pennsylvania mortgage professional magazine october 2014

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17 NationalMortgageProfessional.com n Pennsylvania Mortgage Professional Magazine n OCTOBER 2014 PRESORTED STANDARD U.S. POSTAGE PAID NMP MEDIA CORP. NMP MEDIA CORP. 1220 WANTAGH AVENUE WANTAGH, NEW YORK 11793

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  • 17

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    014PRESORTED STANDARD

    U.S. POSTAGE PAID

    NMP MEDIA CORP.

    NMP MEDIA CORP.

    1220 WANTAGH AVENUE

    WANTAGH, NEW YORK 11793

  • CAPITAL MARKETS CORRESPONDENT WHOLESALE RETAIL WAREHOUSE LENDING

    First Guaranty Mortgage Corporation is an FHA Approved Lending Institution, and is not acting on behalf of or at the direction of HUD/FHA or the federal government. First Guaranty Mortgage Corporation Headquarters is located at 1900 Gallows Road, Suite 800, Tysons Corner, VA 22182 (800) 296-2275. Company NMLS# 2917.

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    Celebrating 25 years of exceptional residential lending services.

    F I R S T G U A R A N T Y Y O U R S U C C E S S

    fgmcwholesale.com 888.295.7899

    fgmccorrespondent.com 800.296.2275

    fgmcwarehouse.com 888.637.0102

    GE T

    THE

    CHANGE AGENOF THE MORTGAGE INDUSTRY.

    GE T

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    CHANGE AGENOF THE MORTGAGE INDUSTRY.

    Follow us on:

    We are First Guaranty Mortgage Corporation (FGMC), and

    we are 100% committed to our Correspondent, Wholesale

    and Retail origination channels. Together with our Capital

    Markets and Warehouse Lending Divisions, we provide a full

    spectrum of lending products and services nationwide.

    First Guaranty Mortgage Corporation is an Approved Single

    Family Issuer for Ginnie Mae; an Approved FNMA MBS Issuer;

    Approved by HUD; an FHA Approved Lending Institution;

    Approved for VA; and Approved by USDA.

    This information is solely for mortgage professionals and should not be provided to consumers or third parties. Information is accurate as of 8/21/14 and is subject to change without notice. First Guaranty Mortgage Corporation: 1900 Gallows Road, Suite 800, Tysons Corner, VA 22182 (NMLS ID 2917) is licensed in the following states. For additional branch licensing information, please visit www.nmlsconsumerac-cess.org. Alabama: Licensed by the Alabama Banking Department, Licensee No. 21332; Arizona: Licensed as an Arizona Mortgage Banker under the Arizona Department of Financial Institutions, 4347 W. Bell Road, Suite 1, Glendale, AZ 85308, Licensee No. 0907158; Arkansas: Combination Mortgage Banker-Broker-Servicer, Licensee No. 11884; California: Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, Licensee No. 6037237; Colorado: Regulated by the Colorado Division of Real Estate; Connecticut: Licensed by the Connecticut Department of Banking, Licensee No. 10162; Delaware: Licensed by the Delaware State Bank Commissioner to engage in business in this State under License No. 2403 (renewed through 2014); District of Columbia: Licensed by the D.C. Department of Insurance, Securities and Banking, Licensee No. MLB2917; Florida: Florida Mortgage Lender Licensee No. MLD333; Georgia: Georgia Residential Mortgage Licensee, No. 13967; Idaho: Licensed by the Idaho Department of Finance, Licensee No. MBL-5032; Illinois: Illinois Residential Mortgage Licensee, No. MB.0005484; Indiana: Indiana First Lien Mortgage Lending License under the Indiana Department of Financial Institutions, Licensee No. 11058; Iowa: Licensed by the Iowa Division of Banking, Licensee No. 2004-0309; Kansas: Kansas-Licensed Mortgage Company, Licensee No. SL.0000212; Kentucky: Licensed by the Kentucky Department of Financial Institutions, Licensee No. MC16957; Louisiana: Residential Mortgage Lending Licensee No. 1421; Maine: Supervised Lender Licensee No. SLM5962; Maryland: Maryland Mortgage Lender Licensee No. 1731; Massachusetts: Massachusetts Mortgage Lender Licensee No. ML 2917; Michigan: 1st Mortgage Broker/Lender/Servicer Registrant, Licensee No. FR0714; Minnesota: Minnesota Residential Mortgage Originator License No. MN-MO-20399083. This is not an offer to enter into an agreement under Minnesota law. Any such offer may only be made pursuant to the requirements in Minn. Stat. Section 47.206 (3) and (4); Mississippi: Licensed by the Mississippi Department of Banking and Consumer Finance, Licensee No. 2917; Missouri: Licensed by the Missouri Division of Finance, Licensee No. 14-2178; Montana: Licensed Mortgage Lender under the Division of Banking & Financial Institutions, Licensee No. 8453; Nebraska: Nebraska Mortgage Banker Licensee No. 1470;

    Nevada: Licensed by the Nevada Division of Mortgage Lending to make loans secured by liens on real property, Licensee No. 1047, First Guaranty Mortgage Corporation, 1489 West Warm Springs Road, Suite 215, Henderson, NV 89014, Phone No. 702-454-4212; New Jersey: Licensed by the New Jersey Department of Banking and Insurance, Licensee No. 9700530; New Mexico: New Mexico Mortgage Loan Company License No. 01085; New York: Licensed Mortgage Banker - N.Y.S. Banking Department, Licensee No. B500800 (d/b/a FGMC In Lieu of True Corporate Name First Guaranty Mortgage Corporation); North Carolina: North Carolina Mortgage Lender Licensee No. L-100362; North Dakota: Licensed in North Dakota as First Guaranty Mortgage Corporation dba FGMC, Licensee No. MB101924; Ohio: Ohio Mortgage Broker Act Mortgage Banker Exemption No. MBMB.850010.000; Oklahoma: Oklahoma Mortgage Lender Licensee No. ML002709; Oregon: Oregon Mortgage Lending Licensee No. ML-2634; Pennsylvania: Licensed by the Pennsylvania Department of Banking and Securities, Licensee No. 20768; South Carolina: South Carolina Mortgage Lender/Servicer Licensee No. MLS-2917; South Dakota: Licensed by the South Dakota Department of Labor and Regulation, Division of Banking, Licensee No. ML.05077; Tennessee: Tennessee Department of Financial Institutions Mortgage Licensee No. 109451; Texas: Licensed by the Texas Department of Savings and Mortgage Lending; Utah: Utah Mortgage Entity Licensee No. 5491155; Vermont: Licensed by the Vermont Department of Financial Regulation, Licensee No. 6644; Virginia: Licensed by the Virginia State Corporation Commission as a Lender and Broker, Licensee No. MC-436; Washington: Washington Consumer Loan Company, Licensee No. CL-2917; West Virginia: West Virginia Mortgage Lender Licensee No. ML-20742; Wisconsin: Licensed Wisconsin Mortgage Banker, Licensee No. 26835BA; Wyoming: Licensed by the Wyoming Division of Banking, Licensee No. 1831.

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    residential lending servicesCelebrating

    residential lending services of exceptiona25 yearsCelebrating

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    TIONMORTGAGE BANKERS ASSOCIA

    cess.org. Alabama: Licensed by the Alabama Banking Department, Licensee No. 21332; Arizona: Licensed as an Arizona Mortgage Bamortgage professionals and should solely for This information is

    cess.org. Alabama: Licensed by the Alabama Banking Department, Licensee No. 21332; Arizona: Licensed as an Arizona Mortgage Baparties. Information third consumers or to provided not be mortgage professionals and should

    nker under the Arizona Department of Financial Institutions, 4347 W. Bell Road, Suite 1, Glendale, AZ 85308, Licensee No. 09071cess.org. Alabama: Licensed by the Alabama Banking Department, Licensee No. 21332; Arizona: Licensed as an Arizona Mortgage Banotice. First Guaranty Mortgage Corporationis subject to change without and 8/21/14 is accurate as of parties. Information

    nker under the Arizona Department of Financial Institutions, 4347 W. Bell Road, Suite 1, Glendale, AZ 85308, Licensee No. 09071: 1900 Gallows Road, Suite 800, Tysons Corner, VA 22182 (NMLS ID 2917) is notice. First Guaranty Mortgage Corporation

