, labor-intensive short
sale process, moving it into the hands of
an experienced real estate transaction
management company.
For more information, visit www.stew-
artlenderservices.com.
DocuSign launches
Version 10.1 SaaS
eSignature Service with
iPhone functionality
DocuSign has
announced the
release of the
DocuSign version 10.1, the latest release
of the companys e-signature service. This
version offers unique features and func-
tionality designed to support workflow
and productivity including automation of
form fields and other workflow enhance-
ments to simplify the user experience.
This feature set is further extended
through the release of ESIGNControl, a
custom DocuSign application specifically
designed for Apple iPhone users by Smart
Mobile Solutions. DocuSign, combined
with ESIGNControl, supercharges sales
teams, real estate professionals, mortgage
brokers, and business development and
operational professionals who rely on the
DocuSign e-signature service to close deals
online in minutes.
Gartner predicts that worldwide
Software-as-a-Service (SaaS) revenue will
exceed $14 billion for the enterprise appli-
cation markets by 2013, up from $7.5 bil-
lion in 2009. Organizations of all sizes are
deploying affordable, on-demand solu-
tions like DocuSign to automate core busi-
ness functions, reduce costs and increase
employee productivity. Whether its a sim-
ple NDA or a complex global sales agree-
ment requiring multi-party signatures,
DocuSign helps companies operate green-
er, faster and more profitably by removing
the hurdles associated with the signing
process and by offering more ways for
users to access and complete their trans-
actions online.
This release of DocuSign version
10.1 adds more sophisticated capabili-
ties that make it faster and easier than
ever to get documents signed online,
and to share data with other core busi-
ness applications, said Tom Gonser,
founder and vice president of product
strategy at DocuSign. DocuSign is cre-
ating an e-signature ecosystem that
makes it possible for organizations
across all industries to close deals in the
cloud and operate more efficiently.
The iPhone is quickly becoming a
must-have business productivity tool and
ESIGNControl makes it easy for DocuSign
clients to maximize efficiencies when
away from the office, said Tony Tonchev,
founder of Smart Mobile Computing and
creator of the ESIGNControl application.
ESIGNControl was developed for the
iPhone and thoroughly tested for per-
formance. This new application offers a
fast, convenient and mobile method to
use DocuSign from any iPhone.
ESIGNControl is a DocuSign transac-
tion remote control that lets users man-
age documents sent for e-signature from
any iPhone. ESIGNControl offers a rich
feature set that makes it fast and easy for
DocuSign users to: Send a document for
signature straight from your iPhone;
view, track and access sent documents;
send, revise and resend documents for
eSignature; access document signing sta-
tus, envelope details, archived docu-
ments and history; share graphical
reports that even shows transaction
times; electronically sign a document
from anywhere, anytime; and remotely
log in to the DocuSign Console.
For more information, visit www.docusign.com
or www.esigncontrol.com.
New income verification
services from LPS Applied
Analytics added to the
RealEC Exchange
RealEC Technologies
Inc., a provider of
collaborative net-
work solutions to the
mortgage industry, has announced the
addition of new income verification
services to its RealEC Collaborative
Partner Network (CPN), the RealEC
Exchange.
The income verification suite, pro-
vided by Lender Processing Services
(LPS) Applied Analytics group, enables
lenders to validate a borrowers identi-
ty and verify the accuracy of income
information provided during the appli-
cation process. The borrowers income
is confirmed directly with the Internal
Revenue Service (IRS) by uploading the
signed IRS 4506T form (Request for
Transcript of Tax Return) electronically
through the RealEC interface. LPS
Applied Analytics then securely delivers
a report from the IRS. The integration
into RealEC will continue to advance
efficiencies and delivery timelines with-
in the income and identity verification
process.
Lenders are facing all sorts of chal-
lenges today with increased regula-
tions, growing fraud and changing best
practices, said Ted Jadlos, senior man-
aging director of LPS Applied Analytics.
We make it easy to verify identity and
incomea necessity before funding a
loan. Now, its even easier to access
these solutions via the RealEC platform,
the leading collaborative vendor plat-
form to access origination services.
