Wisconsin Mortgage Professional Magazine October 2015

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U.S. POSTAGE PAID

NMP MEDIA CORP.

NMP MEDIA CORP.

1220 WANTAGH AVENUE

WANTAGH, NEW YORK 11793

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Headlines and breaking news from NationalMortgageProfessional.com.

Headlines and blogs from around the web.

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N A T I O N A L M O R T

O C T O B E R 2 0 1 5 l V O L

A SPECIAL FOCUS ON THE FUTURE OF MORTGAGE BANKINGFlexibility and Financial Promise Lead Experienced LOs Back toBrokerage Firms By Mat Ishbia ..............................................................56

Failure to Go Paperless Carries Big Risks By Greg Schroeder............58

Why One Mortgage Business Leader is Making Millennials Her Mission By Casey Cunningham ........................................................60

Vision Versus Progress By Alec Cheung................................................61

Can You Help a Brother Out? By Eric Weinstein ..................................63

The Mortgage Industrys Future is Here By John Vella ........................64

The Delicate Balance of the Mortgage Industry By Keith Guenther....66

MSAs Going Away? So What! By Sue Woodard....................................68

The Blueprint for Future Success Lies in People, Not Profit By Cal Haupt............................................................................70

Making the Case for the Modern Title AgentBy Michael P. Bell & Elliot Liss..................................................................72

Community Lenders Are Essential to the Future of Mortgage Banking By Wes Miller............................................................74

FEATURESTRID Readiness: Will You Pass or Fail? By Keith Bilodeau ....................8

The Elite Performer: Because Im Happy By Andy W. Harris, CRMS ....8

Compliance in Marketing........................................................................16

Writing and Formatting Your Mailer By K. Justin Restaino ..................18

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

Broker? Banker? How to Choose By Laura Burke, MBA, MS, MIS, CFE, EA ................................................26

Transitioning to TRID By Jeremy Potter ................................................28

Agility Resources Group ...................................... www.agilityresourcesgroup.com ......................................66American Advisors Group.................................... www.aag.com/wholesale ................................................57American Financial Resources Inc. ...................... www.afrwholesale.com/wd-benefits ....................Back CoverAngel Oak Mortgage Solutions ............................ www.angeloakms.com ..................................................43Brokers Compliance Group.................................. www.brokerscompliancegroup.com ..................................96Caliber Home Loans.............................................. www.caliberhomeloans.com ............................................29CallFurst.com ...................................................... www.callfurst.com ............................................................62Calyx Software...................................................... www.calyxsoftware.com ....................................................39Carrington Mortgage Services, LLC ...................... www.carringtonwholesale.com ..............................31 & 50Document Systems, Inc./DocMagic ...................... www.docmagic.com ........................................................7Equity Prime LLC................................................ www.equityprime.com ..........................................67 & 85First Guaranty Mortgage Corp. ............................ www.fgmc.com ..............................Inside Front Cover & 56Flagstar Bank .................................................... www.flagstar.com/ae ....................................................17Franklin First Financial, Ltd. .............................. www.franklinfirst financial.com/wholesale ......................41Freedom Mortgage Corporation .......................... www.freedomwholesale.com ............................11, 65 & 79HomeBridge Wholesale ...................................... www.homebridgewholesale.com ....................................13Land Home Financial Services Wholesale Division www.lhfswholesale.com ................................................73LendingHome .................................................... www.lendinghome.com/nmp ............................................1MB Financial Bank ............................................ www.mbmortgage.com ..................................................68MBS Highway .................................................... www.mbshighway.com/MNN ..........................................83Mortgage Information Services, Inc. .................... www.mtginfo.com ........................................................63Mortgage News Network (MNN) .......................... www.mortgagenewsnetwork.com ..............................34-35Mortgage Star Conference .................................. www.mortgage-star.net ..................................................58

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

10Is TRID Really Helping theConsumer? By Joseph J. Murin

36NMPs MortgageProfessional of the Month:Laura Lawson, ChiefPeople Officer, UnitedWholesale MortgageBy Phil Hall

50Lykken on Leadership:Seven TransormationsEvery Leader MustUndergo to Move FromGood to GreatBy David Lykken

88Step Inside Ginnie MaeBy Ted W. Tozer

90Is Your Company YourClassroom?By Ray Maninang

T G A G E P R O F E S S I O N A L

L U M E 7 N U M B E R 1 0

Mentoring Millennials By Ginger Bell......................................................30

Diversify Your Product Line With Non-Agency MortgagesBy Tom Hutchens......................................................................................32

Preparing for the Housing Markets Next Shift By Danny Jasper........38

The Long & Short: The Business of Short Sales By Pam Marron........42

Performance Solution Through Technology By Joni Pilgrim................46

NAMB National Schedule of Events & List of Exhibitors ....................52

Pending Credit Legislation Shows Congressional Extremes

With Regard to Credit Knowledge By Terry W. Clemans......................54

Industry Updates: October 2015 By Gavin T. Ales ................................76

