broker banker v126 final

DONCURR I E

Broker Banker of the Month:

HighTechLending, Inc.

AMERICA’S TRADE PUBLICATION FOR LOAN ORIGINATORS

Forget Red Flags, Where’s My White Flag?Forget Red Flags, Where’s My White Flag?

Like it or Not We are being judged on Our Virtual Image

Like it or Not We are being judged on Our Virtual Image

Silly Mistakes #3 Being a One-Night-StandLoan Officer

Silly Mistakes #3 Being a One-Night-StandLoan Officer

A Lesson From Old Yeller!A Lesson From Old Yeller!

NO EXCUSES New Year, New Tactics, and New Business: No Excuses

NO EXCUSES New Year, New Tactics, and New Business: No Excuses

Vol. 126

D O N C U R R I E

Branching OutProviding Brokers with a New Home To Thrive

D O N C U R R I E


And BOOST the number of LOANS YOU CLOSE.

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BrokerBanker

BrokerBanker | Volume 126, 2010

BROKER BANKER STAFF Executive Publisher: Ed Craine Editor: Deborah Kaya Staff Writer: Ed Craine Staff Writer: Jennifer Hadley Design: Jon Kaya – Kaya Design Production: Kaya Design Photography: Vinit Satyavrata

ARTICLES BROKER BANKER MAGAZINE welcomes editorial submissions. Send your article ideas and letters to: BROKER BANKER MAGAZINE 2645 Ocean Ave. #202, San Francisco, CA 94132 or fax us at: 415/406-2340 or email to: [email protected]

ADVERTISING AND EDITORIAL OFFICE 2645 Ocean Ave. #202 San Francisco, CA 94132 415/406-2330 415/406-2340 fax [email protected] http://www.BrokerBanker.com

SUBSCRIPTIONS To receive each issue of the BROKER BANKER MAGAZINE, simply go to brokerbanker.com to subscribe. The annual subscription price is $59.00.

ADDRESS CHANGES Address corrections can be made via fax, email or regular mail.

Editorial material appearing in BROKER BANKER MAGAZINE is an informational service to readers. Article contents are the opinions of the authors, and not necessarily those of BROKER BANKER MAGAZINE.

Permission to reprint articles contained in BROKER BANKER MAGAZINE must be requested in writing.

BROKER BANKER MAGAZINE makes every effort to publish credible, responsible advertisements and articles. Inclusion of product ads, articles or announcements do not imply endorsement.

BROKER BANKER MAGAZINE is a registered trademark of BBMag Enterprises, LLC.

Printed in the United States. Not affiliated with any other trade publication.

FEATURES

5 DON CURRIE: BRANCHING OUT Broker Bankers product of the Month

9 SILLy MISTAKES #3: BEING A “ONE-NIGHT-STAND LOAN OFFICER”

By Brian Sacks

11 LIKE IT OR NOT, WE ARE BEING JUDGED ON OUR VIRTUAL IMAGE

Byron G. Torres

12 COMMERCIAL LOAN ExCHANGE

13 INDUSTRy SERVICE PROVIDERS

14 RESIDENTIAL LOAN ExCHANGE

15 FORGET RED FLAGS, WHERE’S My WHITE FLAG?

By Terri Buckman

17 A LESSON FROM OLD yELLER! By Brian L. Peart

19 PRIVATE MONEy LOAN ExCHANGE

20 BRANCH OPPORTUNITIES ExCHANGE

21 NEW yEAR, NEW TACTICS, AND NEW BUSINESS: NO ExCUSES!

By Greg Frost

Ed CraineExecutive Publisher

3

Q: As the President of CAMB/CAMP-OC, do you feel Mortgage Brokers will survive in the coming years? “MortgageBrokersareaveryresilientgroupofentrepreneursandadaptorstotheindustry.Canwesurvive?Verypossibly,butwedon’twanttojustsurvive,wewanttothrive.Unfortunatelytheindustryhasstackedthecardsagainstusinthatdepartment.Thecontractionofwholesalelenders,privatemortgageinsurancecompanies,stringentcompliance,andnowthelimitedabilitytoreceiverebateoryieldspreadpremiumshavemadeitverydifficultforthebrokertoprosper. Additionally,thereemergenceoftheFHAloanproductandrestrictivequalificationtoofferthisproductisadamagingblow.Brokers,bythebasicvirtueoftheirname,musthavetheabilitytoofferallofthemostpopularproductstoservetheircustomers.WithouttheabilitytoaccesstheFHAproduct,brokershavesuffered.Manycan’torwon’tprovideexpensivefinancialaudits(cost$7–10K)showingaminimumof$63,000networthtobea

mini-eagle.”

Q: What is the difference between a Mini-Eagle and a Full Eagle?

“HUDstatesaMini-EaglecanoriginateandprocessFHAloans.

TheymustthenbrokertheloantoaFullEaglethatcan

originateprocess,underwriteandfundtheloansontheir

warehouselines.HUDrequiresa$250,000auditednetworthtobeaFull

Eagle,butitisvirtuallyimpossibletoobtainawarehouselineasastartupthesedays.”

Q: You’re the President of HighTechLending; are you a FHA Full Eagle or a Mini-Eagle?

“HighTechLendingisaDirectEndorsedFullEagleMortgageBankwithmultiplewarehouselines.”


A candid conversation with CAMB/CAMP-Orange County President and President of HighTechLending, Don Currie, on the State of Banking, Brokering, and Net Branching in the new decade. With nearly 30 years in mortgage lending and 45 retail branches, there are very few who could speak to the future of our industry with more experience than Don Currie.