Income verification services have
new to market continued from page 37
continued on page 42
This is not just for credit services organizations. Anyone who
is involved with credit can profit from attending this event.
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E-mail marketing is targeted.
Most forms of advertising are based upon
the concept that, if you hit thousands of
people with your message, even though it
means nothing to most of them, a few are
likely to respond. E-mail marketing,
though, is based on the idea of sending
the right message directly to the right peo-
ple based on their prefer-
ences, local market condi-
tions and other factors. You
can build one master list,
and then segment it by geo-
graphic location, marital
status, gender, age, income,
seasonality, etc. It elimi-
nates a lot of the guesswork
that makes other forms of
marketing so inefficient
and ineffective.
E-mail marketing pro-
vides data.
If youre using an e-mail
marketing application or
service designed for small
business, you can run
reports that show which e-
mails or messages worked,
as well as which didnt, so
you can improve upon
your next campaign. You
can even run split tests, sending one offer
or message to half your list and a differ-
ent one to the other half, so you can get a
better feel for exactly what makes cus-
tomers and prospects buy from you.
E-mail marketing allows you to engage.
Its nice to get the immediate reaction
from a buyer who sees your e-mail just
as he or she decides to make an offer on
a property. But, your real goal is to build
a relationship with a broader base of
prospects so they think of you whenever
its time for them to refinance or consid-
er mortgage services. E-mail marketing
allows you to do that by bringing them
community and market news, current
rates, timely tips (such as how to com-
pare debt instruments), and more on a
regular basis. Its a great way to engage
them and keep them engaged.
E-mail marketing has a low cost of entry.
Most forms of advertising or marketing
require a big upfront investment before
you see any results. That can get expen-
sive for a mortgage broker trying to
keep expenses down. E-mail marketing
has very little upfront cost, allowing
you to market effectively without hav-
ing to stop your core business work for
long periods to get it done.
E-mail marketing is less intrusive.
Unlike a lot of advertising, such as tele-
marketing calls, e-mail marketing doesnt
interrupt a prior activity to deliver a mes-
Mention e-mail marketing to fellow
mortgage brokers and you may find
that many are still hesitant to move
away from their tried and true snail
mail methods. Others, however, are
rapidly discovering that e-mail market-
ing is just about one of the most effec-
tive means of generating business.
Want proof? When
Shop.org surveyed retailers
for their State of Retailing
Online 2009 report, they
found that e-mail was the
most-mentioned successful
tactic overall. The Ad
Effectiveness Survey, com-
missioned by Forbes Media
in February/March 2009,
placed e-mail marketing
second only to SEO (search
engine optimization) for
generating conversions.
And, research conducted in
2009 by the Direct
Marketing Association (DMA)
demonstrated that e-mail
outperforms all other forms
of direct marketing.
The bigger question, of
course, is why? Out of all
the hundreds or even
thousands, of messages
consumers are exposed to each day,
why is e-mail marketing so effective?
There are several reasons, and mort-
gage businesses who embrace these
principles will quickly find themselves
with more customer relationships.
Those buyers are likely to remember
you as they narrow the field of choices
for mortgage origination.
E-mail marketing has a broad reach.
Its tough to find anyone who doesnt
have at least one e-mail address these
days, which means you can reach out to
your entire customer and/or prospect
base. Just be sure to get their permis-
sion first by asking if you can add them
to your mailing list.
E-mail marketing is proactive.
Many mortgage professionalsespe-
cially those running a small business
start promoting their services by taking
out ads in a phone directory, a real
estate guide, a local community news-
paper, a billboard or by sending direct
mail and placing door hangers. The
problem is your customers and
prospects have to stumble across the
ads in order to see them. E-mail mar-
keting goes directly to a place they are
already lookingtheir e-mail inbox.
And unlike paper-based mail or door
hangers, e-mail gives them the oppor-
tunity to contact you directly to get a
quote or more information by simply
clicking a mouse.
Eight Reasons Why E-mail Marketing
Works for Mortgage Brokers
And unlike paper-
based mail or door
hangers, e-mail gives
them the opportunity
to contact you direct-
ly to get a quote or
more information by
simply clicking a
mouse.
