Page 1 THE AFN Learning from the Past to Improve the Future by John Sherman, President Featured Article | 1 Welcome to AFN | 2 Top Producers | 4 Top Processors | 5 Branch Relations | 6 Encompass Corner | 7 Scenario Desk | 9 AFN Props | 10 Marketing Updates | 12 Social Media Status | 13 AFN Fan Corner | 14 Compliance Matters | 16 Store Update | 17 contents Edition 09 | SEPT 2015 I know you guys have all heard Einstein’s definition of insanity as doing the same thing over and over again and expecting different results. This is a condition that I think afflicts most of us in the mortgage industry and within AFN. We hear stories about a loan officer that keeps turning in incomplete files to processing and gets annoyed when they aren’t submitted to underwriting within a week or a processor keeps waiting for a funding stip sheet when docs come back and complains about missing a closing. There are tons of examples like this throughout the loan process and even beyond in other departments. Whose responsibility is it to fix these sticking points? Corporate tries to identify them and put practices in place to help everyone streamline the process, but that’s a small group of people looking at a lot of loans. Our company has grown to 1,000 employees and could fund $3B this year, but we still rely on individuals to keep the gears turning. Another relevant cliché here is that you’re only as strong as your weakest link. My article in the July newsletter was about taking responsibility and identifying areas where you can personally improve the system. This article is reminding you that we have tons of real life examples every month of how a loan makes its way through the system. Each time you encounter a point where things don’t go as smoothly as possible is an opportunity for you to identify a way to avoid that on most future files. This applies to everyone who touches a loan. The biggest opportunity I see for improvement is in common conditions from processors to loan officers, underwriters to processors, funders to processors, investors to post-closers, etc. It’s easy to look at condition lists on the last 10 loans that you worked on and see if there are any conditions that pop up on multiple files. (Continued on pg 8)
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Page 1
THE AFN
Learning from the Past to Improve the Future by John Sherman, President Featured Article | 1
Welcome to AFN | 2
Top Producers | 4
Top Processors | 5
Branch Relations | 6
Encompass Corner | 7
Scenario Desk | 9
AFN Props | 10
Marketing Updates | 12
Social Media Status | 13
AFN Fan Corner | 14
Compliance Matters | 16
Store Update | 17
contents
Edition 09 | SEPT 2015
I know you guys have all heard Einstein’s
definition of insanity as doing the same
thing over and over again and expecting
different results. This is a condition that I
think afflicts most of us in the mortgage
industry and within AFN. We hear stories
about a loan officer that keeps turning in
incomplete files to processing and gets
annoyed when they aren’t submitted to
underwriting within a week or a processor
keeps waiting for a funding stip sheet
when docs come back and complains
about missing a closing. There are tons
of examples like this throughout the
loan process and even beyond in other
departments. Whose responsibility is it to
fix these sticking points? Corporate tries
to identify them and put practices in place
to help everyone streamline the process,
but that’s a small group of people looking
at a lot of loans. Our company has grown
to 1,000 employees and could fund $3B
this year, but we still rely on individuals to
keep the gears turning.
Another relevant cliché here is that you’re
only as strong as your weakest link. My
article in the July newsletter was about
taking responsibility and identifying areas
where you can personally improve the
system. This article is reminding you
that we have tons of real life examples
every month of how a loan makes its
way through the system. Each time you
encounter a point where things don’t go
as smoothly as possible is an opportunity
for you to identify a way to avoid that on
most future files. This applies to everyone
who touches a loan.
The biggest opportunity I see for
improvement is in common conditions
from processors to loan officers,
underwriters to processors, funders to
processors, investors to post-closers, etc.
It’s easy to look at condition lists on the
last 10 loans that you worked on and see
if there are any conditions that pop up on
multiple files. (Continued on pg 8)
Page 2
We are always pleased to add to the AFN Team,
and want to welcome the following personnel, who
joined us in September 2015.
We’re so happy you are here!