D O N C U R R I E

Branching Out

Volume 126, 2010 | BrokerBanker 6

Q: I’ve heard that HUD may drop the requirements for brokers and raise the minimum net worth for the Bankers. Is that true? “Thisisunderdiscussion,butthegovernmentisn’texactlyexpedientinputtingnewrequirementsinplace.So,wedon’tknowifthiswillactuallybecomethelaw,andit’sdifficulttobuilda2010businessmodelona‘maybe’.That’spreciselywhysomanybrokershavemadethebusinessdecisiontomergewithaFullEagleMortgageBank.”

Q: Ok, so tell me more about HighTechLending and building a Net-Branch platform for brokers? “Theterm‘NetBranch’hassomenegativeconnotationsduetopastlendersliterallyrentingtheirlicensetobrokersforafee.Thankfullythatpracticehasalsobeenpurgedfromourindustry.HUDhasmadeitveryclearonhowwecandobusinessinacompliantarena.BranchesarecompletelyintegratedwithourcorporationandbecomeBranchPartners.”

Q: What do you mean by the Branch Partner becoming ‘completely integrated’? “TheMortgageBrokerbecomesemployedbyHighTechLending,mustbepaidwithaW-2,cannotworkforanotherRealEstaterelatedcompany,andcannotconductRealEstatetransactions.Moreover,allbranchexpensesarepaidbyHighTechLendingincludingrent,phones,etc.”

Q: Logically there must be a lot of benefits to a Broker joining forces with a Mortgage Banker. What are they? “Thebenefitsarenumerousandpowerfulasyouarenolongerreferredtoasa‘Broker’butan‘FHADirectEndorsedFullEagleMortgageBank.’Thiscarriesalotofweightwithconsumersandmoreimportantly,withREALTORS®.REALTORS®,inmostcases,willnotacceptanofferunlesstheborrowerisbackedandapprovedbyamortgagebank. Moreover,youarenowpartneredwithacorporationthatcanofferallthe‘bellsandwhistles’ofalarger,morefinanciallystablecompany.Thisintegrationincludesaccesstostateofthearttechnology,LOS,paperlessprocessing,groupmedicalinsurance,marketing,training,compliance,qualitycontrol,andnetworkingwithotherbranches.”

Q: Once a Broker becomes a branch are they allowed to continue to broker loans? “Yes,absolutely.Weareabankerfirst,andabrokerwhennecessary.Asamortgagebrokermyselffor14years,Iunderstandthenecessitytoprovideaconsumerwitheveryloanproductavailabletoday.Theconsumeralwayscomesfirstandif

HighTechLendingcannotprovideaspecificproduct,we’llbrokertoournetworkofwholesalelenders.However,over80%ofourloansareclosed‘in-house’asourbranchesprefertoworkwithourstaffandourefficientpaperlessloanprocess.Theyenjoybeingonafirstnamebasiswithunderwriters,documentdrawers,andfunders.”

Q: It seems to be the best of both worlds. Where’s the catch or the cons of branching? “Manybrokerstellmethemostdifficulttransitionisthefeelingtherewillbelossofcontrolandautonomy.Thisisunderstandable,butweallowsomebranchestomaintainaDBAiftheyhavebrandedtheircompanyname.They’llalmostimmediatelyandunanimouslyrecognizethebenefitinmaintainingcompliancewiththemultitudeofindustrychangesandretainingthefreedomtodowhattheydobestwhichisservetheconsumerandproduce.”

Q: Tell me about this ‘Paperless Loan Process.’ Sounds pretty green to me, which is certainly enticing. “Greenisgood.Theamountoftreeslosttothemortgage

industrywouldmakePaulBunyanshedatear.Equallyimportant,youmustclosetheloaninatimelyfashion,andwiththepaperlessloanprocessweexcelinthatdepartment. Usingthewords‘FHA’and‘PaperlessLoan’inthesamesentenceisabitofanoxymoron,butwemakeitworkquitesuccessfully.Inthepast,thepaperpackagewascarriedfromonedepartmenttothenext.Icallthisthehorizontalprocess,oldfashionedandterriblyinefficient. Onthecontrary,thewebbasedpaperlessprocessallowspeopleanddepartmentstoworkthe

filesimultaneouslyinaverticalfashion.Whilethepackageisbeingprocessed,underwriters,documentdrawers,andfunderscanalsoworkthepackage.Theseindividualscanviewthefilefromanygeographiclocation,andtheresultsareadramaticimprovementincustomerserviceandturntimes.

Buttherearemoreadvantagestoo,suchas:• BranchesandConsumersgettokeepalloriginaldocuments

anddisclosures.• Loanpackagesandconditionsarenolongersentovernight

andpossiblylost.• ThecostofTransbox/Fed-exdeliveryiseliminated.• Paperloanpackagesarenolongercarriedthroughoutthe

departments.• MultipleDepartmentscanworkthefilesimultaneouslyfrom

multiplelocations.• Nospecialequipmentneeded.Agoodfaxmachineor

scannerwilldothejob.”6

Continued on

DONCURR I E

Broker Banker of the Month:

HighTechLending, Inc.

AMERICA’S TRADE PUBLICATION FOR LOAN ORIGINATORS

Vol. 126

D O N C U R R I E


D O N C U R R I E


BrokerBanker

BrokerBanker


Q: You’re not the only company with this business model, what makes you different? “Whatmakesusdifferent?Ourcompanymottohasalwaysbeen‘whatyoupromiseatthekitchentableyoumustdelivertotheclosingtable’.Youneedallthecurrenttechnologytoolsatyourdisposaltomakethishappen,pointofsaleautomatedapprovalsandratelockprotectionsoyoucanaccuratelydiscloseandthenquicklyclosewiththeefficientpaperlessloanprocess.OnedayallMortgageBrokersandBankerswilldobusinessthisway.Weofferthesetoolstoday.”Q: When a branch wants to grow their business, do you offer marketing support? “Marketingisthenameofthegame,andHighTechLendinghasarobustmarketingdepartmentfreeofchangetoourbranches.Yourcustomersmustknowwhoyouare,whatyouoffer,andwheretocontactyou.Ourmarketingdepartmentoffersdripmarketingtopreviouscustomers,e-blasting,voicebroadcasting,directmail,andradiospots.WespecializeinREALTOR®marketingsoyoucanbecomethe“In-House”lenderutilizingtheMarketingServiceAgreement(MSA).”