By Wendy Lowe
sage. Opening e-mail is the activity your
customers and prospects are engaged in
when they see your message. If youve
done a good job of building that relation-
ship, theyll actually look forward to seeing
what you have to say.
E-mail marketing works.
According to the DMAs research, e-mail
marketing generated a return on invest-
ment of $43.62 for every dollar spent on
it in 2009. Youre unlikely to find that kind
of ROI (return on investment) out of any
other form of marketing or advertising.
That, of course, is the best reason of all to
launch an e-mail marketing campaign.
Done correctly, e-mail marketing
allows you to become (and remain) visi-
ble to your customers and prospects
with highly-targeted messages at a
minimal cost all while delivering
outstanding, measurable results.
Wendy Lowe is director of product mar-
keting for Campaigner, an e-mail market-
ing solution that enables organizations to
have personalized one-to-one e-mail dia-
logues with their customers, measure how
they respond, and analyze those respons-
es. Campaigner is provided by Protus,
provider of Software-as-a-Service (SaaS)
communication tools for small-to-medi-
um businesses (SMB) and enterprise
organizations, including my1voice virtual
phone service and MyFax. She may be
reached by e-mail at wlowe@protus.com
or visit www.campaigner.com.
become critical to lenders operations
to enable effective underwriting, and to
ensure that loan quality standards are
met, said Dan Sogorka, president of
RealEC Technologies. The addition of
the LPS suite of income verification
services to the RealEC platform and
business model offers our clients the
most efficient method of accessing
these services available in the market-
place today.
For more information, visit www.lpsvcs.com
or www.realec.com.
New book from NAHB
offers social media tips
Builder Books, the pub-
lishing arm of the
National Association of
Home Builders (NAHB)
has released a new
resource for builders and residential
construction professionals that will
teach them how to use social media
tools such as Facebook, Twitter and
YouTube, to increase their visibility and
improve their sales results.
Social Media for Home Builders: Its
Easier Than You Think, a new book by
Carol M. Flammer, CAPS, CSP, MIRM,
demonstrates how builders and devel-
opers are effectively using two-way
communication via the Internet and
social media outlets to attract con-
sumers, follow up on leads and improve
customer service. This is the only book
that speaks specifically to the needs of
the real estate industry, and teaches
home builders how to build a social
media presence. The book is now in its
second print-run and will also be avail-
able in electronic format on Kindle.
In the book, Flammer outlines the
power of social media through case
studies and online outlets created
specifically for the home building
industry. The book is designed to help
readers understand social media and
construct a strategic plan for using it to
attract new homebuyers. Readers learn
how to use social media sites to: Build
a brand, engage new and existing con-
sumers, manage online reputation and
how to sell more homes.
With the recent explosion of social
media on the scene, this new book by
Carol Flammer is a timely resource,
offering those in the building industry
an excellent introduction into the
world of social media, said NAHB
Chairman Bob Jones. This guide walks
readers through the different online
resources, teaching them how to use
these tools to increase the visibility of
their own businesses.
Flammer is a public relations and
social media marketing expert, strate-
gist and consultant. With 20 years of
experience, Carol has established her-
self as an expert on real estate and con-
struction products public relations and
social media. Carol is the founder of the
online Atlanta Real Estate Forum, pres-
ident of Flammer Relations Inc., and
managing partner of mRELEVANCE LLC,
an Internet marketing, social media
and public relations firm with offices in
Atlanta and Chicago.
For more information, visit www.nahb.org.
Equator launches
PRO REO
Equator, a provider
of software to the
default servicing
industry has announced the launch of
its new professional real estate-owned
(REO) solution. PRO REO encompasses
all the power and best practices of
Equators enterprise REO application in
an affordable, quick and easy to adopt
solution. Equator has long been the
standard for many of the nations
largest lenders and servicers.
Now Outsourcers and Servicers can
be up and running in less than a day,
said Chris Saitta, chief executive officer
of Equator. They receive all the bene-
fits of our best-practices along with the
ability to immediately transact with
over 665,000 agents and 18,000 ven-
dors electronically.
new to market continued from page 41
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Plus Postage
& Handling
Atare Agbamu is one of only a handful of people in the reverse mortgage arena
who possesses a commanding understanding of the reverse mortgage industry.