Branch Managers
Joshua Felzer
Loan Officers
Alejandro Ramirez
Amanda Covington
Beatriz Vasallo
Craig Holmes
Deborah Rogers
Fernando Diaz
Gail Ishikawa
Gary Moore
Ivonne Jimenez
James Winger
Keith Nicholson
Marceline Angrand
Paul Berger
Ron Myers
Scott Feldman
Scott Johnston
Thomas Alexander
Zinia Gonzalez
Support and
Corporate Employees
Alyssa Hoogeveen, Receptionist
Amy Johnson, Funder
Anabell Little, Underwriter
Andrea Morandini, Underwriter
Andrew Hebenton, Transitional LO
Aurora Cosme, Post Closer
Bethann Heming, Processor
Brianna Killion, Underwriting Asst.
Brooke Clay, Loan Setup
Caroline Hernandez, Sr Processor
Catherine Brooks, Underwriter
Chris Ryan, Account Executive
Christiana Almont, Receptionist
Chuong Dao, Jr Processor
Crystal Silva, Business Development
Cynthia Travis, Post Closing Underwriter
Diane del Rosario, Processor
Gabriel Sanchez, Administrative Asst.
Gina Wagner, Processor
Janet Foster, Loan Officer Asst.
Jenna Lum, Loan Officer Asst.
Jenny Nguyen, Funder
John Fox, Transitional LO
Joseph Casey, Compliance Analyst
Josie Accola, Underwriter
Julian De La Rosa, Loan Officer Asst.
K-Lani Herbert, Jr Processor
Page 3
6 YearsAlejandro Ascencio
Alex Rosales
John Lane
Monica Schroeder
5 YearsDenise Campbell
Genaro Peralta
Matilde Chavira
Michael Vaverka
4 YearsDamu Riley
Judy Morales
Lucerito Martha Castro
3 YearsBrandon Castaneda
Edward Chang
Jonathan Hoffmann
Josh Vega
Juliana Contreras
Karina Sanchez
2 YearsJomari Mamaradlo
Joshua Montano
Kevin-James Gonzalez
Michael Dugan
1 YearAngela Thornton
Brad Patterson
Daniel Olea
David Lawver
Gabriela Godinez
Karla Balajadia
Kirsten Strickler
Larry Rollins
Michael Ladkani
Nakia Aguirre
Robert Coleman
Rose Coleman
Stephen Carbajal
We ask that you join us in wishing the following employees a
very Happy Anniversary in the month of September and thank
you for your years of Service!
Congratulations, and thank you for your dedication and
contributions to our success!
Kathlene Keppel-Colkitt, Transitional LO
Kathren Rosales, Transitional LO
Lisa Ramirez, Sr Processor
Lisa Townsend Sr Processor
Maria Delgado, Transitional LO
Michael Cray, Marketing Asst.
Michael Duran, Processor
Paige Gifford, Executive Asst.
Peter Demetros, Sr Underwriter
Ronda Manning, Transitional LO
Scott Malik, Processor
Sheila Lee, Loan Officer Asst.
Susan Akopoff, Accounting Clerk
Tatiana Rumi, Telemarketer
Tracey Eaton, Processor
Wilton Neville, Loan Officer Asst.
Yvette Anderson, Underwriter
Page 4
1.
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5.
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8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Sky Park Division
Chino Hills - Pipeline
Campbell
Parkmont Division
Palm Beach
Fresno
Lawver
Downey
Tustin Ranch Virtual
RC - Diaz
Congratulations and kudos to the AFN Sales Team!
Congratulations to the AFN Sales Team! We want to thank you all for your collective contributions as you continue to set and achieve production goals!
We funded 894 loans totaling $240,845,044 in the month of September. Keep up the great work!
We would like to recognize our top Setpember 2015 Loan Originators and Branches and applaud them for a job well done:
Top Loan Originators - September
Top Branches - September1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Michael VaVerka
Sam Rumi
Daniel Pinkous
Alejandro Araoz
Thomas Dugan
Alejandro Ascencio
Cory Miles
Jerry Shumard
Bill Bright
Lisa Cardoza
John Bash III
Maryanne Franzyshen
Joshua Ulmer
Robert VaVerka
Hector Estrada
Don Crozier
Stefanie Neale
Eric Winblad
Patrick Ladkani
Claudia Spaulding
Production
The AFN Birmingham, Alabama Branch attended
the 11th Annual Realtor®/Affiliate Trade Show at
the beginning of September. The team was able to
network with many Realtors® and potential partners
and build brand awareness in their local market.