Q: How long does it take for a Broker to integrate with HighTechLending and become an FHA Full Eagle Mortgage Bank? Are there any net worth requirements or qualifications? “Theprocessonlytakesapproximatelythirtydays.Therearenonetworthrequirements,butwerequireafullbackgroundcheck,traininginFHA/Compliance,andyourorganizationmustbecommittedtoproducingqualityloans.Weholdourselvestothe

highestethicalstandardsandinsistthatallofourbranchesarecommittedtothisaswell.”

Q: So, what’s in your crystal ball for 2010? What advice can you offer Broker Banker Readers? “Youdon’tneedacrystalballtoknowourindustryiscyclical!Wejustgotourhathandedtousingrandfashion,andnowweareatthebottomofacycle.Callmeanoptimist,butitistimetorebuildandprosperonceagain. Advice?Iwaslatetomynephewslittleleaguegame,soIwalkeduptothekidondeckandaskedthescore.Hesaidwithasmileonhisface,“We’redown12tonothing.” Iremarked,“Youdon’tseemtooupsetaboutthat.” Hereplied,“WhywouldIbeupset,wehaven’tevengotuptobatyet!” Themoralofmystoryisnomatterwhatyourpersonalscoreis,noworintherecentpast,joinagreatteam(mortgagebanker/broker),grabthebestbat(FHA),playethically,andswingforthefencein2010.”

Pictured on Front Cover: Don Currie in Corporate Training and Conference RoomPictured Top Left: Don Currie, President and Erika Macias, Senior Vice President

Pictured Bottom Left: Jennifer Prestley – DE Underwriter, Don Currie – President, and Erika Macias – Senior Vice President

Don Currie has served as a mortgage professional for 28 years along with being a national speaker and published author. Currie is also the President of HighTechLending, Inc., a retail mortgage bank specializing in FHA Financing with 45 branches. In 2009 Currie was appointed President of CAMB/CAMP – OC. In a previous life, Don served as Senior Vice President, National Director of Sales for IMPAC LENDING GROUP from 1999 to 2006, where he increased wholesale production from 200 million in 1999 to 2.4 billion in 2005. Contact Don at (949) 468-2611 or via e-mail at [email protected]. Visit www.HighTechLending.net (Branch Partners) or www.HighTechLending.com (Consumers).

HighTechLending Corporate Headquarters, Irvine California

Don, Grace and Vena Currie


Ok,ifthattitledidn’tgrabyou,youmustbeasleepatthewheel,whichisclearlyahugemistake.It’salsoahugemistaketofallintothetrapofbeinga“One-Night-StandLoanOfficer.”This,thethirddumbestmistakethatloanofficerscanmake,iseasilyavoidedthough,withjustalittlebitofconsciouseffort.Readontolearnhowtoavoidbecominga“One-Night-StandLoanOfficer”andinsteadlearnhowtorunasuccessfuloriginationbusiness.

“Dumbest” Mistake# 3:Whoistheeasiestpersontosellamortgageloanto?Obviously,thatwouldbesomeonewhoalreadyknows,trusts,andlikesyou.Butthesefolksarefewandfarbetween.Because,let’sfaceit,evensomeonewhoknowsandtrustsyouonlybuysahouseeveryfivetosevenyearsinanormalmarket,andwhenratesgoupveryfewofthemaregoingtorefinance.

Thatputsyouinthepositionofconstantlylookingfornewbusiness.Butwhatifyourclientscoulddothesellingforyou?Everyoneyouhavedonealoanforhasafamily,friends,co-workers,andneighbors.Thinkofthepotentialfornewbusinessyoucouldrealizeifyouhadthemalltalkingaboutyouandreferringyourservices?

Therearemanywaystocommunicatewithallofthepeopleyouknow.Youcoulddoanonlinee-mailnewsletterorawrittenmonthlynewsletter;youcould(gasp!)callthemonceamonth;youcouldsendthempersonale-mails.Infact,notonlycanyoudothis,butyoumust,asI’mabouttoshareaveryscarystatisticwithyou

Foreverymonththatgoesbywithoutcontactingaformerclient,youlose10%ofyourinfluencewiththem.

Afterabouttenmonths,clientsaren’tevenlikelytorememberyourname.Thisis,ofcourse,ashamesincetherearesomanyeffectiveyetinexpensivewaystostayintouchwiththem.Andbystayingintouchwiththem,youcanthereforeremindthemtoreferyoutoothers.

Butdon’tforgetalloftheothersourcesofeasyrepeatbusiness.Take

REALTORS®,forexample.OneofthekeystomysuccesswashavingastableofREALTORS®whoconsistentlysent

menewbusiness.Iknowwhatyou’rethinking,“Brian,I’dratherhavearootcanalwithoutanesthesiathendeal

withsomeofthenastyREALTORS®outthere.”Newsflash!ThemajorityofREALTORS®

areanythingbutnasty.Infact,they’rehardworking,justlikeyou,andeagertoearnnewbusiness,justlikeyou.

Considerthisforaminute.WhenaREALTOR®givesyouadeal,theyarereallygivingyoutheirhard

earnedcommissioncheckandhopingyoudon’tscrewitup.Whenyoulookatitfromthatperspective,itmakessensewhentheycallyouconcerned,doesn’tit?Letthemknowwhat’shappeningontheirfiles.Callthemback.Dowhatyousayyouaregoingtodoandeverythingwillbejustfine.