Operation VA SITREP: Your VA Situation ReportBy Richard M. Bettencourt Jr., CRMS, CMHS ........................................76

FBI Fraud Alert Raises Concerns Over Settlement Agent Wiring Instructions By Andrew Liput ......................................................78

MBAs Mortgage Action Alliance: A Message From MAA

Chairman Fowler Williams ......................................................................78

NMPs Economic Commentary By Dave Hershman..............................80

OrigiNation: By Originators, For Originators By Andy W. Harris..........82

Just Ask Eric & Laura By Eric Weinstein & Laura Burke ........................84

Time Management for Mortgage Lenders By Bubba Mills ..................89

COLUMNSNew to Market..............................................................................12News Flash: October 2015 ..........................................................14Heard on the Street ....................................................................40Outstanding Places to Work ......................................................92NMP Calendar of Events ............................................................93NMP Resource Registry..............................................................94

MortgagePlannerMarketing.com.......................... www.mortgageplannermarketing.com ............................89NAMB+ ............................................................ www.nambplus.com ......................................................23NAMB PAC ........................................................ www.namb.org ..............................................................25NAPMW ............................................................ www.napmw.org ....................................................64 & 91NAWRB ............................................................ www.nawrb.com ............................................................82Nationwide Appraisal Network............................ www.nationwide-appraisal.com ......................................74New York Community Bancorp, Inc. .................... www.nycbmortgage.com ................................................87Pacific Union Financial, LLC ................................ www.pacificunionfinancial.com ......................................59Paramount Residential Mortgage Group, Inc. ...... www.prmg.net ..........................15, 51 & Inside Back CoverPB Financial Group Corp..................................... www.calhardmoney.com ................................................27Radian Guaranty ................................................ www.radian.biz ............................................................81RCN Capital ...................................................... www.rcncapital.com ......................................................19REMN Wholesale ................................................ www.remnwholesale.com ......................................WI1 & 5Residential Home Funding Corp. ........................ www.rhfbranch.com ......................................................55Ridgewood Savings Bank .................................... www.ridgewoodbank.com ..............................................71Secure Insight....................................................www.secureinsight.com ..................................................33TagQuest .......................................................... www.tagquest.com ........................................................77The Bond Exchange ............................................ www.thebondexchange.com ..........................................69The National Real Estate Post.............................. www.thenationalrealestatepost.com ........................75 & 86Titan List & Mailing Services, Inc. ........................ www.titanlists.com ..........................................................9UAMP................................................................ www.uampexpo.com ....................................................86United Wholesale Mortgage ................................ www.uwm.com ................................................47, 48 & 49

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

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OCTOBER 2015Volume 7 Number 10

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

Vision Implementation ... Connect!This is the story of how a simple idea can change the mortgage industry for the better for thefuture!

I am sitting on a flight on a Sunday evening, Oct. 20, returning to New York from the SecondNAMB Wholesale Summit in Dallas. I attended not as a member of the media, but as a mem-ber of NAMBThe Association of Mortgage Professionals, working with the association on the

concept of this Summit since its inception earlier this year.Im under a confidentiality agreement not to detail what was specifically discussed, but I cannot resist the

opportunity to report on what I saw. Ill get to that later but want to share with our readers the genesisthat lead to what I can only say are historic Summits.

A little over a year ago, current NAMB President John Councilman walked into a Wholesalers BreakfastRoundtable at a conference in Atlantic City sponsored by NMP Media Corp. and conducted by my son andNMP co-founder, Andrew T. Berman. Andrews idea was to gather about 15 wholesalers in an open round-table discussion annually to see where they thought the mortgage industry was and where it was headed.

This Wholesalers Breakfast, in its early years, was initially met with apprehension and doubt. Its not easyfor companies competing with one another for market share to open up and share ideas on their own oper-ations and strategies. But, they did and NAMBs president walked into what was NMPs third foray into theWholesalers Breakfast in Atlantic City. What Mr. Councilman saw was both an inspiration and a vision. Illnever forget the e-mail he sent me after the breakfast. John was astounded at the openness between thewholesalers in the roundtable discussion. He said in his e-mail that the discussion was filled with passion asthe wholesalers collectively discussed ways to increase market share and better serve their mortgage brokersand correspondents clients. I called John the next day and thanked him for his compliments. His vision wassimple he wanted to know if I could develop the idea behind the Wholesalers Breakfast in Atlantic Cityinto a more global concept for NAMB, to not only afford the opportunity for wholesalers to share their suc-cesses and issues, and to discuss ways for them to grow their market share, profitability and compliance,while concurrently give the opportunity for feedback from the mortgage

broker community.If you have followed me to this pointand I hope I havent bored you yet, here is the evolutionhis e-

mail and our phone conversation, and the NAMB Wholesale Summit was born. A vision John had from abreakfast roundtable in the old Trump Taj Mahal in Atlantic City was about to take off and little do I thinkthat John, the NAMB Board and officers or myself would ever thought it could become the game-changer itis on its way to becoming.