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    e Banker-Broker-Servicer, Licensee No. 11884; California: Licensed by the Department of Business Oversight under Mortgag58; Arkansas: Combinationnker under the Arizona Department of Financial Institutions, 4347 W. Bell Road, Suite 1, Glendale, AZ 85308, Licensee No. 09071 the following states. For additional branch licensed in: 1900 Gallows Road, Suite 800, Tysons Corner, VA 22182 (NMLS ID 2917) is

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    Washington Consumer Loan Company, Licensee No. CL-2917; West Virginia: West Virginia Mortgage Lender Licensee No. ML-20742; WisSavings and Mortgage Lending; Utah: Utah Mortgage Entity Licensee No. 5491155; Vermont: Licensed by the Vermont Department of FLender/Servicer

    MB101924; No. Licensee Mortgage Loan Company License No. 01085; New York: Licensed Mortgage Banker - N.Y.S. Banking Department, Licensee No. B500800 (Nevada: Licensed by the Nevada Division of Mortgage Lending to make loans secured by liens on real property, Licensee No. 1047,

    Section the requirements in Minn. Stat. to Maryland: Maryland Mortgage Lender Licensee No. 1731; Massachusetts: Massachusetts Mortgage Lender Licensee No. ML 2917; MichigDepartment of Financial Institutions, Licensee No. Department of Insurance, Securities and Banking, Licensee No. MLB2917; Florida: Florida Mortgage Lender Licensee No. MLD333; Gethe California Residential Mortgage Lending Act, Licensee No. 6037237; Colorado: Regulated by the Colorado Division of Real Estcess.org. Alabama: Licensed by the Alabama Banking Department, Licensee No. 21332; Arizona: Licensed as an Arizona Mortgage Ba

    Washington Consumer Loan Company, Licensee No. CL-2917; West Virginia: West Virginia Mortgage Lender Licensee No. ML-20742; WisSavings and Mortgage Lending; Utah: Utah Mortgage Entity Licensee No. 5491155; Vermont: Licensed by the Vermont Department of F

    Department of Labor Dakota the South by Licensed Dakota: MLS-2917; South No. Licensee Exemption Banker Mortgage Act Broker Mortgage Ohio Ohio: MB101924;

    Mortgage Loan Company License No. 01085; New York: Licensed Mortgage Banker - N.Y.S. Banking Department, Licensee No. B500800 (Nevada: Licensed by the Nevada Division of Mortgage Lending to make loans secured by liens on real property, Licensee No. 1047,

    Department of the Mississippi Licensed by (4); Mississippi: and (3) 47.206 Section Maryland: Maryland Mortgage Lender Licensee No. 1731; Massachusetts: Massachusetts Mortgage Lender Licensee No. ML 2917; Michig

    Division of Banking, Licensee No. 2004-0309; Kansas: Kansas-Licensed Mortgage Company, Licensee No. SL.0000212; 11058; Iowa: Licensed by the Iowa Department of Financial Institutions, Licensee No. Department of Insurance, Securities and Banking, Licensee No. MLB2917; Florida: Florida Mortgage Lender Licensee No. MLD333; Gethe California Residential Mortgage Lending Act, Licensee No. 6037237; Colorado: Regulated by the Colorado Division of Real Estcess.org. Alabama: Licensed by the Alabama Banking Department, Licensee No. 21332; Arizona: Licensed as an Arizona Mortgage Ba

    consin: Licensed Wisconsin Mortgage Banker, Licensee No. 26835BAWashington Consumer Loan Company, Licensee No. CL-2917; West Virginia: West Virginia Mortgage Lender Licensee No. ML-20742; Wisinancial Regulation, Licensee No. 6644; Virginia: Licensed by the Virginia State CorporatSavings and Mortgage Lending; Utah: Utah Mortgage Entity Licensee No. 5491155; Vermont: Licensed by the Vermont Department of F

    ML.05077; No. Banking, Licensee Division of Regulation, and Department of Labor Licensee Lender Mortgage Oklahoma Oklahoma: MBMB.850010.000; No.

    d/b/a FGMC In Lieu of True Corporate Name First Guaranty MortgagMortgage Loan Company License No. 01085; New York: Licensed Mortgage Banker - N.Y.S. Banking Department, Licensee No. B500800 ( First Guaranty Mortgage Corporation, 1489 West Warm SpringNevada: Licensed by the Nevada Division of Mortgage Lending to make loans secured by liens on real property, Licensee No. 1047,

    Licensed by Missouri: Licensee No. 2917; Finance, Banking and Consumer Department of an: 1st Mortgage Broker/Lender/Servicer Registrant, Licensee No. FR0714; Minnesota: Minnesota Residential Mortgage OriginMaryland: Maryland Mortgage Lender Licensee No. 1731; Massachusetts: Massachusetts Mortgage Lender Licensee No. ML 2917; Michig

    Division of Banking, Licensee No. 2004-0309; Kansas: Kansas-Licensed Mortgage Company, Licensee No. SL.0000212; orgia: Georgia Residential Mortgage Licensee, No. 13967; Idaho: Licensed by the Idaho Department of FDepartment of Insurance, Securities and Banking, Licensee No. MLB2917; Florida: Florida Mortgage Lender Licensee No. MLD333; Ge

    ate; Connecticut: Licensed by the Connecticut Department of Banking, Licensee No. 10162; Delaware: Licensed by the Delaware Stathe California Residential Mortgage Lending Act, Licensee No. 6037237; Colorado: Regulated by the Colorado Division of Real Estnker under the Arizona Department of Financial Institutions, 4347 W. Bell Road, Suite 1, Glendale, AZ 85308, Licensee No. 09071cess.org. Alabama: Licensed by the Alabama Banking Department, Licensee No. 21332; Arizona: Licensed as an Arizona Mortgage Ba

    g: Licensed by the Wyoming Division of Banking, Licensee No. 1831.; Wyominconsin: Licensed Wisconsin Mortgage Banker, Licensee No. 26835BAion Commission as a Lender and Broker, Licensee No. MC-436; Washington: inancial Regulation, Licensee No. 6644; Virginia: Licensed by the Virginia State CorporatMortgage cial Institutions Tennessee Department of FinanTennessee: ML.05077;

    ML-2634; No. Licensee Lending Mortgage Oregon Oregon: ML002709; No. Licensee Carolina: Noe Corporation); Northd/b/a FGMC In Lieu of True Corporate Name First Guaranty Mortgag

    s Road, Suite 215, Henderson, NV 89014, Phon First Guaranty Mortgage Corporation, 1489 West Warm Springthe Missouri Division of Finance, Licensee No. 14-2178; Montana: Licensed Mortgage LenderLicensed by

    an: 1st Mortgage Broker/Lender/Servicer Registrant, Licensee No. FR0714; Minnesota: Minnesota Residential Mortgage Origintucky Department of Financial Institutions, Licensee No. the KenKentucky: Licensed by Division of Banking, Licensee No. 2004-0309; Kansas: Kansas-Licensed Mortgage Company, Licensee No. SL.0000212;

    inance, Licensee No. MBL-5032; Illinois: Illinois Residential Mortgage Licensee, No. MB.0005484; Indiana: Indiana First Lien Moorgia: Georgia Residential Mortgage Licensee, No. 13967; Idaho: Licensed by the Idaho Department of Fate; Connecticut: Licensed by the Connecticut Department of Banking, Licensee No. 10162; Delaware: Licensed by the Delaware Sta

    nker under the Arizona Department of Financial Institutions, 4347 W. Bell Road, Suite 1, Glendale, AZ 85308, Licensee No. 09071

    g: Licensed by the Wyoming Division of Banking, Licensee No. 1831.ion Commission as a Lender and Broker, Licensee No. MC-436; Washington:

    ment of No. 109451; Texas: Licensed by the Texas DepartLicensee Mortgage Banof Department Pennsylvania e thby Licensed Pennsylvania: ML-2634;

    see No. L-100362; North Dakota: Licensed in North Dakota as Firstrth Carolina Mortgage Lender Licen Carolina: Noew Jersey: Licensed by the New Jersey Departe No. 702-454-4212; Ns Road, Suite 215, Henderson, NV 89014, Phon

    Institutions, der the Division of Banking & Financial unthe Missouri Division of Finance, Licensee No. 14-2178; Montana: Licensed Mortgage Lenderto an agreement under Minnesota law. Any such offer may only be made pursuant ator License No. MN-MO-20399083. This is not an offer to enter inan: 1st Mortgage Broker/Lender/Servicer Registrant, Licensee No. FR0714; Minnesota: Minnesota Residential Mortgage Origin