Eventhoughthemarkethasturnedreallytough,homesarestillsellingandyoumustproactivelygoafterandearnyourfairshareoftheirbusiness.Remember,youcan’tbea“One-Night-StandLoanOfficer.”Thatmeansyoucan’tdoonedeal

foraclientoraREALTOR®,nevercontactthemagain,andexpecttostayafloat.YouneedtoworkhardtoearnthebusinessofahandfulofsuccessfulREALTORS®,andyouneedtobeinregularcontactwitheachandeveryclientyou’veeverworkedwith.Indoingso,you’llsolidifyyoursuccessformanyyearstocome.

Don’tforgettodothesamewithotherpotentialreferralpartnerslikeinsuranceagents,financialplanners,accountants,andattorneys.Thesamerulesapplyforthem.Makesureyouareregularlystayingintouchwiththemanddiligentlyhelpingthembuildtheirbusinessthroughsendingreferrals.This,Iguarantee,willpreventyoufromearningtheunfortunatereputationofbeinga“One-Night-StandLoanOfficer.”

Brian Sacks is the CEO of www.loanofficerformula.com. He has been an industry expert for over 24 years, closing over 6000 loans totaling 1 BILLION Dollars. Brian has trained thousands of originators and company owners in North America, sharing his “FORMULA” for success that will allow you to close LESS loans, Make More Money and Have a Life REGARDLESS OF MARKET CONDITIONS.

Silly Mistakes #3:Beinga“One-Night-StandLoanOfficer”

ByBrianSacks


BrokerBanker

BrokerBanker


When visiting 100 search results for “local”loan originators throughout the county, I found a disturbing trend.Eitherthewebsiteswerenotmaintainedandlooked“aged”,ortheywerereplicatedwebsiteswithmultiplecalculatorsanda link tofilloutafullormini1003. ForsomereasonitseemsasiflendingprofessionalsarenotadaptingtotheeverchangingInternet.Iadmitthatisageneralizedstatement,butofthemorethan100websitesvisited,maybe7werewellmaintainedandnotpackedwithinformationoverload. Thinkofyourwebsiteasyourbrickandmortaroffice.Ifit isovercluttered,filledwithbrochuresandapplicationsonthetableforaconsumertofilloutontheirown,whatimagedoyouthinkyouareportrayingtothecustomerswalkingthroughyourdoor? Theloanoriginatorbusinessstillreliesonresearch,thoroughprocessing,andmostimportantlyitreliesontrust.Youmaybethemostexperienced loanoriginator in thestate, but if yourwebsiteportrays you as otherwise, your trust factor may not be shiningthrough. The solution could be as straightforward as simplifying andmaintainingyourwebsiteonaregularbasis.Keepitsimple.Noneedtohavetonsofgenericcalculatorsandapplications.Acontactformwithgeneralinformationshouldreplaceafullormini1003.

Ifyourwebsiteismaintainedanduptodate,yourvisitorsaremore likelyto spend a longer time on your sitegetting to know you. Tell your storyandinvitepeopletogettoknowyouasapersonandasaprofessional.Ifyoudonothavetheoptiontoupdateyourwebsite,lookatbuildinganewwebsitethatallowsyoutomakechangesusinganonlineContentManagementSystem(CMS).ACMSisatoolthatenablessiteadministrators to edit text, add images,addpages,andevenembedvideo. Ifyouareabrokerwithmultipleagents,give each of them their own dedicatedpage on your web site. Your potentialcustomerswillappreciateit,anditwillmakeyourofficemoreapproachable.

Social Networks and Your BusinessIamoftenaskedabouthowsocialnetworkingwill

help financial professionals.My thinking is that “you”are thebestreporter on “you” that you will ever find. Update your Facebook,Twitterand/orBlogon thingsyouaccomplish.Link to thesepagesfromyourmainwebsitetogiveyourvisitorsachancetolearnmoreaboutwhatyouaredoing. If yourvisitorsstart reading things thatyoudo,theywillfeelasiftheyknowyouandthatisagoodthinginmarketing. Makeyoursitevisitorscomfortablewithyouand invite themtodobusinesswithyou.Shareyourknowledgethroughvideosandupdates towebsiteandsocialnetworkpages.Tellyourstoryandbecomethesourceofinformation.Youwillhaveachancetodiscussratesandhomevaluesatsomepointdowntheroadbutmakeyourfirst(virtual)introductionapleasantandwelcomingexperience.

Byron G. Torres is the founder and creative director of Pritzer Media (www.pritzer.com). As a former originator, Byron understands the needs of mortgage professionals. Pritzer’s services include: web site design, mobile marketing, videos for the web and video-SEO. Byron G. Torres can be reached at 888.214.7041 Ext 101 or by e-mail at [email protected]

11

We Are Being Judged on Our Virtual Image

Like It or Not

ByronG.Torres

Commercial Loan ExchangeStephan Kachani Email: [email protected]: 310-826-2888 x28Lone Oak Fund is a portfolio lender larger than many banks. Bridge loans from $250K to $10M on California property. Rates from 8.9%. No pre-payment penalties, appraisals, tax returns or junk fees. Minimal paperwork, creative structuring, fund in a week. Ask about special pricing arranged by Broker Banker Publisher Ed Craine.

“Helping mortgage brokers successfully fund small commercial loans since 1976. Stated income loans and other niche products available. Call Leo for marketing tips.”

Type: Private LenderMin Loan: $250,000Max Loan: $10,000,000

Lone Oak Fund

Samuel ShummonEmail: [email protected]: 415-257-3701

Lori Randich Email: [email protected]: 650-365-5341 x 218

David Gruebele Email: [email protected]: 916-863-7300

Jim Barnett Email: [email protected]: 925-946-4270

Type: BankMin Loan: CallMax Loan: Call

Type: Private MoneyMin Loan: CallMax Loan: Call



Luther BurbankSavings

RedwoodMortgage

Second AngelBancorp

Sonoma Bank

Michael ThurmanEmail: [email protected]: 916-338-3232 x310


Blackburne & Brown MortgageCompany, Inc.