Fast-forward to March of 2015 in Orlando and the First NAMB Wholesale Summit was scheduled. At first,companies thought it was just another conference or convention with a new name for marketing purposes.But the intent and goal of the Wholesale Summit is to unite the wholesaler with their mortgage broker andcorrespondent clients. Working jointly with one another will ensure prosperity for the marketplace for yearsto come.

What started as a simple exchange of ideas in an Atlantic City meeting room has grown to become anational meeting of the industrys top minds, coming together to help shape and form the future of the mort-gage marketplace for years to come.

So why this content for the edition featuring The Future of Mortgage Banking? Simple as much asthe success of the NAMB Wholesale Summits have been to date, they still cannot accomplish as much aspossibly can be done without greater participation of the remaining wholesalers in the mortgage indus-try. The future of this mortgage industry lies in the collective hands of the players that form the intricatefacets and layers of this profession, and so much can be accomplished by the joint collaborative efforts ofthis group. So I look at the first two NAMB Wholesale Summits as the seed being planted for the future ofmortgage banking.

If you are a wholesaler and missed the past two NAMB Wholesale Summits, I urge you to step up tothe plate and become a participant sponsor in 2016. This is not a conference, convention or trade show.Visit this link (nmpmag.com/summit) to read more about the genesis and thought behind the first NAMBWholesale Summit. As I said at the outset of this column, it is your opportunity to change the mortgage indus-try for the better for the future.

There will be two NAMB Wholesale Summits annually in 2016, with the first being held Tuesday, Feb. 9,2016 in San Antonio, Texas at the Hyatt Regency. Take a seat at the table with up to three members of yourteam and be part of this historic process in growing market share for the wholesale segment, both compli-antly and profitably. I urge you to visit http://conta.cc/1OjkFIK for more information on the NAMBWholesale Summit and to register your team for the 2016 NAMB Wholesale Summits. Also, feel free tocontact me directly by e-mail or by phone at (516) 409-5555, ext. 310 if you would like to discuss theSummits.

Change for the better can be made when you have a vision, accompanied by a plan to implement and avehicle to connect. The NAMB Wholesale Summits deliver just that. Dont leave the future of this industry inthe hands of others without you being at the table!

Sincerely,

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

National Mortgage Professional Magazine is published monthly by NMP Media Corp. Copyright 2015 NMP Media Corp.

publishers deskFROM THE

STAFF

ADVERTISINGTo receive any information regarding advertising rates, deadlines and requirements, please contactVP-Sales & Marketing Beverly Bolnick 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 KoondelVP of Operations

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

Richard ZytaSocial Media Ambassador

(516) [email protected]

Joel M. BermanPublisher - CEO

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

Beverly BolnickVP-Sales & Marketing

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

Phil HallManaging Editor

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

Francine MillerAdvertising Coordinator

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

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National PresidentKelly Hendricks(314) [email protected]

President-ElectNikki Bell(678) [email protected]

Vice PresidentCathy Kantrowitz(845) [email protected]

Vice PresidentLaurel Knight(425) [email protected]

SecretaryWindee Falla(281) [email protected]

TreasurerJudy Alderson(918) 250-9080, ext. [email protected]

ParliamentarianFrances Reinhardt(678) [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 Lending110 Broadway, Suite 360 l San Antonio, TX 78205Phone: (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

Mike BrownPresident(908) 813-8555, ext. [email protected]

William BowerVice President(800) [email protected]

Maureen DevineEx-Officio(413) [email protected]

Julie WinkTreasurer(901) [email protected]

Renee EricksonConference Chair(866) [email protected]

Mary CampbellDirector(701) [email protected]

Scott LedbetterDirector(801) [email protected]

Judy RyanDirectorCredit Plus(800) [email protected]

Mike ThomasDirector(615) 386-2285, ext. [email protected]

Dean WangsgardDirector(801) [email protected]

Terry ClemansExecutive Director(630) [email protected]

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

National Association of Professional Mortgage Women1851 South Lakeline Boulevard, Suite 104, Box 303

Phone: (800) 827-3034 E-mail: [email protected] site: www.napmw.org

2015-2016 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

2014-2015 Board of Directors

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0151.800.649.1362 I www.DocMagic.com

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elite performerT H E

By Andy W. Harris, CRMS

Youre welcome for leaving that jingle in your head the rest ofthe day. Seriously though are you happy? Its a good ques-tion I dont think many of us ask ourselves on a consistentbasis. Happiness is described as a mental or emotional state

of well-being, defined by positive or pleasant emotions ranging fromcontentment to intense joy. Man, doesnt that sound great? This makes me reallythink about the word contentment and how much that word can truly definehappiness from its roots growing all the way up to intense joy. That intense joyis certainly a feeling I want every day, but I wish it were that easy.

Every morning at the gym, I see the same old man walking around, always in thebest of moods. He seems to be quite personable and says hello to everyone at theclub and everyone knows him. Hereminds me of someone that seems trulycontent with their life and always in goodspirits, maybe even riding the intense joywagon. You can tell when someone haslegitimate happiness and pure inten-tions. They dont need exterior support orinfluence for joy as they have an internalhappy auto-pilot taking care of that. Its agood trait to have and those that portraythis image certainly attract others.