    MC16957; Louisiana: Residential Mortgage tucky Department of Financial Institutions, Licensee No. inance, Licensee No. MBL-5032; Illinois: Illinois Residential Mortgage Licensee, No. MB.0005484; Indiana: Indiana First Lien Mo

    is State under License N to engage in business in thte Bank Commissionerate; Connecticut: Licensed by the Connecticut Department of Banking, Licensee No. 10162; Delaware: Licensed by the Delaware Stae Banker-Broker-Servicer, Licensee No. 11884; California: Licensed by the Department of Business Oversight under Mortgag58; Arkansas: Combinationnker under the Arizona Department of Financial Institutions, 4347 W. Bell Road, Suite 1, Glendale, AZ 85308, Licensee No. 09071

    Follow us on:Carolina South a: CarolinSouth 20768; No. Securities, Licensee and king

    Guaranty Mortgage Corporation dba FGMC, see No. L-100362; North Dakota: Licensed in North Dakota as Firstew Mexico: Nment of Banking and Insurance, Licensee No. 9700530; New Jersey: Licensed by the New Jersey Depart

    Licensee NInstitutions, to an agreement under Minnesota law. Any such offer may only be made pursuant

    der Licensee No. SLM5962; Licensee No. 1421; Maine: Supervised LenLending MC16957; Louisiana: Residential Mortgage rtgage Lending License under the Indiana inance, Licensee No. MBL-5032; Illinois: Illinois Residential Mortgage Licensee, No. MB.0005484; Indiana: Indiana First Lien Mo

    hrough 2014); District of Columbia: Licensed by the D.C. o. 2403 (renewed tis State under License Ne Banker-Broker-Servicer, Licensee No. 11884; California: Licensed by the Department of Business Oversight under

    Mortgage Guaranty Mortgage Corporation dba FGMC,

    ew Mexico

    to an agreement under Minnesota law. Any such offer may only be made pursuant der Licensee No. SLM5962;

    rtgage Lending License under the Indiana hrough 2014); District of Columbia: Licensed by the D.C.

    e Banker-Broker-Servicer, Licensee No. 11884; California: Licensed by the Department of Business Oversight under

  • Pennsylvania Association of Mortgage BrokersP.O. Box 390

    Wilkes Barre, PA 18703-0390Web site: www.pamb.org

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    PENNSYLVANIA EDITION

    Twitter.com/ntlmortgagepro

    facebook.com/mortgageprofessional

    LinkedIn.com (search NationalMortgage Professional Magazine)

    calendar of eventsPAMB

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    Headlines and breaking news from NationalMortgageProfessional.com.

    Headlines and blogs from around the web.

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    NMP Media Corp.1220 Wantagh Avenue

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    We are seeking nominations from our readers for National MortgageProfessional Magazine's "40 Under 40" feature, slated to appear inour December 2014 edition. Anyone who is under the age of 40 and hashad a major impact on the industry can qualify for this feature. This couldbe through innovation, association participation, sales force automation,community activism, management techniques, technology or any othersignificant method that has influenced our industry. We would need a short,three-line bio on the nominee, along with a color photo and companycontact info to complete the profile. To nominate yourself or someoneelse, visit https://nmpmag.wufoo.com/forms/nmps-40-under-40-2014/.

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    Visit www.Path2Buy.com

    Visit www.the15minutesalescall.com

  • table oN A T I O N A L M O R T

    O C T O B E R 2 0 1 4 l V O L

    A SPECIAL FOCUS ON THE FUTURE OF MORTGAGE BANKINGTomorrows Mortgage Space By Phil Hall ................................72

    Innovation and Adaptation as Keys to Success in a Dynamic Market By Brian Simon ............................................80

    The Ayes Have It By Greg Holmes..............................................81

    Profit-Driven Lender Transformation Begins With the Customer By Christina Pham ......................................83

    Changing of the Guard By Scott K. Stucky................................85

    What Bill Murray Can Teach You About Big DataBy Jason Kelley ............................................................................87

    Breaking Bad Mortgage Trends By Chris Edgington Sr. ..........88

    Dissecting the Cloud LOS Debate By John Mickle ..................89

    Become a Banker? KMN. By Eric Weinstein..............................90

    Pipeline Management By Mark Wayshak ..................................91

    FEATURESVendor Management Rules By Andrew Liput ..............................8

    The Elite Performer: Organize to RealizeBy Andy W. Harris, CRMS ..............................................................8

    How Strong Is Your Corporate Security Policy? (Part II)By Laura Burke..............................................................................10

    The Greatest Union of All Time..................................................16

    Top Tips for Handling Inbound Leads By K. Justin Restaino ..18

    NAMB Perspective ......................................................................20

    HUD Promise Zone Program Draws Mixed ReviewsBy Phil Hall ....................................................................................26

    AllRegs.............................................................. www.allregs.com ..........................................................82American Financial Resources ............................ www.afrwholesale.com ......................................Back CoverBetterLoanOfficers.com ...................................... www.betterloanofficers.com ..........................................33Boomerang........................................................ www.boomerangprospecting.com ..................................67Brokers Compliance Group.................................. www.brokerscompliancegroup.com ................................104CallFurst.com ...................................................... www.callfurst.com ............................................................86Carrington Mortgage Services, LLC ...................... www.carringtonwholesale.com ..............................45 & 79Continental Home Loans, Inc. ............................ www.continentalhomeloans.com ......................................5Credit Plus, Inc. ................................................ www.creditplus.com ..............................................19 & 84Document Systems, Inc./DocMagic ...................... www.docmagic.com ..........................................7, 39 & 55Easy Mortgage Apps............................................ www.easymortgageapps.com ..........................................83Fast Forward Stories .......................................... www.fastforwardstories.com ..........................................41First Guaranty Mortgage Corp. ............................ www.fgmc.com ..............................Inside Front Cover & 40Flagstar Bank .................................................... www.wholesale.flagstar.com ..........................................17Fortune Title Agency .......................................... www.fortunetitle.net ..................................................PA5HomeBridge Wholesale ...................................... www.homebridgewholesale.com ....................................11JMAC Lending .................................................... www.jmaclending.com ..................................................31Listing Booster .................................................. www.listingbooster.com ................................................71Lykken On Lending ............................................ www.lykkenonlending.com ............................................65Maverick Funding Corp....................................... www.maverickfunding.com ............................................47NAMB+ ............................................................ www.nambplus.com ......................................................97

    V I S I T O U R ACompany Web Site Page

    28RESPA/TILA IntegrationPart I: Overview and LoanEstimate By Jonathan Foxx

    34First-Time HomebuyersEnjoy the BestOpportunitiesBy Phil Hall

    40Lykken on Leadership:how to Future-Proof YourCultureBy David Lykken

    44How Can the WealthBuilding Home LoanReanimate the MortgageMarketBy Phil Hall

    92NMP MortgageProfessional of the Month:David H. Stevens,President and CEO of theMortgage BankersAssociationBy Phil Hall

  • f contentsT G A G E P R O F E S S I O N A L

    L U M E 6 l N U M B E R 1 0

    Winning With Technology By Garett M. Kolb ............................30

    Mortgage Marketing Compliance By Brent Emler ....................32

    Hope Is Not a Plan By Rick Floyd ..............................................36

    Prepared for Takeoff By Ray Hagan ..........................................42

    NMPs Economic Commentary By Dave Hershman ................46

    Tales From the Closing Table By Andrew Liput ........................48

    Social Media: Marketing in the Year We Actually Live InBy Brian Karoff ..............................................................................50

    Credit Scores and Reporting Issues Making NewsBy Terry W. Clemans ....................................................................56

    Legal and Industry Developments By Laurie Spira ..................58

    Just Ask Eric & Laura By Eric Weinstein & Laura Burke............60

    Whats iPhone 6 Got to Do With Mortgages?By Matthew Dunn Ph.D.................................................................62

    Do You Have a Strategy to Generate Purchase Loans?By Tom Ward ................................................................................64

    The Long & Short: The Business of Short Sales By Pam Marron ............................................................................64

    Taking the Lead: Business IntelligenceBy Jonathan Blackwell ..................................................................68

    How to Keep Sales Strong Despite Rising Rates By Bubba Mills ..............................................................................70