Brent HoustonEmail: [email protected]: 877-663-4268


BridgelockCapital

Mark Sklonick Email: [email protected]: 415-893-9321


Circle Bank

Don Sonsma Email: [email protected]: 800-714-4106


First CaliforniaBank

Timothy FisherEmail: [email protected]: 818-957-8110


Beach BusinessBank

The lenders in our Commercial Loan Exchange are all active commercial lenders who are broker friendly. We encourage you to contact them for your commercial lending needs.

Leo GluckEmail: [email protected]: 800-538-5626 x3

Type: Mortgage BankerMin Loan: $200,000Max Loan: $3,000,000

Commercial Mortgage Corporation

BrokerBanker


BrokerBanker

Industry Service Providers

David NaciriEmail: [email protected] Phone: 888-835-3741

Value Express, the easiest and quickest way to the value of any property.

Value Express

Nickolas C. JonesEmail: [email protected]: 408-458-4300 x 318

Jeffrey PinkertonEmail: jeffrey @myratetrack.com Phone: 678-488-5159

Edward Jamison, Esq.Web: www.creditcrm.comPhone: 877-256-8162

Claire FennesseyEmail: [email protected]: 203-724-1140

Gordon G. ChinEmail: [email protected]: 415-252-2888

Cameron PannabeckerEmail: [email protected]: 209-478-3200

Henry Davidson - Director Email: [email protected]: 888.282.9747

Jon Kaya Email: [email protected]: 805-495-8215

Jim RichmanEmail: [email protected]: 877-502-7283

Jon Kaya Email: [email protected]: 805-495-8215

InTouch keeps you in touch with your clients. Ask about our Broker Banker special.

Is your business refi-ready? Get ready with myRateTrack.comReady. Set. Refi.

Start your own credit repair business and make $10k a month easy. Call to get your free brochure.

Buy Title Insurance Direct and Save your Borrowers Thousands in Closing Costs! Now in 32 states and Growing.

Achieve higher FICO scores with our Credit Scoring Tools. We are here 24 hours a day to serve you.

Let Our 30 years of Experience Pro-vide Light to the End of your Home Loan Tunnel.

We specialize in corporate identity branding including logos, ads, print colaterial, e-zines, and more.

Serving the clients of mortgage bro-kers and attorneys across the nation for over 9 1/2 years.

We design custom SEO compatible websites that help you stand out from the competition.

In Touch

MyRateTrack.com

Credit CRM

ENTITLEDIRECT

Cal Coast Credit Reports

Mortgage Modification Center

Express Notary Service Inc.EsignNotaries.com

Kaya Design

Richman & Associates

Thinking2

The businesses represented in this Industry Service Providers page are all broker friendly. We encourage you to contact them for your particular needs.

Don’t see your Industry below? Call us at 415-406-2330 to add your Service to our growing list.

Stephen McClanskeyEmail: [email protected]: 949-981-0456

Need an Appraisal Report? If so, we can help. We cover most of Southern California.

Landmark Appraisals

Accounting Services

Appraisal Services

Branch Opportunities

Client Retention

Credit Repair Services

Insurance

Credit Reporting Services

Loan Modifications

Notary Services

Marketing & Advertising

Website Services

Other services that can be advertised in the “Industry Services Providers include: • Coaching • Efficiency Services • Insurance Services • Legal Services • Licensing Services • Processing

Companies • SBA Loan Exchange • and more. Call 415-406-1210 to add your service to the list.

Marie CurrieEmail: [email protected]: 866-714-2040 x 2626

Need FHA? Want to lend in multiple states? We’re focused on your success.

HighTechLending Inc.

BrokerBanker


BrokerBanker

14Volume 126, 2010 | BrokerBanker

Residential Loan ExchangeStephan Kachani Email: [email protected]: 310-826-2888 x28Lone Oak Fund is a portfolio lender larger than many banks. Bridge loans from $250K to $10M on California property. Rates from 8.9%. No pre-payment penalties, appraisals, tax returns or junk fees. Minimal paperwork, creative structuring, fund in a week. Ask about special pricing arranged by Broker Banker Publisher Ed Craine.

Bay Equity is a Direct Lender in 8 Western States providing Mortgage Brokers a dependable funding solution in today’s turbulent mortgage environment. Our mission is to provide you with competitive pricing and unmatched customer service. Our experienced team is focused on what is important to you, which we believe, is PRICE & SERVICE! We have the ability to move quickly and give you answers in hours, rather than days.

Area: CaliforniaType: Private Money

Area: 8 Western StatesType: Conforming

Lone Oak Fund

John CurtinBay Equity

Raoul BaddeEmail: [email protected]: 415-699-0980

Darren SiegristEmail: [email protected]: 818-575-2600

Web: www.wmfinc.com

Marilyn TsaiEmail: [email protected] Phone: 415-265-2470

To find your rep., go to our websiteWeb: www.prmglending

Area: No. California Type: Conf., FHA, VA





CMG Mortgage

Franklin AmericanMortgage Company

MetLifeHomeLoans

MountainWestFinancial

Paramount ResidentialMortgage Group, Inc.

ReunionMortgage

Phone: 415-699-4063 Email: [email protected]

Phone: 949-202-5092 Email: [email protected]

Colin Field


Brian CerrutiEmail: [email protected]

p: 707-338-3632


Brent EckhardtEmail: [email protected]

p: 831-566-0022

Area: Seattle & Portland Type: Conf., FHA, VA

Jim Tomczak Email: [email protected]

p: 925-719-4108


Erin TooheyEmail: [email protected]

p: 760-612-9051

Wendy EdwardsEmail: [email protected] Phone: 775-852-6888 Ext. 225


Titan Wholesale

The lenders in our Residential Loan Exchange are all active residential lenders who are broker friendly. We encourage you to contact them for your residential lending needs.