About once a week, the old man walks up to me and asks a few questions ormakes a few comments that really get me thinking. I have to get on myself to notfeel as though this is a disruption in my workout when taking off my headphones,providing he always has something valuable to say.

This past week, he asked me how I was doing and how work was going. I toldhim the common answer and that things were very busy and work was goinggreat, having a great year, etc. He responds by saying how great it is that I am hav-ing a successful business. He then asked if this success was bringing me happiness.

I thought for a second, are these two things one in the same? Can you have suc-cess without happiness or is happiness the very definition of success? What exact-ly is success if youre not happy? I answered by telling him that I was happy, butwas I being fully honest? In reality, the more success I have as others define it,brings more pressure, responsibility, deadlines and stress at times. Stress and hap-piness dont get along all that well. He went on to talk about how important it isthat I am truly happy as so few people experience this true happiness.

I think he left me with a challenge to find my true joy. I thought about that forquite some time. I do feel I am content and certainly happy with most things inmy life, and of course, my amazing family. I can also say that I certainly have somedays where I am happier than other days as do most people. For us to perform ourbest, I believe we all need true happiness and to find what it is that producesthis within us. Its not just about anothers definition of success, but our own def-inition which must bring us internal happiness or intense joy. I believe you can-not be truly successful without it so are you happy?

Andy W. Harris, CRMS is president and owner of Lake Oswego, Ore.-based VantageMortgage Group Inc. and past president of the Oregon Association of MortgageProfessionals. He may be reached by phone at (877) 496-0431, e-mail [email protected] or visit www.vantagemortgagegroup.com.

Because Im Happy

It is not how much

we have, but how much

we enjoy, that makes

happiness.

Charles Spurgeon

TRID Readiness: Will You Pass or Fail?

SPONSORED ED ITORIAL

By Keith Bilodeau

On Saturday, Oct. 3, the industry implemented the mostsweeping and significant changes in the history of mortgagebanking. These changes impact the way we originate, disclose,process and close loans. Unlike previously, these regulations

apply evenly to all residential loan originators regardless of who they workfor. There is a general lack of understanding of the new requirements andtheir impact on originators, real estate agents, builders, title companies, set-tlement service providers and applicant/borrowers. The all-too-commonstatements of I will figure it out when it gets here and Isnt it just somenew disclosures? and my favorite, I just dont have time to attend TRIDtraining should concern us all greatly. Below are just a few of the areas likelyto be least understood about TRID and the impact it will have on all partic-ipants in the loan process.

1. Impact of the realtor on buyers and sellers. Do they know they cannotwrite a 21-day or even 30-day contract on or after Oct. 3rd? These new reg-ulations are strict and confusing to implement, and timing requirementsaround the Loan Disclosure, and specifically, the Closing Disclosure makeclosing within these windows extremely unlikely. If realtors are not settingproper expectations and contract terms, there will be many disappointedand misinformed buyers and sellers. Its also fair to assume the realtorsfailure to understand and set expectations will somehow become thelenders fault when the loans cannot meet the contract closing date.

2. The need for policies and procedures. Starting with just the applicationdate. Have all originators spent time defining and documenting policiesand procedures for something as basic as being able to defend their Ap-plication Date. The Application Date is now defined differently than ithad been in the past. Incidentally, this is covered in TRID training at greatdepth.

3. Setting dates. The need to establish specific dates, events, policies andprocedures that will subsequently have to be defended to state or federalexaminers, or to other parties such as lender/investors and warehouselenders, only scratches the surface of required TRID knowledge.

4. Adhering to the new rules. On Oct. 3, any requests for credit in pipelinesthat do NOT have a GFE and TIL (and for broker loans a subsequent TIL)will not be protected under the OLD rules. If any of those requests containthe new six elements that make up an application, they will now becomeApplications under TRID and will be expected to have a compliant LE is-sued by no later than EOD Wednesday Oct. 7.

5. A new timetable. Plan for seven to 10 days before expected Consumma-tion (closing date) to be working on the final Closing Disclosure. Anyonewho does not understand this should quickly register for TRID training.

It is likely those of you taking time to review this magazine and read thisbrief editorial have already invested in TRID training. My greater worry is forthose who are too busy to invest in TRID training and in their business.

Keith Bilodeau is senior vice president of Wholesale Production at FreedomMortgage. With more than 30 years of experience in capital markets, operationsand production, Keith offers unique expertise in helping mortgage professionalsgrow their business by leveraging Freedom Mortgages technology and pro-grams. He may be reached by e-mail at [email protected] visit www.freedomwholesale.com.

Lender NMLS ID: 2767. Freedom Mortgage Corporation, 907 Pleasant Valley Avenue, Suite 3, Mount Laurel, NJ 08054.