    COLUMNSNew to Market..............................................................................12News Flash: October 2014 ..........................................................14Heard on the Street ....................................................................38NMP Resource Registry..............................................................98NMP Calendar of Events ..........................................................103

    NAPMW ............................................................ www.napmw.org ..........................................................59NAWRB ............................................................ www.nawrbevents.com ..................................................66New England Mortgage Expo .............................. www.nemortgageexpo.com ................................PA12 & 61Paramount Residential Mortgage Group, Inc. ...... www.prmg.net ..........................15, 69 & Inside Back CoverPath2Buy .......................................................... www.path2buy.com ................................................1 & 74PB Financial Group Corp..................................... www.pbfinancialgrp.com ..............................................81Plaza Home Mortgage Inc. ................................ www.plazahomemortgage.com ......................................78Radian Guaranty ................................................ www.radian.biz ............................................................43REMN (Real Estate Mortgage Network) ................ www.remnwholesale.com ....................................PA1 & 13Residential Home Funding Corp. ........................ www.rhfbranch.com ......................................................63Reverse Mortgage Solutions, Inc. ........................ www.partners.rmsnav.com ............................................75Ridgewood Savings Bank .................................. www.ridgewoodbank.com ..............................................77Secure Settlements Inc. ...................................... www.securesettlements.com ..........................................37TagQuest .......................................................... www.tagquest.com ........................................................49The Bond Exchange ............................................ www.thebondexchange.com ..........................................46The National Real Estate Post.............................. www.thenationalrealestatepost.com ..........................72, 90Titan List & Mailing Services, Inc. ........................ www.titanlists.com ..........................................................9UAMP................................................................ www.uampexpo.com ....................................................76United Northern Mortgage Bankers, Ltd............... www.unitednorthern.com ..............................................73United Wholesale Mortgage ................................ www.uwm.com/younited ............................26, 27, 56 & 57Urban Financial of America ................................ www.ufawholesale.com ..................................................23

    D V E R T I S E R SCompany Web Site Page

    are

    NMP Media Corp.1220 Wantagh Avenue

    Wantagh, New York 11793-2202p 516.409.5555f 516.409.4600

    e [email protected] www.NationalMortgageProfessional.com

    We are seeking nominations from our readers for National MortgageProfessional Magazine's "40 Under 40" feature, slated to appear inour December 2014 edition. Anyone who is under the age of 40 and hashad a major impact on the industry can qualify for this feature. This couldbe through innovation, association participation, sales force automation,community activism, management techniques, technology or any othersignificant method that has influenced our industry. We would need a short,three-line bio on the nominee, along with a color photo and companycontact info to complete the profile. To nominate yourself or someoneelse, visit https://nmpmag.wufoo.com/forms/nmps-40-under-40-2014/.

    youcoming in december 2014

    ?nominated

  • Featured Editorial ContributorsJonathan Foxx

    Phil Hall

    Andy W. Harris, CRMS

    Dave Hershman

    Andrew Liput

    David Lykken

    Pam Marron

    Editorial ContributorsJonathan Blackwell

    Laura Burke

    Terry W. Clemans

    Matthew Dunn Ph.D.

    Chris Edgington Sr.

    Brent Emler

    Rick Floyd

    Ray Hagan

    Greg Holmes

    Brian Karoff

    Jason Kelley

    Garett M. Kolb

    John Mickle

    Bubba Mills

    Christina Pham

    Andrew Ritschel

    Laurie Spira

    K. Justin Restaino

    Brian Simon

    Scott K. Stucky

    Tom Ward

    Mark Wayshak

    Eric Weinstein

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    OCTOBER 2014Volume 6 Number 10

    1220 Wantagh Avenue Wantagh, NY 11793-2202Phone: (516) 409-5555 Fax: (516) 409-4600Web site: NationalMortgageProfessional.com

    Is There a Future in Mortgage Banking?This month, National Mortgage Professional Magazine focuses on The Future of Mortgage Banking. It isappropriate that in connection with our focus this month, thousands in the mortgage banking industrywill converge and network on Las Vegas at the Mortgage Bankers Association 2014 Annual Convention.

    By definition, the Future is defined as:What will happen in the time after the present. Its arrival is considered inevitable due to the existence of time

    and the laws of physics. Due to the apparent nature of reality and the unavoidability of the future, everything that current-ly exists and will exist can be categorized as either permanent, meaning that it will exist for the whole of the future, or tem-porary, meaning that it wont and thus will come to an end.

    This definition, borrowed from Wikipedia, clearly defines what the future of mortgage banking will be. Simply put, noone knows. This month, our elite group of editorial contributors has taken a stab at predicting the future of our industryin a number of articles in this edition; however, their ability to be a clairvoyant and exactly predict that future is highlyunlikely.

    Remnants of the past in the mortgage banking industry are sometimes considered as the beacons to correct onescourse in the future. If life was only that simple, history could be used to predict the future. We have regulatory oversightin place that didnt exist years ago via the Consumer Financial Protection Bureau (CFPB) and the Dodd-Frank Act.

    While past lessons and experiences are used to formulate future regulations that will hopefully guide the future ofour industry, they cannot be certain that the fixes being put in place will make things better as we move forward. Infact, as weve often seen, the unintended consequences of these purported fixes sometimes often exceed the problemoriginally intended to eradicate.

    As the mortgage professional community gathers in Vegas at the MBA Annual Convention, I think there are certainthings we can predict in the future. This industry went through some of the toughest adjustments in our economy a fewyears back, and yet a hardy group of those who continue to thrive have weathered it all until today. Their resilience is tes-timony to the strength of the men and women in the mortgage industry. The ability to learn to adapt to an ever-chang-ing regulatory and compliance environment combined with massive changes to underwriting criteria is the foundationof those who proudly continue in the mortgage industry to serve and provide direction to our nations consumers whorely on their housing finance expertise.

    This industry has been blessed with some of the strongest talent in the nation, and their ability to adapt to change andmove forward in todays regulatory environment is simply an indication that the future of mortgage banking is safe andsound now, as it will continue to be for years to come. So the next time you run into a fortune teller and they ask if theycan read your palm, ask them if the building they were in has a mortgage. If it does, tell them you know their future. Thenext payment is due on the first of the month!

    Sincerely,

    Joel M. Berman, Publisher-CEONMP Media Corp. [email protected]

    National Mortgage Professional Magazine is published monthly by NMP Media Corp. Copyright 2014 NMP Media Corp.

    publishers deskFROM THESTAFF

    ADVERTISINGTo receive any information regarding advertising rates, deadlines and requirements, please contactNational Account Executive Beverly Koondel at (516) 409-5555, ext. 316 or e-mail [email protected].

    ARTICLE SUBMISSIONS/PRESS RELEASESTo submit any material, including articles and press releases, please contact Editor-in-Chief Eric C. Peckat (516) 409-5555, ext. 312 or e-mail [email protected]. The deadline for submissions is thefirst of the month prior to the target issue.

    SUBSCRIPTIONSTo receive subscription information, please call (516) 409-5555, ext. 301; e-mail [email protected] or visit www.nationalmortgageprofessional.com. Any subscription changes may be made to theattention of Circulation via fax to (516) 409-4600.

    Statements, articles and opinions in National Mortgage Professional Magazine are the responsibility of theauthors alone and do not imply the opinion or endorsement of NMP Media Corp., or the officers or mem-bers of National Association of Mortgage Brokers and its State Affiliates (NAMB), National Association ofProfessional Mortgage Women (NAPMW), National Consumer Reporting Association (NCRA) and/or otherstate mortgage trade associations.

    Participation in NAMB, NAPMW, NCRA, and/or other state mortgage trade associations events, activ-ities and/or publications is available on a non-discriminatory basis and does not reflect the endorsementof the product and/or services by NMP Media Corp., NAMB, NAPMW, NCRA, and other state mortgagetrade associations.

    National Mortgage Professional Magazine, NAMB, NAPMW, NCRA, and/or other state mortgagetrade associations do not make any misrepresentations or warranties concerning the regulatory and/orcompliance aspects of advertisers, products or services and/or the editorial content contained in NMPMedia Corp. publications. National Mortgage Professional Magazine and NMP Media Corp. reserve theright to edit, reject and/or postpone the publication of any articles, information or data.