BrokerBanker


As mortgage brokers, are we waiving our white flags of surrender, or are we just adapting to our new environment? The bad players have left the industry by now, but the attack on mortgage brokers continues in the halls of Congress at both the federal and state levels. The net effects of HVCC, MDIA and RESPA require wholesale lenders to be very involved in many up-front origination processes. Wholesalers now must order the broker’s appraisal, deliver their TIL, and soon may have to deliver the new GFE within three business days of the broker taking an application, or at the very least will have to deliver all subsequent revised GFEs. And with the new zero tolerance on lender fees, effective immediately, brokers will need to know where they are placing the loan at application or potentially absorb any fee discrepancies. All of these processes have hindered one of your biggest advantages, the ability to redirect a loan as necessary for better terms.

To boot, the new GFE has disparities in how ySP is disclosed between bankers and brokers, with brokers being at a clear disadvantage. Brokers will have a little more “splainin’ to do, Lucy” to convince the consumer they are not charging more than the banker. Brokers will now have to charge all their compensation in the form of origination charges in order to make their full income goal. ySP is not a POC fee any longer, it is now always a LENDER credit for closing costs paid to the borrower in its entirety. The borrower CAN select a rate that pays sufficient credit to offset origination and/or settlement charges, but the broker must disclose their compensation as origination charges only. Just an additional note, there will be no way to make overage as a broker from “unused” ySP. Bankers can continue to choose not to disclose ySP, which makes for a little less math for the borrower to digest.

These are some of the obvious reasons brokers are now driven to seek partnerships with bankers. The less apparent reasons are more alarming. HUD is in the process of doing away with their loan correspondent mortgagee approval (the mini-eagle), which still has unknown ramifications to the mortgage broker. At the MBA conference, I heard directly from the horse’s mouth (President John Courson) that many DE lenders are considering putting a higher net worth requirement to their brokers originating FHA loans than

the $63,000 that HUD required. This is a very big unknown for mortgage brokers that originate FHA loans, making it tough to project volume for 2010. Aligning with a banker generally secures HUD approval.

The other big unknown is the Federal Reserve’s proposal to regulate loan officer compensation, doing away with ySP as we know it and requiring private flat fee compensation agreements between brokers and lenders. It’s difficult to envision how the broker/wholesaler world will look if this comes to pass.

The trend from broker to banker is not a new trend but an accelerating trend. I expect that first quarter 2010 will reveal a lot of new partnerships. It feels like the beginning of a land grab by the mortgage banking community. There is some sense of urgency and also opportunity among bankers to align with the most profitable and well run broker shops for a more exclusive relationship.

The urgency stems from a concern that there will be very few true broker shops left. The viability of the wholesale channel is in question. Profitable wholesaling is about volume and efficiencies, and the contracting broker community and increased labor necessary per loan is making this ideal harder to achieve.

The opportunity for bankers in these arrangements is, of course, a closer relationship with the originator and the fact that converting any portion of production from TPO (third party originated) status is a benefit. Retail loans simply perform better. The affiliate branch operators better understand their

The Trend of Brokers Seeking Partnerships with Bankers Continues To Gain Steam.

Article by Terri Buckman

BrokerBanker


BrokerBanker


banking partner’s products, processes, policies and people. I think of it as the ultimate broker partner program. One colleague of mine likes to say, the dating is over, it’s time to

settle down. Beyonce would say it this way, “If you like it, then you shoulda put a ring on it.”

It is also very telling that CAMB is in the process of changing their name to CAMP (California

Association of Mortgage Professionals). The assumption is that the association hopes

to gain membership from the banking community.

Let me be quick to add, I sincerely hope wholesale survives. And should

you decide to forge a partnership

with a bank as an affiliate, I wish you continued success and commend you for refusing to give up your independent and entrepreneurial spirit. But, I also commend you for recognizing that the need for adaptation is paramount to success moving forward.

Terri Buckman is the Vice President and Sales Manager of Affiliate Branching for Pinnacle Capital Mortgage. With more than 25 years of experience in the mortgage banking and brokering industries, Terri welcomes questions at [email protected] or via phone at 925.822.5931.

Terri Buckman

By Brian L. Peart

Recently I watched the movie Old Yeller with my kids. Shocking, I know, but it was the first time I’d seen it. As

you undoubtedly know, at the end the boy has to shoot

Old Yeller, because he contracted a disease that made him

crazy. As the boy is lamenting the loss of his beloved dog,

his father uses this opportunity to teach him a critical life

lesson that all of us to some extent realize, but many seem

to forget (especially those of us in the mortgage business).

Though not verbatim, the father says something to this

effect: “Son, sometimes life just kicks you down and grinds

a man into the ground, and it just doesn’t seem to make

sense. But life is not all like that. A lot of it is pretty good.

If you spend all the good times worrying about the bad,

you make the whole thing bad. If you look around, you

will find something good to take your mind off the bad.”

At this point, the boy acknowledges that the pup of

Old Yeller is right in front of his face, and he makes the

decision to love Young Yeller like he did Old Yeller. This

lesson–to not obsess over the bad, or you will make the

good times bad too–is something we know in our hearts

to do, but we rarely do it. As an originator, manager, or

mortgage company owner, you get to practice this lesson

all the time. A loan is dying through no fault of your own.

What do you do? Do you obsess over it and allow it to

ruin your day or week or even (and I have seen people


A LESSON FROM

OLD YELLER!OLD YELLER!

BrokerBanker


do it) your entire month? Or do you switch your focus

away from the loss, write it off as a learning experience,

and focus on the good things going on in your pipeline?