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By Joseph J. Murin

We are now into the earlydays of the long anticipat-ed TILA-RESPA IntegratedDisclosure (TRID) era. Like

any new regulation, TRID would likelyhave had an impact on the mortgageindustry no matter what its scope. Butthis one is different. TRID representsperhaps the largest change to affect ourindustry in decades. Its about muchmore than when the forms are due orwhich numbers go on what line. Itsabout changing the way that lenders,settlement agents, brokers and evenreal estate agents interact and collabo-rate to push a sales agreement throughto loan closing. Its a process change and a sweeping change at that.

We know that the ConsumerFinancial Protection Bureau (CFPB)enacted this rule to simplify and clarifythe ponderous and confusing settle-ment phase of a home sale for the con-sumer. Few would argue that theprocess, as it stood previously, waseither simple or transparent. There willalso likely be some positive develop-ments as TRID takes root in the indus-try. Perhaps the many different firmscharged with servicing a mortgagetransaction will be forced to learn bet-ter and more effective ways to commu-nicate and work together.

There are also several potential out-comes created by TRID that could have avery negative impact on the people it isdesigned to protect. To its credit, theCFPB reviewed thousands of commentsas it considered the final rule. It solicitedmortgage and real estate industry input.It even postponed the original Aug. 3implementation deadline when itbecame apparent that far too many inthe industry were not yet ready (even ifthat wasnt the official explanation given).

At the heart of my concern, however,is the reaction to TRID. How will thosebusinesses being more tightly regulatedseek to mitigate their own risks andcosts? And what really does the con-sumer want from the real estate trans-action? Is the settlement documenta-tion a primary concern to the typicalbuyer or seller? If anything, I fear TRIDis a solution addressed to a threat thatdoesnt exist at the level the CFPBbelieves.

One of my first concerns with TRIDhas been debated thoroughly in themonths running up to the deadline. Bynow, we know that TRID mandates thatthe loan estimate (once the Good FaithEstimate) be delivered or placed in themail no later than the third businessday after receiving the consumersapplication. TRID now also requires thata closing disclosure (once a big part ofthe HUD-1) must be provided to theconsumer at least three business daysprior to consummation of the transac-tion. The intent of this provision is cer-tainly clear. Consumers have frequentlybeen surprised by HUD-1s delivered theday of the transaction bearing figuresvery different than those they had seenon the GFE. This is a legitimate concern,and the rules under RESPA were longflaunted when it came to ambushing aconsumer at the closing table.

Consider, however, the likely conse-quences as the three-day rule goes intoeffect. Scheduling the closing, already adelicate ballet of coordination andadjustment in many places, will bemuch more difficult. Worse still, manyclosings will have to be postponed as amatter of law where a title company orloan officer makes a mistake or fails todeliver one of the TRID forms in a time-ly fashion. What does this mean for theharried home buyer or home seller whois depending on the date of the closing

because of a contingency with his or herexisting home? Will we see familiessleeping on moving trucks because theyare temporarily homeless for threedays? Probably not. But we will see a lotof frustrated consumers, real estateagents and lenders.

Its certain that the requirements ofTRID will result in more collaborationbetween lenders and settlement servic-es firms, as well as real estate agentsand brokers. Its also very likely that theperiod between sales agreement andclosing will be extended. There will bemore to do, more communicationrequired and more opportunities for anerror to occur in the back-and-forthbetween service providers. As a result,longer closing times will be built intothe process to accommodate theextended process.

My biggest concern with TRID, how-ever, is the increased amount ofexpenses put upon the lender and theservice provider. New technology;training; increased staff; possibly evenmore time on the phone (dependingon how a lender communicates withits service providers) and, of course,increased resources put toward com-pliance all add up to higher coststhroughout the industry. At what pointwill lenders decide its becoming tooexpensive to originate a mortgage? Willthey build these costs into the mort-gage where allowable by law?Absolutely. The same holds true withsettlement service provides. No longerwill they be able to absorb higheroperating costs for the sake of beingcompetitive but will need to face thereality of charging a fair cost for servic-es rendered. Although I dont foresee amass exodus of mortgage lenders andservice providers, I do envision thepotential for the consumers to experi-ence a significant cost to the mortgage

process. I can also easily imaginelenders taking even fewer risks as tothe markets they will serve or the cred-it they will extend, all to accommodatedeteriorating margins.

My question, therefore, is this:Which elements of the transaction dothe majority of consumers who partici-pate in the homebuying or home sell-ing process value most? Is it a largerselection of available mortgage prod-ucts from more lenders, or not having72 hours to review their settlementservices fees? Would they accept a bitmore documentation if it meant shav-ing days or even weeks of delaybetween the time of the sales agree-ment and the closing? Im not remotelysuggesting that this is an either-orproposition. Transparency and claritydo not necessarily have to be mutuallyexclusive with speed, convenience andprice. But I fear that TRID has madethat a possibility.

Only time will tell if my concerns arefounded. TRID is here to stayat least forthe foreseeable future. I have no doubt wewill adapt and improve our processes toaccommodate it. But it will be interestingto see the balance between how much ithelps the consumer and how much itharms him or her.