We still love those handwritten notes - not every
accolade is given online! Check out these cards
written to Tim Prindle from our Cedar City branch.
Page 5
Funded Volume by # of Units
1. Tamara Mitchell
2. Michele Velasco
3. Jeremy Longman
4. Marie Eliasson
5. Kimber Shan
Swiftest TT from Decisioned to Funding (with more than 5 loans funded):
1. Maria Guillen
2. Courtney Torgerson
3. Don McCaskill
4. Beatrice Jackson
5. Denise Campbell
We would like to recognize the top Loan Processors by funded volume and swiftest turnaround. To all AFN Loan Processors, keep up the great work and know you are appreciated!
BranchTRID is now in full swing, and we are happy to report there have been no major hiccups in this early stage of the transition. We have recently released several TRID-related Encompass Newsflashes; in case you missed them, you can see all Encompass Newsflashes here (there is also a link on the Encompass home page under “Company Custom Links.”
We have an Intranet page dedicated to TRID, which you can find here. There is also a link to it on the Intranet Home Page. As always, if you have questions regarding TRID or anything work-related, feel free to contact the Branch Relations Department at 909-287-2890 or email us at [email protected].
Now, for a lighthearted approach to TRID training, here are the TRID 10 Commandments:
Thou shall not require verification documents from consumers before issuing an LE. 1Thou shall obtain consumers’ consent to receive electronic loan disclosures and documents, and have
contingency plans for alternative delivery methods. 2Thou shall provide an LE within three business days after receiving the six pieces of information constituting
an application. (consumer’s name, consumer’s income, consumer’s SSN, property address, estimated value
of the property, mortgage amount sought)3
Thou shall prepare the LE with reliable data and information collected based on good faith efforts (no
padding fees). 4Thou shall know the new 0% and 10% tolerance buckets.
• 0% = fees paid to the lender or an affiliate, transfer taxes, fees paid to an unaffiliated third party where
the borrower may not shop for the services (examples: appraisal, credit report, flood cert)
• 10% = recording fees, fees paid to an unaffiliated third party where the borrower may shop for services
but chooses a provider from the Written List of Providers provided by the lender
5
Thou shall issue revised versions of the LE within three WORKING business days of receiving information
constituting valid changes of circumstances in order to reset tolerance baselines. (Only fees associated
with the valid Change or Circumstance may change.)6
Thou shall not issue any revised LE after issuing the CD. 7Thou shall ensure that consumers receive the last revised LE and the CD at least 4 SPECIFIC business days
and 3 SPECIFIC business days before consummation, respectively. 8Thou shall communicate effectively with thy settlement agent, service providers, consumers, and any
party involved in any loan transaction to ensure all changes and revisions to the CD are timely and correctly
made before consummation. 9
Thou shall ensure the final CD is signed by all the required parties and that all errors on the final CD are
cured within the required deadline after consummation. 10
We have had a great response to the new AFN Props program in
the month of September. Thank you for participating and sharing
your appreciation for your co-workers.
We encourage you to keep submitting props for your co-workers! Below are just a few that were
submitted in September. Give AFN Props here!
Page 10
AWARD
AFN PROPSIntroducing....
AFN Props!
Awarded to: Victor Ziringer, Underwriter
“Victor has been a team player on all UW files. Going above and beyond getting files done. It is nice to have an UW who cares about loans and that caring shows in their communication and hard work.”
Given by: Joey Pimentel, Branch Manager
Awarded to: Jade Rivera, Data Support Analyst
“Her dedication to the job goes above and beyond. She is committed to excellence, is responsive, and is a pleasure to work with.