    Eric C. PeckEditor-in-Chief

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

    Joey ArendtArt Director

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

    Scott KoondelOperations Manager

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

    Richard ZytaSocial Media Ambassador

    (516) [email protected]

    Joel M. BermanPublisher - CEO

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

    Beverly BolnickNational Sales Manager

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

    Phil HallManaging Editor

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

    Francine MillerAdvertising Coordinator

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

    NATIONAL MORTGAGE PROFESSIONAL MAGAZINES

    E D I T O R I A L C O N T R I B U T O R S

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  • National PresidentChristine Pollard(607) [email protected]

    President-ElectKelly Hendricks(314) [email protected]

    Vice PresidentCentral RegionJudy Alderson (918) 250-9080, ext. 300

    Vice PresidentEastern RegionCathy Kantrowitz (845) [email protected]

    Vice PresidentNorthwestern RegionWilliam Bill Sanderson, CME, CMI (360) 713-9264

    Vice PresidentWestern RegionAnna Mackovska (323) [email protected]

    SecretaryCynthia Nutter(360) [email protected]

    TreasurerKimberly Rozell, CME (607) 229-5008 [email protected]

    ParliamentarianDawn Adams, GML, CMI(607) 329-4622 [email protected]

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    NAMBThe Association of

    Mortgage Professionals2701 West 15th Street, Suite 536 l Plano, TX 75075

    Phone: (972) 758-1151 l Fax: (530) 484-2906Web site: www.namb.org

    OFFICERSJohn Councilman, CMC, CRMSPresidentAMC Mortgage Corporation10136 Avalon Lake Circle l Fort Myers, FL 33913Phone: (239) 267-2400 l E-mail: [email protected]

    Rocke Andrews, CMC, CRMSPresident-ElectLending Arizona LLC3531 North Pantano Road l Tucson, AZ 85750Phone: (520) 886-7283 l E-mail: [email protected]

    Fred Kreger, CMCVice PresidentAmerican Family Funding28368 Constellation Road, Suite 398 l Santa Clarita, CA 91350Phone: (661) 505-4311 l E-mail: [email protected]

    Rick Bettencourt, CRMSSecretaryMortgage Network300 Rosewood Drive l Danvers, MA 01923Phone: (978) 777-7500 l E-mail: [email protected]

    Andy W. Harris, CRMSTreasurerVantage Mortgage Group Inc.15962 SW Boones Ferry Rd., Ste 100 l Lake Oswego, Oregon 97035 Phone: (503) 496-0431, ext. 302E-mail: [email protected]

    Donald J. Frommeyer, CRMSImmediate PastPresident/NAMB CEOAmerican Midwest Bank200 Medical Drive, Suite C-2A l Carmel, IN 46032Phone: (317) 575-4355 l E-mail: [email protected]

    DIRECTORSKay A. Cleland, CMC, CRMS KC Mortgage LLC2041 North Highway 83, Unit CPO Box 783 l Franktown, CO80116Phone: (720) 670-0124 l E-mail: [email protected]

    John H.P. Hudson, CRMSPremier Nationwide Lending1202 W. Bitters Road, Bldg. 1, Ste. 1205San Antonio, TX 78216Phone: (817) 247-4766 l E-mail: [email protected]

    Olga Kucerak, CRMS Crown Lending328 West Mistletoe l San Antonio, TX 78212Phone: (210) 828-3384 l E-mail: [email protected]

    David Luna, CRMS Mortgage Educators and Compliance947 South 500 E, Suite 105 l American Fork, UT 84003Phone: (877) 403-1428 l E-mail: [email protected]

    Linda McCoy, CRMS Mortgage Team 1 Inc.6336 Piccadilly Square Drive l Mobile, AL 36609Phone: (251) 650-0805 l E-mail: [email protected]

    Valerie Saunders RE Financial Services13033 West Lindburgh Avenue l Tampa, FL 33626Phone: (866) 992-0785 l E-mail: [email protected]

    John Stevens, CRMS Bank of England d/b/a ENG Lending11650 South State Street, Suite 350 l Draper UT 84062Phone: (801) 427-7111 l E-mail: [email protected]

    NAMB 2014-2015 Board of Directors

    Maureen DevinePresident(413) [email protected]

    Mike BrownVice President/Treasurer(801) 925-6691, ext. [email protected]

    Daphne LargeEx-Officio(901) [email protected]

    Nancy Fedich Conference Committee Chair (908) 813-8555, ext. [email protected]

    Julie WinkEducation Committee Liaison(901) 259-5105 [email protected]

    Tom Conwell Legislative Committee Liaison(800) 445-4922, ext. [email protected]

    Renee Erickson Membership & Elections Chair(866) [email protected]

    William Bower Resident Screening Committee Liaison(888) [email protected]

    Judy Ryan Strategic Alliance Committee Chair(410) [email protected]

    Sharon BieszkDirector(262) [email protected]

    Mary CampbellDirector(701) [email protected]

    Dean WangsgardDirector(801) [email protected]

    Terry Clemans Executive Director(630) [email protected]

    Jan GerberOffice Manager & Member Services(630) [email protected]

    National Association of Professional Mortgage WomenP.O. Box 451718 l Garland, TX 75045

    Phone: (800) 827-3034Web site: www.napmw.org

    2014-2015 NAPMW National Board of Directors

    National Consumer Reporting Association701 East Irving Park Road, Suite 306 l Roselle, IL 60172

    Phone: (630) 539-1525 l Fax: (630) 539-1526Web site: www.ncrainc.org

    2013-2014 Board of Directors & Staff

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    elite performerT H E

    By Andy W. Harris, CRMS

    Recently, I had a colleaguevisit my office and theynoticed the cleanliness ofmy desk and how organ-

    ized everything was. To my surprise,they made the comment that I must notbe very busy from how un-clutteredthings were, but in reality I wasabsolutely buried with work. At first, I was a little confused, but then I realizedthat the only way I was able to keep up with the work demands and new businesswas as a result of having a clean and organized desk. We had the exact oppositeperspective. Their perspective seemed interesting to me and I was curious whatmy desk was supposed to look like. This really got me thinking about how differ-ent each person is with their level of organization and how this may impact theirefficiency in the workplace or even at home.

    I strongly believe that being organized leads to a greater level of success in allareas of life, but what really defines one person being more organized over anoth-er? If you were to ask people in my office about my organizational habits, theywould likely tell you I have O.C.D. or Obsessive Compulsive Disorder. I prefer toconsider it Organized Controlled Desk. While it drives me nuts to see those whohave a cluttered work-space as I personally believe it looks unprofessional, doesthis really lead to less productive results? Thats a good question, but I wouldargue that I have never seen cleanliness and order lead to a less productive out-come versus the alternative. While many get busy and feel they dont have thetime to organize, wouldnt that be the only effective way to complete one taskfully and move onto the next?

    Brother International Corporation conducted a survey to determine how disor-ganization affects office productivity and how workers viewed themselves, as wellas others regarding disorganization. The survey findings indicate that the cost ofworkplace disorganization may go far beyond just monetary loss. Responses gath-ered from nearly 800 U.S. employees hint that the search for lost and misplacedmaterialswhich accounts for nearly 38 hours, or approximately one work weekannually, per employeemay have a profound impact on professional percep-tion, productivity and morale. In addition, the survey found that the costs associ-ated for full-time employees looking for misplaced items in the office tops $89 bil-lion annually.

    Here is the overview:l The estimated annual dollars spent on looking for misplaced items in the

    office is $89,840,657,069 among full-time office professionals. l Estimated 38 working hours (or close to one work week) per person each year

    are lost as a result of looking for misplaced items in the office. l Sixty-six percent of office workers having spent up to 30 minutes of time dur-

    ing a typical work week looking for things they have misplaced around theiroffice, a major contributing factor for lost time in the office.

    l Forty-six percent of office workers have lost one of the following items in thepast year (a file folder, mobile phone, calculator, flash or memory drive, abriefcase, suitcase, or luggage, lap top computer, or a PDA).

    l Close to four in 10 (37 percent) of office workers have gone into a work meet-ing feeling unprepared.

    Organize to Realize

    SPONSORED ED ITORIAL

    By Andrew Liput

    For years, real estate closing work has been the bread and but-ter of many small law practices. Representing buyers and sellersin sales and mortgage closing transactions can be a lucrative prac-tice area, and because there are no significant rules and training

    or practice barriers as for example complex criminal defense or tax work, it hashelped many an attorney pay off their law school loans. That perception maybe changing with the wide adoption of new vendor management requirementsfor third parties.

