TNR - April 2011

Issue 045

April 2011

TheNicheReport.com

Turbulent Times 2007 to 2011Margaritas & mayhem.

10 Bringing Up The RearEx-Assistant Treasury Secretary Herb Allison and HAMP.

582820 New York CEMAsWhat are they and how do they save money?

FEATURE ARTICLE! The Foreclosure CrisisCauses & consequences.

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6 April 2011

NICHE REPORTSCONTENTS Issue 045 April 2011

FOUNDER & PRESIDENT Robert Pegg [email protected]

CO-FOUNDER & PRESIDENT David Pegg [email protected]

MANAGING EDITOR Stewart Mednick [email protected]

EDITORIAL / CONTENT MANAGER Kristen Moser [email protected]

ACCOUNTING MANAGER Shawna Ingram [email protected]

ADvERTISING DIRECTOR Jessica Grizzle [email protected]

ADvERTISING SALES Heather Bopp [email protected]

PRODUCTION MANAGER Henry Suchman [email protected]

PRODUCTION ASSISTANT Dawn Exner [email protected]

CARTOONIST Martin Bradford

COLUMNISTS & CONTRIbUTING AUTHORS Martin Andelman Justine Assal Lamarr Banks BJ Bounds Tim Davis Karen Deis Peter Hébert Stewart Mednick Richard Pisnoy Marc Savitt Aime Wills

Turbulent Times 2007 to 2011JUSTINE ASSALOwner, acm financial

Margaritas & mayhem.

10

Do You Have the Lending Yips?AIME WILLSindependent lOan prOcessOr

30

Creating a Commission Free Sales ForceTIM DAvISmOrtgage marketing and sales cOachGo from generating leads to receiving referrals.

32

What Price Education?bJ bOUNDSsr. marketing cOmmunicatiOns specialist, calyx sOftware

35

Center Stage with TMS FundingTHE NICHE REPORT

The Niche Report talks with Lisa Schreiber, Executive Vice President of Wholesale Lending.

42

New York CEMAsRICHARD PISNOysilver fin capital grOup llc What are they and how do they save money?

28 DEPARTMENTS

09 NOTE FROM THE FOUNDER

37 MAN ON THE HILL

39 APPRAISER SOUND OFF

46 WHAT'S yOUR MORTGAGE IQ?

44 TIP OF THE MONTH

58 bRINGING UP THE REAR

53 LENDER & RESOURCE DIRECTORy

AGENCy & FHA pg 48HARD MONEy & NON-PRIME pg 48COMMERCIAL pg 49CONSTRUCTION pg 49JUMbO pg 49REvERSE MORTGAGE pg 49SERvICE PROvIDERS pg 50

20 The Foreclosure CrisisCauses & Consquences

PETER HébERT

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By the time you read this the deadline for the Federal Reserve’s loan officer compensation rule will have been enacted (April 1st). The NAIHP and NAMB have both filed lawsuits in order to try and put a halt to this over zealous rule that would ultimately force many originators to leave the business. Why? Who wants to work five times harder for the same pay? You might as well order up your mortgage at the nearest DMV. Yep, let’s think about that for a minute.

Almost as soon as the lawsuits from NAIHP and NAMB were filed, the Fed requested that they be combined into one. Which leads me to my next point – Why isn’t NAIHP and NAMB working together on this and pooling together their resources? It seems obvious to me that they would serve our community much better united than divided.

Any hoo, I would like to invite our readers to join us on Facebook and “Like” our page. We have made a commitment to donate $1,000 to the NAIHP legal fund to help support their lawsuit on your behalf once we receive 8500 “likes” to our Facebook page - http://www.facebook.com/TheNicheReport. We’ve decided to help Marc Savitt and NAIHP for a couple of reasons (beyond the obvious fact that we are association members). One, he is a pitbull with ferocious tenacity and he loves this industry for the right reasons. Two, NAIHP filed first. Three, Marc is not afraid to address any mis-conceptions or questions regarding who he is and what NAIHP stands for. And finally, to be quite frank, NAMB has never come to us and asked for support. I’m not even sure who to talk to over there. Don’t read into that last statement too much. I like NAMB and I think they serve a purpose, it’s just that I get a feeling they don’t want our help – so be it, that is fine and dandy, no sweat off my back.

With that said - get on Facebook and HELP US HELP YOU! Once our goal is met, $1000 will go towards your cause on your behalf.

With every issue that goes out each month, I get that prideful feeling that each issue is better than the last. This issue is no exception. Along with the usual suspects, we have Peter Hebert with his take on the Foreclosure Crisis. Let me warn you, Peter is one of those industry scholars who performs his due diligence before he tackles a subject. It is a great read and your brain will grow by ten percent.

I would also like to introduce to you our new Cartoonist – Martin Bradford. A while back we asked for help (you would know if you had followed us on Facebook!) in finding someone who could provide a political/satirical cartoon to our magazine and website. We had about a dozen submissions and after sifting through them all, Martin clearly popped out as the most talented. Martin is a soft spoken, mild mannered, retired school teacher who lives in Oklahoma. Please welcome Martin to The Niche Report and enjoy his monthly cartoons that will be proudly displayed within the pages of each magazine (pg 26 this issue).

Keep up the fight!

Robert PeggCo-Founder & President

NOTE FROM THE FOUNDER

9TheNicheReport.com

MEMBEROfficial

Sitting on a beach on the West coast of Mexico in July 2007 on a family vacation, came

a fateful phone call from the of-fice. It was different from the other four calls I had received from them describing what amounts to normal issues in the daily life of a mortgage company. This one had an ominous

feel and had certainly sent a chill through our organiza-tion. It was driven home further as I sat in the hotel lobby talking to our office manager and saw the trailers on the CNN screen describing the same news as my phone call. One of our wholesale banks processing the majority of our pipeline had closed their doors and was not even hon-oring approved commitments. It was unprecedented and in hindsight, the beginning of a long and arduous journey that we are all still taking. Although we realized the grav-ity of the situation, there was no way to fully comprehend what we were about to embark on and the near collapse of our industry, our finances, our businesses, our livelihood!

Life is always about perspective and although our journey is never finished, this period of three years will be etched in many minds forever as a turning point! In many ways, it has had the intended effect of industry reform and economic responsibility but no changes in life are ever easy and this one has been so far reaching that it has resulted in many of us buying stock in hair color to keep gray hair at bay.

MINE FIELDSAs I returned to work from my vacation, ever the

optimist, I kept assuring everybody that it was going to be fine and that we simply needed to find a new lender to take the files. National news was reporting the fall of the banking and mortgage industry with a lust that is reserved only for events of National and International catastrophic proportions. In the bubble of our office, we had the ability and need to deal with the sheer enormity of the situation by filtration and avoidance. We had files to close and that is where our attention stayed focused; banks and lenders were falling almost daily. We had to navigate the mine fields and try to keep them safe. Thus started the beginning of our new obsessive compulsion – Implodometer! We logged on daily to see who was on the ailing list so that we could avoid sending our loans into a black hole. We rushed to close loans before the program slipped through our hands into a piece of history. It was much like trying to fill a bucket with dry sand with only your bare hands as tools. We still stayed positive, probably more out of denial than fact or reality.

THE AGE OF DENIALThankfully, we as humans, have the innate ability to

focus only on the facts that support what we choose to believe. We continued to work on the remnants of a once beautiful and abundant pipeline of loans. By now, they were beaten and battered with many casualties along the way. Our pipeline had come under attack and we were now

by JUSTINE ASSAL

TURbULENT TIMES 2007 TO 2011 Margaritas and Mayhem

10 April 2011

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