She is an asset to the company.” voice. Her editorial Given by: Joshua Montano, Database Administrator
Awarded to: Everardo Navarro, Underwriter
“A file that we closed a short time ago was missing one last item, through continued effort and positive communications we were able to reach a resolution on the file that worked for everyone. I enjoyed working on a sensitive item with Everardo as he was patient, professional and always communicated on a positive note!“
Given by: Daniele Leong, Loan Officer
Top Props Winners
Grand Prize Winner! Jimmy Vuong
2nd Place Winner!Corey Trujillo
Top Props for September
*For this month ONLY we have included the AFN Props from August since the program started at the end of that month.
“Courtney is wonderful to work with. She is there to answer your questions always picks up the phone or calls you back. If she does not know something she will ask and get you the answer. She is quick and on point with the HUD approvals, along with authorization to Disburse once she gets all that she needs back. She is truly a great Asset to AFN and I am thankful when she is the funder on our loans!!!!!
Given by: Gina Besignano, Loan Officer
Awarded to: Jessica Saucier, Jr. Processor
“Jessica jumped in and worked hard in helping us get a file to the closing table. Her effort and follow through was great and I appreciate it.”
Given by: Todd Probasco, Branch Manager
Awarded to: Kathleen Ryan, Funder
“Katie has done an awesome job helping with some challenging files. Getting instructions and docs to closing companies and being responsive to questions. She has been a great team player. Thanks for Everything.”
Given by: Joey Pimentel, Branch Manager
“Luis had a perfect loan submission
to underwriting with a spotless and well organized e-folder.”
Awarded to: Luis Morales,Sr. Processor
Given by: Kyle Malack, Jr. Underwriter
“Always an job processing. Files are
usually a one or 2 touch underwrite until DOCs. Thank-you
Nicole for your consistent excellent job processing!!!!”
Awarded to: Nicole LeFore, Processor
Given by: Liz Woltz, Underwriting Manager “Great training! Thanks
to you, Matt and Sean I feel a lot less worried about the
implementing of the new TRID forms.”
Awarded to: Jimmy Vuong, Corporate Trainer
Given by: Jason Smith, LO
excellent
LOAN PAYMENTSAt the closing, written instructions should have been provided with details for making your first loan payment. You should receive your loan coupon book before your first payment is due. If you don’t receive your book, or if you have questions about your tax and insurance escrows, please contact your closing agent or attorney.
PROPERTY TAXESAt the closing, property taxes were prorates between the buyer and the seller based on occupancy time in the home. You may not receive a tax statement for the current year on the home you buy, however, it is your obligation to make sure the taxes are paid when due. Check with AFN to find out if taxes are included with your payment and if the tax bill will be paid from escrowed funds.
RECORDED DEEDOnce recorded in the official county records, the original deed to your home will be mailed directly to you, generally within 4-6 weeks.
Call now to learn more!
WHAT HAPPENS AFTER THE CLOSINGIt is recommended you keep all records pertaining to your home together in a safe place, including all purchase documents,
insurance, maintenance and improvements.
KEYS TO HOMEYou have been supplied with a set of keys that unlocks the doors to your new home. To ensure security, change the locks upon moving in.
UTILITIESIf you have not already done so, contact the local service providers to make arrangements for electricity, gas, water, phone and cable. While some providers may need as little notice as a day to activate your services, it’s best to give them a few weeks’ notice.
OWNER’S TITLE INSURANCE POLICYYou may have received an Owner’s Policy at closing. If this service is not available in your area, you should receive your policy by mail in 4-6 weeks.
POSTAL SERVICEYour local post office can provide the necessary Change of Address forms to expedite the delivery of mail to your new home. You can speed up the process by notifying everyone who sends you mail of your new address and the date of your move.
FILING FOR HOMESTEADIf the home you purchased is in a homestead state, you may be required to declare homestead or file homestead exemption. A homestead exemption reduces the value of a home for state-tax purposes. Please check with the local county recorder’s office to determine eligibility, filing requirements and deadlines.