    There is no question that the third party service provider management direc-tives of the Consumer Financial Protection Bureau (CFPB), Federal Deposit In-surance Corporation (FDIC), Office of the Comptroller of the Currency (OCC) andothers cover attorneys who handle mortgage proceeds and closing documentsin connection with residential real estate transactions. There is no exemptionfor lawyers performing these functions nor does state bar licensing requirementssatisfy the regulatory mandates for banks. Lenders must comply with these ven-dor management rules or face unacceptable risks. Accordingly real estate lawyersare being confronted more often with requests by lenders that attorneys submitto vendor management or vetting processes to meet regulatory expectations.These processes may be internal to the bank, or they may be outsourced to thirdparty vendor management firms such as the one we operate.

    Why are attorneys covered? Because they have access to a lenders funds, bor-rower funds and critical loan documents. Quite frankly a bad attorney has themeans and the method to cause serious financial harm very quickly. The recentdisclosure that a prominent attorney and his law firm in Georgia were allegedto have stolen as much as $30 million in trust proceeds over several years dra-matically highlights this point.

    Lawyers who handle real estate closings may have access to a borrowers com-plete personal and financial history, usually contained in the closing documents,especially the RESPA Form 1003 mortgage application. The 1003 sets forth a con-sumers identity information (including Social Security Number), address, work-place history, bank and asset information. Other closing documents may detailfamily relationships, marriage and divorce information, and similar personaldata.

    Attorneys, more than any other discipline that makes up the closing pro-fessional industry are generally the most educated, most trained, and mostsupervised group. However, even the state bar associations are largely reac-tionary to attorney malpractice and criminal behavior. They simply do nothave the technology, labor force and resources to engage in the type of on-going risk evaluation and reporting that the government expects to ensureproper consumer protection.

    The news about vendor management is coming slowly to many lawyers. Realestate attorneys generally are contract and real property law specialists. Theyknow the ins and outs of the real estate transaction but virtually nothing aboutthe mortgage process, as well as the regulations lenders must follow to ensurea safe transaction for the consumer. Today however, lawyers conducting closingsneed to know a lot more about the process, including disclosures, closing in-structions, signs of mortgage fraud and vendor management rules.

    In the end, the old way of doing business as a real estate closing attorney ischanging and changing fast. There are good reasons for these changes, and at-torneys are encouraged to study the applicable regulations and statutes so thatthey can better understand why they may be asked to become vetted beforethey close their next residential real estate transaction.

    Andrew Liput has been a corporate, real estate and banking attorney for morethan 25 years He is the founder, CEO and president of SSI, the first data intelligenceand risk analytics firm to offer specialized vendor management services addressingsettlement agent risk to mortgage lenders and banks nationwide. He can be reachedby e-mail at [email protected].

    Vendor Management RulesAlso Cover Real Estate Attorneys

    continued on page 50

    In a sense, clutter is the end result

    of procrastination.

    Jeff Campbell

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  • By Laura Burke

    A security policy shouldcover rules for remoteaccess; the purpose of theremote access rules is to

    define standards for connecting to thecompanys network from any host.These standard rules are implementedto minimize and /or prevent exposure,damage or risk from results of unau-thorized use of companys system andnetworks.

    Physical security is imperative, asyou must protect all assets, hardwareand software from damage. Floods,power outage and theft are three mostcommon threats encountered. Lock upyour hardware and software. Have apolicy in place to allow employeesaccess to additional software than whatis on their computer. Pay close atten-tion to laptops, set policy proceduresand guidelines for use of laptops, andmake sure all laptops have passwords,screen savers and encryption of the filesthey hold.

    Be preparedCreate a back-up system to retrieveonline files should the office beimpacted by a natural disaster. Does itneed revamping? Do you have a con-tingency plan for other types of crisis

    situations, such as a sudden illness ofa critical employee, a lawsuit againstyour firm, or the departure of a keyclient? No system is completely secure.Copy important files onto a removabledisc or an external hard drive andstore it in a safe place. If your com-puter is compromised, youll still haveaccess to your files.

    Regular auditing of systems, books,payroll and financial statements is animportant role in defining corporateweaknesses and security risks. Hiring anoutside auditor is highly recommended.I would suggest an outside companycomes in at minimum once a year, ifwithin the companys budget, every sixto nine months. This will alleviate somesecurity breaches, notice potentialfraud situations and mitigate risks. Asstated earlier, there is no sure fire wayto be 100 percent safe. An auditor canfind ghost employees, mismanagedfunds and even embezzlement! Anauditor can also find nothing, which is agood thing!

    Matthew Garrett, contributing writerfor Forbes noted, Payroll fraud is real.There are two common types of payrollfraud, the first being timecard falsifica-tion and the second most common typeof payroll fraud is the ghost employee.According to the Association of CertifiedFraud Examiners, its the number one

    source of accounting fraud and employ-ee theft. Check out these statistics:

    l Payroll Fraud happens in 27 percentof all businesses

    l Payroll fraud occurs nearly twice asoften (14.2 percent) in small organi-zations with less than 100 employ-ees than in large ones (7.6 percent)

    Safely removing oldequipment is importantValuable information can be retrievedfrom copiers, hard drives, fax machines,laptops and other technical devices,having a policy that details proper dis-posal will reduce the likely hood ofsomeone gaining valuable informationfrom dumpster diving. Hanging on toold hardware and software maybe get-ting in the way of productivity increasing the likelihood of a risk.Remove it and replace it properly.

    Many complain of the cost of run-ning IT departments, and of other secu-rity related costs, but once a companyssystem goes down, its an expensiveproposition to return it to normal.Homeland Security studies show thatcyberthreats constantly evolve withincreasing intensity and complexity.Organizations will face a host ofcyberthreats, some with severe impactsthat will require security measures that

    go beyond compliance. For example,according to a study done in 2011 byPonemon Institute, the average cost ofa compromised record in the U.S. was$194 per record and the loss of cus-tomer business due to a cyber-breachwas estimated at $3 million.

    A new insurance has emergedcyber risk insurance is a new benefit tobe considered. It is an insurance policythat protects against losses to informa-tion assets. A strong security policycould earn a discount on cyber insur-ance rates. Many of the insurance ques-tions for an application can beanswered via your security policyalready in place.

    Paying for security now can savethousands later. It is stated that a com-pany can pay thousands of dollars perminute to fix an infected or breachedsystem. How well is your company pro-tected?

    Laura Burke, CFE, EA, MBA, MS MIS(2015) is an author and trainer with 20-plus years of experience in the mortgagearena. As a Certified Fraud Examiner,Laura uses her expertise in the mortgagearena, combined with special forensicknowledge to assist corporations withtheir security policies and forensicaudits. She may be reached by e-mail [email protected].

    How Strong Is Your CorporateSecurity Policy? (Part II)

    P A Y R O L L F R A U D I S R E A L

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    HomeBridgeWHOLESALE

    FANNIE MAE HOMESTYLE

    Improve Your Borrowers Life Style!

    To learn more about the HomeBridge advantage,please contact us at 855-729-2885.

    www.HomeBridgeWholesale.com

    *Refer to program guidelines for restrictions. All home improvements must increase homes overall value and nal value determination will be subject to nal appraisal.This is a business-to-business communication provided for use by mortgage professionals only and is not intended for distribution to consumers or other third parties. It is not an advertisement;as such term is dened in Section 2 26.24 of Regulation Z. Product information is subject to change without notice. HomeBridge Wholesale is a division of HomeBridge Financial Services, Inc.NMLS #6521 HomeBridge Financial Services, Inc. All rights reserved.

    HomeBridge Wholesale is a national wholesale lender offering Conventional, Government, Jumbo, andRenovation products. We are committed to providing the highest value to our clients through competitive pricing,unique product offerings, superior customer service, and state-of-the-art technology.

    n 95% LTV of After Improved Value

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    United WholesaleMortgage Upgrades ItsBroker Tools

    United WholesaleMortgage (UWM)has announced theformation of a newMarketing Center

    and has also completely reskinned itsmobile app, UMobile. UWMs MarketingCenter is a completely free benefit for itspartners that allows brokers and corre-spondents to easily create customized,professionally developed marketing flyersfor borrowers, real estate agents, and titlecompanies. Enhancements include inte-gration with UWMs broker portal EASE,social media marketing, e-mail market-ing, high resolution files, profile saves forpersonalized branding and more.