Joseph J. Murin is chairman of JJAMFinancial Services and vice chairman ofChrysalis Holding LLC. He is the formerchairman of The Collingwood Group LLC,and served as president of Ginnie Mae in2007-2008. Murin was previously with theU.S. Department of Housing & UrbanDevelopment (HUD), to which he broughtmore than 40 years of diverse experiencein the financial services, mortgage andbanking industries, including roles as theCEO of a number of financial organiza-tions such as Century Mortgage, Basis 100,Lenders Service Inc., and MSNi LLC.

Is TRIDReallyHelping theConsumer?The potential forunintendedconsequences that harmhomebuyers andsellers is very real

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AAG Adds Jumbo ReverseMortgage Offering to ItsProduct Line

American Advisors Group (AAG) hasannounced the launch its new jumboreverse mortgage loan program, calledthe AAG Advantage. With AAG Advantage,qualified borrowers may now obtain areverse mortgage on properties valued atup to $6 million, versus the FHA loan limitof $625,500 associated with a traditionalHome Equity Conversion Mortgage (HECM)loan.

The AAG Advantage is available notonly to owners of property types eligiblefor a HECM loan, but also to owners ofGinnie Mae-approved condominiums.This means borrowers whose propertiespreviously may not have qualified for areverse mortgage now have access to thisviable retirement planning tool. The AAGAdvantage will initially be made availableto senior homeowners in select states, andwill roll out to other U.S. states in subse-quent phases.

Like a HECM reverse mortgage, AAGAdvantage is designed for borrowers age62 or older to convert a portion of theirhome equity into cash to help them retirecomfortably. With AAG Advantage, ownersof higher value homes now have theopportunity to borrow up to $3 million inloan proceedsa significantly higheramount than offered through a tradition-al HECM loan. With the AAG Advantage,borrowers are not required to pay mort-gage insurance premiums that arecharged with a government-insuredreverse mortgage.

With our new AAG Advantage, wereproud to help extend reverse mortgages toa greater number of seniors and provideborrowers with higher value homes asolution to access more funds, stated AAGchief executive officer Reza Jahangiri. Thelaunch of AAGs jumbo reverse mortgageloan further reinforces our commitmentto helping American seniors age in placeand gain greater financial freedom.

Credit Plus Introduces NewFraudPlus ID Feature

Credit Plus has announced a new fea-

ture, FraudPlus ID, that can be addedto its credit reports to help validate aborrowers name, address, date ofbirth, Social Security Number andphone number. In addition, FraudPlusID goes even further and reviews theborrowers data against the IndustryStandard Exclusionary Watch lists.

For just a minimal fee on each cred-it report, lenders will get a clear pictureof their borrowers. Theyll also realizegreater cost savings for those pre-quali-fications who dont qualify for a com-plete FraudPlus report. In addition, thefeature can be turned on for every cred-it report thereby ensuring identity vali-dation is always ordered.

This new feature enhances FraudPlusby taking identity validation to the nextlevel, said Greg Holmes, national direc-tor of sales and marketing at Credit Plus.By ensuring borrowers are who they saythey are, lenders will have greater peaceof mind that their risk of fraud has beenminimized.

RealtyTrac LaunchesEnhanced Marketing ListLead Generation Platform

RealtyTrac has announced the launchof its enhanced Marketing List LeadGeneration Platform, allowing cus-tomers to leverage RealtyTracs nation-wide real estate data on more than 120million U.S. residential and commercialproperties to create targeted marketinglists in a convenient, self-service onlineinterface.

With RealtyTracs proprietary realestate intelligence and extensive mail-ing list development, you get the datasegmentation and modeling informa-tion you need to precisely target youroutreach and fuel customer acquisitionand retention, said Rob Barber, CEO atRealtyTrac. Users can find homeown-ers nationwide based on geographicand demographic characteristics. Thisopens up numerous new marketing listapplications for virtually every type ofbusiness looking to market its products

and services to a specific subset of U.S.property owners.

Registered users can create cus-tomized lists in real time with thecounts of available records updateddaily. Customers pay per propertyrecord downloaded, and can previewthe number of records that matchtheir criteria before downloading.

More important than the vast sizeof our dataset is the quality of ourdata, said Kevin Kerley, director ofdata solutions at RealtyTrac. Whilemany data providers merely resellthird-party lists, we collect data from abroad range of sources. Our lead gen-eration platform allows you to targetnew homeowners, renters, high-income households, and countlessother demographics. The ability to cre-ate and refine a list of targeted leadsmakes our Marketing List platform theperfect tool for retailers, financial serv-ice firms, Realtors, and other businessowners.

Vantage ProductionEnhances VIPs MobileFunctionality

V a n t a g eProductionLLC has an-nounced amajor en-

hancement to its enterprise-class CRMplatform, VIP. The new capability,Vantage Mobile, makes a full array ofVIPs renowned functionality availableon mobile devices, enabling compre-hensive on the go features thatgreatly amplify the success of mort-gage loan originators (MLOs) in thefield. Vantage Productions advanceddesign brings a complete range of truemobile VIP capabilities to mortgageorigination.