DRIVERS LICENSE, VEHICLE REGISTRATION AND INSPECTIONYou are required by law to notify your state Department of Motor Vehicles (DMV) after any relocation so a new driver’s license can be issued. You will also need to have your auto registration transferred to your new address and depending on your state, submit to a driving test and vehicle inspection. Check with your state DMV to determine requirements.
Call now to learn more!
Understanding the Integrated Mortgage Disclosure Rule
Changes apply to loan applications received after Oct. 3, 2015
This information is intended to assist Real Estate Brokers, Agents, and other Industry Professionals, and is not an advertisement for consumer credit as defined in 12 CFR 1026.2(a)(2). This information
is not intended for consumers and may not be duplicated or disseminated to the public.
WHAT CONSTITUTES AN APPLICATION?
1. Consumer’s Name
2. Consumer’s Income
3. Consumer Social Security #
4. A Property Address
5. An estimated Value of the
Property
6. The Mortgage Loan Amount
Sought
FORMSLoan Estimate Replaces
Good Faith Estimate (GFE)
Initial Truth-in-Lending Disclosure (TIL)
Closing Disclosure Replaces
HUD-1 Settlement Statement
Final Truth-in-Lending Disclosure (TIL)
VARIANCESFormally known as tolerances
Loan Estimate
3 Days - Lender ensures delivery or places
in the mail no later than the third working
business day after receiving the consumers
application
7 Days - The Loan Estimate must also be
disclosed no later the 7th specific business
day before consummation of the transaction
Closing Disclosure
3 Days - Lender ensures the consumer
receives the Closing Disclosure no later than 3
specific business days before consummation
of the loan
3 Days - Loans may not be consummated
less than 3 specific business days after the
Closing Disclosure received by the consumer.
3 Days - Changes made to the Closing
Disclosure prior to the loan consummation
requires a new Closing Disclosure form to be
issued by the lender and in a limited number
of stations including APR changes more than
1/8 of a % or 1/4 of a % of irregular loans,
the loan product changes or a pre-payment
penalty is added 12 CFR [1026.19(1)(2)(1)]., a
reset of the 3 day waiting period
No Limit Charges | 10% Aggregate Variance Charges | Zero Variance Charges
TIM
ING
NO LIMIT CHARGES
Charges such as prepaid interest, property
insurance, amounts placed into an escrow impound
or reserve account and services required by the
lender if the lender allows the consumer to shop and
the consumer actually selects a third-party service
not on the lender’s written list of service providers,
and fees paid to third party providers for services not
required by the lender.
Fees paid to third-party providers for services not
required by the lender may be paid to affiliates of the
lender.
10% AGGREGATE
VARIANCE CHARGES
Recording fees, charges for third-
party services where:
The charges are not paid to the
lender or the lenders’ affiliate
The consumer is permitted by the
lender to shop for the third-party
service but selects a provider
on the lender’s written list of
approved service providers
ZERO VARIANCE
Fees paid to the lender, mortgage
broker or an affiliate of the lender,
except that charges paid for a third-
party service not required by the
lender, may be paid to an affiliate of
the lender
Fees paid to an unaffiliated third-
party if the lender did not permit the
consumer to shop for third-party
service provider
Transfer taxes
Specific Business Days = Monday - Saturday (minus AFN Holidays) | Working Business Days = Monday - Friday (minus National Holidays)
Call now to learn more!
the TILA-RESPA Integrated Disclosure (TRID)Key Points You Need to Know About
Sometimes referred to as the “know before you owe” rule, the new TILA-RESPA Integrated Disclosure, or
TRID, is set to rollout on Saturday, October 3, 2015. There is a lot to know about complying with this rule that
is being implemented by the CFPB. Some key points are discussed below.
The TRID is a consolidation of four existing documents:
The Truth-in-Lending (TIL) disclosure and the Good Faith Estimate (GFE) have been combined into a
single disclosure called the Loan Estimate (LE)
• Must be delivered or placed in the mail no later than the third business day after your receipt of a
loan application
The final TIL and HUD-1 Settlement Statement have been combined into a single disclosure called the
Closing Disclosure (CD)
• Must be provided to your client at least three business days prior to closing
• There is a minimum waiting/review period of 3 days after the initial CD is issued (if your client
e-signs or signs in person that they received it on the same day that it was sent, then the waiting
period will be 3 days).