As an originator, he has hands-on experience educating seniors and their advi-
sors. As author of the Forward on Reverse column inThe Mortgage Press since
2002, Atare Agbamu communicates nationally with the housing finance commu-
nity, bringing the unique insights and experience of an ardent reverse mortgage
expert into a wider business context.
This book combines Atares keen insights and know-how with extensive re-
search to create a first of its kind resource for the reverse mortgage industry. It offers a comprehen-
sive overview of the industry plus detailed information on marketing and originating reverse mortgages.
Present and future reverse mortgage professionals and senior advisors will profit from
decades of experience skillfully woven into this book. If you plan to succeed in this industry, this
book is the place to start.
Sarah F. Hulbert, President, Senior Financial Corporation and former four-term Co-Chair
of NRMLAs Board of Directors
When I first began reviewing the contents of this book, I became quite jealous ... Atare Agbamu
has set down an impressive amount of information ... And he delivers it in an easy-to-read,
simple-to-understand style that will make this book essential reading for all reverse mortgage
professionals.
from the Foreword by Jim Mahoney, Co-Founder and Former Chairman, Financial Freedom
Senior Funding Corporation, and former four-term Co-Chair of NRMLAs Board of Directors
The stories [Chapter 15: Profiles in Satisfaction] are the best vehicle to increase understanding and
acceptance of reverse mortgages among us laypeople. They are very compelling ...
Therese Cain, Executive Director, Minneapolis/St. Paul Chapter of Little BrothersFriends
of the Elderly
This book should be required reading for all new loan consultants originating reverse mortgages
and is recommended for experienced ones as well. This book provides excellent insight and infor-
mation on preparing ahead to provide the service our seniors deserve, to ensure a smooth loan
process and shorten the time to closing. Most of the problems caused in the processing and clos-
ing of reverse mortgages come from inadequate preparation.
Deanne Opstad, AVP, Senior Underwriter, Generation Mortgage Company
Think Reverse!
Table of Contents
Part I:
The new pillar of retirement security
Part II:
Marketing reverse mortgages: Its all about education
Part III:
Originating reverse mortgages
Part IV:
Enhancing freedom: The essence of reverse mortgages
Part V:
A new frontier in mortgage lending
Foreclosure moratoriums have lifted
and the REO industry is preparing for
increased volumes. Many of the Sellers
adopting PRO REO are converting from
existing systems to gain the efficiency and
scalability theyll need to handle post
moratorium REO volumes, said Saitta.
Sellers also gain the potential to establish
Midsourcer relationships with the large
lenders and servicers using Equator.
More than 58 servicers nationwide,
including seven of the top 10, rely daily
on Equators platform to automate their
various loss mitigation strategies. By
launching REO PRO, Equator has made
definite in roads into the middle market.
For more information, visit www.equator.com.
BrokerPriceOpinion.com
launches next generation
platform
BrokerPriceOpinion.com
has announced the
launch of their Next
Generation BPO (V3)
platform, capable of evaluating data
quickly through the use of progressive
technology and current local market
information.
For nearly two decades,
BrokerPriceOpinion.com has delivered
critical valuation data with industry-
leading broker price opinions (BPOs) and
appraisals. BrokerPriceOpinion.com is
focused on supporting client decisions
by providing accurate and reliable infor-
mation. The (V3) platform represents a
shift in philosophy behind information
systems of its type, focusing on data
analysis, rather than data capture and
delivery.
At BrokerPriceOpinion.com, using the
latest technology means designing, build-
ing, growing, and maintaining a state of
the art valuation platform, said Walt Coats,
president of BrokerPriceOpinion.com. Our
software automatically evaluates and
scores all comp sale and listing data provid-
ed by the broker. It was designed to analyze
the data for accuracy and/or fraud, and to
provide immediate feedback for brokers
and analysts.
Phase II (V3) is expected to launch in
the second quarter of 2010. Scheduled
enhancements developed in house by
BrokerPriceOpinion.com will access
local market data and incorporate it
into both new and existing products.
Clients will be able to gain valuable
insight into local markets and make
better, more informed business deci-
sions, adding to increased profitability.
For more information, visit
www.BrokerPriceOpinion.com.