    During a period when communica-tion is key, UWM has created one of themost effective tools available with theUWM Marketing Center, said EricMcKinley, president of Home PlaceMortgage. It enables us to provide pro-fessional marketing material to promotethe real estate agents, the products, andour loan officers. Its a huge hit with thereal estate agents.

    UMobile, which was launched inFebruary of this year, is UWMs brokermobile app for Apple and Android hand-held devices. As a pre-planned phase tworollout, the look and feel of the appsgraphical user interface (GUI) was changedfor aesthetics, ease of navigation, and tocreate a captivating user experience.

    Were constantly innovating and striv-ing to provide the best service, tools andprograms to our brokers and correspon-dents to make them the most successfuloriginators in wholesale lending, saidJustin Glass, UWMs chief digital officer.One of the six pillars of our corporateconstitution is Continuous Improvementis Essential to our Long-Term Success.The enhancements to our MarketingCenter and UMobile demonstrates ourcommitment to our partners and ourcompany tagline Lending Made Easy.

    UFA Introduces NewJumbo Reverse MortgageProduct

    Urban Financial of America LLC (UFA)

    has introduced its HomeSafe propri-etary reverse mortgage. ThroughHomeSafe, loan proceeds of up to $2.25million are available, compared to tra-ditional reverse mortgages or HomeEquity Conversion Loans (HECMs),which currently have legislated maxi-mum available loan proceeds of$469,125.

    Now homeowners with significantvalue in their homes have a reversemortgage option that may afford themmore loan proceeds, and potentially agreater amount of cash up front, than aHECM product. Ultimately, HomeSafecan give borrowers an opportunity totap into more of that property valuewhen they need it, said SteveMcClellan, president of UFA.

    As with traditional reverse mort-gages or HECMs, HomeSafe can be usedby homeowners or homebuyers age 62and older to leverage home equity forlong-term retirement planning. Whileborrowers can use the proceeds howev-er they choose, HomeSafe may be wellsuited to extinguishing existing mort-gage debt, making improvements ormodifications to the home to accom-modate changing needs, supplement-ing medical and in-home care cover-age, or buying a home.

    UFA has been a trusted resource fortraditional HECM reverse mortgages formore than a decade, McClellan said.With HomeSafe, now we can meet theneeds of even more consumers througha compelling and competitive propri-etary reverse mortgage product.

    eValuation ZONE aunches New USPAP-Compliant eVal 1.0

    National valua-tion servicesprovider, eVal-

    uation ZONE Inc., has announced thelaunch of their new Uniform Standards ofProfessional Appraisal Practice (USPAP)-compliant product eVal 1.0, a hybrid val-uation report utilized for a variety of pro-grams such as HELOCs, REOs, as well aspurchases and refinances for non-agencyand portfolio programs.

    We are very excited to present theeVal Hybrid 1.0, one of the first formsof its kind, said Luke Tomaszewski.The new hybrid form is poised to rev-olutionize the way we approachappraisal forms. Putting forth a moreforward thinking approach toappraisals geared to the clients needs,the borrowers pocket book, and theappraisers valuable time.

    The next generation in valuationforms is here, now. The eVal 1.0 assiststhe lender in closing more loans fasterand at a lower out-of-pocket pricepoint. This revolutionary form haseverything a traditional drive-by has,combined with aspects of a typicalproperty condition report (PCR) buthas eliminated the unnecessary infor-mation into one easy to understand,up-to-date, USPAP compliant, cost effi-cient report.

    Global DMS is committed to sup-porting our clients and their innova-tive ideas, said Vladimir Bien-Aime,president and CEO of Global DMS. Wesupport forward thinking companiesthat address current and relativeneeds within todays market. We arevery proud to be working with Lukeand eValuation ZONE.

    NewPreApprovalLetter.comApp Streamlines the Pre-Approval Process

    PreApprovalLetter.com has an-nounced the launch of a one-stophomebuying service that streamlinesand automates the pre-approvalprocess. The pre-homebuyer can nowinstantly have a personalized homeloan budget and tailored analysis,knowing exactly how much they quali-fy for before they begin their homehunting process.

    PreApprovalLetter.com (PAL) hasdeveloped an algorithm for service tohomebuyers, real estate agents andmortgage lenders. Designed by mort-gage underwriting experts, the PAL sys-

    tem interviews homebuyers and veri-fies financial data for a fast, accurateand free assessment of a buyers home-buying power.

    We believe that knowledge ispower. Giving Americans such a toolwill better equip them to steer awayfrom taking on risky debt and towardsfinding the home of their dreams, saidPreApprovalLetter.com CEO JorgeTouzet.

    Homebuyers may view their borrow-ing limits on their secure dashboard;and are presented with a home searchtool, which displays a gallery of prop-erties that fit their home budget andqualifying scenarios. Buyers and realestate agents can cross-reference MLSlisted properties vs. a homebuyersqualifying data and know whether ornot a homebuyer qualifies for a partic-ular property.

    PreApprovalLetter.com frees sub-scribed agents to focus their time onfinding listed homes for which a buyercan afford and a mortgage lenderwould comprehensively give theirstamp of approval.

    PALs mission is to educate andempower the homebuyer and realestate agent with mortgage knowledgeso they can Know Their BuyingPower, said Touzet.

    Ellie Mae EnhancesEncompass MortgageManagement Solution

    Ellie Mae has announced a major newrelease of its Encompass mortgagemanagement solution. The new releaseincludes more than 300 enhancementsdesigned to promote compliance, loanquality and efficiency. Encompass nowsupports tests and eligibility determi-nations for the recently changedVeterans Administration QualifiedMortgage (VA QM) rule. In addition, theborrowers electronic loan folder willtie borrower data and documents totheir QM eligibility.

    The Ellie Mae Total Quality Loan

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  • EWSFLASH l OCTOBER 2014 l NMP NEWSFLASH l OCTOBER 2014 l NMP NEWS

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    MBA Opens Doors Raises$30,000-Plus DuringFundraising Campaign

    The MBA Opens Doors Foundation hasannounced that it had raised morethan $31,000 during its three-month92 Days of Summer fundraising cam-paign. The Foundation is MBAs philan-thropic entity dedicated to providingfinancial assistance to families with acritically ill or injured child by awardinggrants toward a mortgage or rental pay-ment. The MBA Opens DoorsFoundation is a 501(c)(3) organizationand all contributions are tax deductible.

    Our 92 Days of Summer fundrais-ing event provided members of thereal estate finance industry with agreat philanthropic opportunity, andthey responded in a big way, saidDebra Still, Chairman of the MBAOpens Doors Foundation. With morethan $31,000 donated in only threemonths, the men and women whowork every day to put Americans in thehome of their dreams also showedthey are up to the challenge of helpingfamilies with critically ill children stayin theirs. Their generosity providesfamilies critical financial support dur-ing a tremendously stressful and emo-tional period in their lives.

    With MBAs in-kind donations for allof the Foundations operating costs,Opens Doors is able to pass 100 per-cent of the donations it receives to thefamilies it supports. The Foundationsongoing relationship with Washington,D.C.s Childrens National HealthSystem provides a partner healthcareorganization to help identify potentialgrant recipients.

    Gen X-ers More Likely tobe Underwater ThanMillenials and BabyBoomers

    Generation Xhomeownersare far morelikely to beunderwater

    on their mortgage than millennial andBaby Boomer homeowners, a genera-tional block that could limit the marketfor years, according to the second quar-ter Zillow Negative Equity Report. Theoverall national negative equity rate fellto 17 percent in the second quarter,with more than 8.7 million homeown-ers with a mortgage owing more thantheir home was worth.

    Approximately 42.6 percent ofGeneration X homeowners (those agedfrom 35 to 49) are underwater on theirmortgage, compared to 15.3 percent ofmillennial homeowners (20-34 yearsold) and 31.1 percent of Baby Boomers(50-64 years old). Because it is very diffi-cult for an underwater homeowner tolist their home for sale, the wide dispar-ities among generations stand to haveripple effects throughout the housingmarket. Baby Boomers may not be ableto find move-up buyers for their homesas Gen X remains stuck, and millennialscant move into the more affordablestarter homes currently occupied byGen X.