While the intent of the Loan Estimate is to clarify initial estimates, and it is delivered within the same timeframe
as the documents it replaces, it is the Closing Disclosure’s three day timeframe that may potentially impact
closing and alter your clients’ home buying experience.
This information is intended to assist Real Estate Brokers, Agents, and other Industry Professionals, and is not an advertisement for consumer credit as defined in 12 CFR
1026.2(a)(2). This information is not intended for consumers and may not be duplicated or disseminated to the public.
in-person
mail
e-delivery
Call now to learn more!
Loan Estimate
This information is intended to assist Real Estate Brokers, Agents, and other Industry Professionals, and is not an advertisement for consumer credit as defined in 12 CFR
1026.2(a)(2). This information is not intended for consumers and may not be duplicated or disseminated to the public.
New Lending Disclosure TimelineEffective for Loan Applications Received After Oct. 3, 2015
1
Meet with Lender
Revised Loan Estimate (if needed)
3 Working Business Days
(M-F)
LoanEstimate
Permitted Changes:• Rate Lock• New Information• Borrower
Requested Changes
3 Business Days(M-F)
33
4
ClosingDisclosure
2
Lender
Revised LoanEstimate
MUST be Received Min. 4 Specific Business
Days Before Closing
(Borrower must sign & date)
Borrower is presumed to have received the disclosure from 3rd
specifc business day from CD prep date.
Borrower must esign using
approved esign method/vendor
ConsummationChanges require a new Closing Disclosure:
Changes require a new 3 Business Day waiting period if:
Days that AFN is open to the public for carrying out substantially all of its business functions. • Generally, Monday through Friday excluding all AFN
holidays
SpecificBusiness Days:
All calendar days except Sundays and legal public holidays. • Rule of thumb, days that the United Postal Service is
open.
How ToCount Days:
The day the event occurs is day zero and every day after day zero is counted on. For example, application is taken on Monday, so the last day to prepare and send disclosures is Thursday.
Day 00Monday
Received App
Day 01Tuesday
Day 03 ThursdayLast day to prepare
and send initialdisclosure package
Day 02Wednesday
This information is intended to assist Real Estate Brokers, Agents, and other Industry Professionals, and is not an advertisement for consumer credit as defined in 12 CFR 1026.2(a)(2). This information is not intended for consumers and may not be duplicated or disseminated to the public.
Page 12
New FlyersNow available on iConnect. Download them in 3 easy steps. Learn how here: Flyer Tutorial
Marketing Library
New EmailsSend them in 3 easy steps. Learn how here: Email Tutorial
TRID Flyersare now
available.
View all emails and flyers available on iConnect.
TRID PresentationWant to educate your partners on the new TRID requirements? Download the TRID Basics Presentation
for Realtors here. Be sure to add your contact information and disclaimer to the last slide. If you need
TRID Training for Loan Originators and Loan Processors
By now, you should have taken the TILA/RESPA Integrated Disclosure (“TRID”) Training for Loan Originators
and Loan Processors. We heard from many of you that the training went well through our AFN Props program.
Material that was covered includes:
• Overview of TILA/RESPA Integrated Disclosures (TRID)• Deep Dive into Loan Estimates• Sending Initial Disclosures with TRID• Re-disclosing with TRID• Sending the Closing Disclosure
If you need a refresher or would like a quick reference tool, we have compiled a TRID Information
page on the Intranet where you can find helpful TRID documentation, such as:
AFN StoreThe AFN Store is your one-stop-shop for print, promotional and event marketing. We have an assortment of pre-stocked items as well as items that can be custom ordered for your specific branch. Take a shopping trip today.
Don’t see an item that you want to order? Just email us at [email protected] and we will find it for you. Check out these fun promotional items that can be ordered on the AFN Store today!
Orders placed before 12pm PST typically ship the following day. Orders after 12 will be shipped within 24-48 hours.