Your turn
National Mortgage Professional Magazine
invites you to submit any information
promoting new niche loan programs,
new products or any other announce-
ment related to the introduction of a
new program, to the attention of:
New to Market column
Phone #: (516) 409-5555
E-mail:
newsroom@nmpmediacorp.com
Note: Submissions sent via e-mail are
preferred. The deadline for submissions
is the 1st of the month prior to the tar-
get issue.
Would you like to lend a hand to the Revolution? If so, please email us at info@mortgagerevolution.info or volunteer online.
Just The Facts:
Where: Hyatt Regency SFO San Franciso, CA
When: May 6-7, 2010
Price: $199
(special 10% discount for National Mortgage Professional Magazine readers using code NMP)
Learn more and register at MRev.org
(remember, save 10% with discount code NMP)
Come network and learn at
Mortgage Revolution in San Francisco
on Thursday, May 6 and Friday, May 7, 2010.
We're featuring a rst rate education from over 20 speakers on a variety of
hot topics - all in a "spam-free" environment.
The kicker - we're donating all prots to charity.
Our goal for Mortgage Revolution San Francisco... $70,000.
This is an event being hosted for mortgage professionals by mortgage professionals.
We feel that now, more than ever, we need to come together as an industry.
Thursday-Sunday, May 13-16
National Association of Professional
Mortgage Womens 46th National
Education Conference & Annual Meeting
Marriott South Austin
4415 South IH-35
Austin, Texas
For more information, call (800) 827-
3034 or visit www.napmw.org.
Sunday-Wednesday, May 23-26
Mortgage Bankers Association
Commercial/Multifamily Servicing and
Technology Conference 2010
Sheraton New York Hotel & Towers
811 7th Avenue
New York, N.Y.
For more information, call
(202) 557-2790 or visit
www.mortgagebankers.org.
Sunday-Wednesday, May 23-26
Mortgage Bankers Association National
Secondary Market Conference
& Expo 2010
Hilton New York
1335 Avenue of the Americas
New York, N.Y.
For more information, call
(202) 557-2790 or visit
www.mortgagebankers.org.
JUNE 2010
Monday-Wednesday, June 14-16
CRE Finance Council 2010 Annual
Convention
The Waldorf-Astoria
301 Park Avenue (50th Street)
New York, N.Y.
For more information,
call (212) 509-1844 or visit
www.cmsaglobal.org.
Thursday-Friday, June 24-25
National Association of Mortgage
Brokers 2010 Mid-Year Meeting
Phoenix Airport Marriott
1101 North 44th Street
Phoenix, Ariz.
For more information,
call (703) 342-5900 or visit
www.namb.org.
JULY 2010
Wednesday-Saturday, July 7-10
Florida Association of Mortgage
Professionals 50th Anniversary
Annual Convention & Trade Show
From FAMB to FAMP
50 Golden Years
Rosen Shingle Creek
9939 Universal Boulevard
Orlando
For more information, call (850) 942-
6411 or visit www.famb.org.
AUGUST 2010
Wednesday-Friday, August 18-20
California Association of Mortgage
Brokers 2010 Annual Convention &
Grand Exposition
Hyatt Regency Long Beach
200 South Pine Avenue
Long Beach Convention Center
300 East Ocean Boulevard
Long Beach, Calif.
For more information, call (916) 448-
8236 or visit www.cambweb.org.
SEPTEMBER 2010
Thursday, September 16
Iowa Association of Mortgage Brokers
2010 Annual Convention
White Oak Vineyards
15065 Northeast White Oak
DriveCambridge, Iowa
For more information, call
(515) 210-4675 or visit
www.iowamortgagebrokers.org.
Monday-Tuesday, September 21-22
Illinois Association of Mortgage
Professionals 21st Annual
Fall Conference
Location to be determined
For more information,
call (630) 916-7720 or visit
www.iamp.biz.
OCTOBER 2010
Thursday-Friday, October 14-15
Kentucky Association of Mortgage
Professionals 2010 Annual Convention
Location to be determined
For more information,
call (270) 929-2836 or visit
www.kyamp.net.