    In general, the least expensivehomes most likely to be sought by mil-lennial and first-time buyers are morelikely to be underwater than middleand top-tier homes. Among all homeswith a mortgage nationwide, 28.2 per-cent valued within the bottom third ofhome values were underwater in thesecond quarter, compared to 15.8 per-cent of homes in the middle tier and 9.2percent in the top tier. Nationwide,more than one-third of homeownerswith a mortgage (34.8 percent) areeffectively underwater, unable to selltheir homes for enough profit to com-fortably meet expenses related to sell-ing a home and afford a down paymenton a new one.

    On the surface, the housing reces-sion did not overtly impact millennialshousing wealth to the degree it didGeneration X and the Baby Boomers, asmost millennials were likely too youngto have purchased a home during thebubble years, said Zillow Chief

    Economist Dr. Stan Humphries. But asthis huge generation begins to considerbuying homes, theyre entering a mar-ket still very much in recovery and farfrom anyones definition of normal.Because so many homes are stuck innegative equity or are effectively under-water, the inventory of homes for sale isseverely constrained, leading to morecompetition for those that are avail-able. And millennials likely dont havethe resources to compete with cashoffers or engage in bidding wars. Thereality is, negative equity is part of thenew normal, and finding creative solu-tions to keeping homes affordable,available and accessible to this genera-tion will be critical going forward.

    The national negative equity rate fellfrom 23.8 percent in the second quarterof last year and 18.8 percent in the firstquarter. Negative equity will continueto recede as home values keep growing,though at a slower pace because therate of home value growth is slowingand expected to continue to slow.Looking ahead, the national negativeequity rate is expected to fall to 14.9percent of all homeowners with a mort-gage by the end of the second quarterof 2015, according to the ZillowNegative Equity Forecast

    Indie Mortgage BankerActivity Up 50 Percent in Q2

    Richey May &Co has re-leased its sec-ond quarter2014 Trend

    Report for Independent MortgageBankers. The Trend Report includes theoperating results of 37 independentmortgage companies throughout theU.S. and covers all operating modelsand production volumes. According tothe report, loan production amongindependent mortgage bankersincreased by 50 percent over the previ-ous quarter, the first increase in thepast three quarters. Purchase volume

    spiked 62 percent, while refinance vol-ume increased 20 percent over the firstquarter 2014.

    Unfunded lock pipelines increasedamong independent mortgage bankersas well, rising 38 percent over the previ-ous quarter. According to KennethRichey, managing partner of RicheyMay, this uptick indicates that theimproved market conditions will con-tinue through the coming months.

    The increase in unfunded lockpipelines suggests that we can expect tosee similar, if not more improved, pro-duction in the third quarter of 2014 aswell, Richey said.

    In addition to the increase in pro-duction, independent mortgagebankers improved profits by an averageof 57 basis points, with many realizingup to 100 basis points in improved pre-tax profits over the previous quarter.

    The Trend Report for IndependentMortgage Bankers was generated fromthe results of Richey May Select, theindustrys only benchmarking technolo-gy specifically for independent mort-gage bankers. The software, which pro-vides up-to-date peer-to-peer bench-marking information on various aspectsof their businessessuch as financial,production, employment, warehousingand servicing operationsanalyzesdata submitted by independent mort-gage bankers across the U.S., and com-piles a report of the quarters notabletrends. The quarterly Trend Reporthighlights key performance indicators,such as overall volume and volume bytransaction type, as well as loan mar-gins, operating costs, labor output, andmore.

    The data used in the report is gath-ered from Richey May Select subscribersand is provided at no additional costs tothe participants. All data sources arekept confidential.

    Independent mortgage bankersunit volume, expenses and marginswere very close to those they experi-enced in the third quarter of 2013, saidKeith May, Richey Mays managingdirector, advisory services. However,pre-tax profits in the second quarter of2014 were much higher than in thethird quarter of 2013. This is probablybecause third quarter 2013 was in the

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    middle of a declining market, whereassecond quarter of this year was in animproving market.

    Downpayments on the Rise in Q2

    According toa report re-leased byLendingTree,d o w n p a y -ment per-

    centages for conventional 30-year fixedrate purchase mortgages increased inthe second quarter to an average of17.28 percent, up from 15.78 percent inQ1 2014. Additionally, the averagedownpayment amount also increased,from $34,733 in Q1 2014 to $37,576 inQ2.

    Weve seen an overall downwardtrend in downpayments over the past18 months, but appreciating homeprices and pent-up demand hasbrought borrowers back into the hous-ing market with more funds availablefor a downpayment, said Doug Lebda,founder and CEO of LendingTree.Additionally, in certain markets, acompetitive real estate environmentmay be forcing some homebuyers toput more money down in order tostrengthen their offers. However, theslight uptick in downpayments is a pos-itive sign for the housing market ashomeowners will realize lower monthlypayments, quickly build equity, andreduce risk for lenders.

    Report Finds Oceanfrontand Lakefront HomeValues Near DoubleMedian Prices

    Nationwide,the typicaloceanfront orl a k e f r o n t ,single-family

    home is worth more than double themedian value of all homes, and insome communities the median water-front house could be worth ten or moretimes the median value of non-water-front houses, according to a new analy-sis by Zillow. In the U.S. at the time ofthis analysis, the median single-familyhome was worth about $171,600, whilethe median waterfront house was val-ued at $370,900, a waterfront premiumof 116.1 percent.

    Among large cities analyzed, thebiggest difference between mediannon-waterfront single-family home val-ues and median waterfront house val-ues are in Tampa, Fla. (waterfront pre-mium of 733 percent); Honolulu,Hawaii (waterfront premium of 334.5percent) and Long Beach, Calif. (water-front premium of 321.6 percent).

    The allure of ocean and lakefrontliving is powerful and undeniable, andmillions of homeowners nationwidedream of one day owning a home onthe water. But those dreams come at aprice, said Zillow Chief Economist Dr.Stan Humphries. Waterfront proper-ties are both relatively scarce and high-ly coveted, and that high demand and

    limited supply leads to higher homeprices. Additionally, added insurance,floods, environmental mitigation andinfrastructure costs are often part of thetab when buying a waterfront home.Still, as long as buyers understand theadded costs and potential headaches,waterfront living is likely to remain oneof lifes simple pleasures for many,many years to come.

    The median waterfront home valueis calculated in the same way as theZillow Home Value Index, and repre-sents the median value of all single-family waterfront homes in a givencommunity. The index includes single-family homes located 150 feet or closerto the waterline of an ocean or lakeswith a total combined size of 10 square

    kilometers or greater. Properties sepa-rated from direct waterfront by a roadwith a speed limit of 25mph or less arealso considered waterfront. Riverfrontproperties were not included in thisanalysis, nor were condominium or co-op housing units. Zillows initial analy-sis covers 250 cities and towns nation-wide with at least 100 waterfront homesmeeting the above criteria.

    One in Six HomeownersAre Still Underwater,According to Zillow

    One in six (17percent) U.S.homeownerswith mort-gagesor 8.7

    millionwere still underwater on theirmortgage in the second quarter of2014, despite rising home values,according to the Zillow Negative EquityReport. This is down from 18.8 percentin the first quarter of 2014, and downfrom 23.8 percent from last year (Q22013).

    The effective negative equity rate, orthe percentage of homeowners whohave less than 20 percent equity intheir home, fell to 34.8 percent in thesecond quarter, down from 36.9 per-cent from the first quarter of 2014, anddown from 41.9 percent last year (Q22013). Homeowners with less than 20percent equity in their current home

    continued on page 16

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    may have a difficult time covering thecosts on selling and purchasing a newproperty.

    Looking ahead, the national negativeequity rate is expected to fall to 14.9percent of all homeowners with a mort-gage by the end of the second quarterof 2015, according to the ZillowNegative Equity Forecast.

    Of the 35 largest metros covered byZillow, more than one-fourth of home-owners in Atlanta (28.9 percent), LasVegas (27.4 percent) and Chicago (27.1percent) were still underwater on theirhomes at the end of the second quarter.The lowest rates of negative equity werein San Jose, Calif. (4.6 percent), SanFrancisco (8.2 percent) and Austin, Tex.(8.3 percent).

    Nationally, millennial homeownersheld 19.6 percent of all underwatermortgages while Generation X held 18.7percent and Baby Boomers held 10.9percent.

    Q2 Commercial andMultifamily DelinquencyRates on the Rise

    Delinquencyrates for com-mercial andmult i familym o r t g a g e

    loans continued to decline in the sec-ond quarter of 2014, according to theMortgage Bankers Associations (MBA)Commercial/Multifamily DelinquencyReport. During the sec