Lenders that are serious aboutstaying competitive need a solidmobile strategy, said VantageProduction President and CEO SueWoodard, who personally originatedloans for over 20 years. A simpleInternet presence is no longerenough, she cautioned. Lenders

continued on page 18

need true functionality that benefits allparties, including MLOs, referral part-ners and borrowers.

Vantage Mobile enables MLOs to eas-ily conduct critical marketing, sales andservice tasksincluding referral part-ner relationship managementregard-less of where they are or the time ofday. VIP client MLOs can manage leads;view all client loan status data; accessreferral partner information, add newpartners and implement co-marketing;plus perform other key tasks and quick-ly get information needed to acceleratesales and provide exemplary servicethat sets them apart.

Having the right answer at the righttime to a borrower question or referralpartner concern often makes the dif-ference between continued commit-ment to the MLOs service and losingout to a competitor, said Woodard.Vantage Mobile is a giant step forwardfor MLO sales effectiveness. Now loanoriginators can accomplish many tasksthey would otherwise have to performin their offices, such as adding a refer-ral partner on the fly or launching amarketing campaign. Full informationon every lead is available, along withcritical MBS market information andanalysis to help MLOs provide the bestrate guidance possible.

LoanLogics UpdatesIts Compliance Audit for TRID

LoanLogics has released enhancementsto its Compliance Audit interface insupport of the new TILA-RESPA (TRID)regulations that took effect Oct. 3,2015. The Compliance Audit interface isfound within LoanLogics LoanHD plat-form. LoanLogics now provides thetools needed to identify, track andtrend loan discrepancies and defectsrelated to the use of the new closingdisclosures. The result is that clientshave the internal communication,training and documentation processes

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EWSFLASH l OCTOBER 2015 l NMP NEWSFLASH l OCTOBER 2015 NMP NEWSFL

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House Committee PassesTwo CFPB Reform Bills

The House Fi-nancial ServicesCommittee haspassed a pair ofbills that wouldchange the

power structure of the ConsumerFinancial Protection Bureau (CFPB).

HR 1266, the Financial Product SafetyCommission Act of 2015, removes theCFPB from within the Federal ReserveSystem and makes it a standaloneagency. The bill also replaces the office ofdirector with a new five-member biparti-san commission. Otherwise, all powersgranted to the CFPB in the Dodd-FrankAct remain unchanged. The bill, spon-sored by Rep. Randy Neugebauer (R-TX),passed by a 35-24 vote.

HR 957, the Bureau of ConsumerFinancial Protection-Inspector GeneralReform Act of 2015, would create a newInspector General for the CFPB thatwould require a presidential nominationand a Senate confirmation. Currently,the Federal Reserves Inspector Generalperforms double-duty with the CFPB. Thebill, sponsored by Rep. Steve Stivers (R-OH), passed in a 56-3 vote.

Consumers are understandably con-cerned about our economy, saidFinancial Services Committee ChairmanJeb Hensarling (R-TX). We remain stuckin the worst recovery of the last 70 years.At the same time, theyre concerned thatWashington is taking away their choicesand raising many of their costs.

It is uncertain whether either billwill gain traction in the Senate. TheWhite House has already threatened toveto any bill that rearranges the CFPBpower structure.

Cordray Takes Credit forHousing MarketSuccesses

Richard Cordray, Di-rector of the Con-sumer Financial Pro-tection Bureau (CFPB),offered a display ofself-congratulatory

accolade by crediting his agency asbeing at the core of todays housingmarket vibrancy.

In a speech delivered before theNational Association of Realtors (NAR),Cordray claimed that the CFPBs rules toencourage common-sense, consumer-friendly business practices were key tothe current level of positive housingmarket achievements. Noting theAbility-to-Repay (ATR) and the QualifiedMortgage (QM) rules as examples ofimprovements created by his agency,Cordray stated that industry data refut-ed the predictions of critics that theCFPB would ruin housing.

In 2014, the first year of our newrules, mortgage originations for owner-occupied home purchases increasedbetween four and five percent, Cordraysaid. The upward trend appears tohave accelerated over the first half ofthis year. And while we saw minor con-solidation in some parts of the mort-gage market, there is no evidence ofany mass exodus, as the doomsayerspredicted. In fact, after adjusting formerger activity, the number of lendersthat reported having originated mort-gages showed an increase in 2014. Andin particular, the number of communi-ty banks and credit unions that origi-nated home-purchase mortgages lastyear was higher than the year before.

Cordray added that the CFPB hasbeen taking pains to create specialrules designed to protect communitybanks and credit unions, and heacknowledged that real estate brokerssuffered greatly during the [2008financial] crisis and its aftermath whilepledging the Bureau would work withthis profession to ensure that con-sumers experience of the financial mar-ketplace and the promise of theAmerican Dream are one and thesame. He also insisted that the CFPBwas the friend of the honest lendersand the foe of the dishonest ones.