Tuesday-Wednesday,
October 19-20
Utah Association of Mortgage Brokers
2010 Annual Expo
Location to be determined
For more information,
call (801) 787-6611 or visit
www.uamb.org.
Sunday-Wednesday,
October 24-27
Mortgage Bankers Association 97th
Annual Convention & Expo
Atlanta Georgia Congress Center
285 Andrew Young International
Boulevard NW
Atlanta
For more information,
call (800) 793-6222 or
visit www.mortgagebankers.org.
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.
For more information,
call (703) 342-5900 or visit
www.namb.org.
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APRIL 2010
Sunday-Monday, April 18-19
North Carolina Association of Mortgage
Professionals 2010 Annual Conference
The Pinehurst Resort & Spa
80 Carolina Vista Drive
Village of Pinehurst, N.C.
For more information, call
(919) 783-0767 or visit
www.ncmortgageprofessionals.org.
Sunday-Wednesday, April 25-28
Mortgage Bankers Association National
Technology in Mortgage Banking
Conference & Expo
Hyatt Regency Chicago
151 East Wackler Drive Chicago
For more information, call
(800) 793-6222 or visit
www.mortgagebankers.org.
MAY 2010
Monday-Thursday, May 3-6
Tennessee Association of Mortgage
Professionals 2010 Convention & Trade
Show, Tried, Tested & True
The Hotel Preston
733 Briley Parkway
Nashville
For more information, call (615) 302-
0001 or visit www.tnamp.com.
Wednesday, May 12
Florida Association of Mortgage
Professionals 25th Annual Trade Show
Turning Up the Heat
Don Shulas Hotel & Golf Club
6842 Main Street
Miami Lakes, Fla.
For more information, call (305) 392-
5414 or visit www.fambmiami.com.
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.acethesafe.com ......................................6 & 17
ACC Mortgage .................................................. www.weapproveloans.com ....................................23
Calyx Software ................................................ www.calyxsoftware.com ........................................16
Comergence Compliance Monitoring, LLC .......... www.comergencetrustedmember.com ....................19
Elliott and Company Appraisers, Inc................... www.elliottco.com ..............................................32
Emigrant Mortgage Company ............................ www.emigrantmortgage.com ................................32
Entitle Direct Group.......................................... www.entitledirect.com ..................Inside Front Cover
FindMortgageJobs.com .................................... www.findmortgagejobs.com ..............................NM1
First Source Capital Mortgage, Inc. .................... www.fscmortgage.com ..........................................16
Flagstar Wholesale Lending .............................. www.paperless.flagstar.com ......................Back Cover
Franklin First Financial .................................... www.franklinfirstfinancial.com ............................33
Freedom Mortgage .......................................... www.fmbranch.com ......................Inside Back Cover
Frost Mortgage Banking Group .......................... info@gregfrost.com ..............................................25
Gateway Mortgage Group, LLC .......................... www.gatewayloan.com ........................................30
Guaranteed Home Mortgage.............................. www.joinguaranteed.com ....................................31
HTDI Financial ................................................ www.htdifinancial.com ........................................26
Mortgage Concepts .......................................... www.mortgageconceptsonline.com ........................13
Mortgage Revolution ........................................ www.mrev.org ....................................................43
MortgageProShop.com...................................... www.mortgageproshop.com ..................................43
NAMB.............................................................. www.namb.org ....................................NM2, 22 & 30
NAPMW .......................................................... www.napmw.org ..................................................35
Platinum Credit Services, Inc............................. www.platinumcreditservices.com ............5, 7, 9 & 11
Presidents First Mortgage Bankers .................... www.presidentsfirst.com ......................................21
Quality Mortgage Services ................................ www.qcmortgage.com ..................................27 & 32
REMN (Real Estate Mortgage Network)................ www.remnwholesale.com ....................................29
Ridgewood Savings Bank .................................. www.ridgewoodbank.com ....................................20
Titan Lists ....................................................................................................................................15
United Northern Mortgage Bankers Ltd. ............ www.unitednorthern.jobs ............................ 14 & 37
Wells Fargo Home Mortgage.............................. www.brokerfirst.com ............................................24
Xetus Mortgage Corporation.............................. www.xetus.com ....................................................13
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