When you get hit with an irate customer or an IRS audit

or a Comptroller audit, how do you respond?

All of life is a lesson in learning to accept this simple

truth. When things don’t go our way, when we get hit

with that curve ball that just does not seem fair, we

must understand that it is just a

test. We must get over it and

move on to the wonder-

ful future that awaits us.

Every top producer has

had loans, which have

died at the last minute

through no fault of

their own. They’ve all

had irate customers and

people parked in U-Hauls, because

the loan did not close and so on and

so forth. What made them top producers was that

they did not allow it to ruin their production. They took

a walk around the building, took a deep breath, and got

back in the game, focusing on the good things and the

things they could control. Unfortunately, the trap that

many of us fall into is in believing that we are the only

ones who are going through this. EVERYONE has had

loans die. EVERYONE has had things not go their way.

It’s a part of life, and it’s a part of business.

I know it is hard, especially in the midst of the storm, but

if you want to live a life that is rewarding, you must learn

to accept this reality. Life will continue to throw you the

curve balls, and there will never be a time when you have

years with no curve balls. That occasional loan will die. It

may not be your fault. But we must learn to shake it off

and get back on the horse, or we will never

win the race! Remember in the Old

Yeller story, the boy intentionally de-

cided to begin to love Young Yeller.

We too can stop lamenting the

loss of loans and instead

decide to love working on

new loans, new marketing

strategies, and so on. It’s

just a matter of where we

decide to focus our energy. We

can channel our energy on all of

the things that haven’t gone our way, or we

can focus on making the next transaction go our way. The

beauty is that we get to decide how we’ll react. We control

it! Which path will you choose?

Brian L. Peart is President of Nexus Financial Group, Inc. and Commer-cial Capital Ltd. He offers FREE tips to loan officers and owners through a weekly net letter. To opt-in just go to www.nexusfinancial.com.

“Son, sometimes life just kicks you down and grinds a man into the ground, and it just doesn’t seem to make sense.

But life is not all like that. A lot of it is pretty good. If you spend all the good times worrying about the bad, you make

the whole thing bad. If you look around, you will find something good to take your mind off the bad.”

Private Money Loan ExchangeStephan Kachani Email: [email protected]: 310-826-2888 x28Lone Oak Fund is a portfolio lender larger than many banks. Bridge loans from $250K to $10M on California property. Rates from 8.9%. No pre-payment penalties, appraisals, tax returns or junk fees. Minimal paperwork, creative structuring, fund in a week. Ask about special pricing arranged by Broker Banker Publisher Ed Craine.

Type: Private LenderMin Loan: $250,000Max Loan: $10,000,000

Lone Oak Fund

Web: www.agricap.com Email: [email protected]: 213-542-5232

Area: CaliforniaType: SFR & CommercialAmount: $500k to $5MM

Agricap

Michael ThurmanEmail: [email protected]: 916-338-3232 x310

Brent HoustonEmail: [email protected]: 877-663-4268

Alex NackoulWeb: www.brownstoneloans.comPhone: 1-800-547-1285

Mike Christl Email: [email protected]: 818-807-3866

Lori RandichEmail: [email protected]: 650-365-5341 x218

Eva RozaEmail: [email protected]: 415-584-3000

David Gruebele Email: [email protected]: 916-863-7300






Area: Northern CaliforniaType: 1-4 NOO & Comm.Amount: $200k to $1.5MM


Blackburne & Brown MortgageCompany, Inc.

BridgelockCapital

BrownstoneMortgage CapitalCorporation

CaliforniaEquity LendersInc.

RedwoodMortgage

Roza Real EstateLoans

Second AngelBancorp

The lenders in our Private Money Loan Exchange are all active private money lenders who are broker friendly. We encourage you to contact them for your private money lending needs.

BrokerBanker


Your Listing Here

Your Listing Here

Your Listing Here

Your Listing Here

BrokerBanker


BrokerBanker

Branch Opportunities ExchangeThe Branch Opportunities Exchange members are all broker friendly. We encourage you to contact them for their services.

Your Listing Here

Your Listing Here

Your Listing Here

Your Listing Here

Your Listing Here

Your Listing Here

Your Listing Here

Marie CurrieEmail: [email protected]: 866-714-2040 ext 2626

Excellent rates. Fast closings. Paperless. Focused on your success.

HighTechLending Inc.

Greg FrostEmail: [email protected]: 800-659-3767

Great pricing. Fast U/W. On time closings. Mentoring. 100% net payout. $2 Billion monthly line.

Frost MortgageLending Group

Amber WiertallaEmail: [email protected]: 888-708-2707 ext 18286

Turnkey. Keep your DBA. Keep 100% of profits. All products. Western states.

Pinnacle CapitalMortgage Corporation

Dane Basham Website: gatewayloan.comPhone: 888-544-0034 ext 222

FNMA and GNMA direct lender. We provide leads. Grow with us.25 States.

GatewayMortgage Group

Melissa ArntzenEmail: [email protected]: 916-960-0493

Retail Banking and Branching Company since 1996. 160+ branches. Banker/broker platform. your DBA ok.

AmericanPacific Mortgage

Linda LittEmail: [email protected]: 877-878-8989

Since 1993, we have been the industry leader in branch opportunities. Southwest

Funding, LP

Jeff MillerWebsite: debtzeroprocessing.comPhone: 866-356-2755

Topnotch business support, training, and back-end processing for Debt Settlement.

Debt Zero

By Greg Frost


DAILY1) GotobreakfastandlunchwithaREALTOR®referralpartneror

prospecteveryday.Youcan’taffordtoeatalone.2) AskeachREALTOR®iftheyknowanyoneattheirofficethat

isan“upandcomer”orverbalizingfrustrationwiththeirlender.Askthemtobringthemtolunchwiththetwoofyounextweek.

3) Callthelistingagentandsellingagentoneveryloaninprocesswithanupdateontheirfilethatyouarecurrentlyprocessing.

4) Calltheborrowerwithaloaninprocessupdateontheirfile.Dothis,andyouwillgetareferralbeforetheloancloses.

5) Findareasontosendout5notecardstoindustryprofessionalsandpastclientseachday.Veryfewhandwrittencardsaresent;allareappreciatedwhenreceived.Thinkaboutit:5cardsaday=25cardsx52weeks=1300opportunitiestomakealastingimpression.

6) Forward“TheDailyCommunicator”toeachofyourREALTOR®referralpartnersandprospects.

WEEKLY1) CalleveryREALTOR®referralpartneronMondaymorningand

askiftheyranintoanyoneovertheweekendthatmayneedyourassistance.

2) CalleveryREALTOR®ReferralPartner/ProspecteveryFridayafternoonandremindthemthatyouareonyourcellphoneallweekendandavailabletoanswerquestionsorrunthenumbersonaprospectivebuyer.

3) SendawrittenloanstatusreporteveryFridayafternoontothelist-ingagent,sellingagent,andborroweroneveryloaninprocess.

MONTHLY1) SendyourREALTOR®ReferralPartners,currentborrowers,

andpastclientsamonthlynewsletter.2) SendeveryonefromeverylistthatyouhaveaBirthdaycard.Call

themandleaveaHappyBirthdayvoicemailthedaybeforetheirBirthday,“IwantedtobethefirsttowishyouaHappyBirthday.IknowthatI’madayearly.Inmybusinessit’sgreattobeearly.”

In short, “bear down” and spend every minute of every day doing something to get your name out, to speak your message, to show you care, to provide valuable information, and to cross sell those who know and use you.

your attention and effort will announce your professionalism, enhance your authority, prove your consistency, and trigger reciprocity.

My team revealed to me in August 2009 that they were worried about their production for the next 4 months. After all, we had school starting, the State Fair in September, the International Balloon Fiesta in October, Thanksgiving in November, and both Christmas and New years holidays at the end of December. They shared every excuse in the book with me about why their production would be lower through years end.

I listened, smiled, stood up and said, “Well, based on that input, I think we ought to send everybody home and shut the whole thing down until January. I want to thank you all for your input. See you after the first of the year.” As I left the

room, I looked back over my shoulder and said, “Anyone who is willing to reassess this decision with me and try to convince me to keep the office open, meet in my office in 15 minutes.”

The result of that meeting was a restatement of the sales activities that were being performed by each LO on a daily, weekly, and monthly basis. As we shared all the activities, some LOs liked those that others were doing and chose to add them to their repertoire. I managed to interject a few ideas myself that were also added. Here are a few ideas to keep your business channels open and productive during slow months.

Greg Frost directs the largest NetPartner Division for PRMI Mortgage. He is also PRMI’s National Training Director. Greg Can be reached at: 505-292-7200, email: [email protected]

New Year, New Tactics, and New Business:

A PRMI Company

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

[email protected]

“I joined Frost Mortgage and immediately saw my rev-enue get back to what it used to be. I now have thetools I need to be successful in today’s market place.”

- Bill MorrisLancaster, OH

"I've known Greg since 1992. After an exhaustivesearch, I found the Frost/PRMI business model to be thevery best. I should easily double my income in 2010."

- Robert ShafferLancaster, CA

Greg is doing what he promised. Great pricing, fastunderwriting, on time closings! That’s all I needed andthat’s what Greg has delivered.

- David HoffmanWestlake Village, CA

I've never worked for a lender with such a hard work-ing closing department. I really appreciate all they doto help keep my business running smoothly.

- Ryan MorrowLancaster, CA

Our semi-annual BranchPartner Master Mind Meet-ings are what really motivate me. Great mentoringand loads of business building ideas coupled with thehands on “How to.”

- Momi PointerTustin, CA

I can't tell you how different this whole experiencehas been. I'm now going out to celebrate; not that Ifunded a loan, but that I didn't have to process thefile or beg the funder to review my conditions andhope that it funded on time.

- Tim RossLancaster, CA

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

• $2B MONTHLY WAREHOUSE CAPACITY• 48 HOUR UNDERWRITING

• 100% NET PAY OUT• WET FUNDINGS

A PRMI Company

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

[email protected]

“I joined Frost Mortgage and immediately saw my rev-enue get back to what it used to be. I now have thetools I need to be successful in today’s market place.”

- Bill MorrisLancaster, OH

"I've known Greg since 1992. After an exhaustivesearch, I found the Frost/PRMI business model to be thevery best. I should easily double my income in 2010."

- Robert ShafferLancaster, CA

Greg is doing what he promised. Great pricing, fastunderwriting, on time closings! That’s all I needed andthat’s what Greg has delivered.

- David HoffmanWestlake Village, CA

I've never worked for a lender with such a hard work-ing closing department. I really appreciate all they doto help keep my business running smoothly.

- Ryan MorrowLancaster, CA

Our semi-annual BranchPartner Master Mind Meet-ings are what really motivate me. Great mentoringand loads of business building ideas coupled with thehands on “How to.”

- Momi PointerTustin, CA

I can't tell you how different this whole experiencehas been. I'm now going out to celebrate; not that Ifunded a loan, but that I didn't have to process thefile or beg the funder to review my conditions andhope that it funded on time.

- Tim RossLancaster, CA

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

• $2B MONTHLY WAREHOUSE CAPACITY• 48 HOUR UNDERWRITING

• 100% NET PAY OUT• WET FUNDINGS

PRSRT STDU.S. POSTAGE

PAIDPost Falls, ID

PERMIT NO. 32

Broker Banker MagazineAmerica’s Trade Publication for Loan Originators

California Edition Volume 126, 2010

www.BrokerBanker.com

$4.95

broker banker v126 final

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