Reasonable regulation of financialmarkets, which includes evenhandedoversight and enforcement of the law,should always tend to benefit the mostresponsible providers, Cordray said.By taking on and rooting out unfair

competition that gobbled up marketshare by driving down sound under-writing standards, the ConsumerBureau is supporting responsiblelenders. The market leaders of todayare those that have remained focusedon providing sustainable homeowner-ship rather than just making a quickbuck, no matter how.

Homebuying Hits MostAffordable Level in TwoYears in Q1

RealtyTrac andClear Capitalhave released ajoint reportshowing thatbuying a home

was at the most affordable level in twoyears in the first quarter of 2015 despitethe average U.S. home price increasingat more than twice the pace of the aver-age weekly wage nationwide over thepast year.

For the report, RealtyTrac analyzedrecently released Q1 2015 averageweekly wage data from the Bureau ofLabor Statistics and average prices forsingle family homes and condosderived from publicly recorded salesdeed data collected by RealtyTrac in582 U.S. counties with sufficient homeprice data. Average interest rates on a30-year fixed rate mortgage came fromthe Freddie Mac Primary MortgageMarket Survey. Clear Capital analyzeddata from its Home Data Index to deter-mine counties at highest risk and low-est risk based on affordability andpotential for price growth.

Average home price appreciationoutpaced average wage growthbetween the first quarter of 2014 andthe first quarter of 2015 in 397 out of582 (68 percent) U.S. counties analyzedfor the report. But during the sametime period, the average interest rateon a 30-year fixed rate mortgagedropped 57 basis points (13 percent),from 4.34 percent in the first quarter of2014 to 3.77 percent in the first quarter

of 2015. The drop in interest ratesalong with wage growth outpacinghome price appreciation in 32 percentof countiesmeant buying a home inthe first quarter of 2015 required asmaller share of the average wage com-pared to a year ago in 339 of the 582counties (58 percent).

Although home prices continue tooutpace wage growth in the majority oflocal markets, this analysis somewhatsurprisingly shows that affordability isactually improving in most marketsthanks to falling interest rates andslowing home price growth, which isallowing wage growth to catch up insome markets, said Daren Blomquist,vice president at RealtyTrac. At thenational level, buying an average-priced home in the first quarter of 2015was the most affordable its been intwo years and nearly twice as afford-able as it was in the second quarter of2006when affordability was its worstin the past 10 years. At the local levelwere seeing several bellwether mar-kets where wage growth matched oreven outpaced home price growth overthe past year.

Major markets where wage growthoutpaced home price growth in thefirst quartercounter to the nationaltrendincluded Cook County, Ill. inthe Chicago metro area; OrangeCounty, Calif. in the Los Angeles metroarea; Brooklyn, N.Y.; Fairfax County,Va. in the Washington, D.C., metroarea; and Riverside County in SouthernCalifornia, where the average weeklywage in the first quarter was up 10 per-cent from a year ago, double the fivepercent growth in average home pricesduring the same time period.

The average U.S. home price is still12 percent below where it was in thesecond quarter of 2006, when buying ahome was at the least affordable levelin the last 10 years. Meanwhile, theaverage wage nationwide has risen 34percent and the average interest rateon a 30-year fixed rate mortgage hasdropped 44 percent during that sametime period, resulting in a 48 percentimprovement in affordability.

Among all 582 counties analyzed inthe report, only 20 (three percent)exceeded their 10-year affordability

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averages in the first quarter of 2015,including counties in the Nashville,Lansing, Michigan, Cincinnati,Memphis, Washington, D.C., andAtlanta metro areas.

Trade Groups OpposeProposed FHLB RuleChanges

A coalition ofindustry tradegroups has senta letter to theleadership ofthe House Fi-

nancial Services Committee calling onthem to reject a proposed FederalHousing Finance Agency (FHFA) rulethat alters the membership require-ments in the Federal Home Loan Bank(FHLB) system.

The proposed rule, which was firstissued in September 2014, rewrites theFederal Home Loan Bank Act regardingthe mortgage asset ratio requirementthat applies when an institutionapplies for FHLB system membership.Under the proposed change, the ratiowould be changed from a one-timeconsideration in the applicationprocess into an on-going obligation.

We respectfully urge Congress toprohibit this proposed rule from takingeffect, said the letter from the tradegroups. Congress should also directFHFA to consult with stakeholders toevaluate an appropriate membershipstructure to allow the system to bestserve its mission in the 21st Century.

The trade groups added that thechanges would risk underminingmember confidence in the system,forcing current members to considerthe risk that they may one day findthemselves on the wrong side of anarbitrary requirement.

The trade groups also oppose a sec-ond proposed change would preventcaptive insurance companies frombeing part of the FHLB system. In theirletter, they noted that many captiveinsurance companies are owned by oraffiliated with mortgage real estateinvestment trusts (REITs), which arecurrently the direct holders of nearly$300 billion in mortgages and mort-gage-backed securities (MBS) that werepurchased via permanent capitalraised in the public markets.

Notably, this influx of capital hashelped partially replace the decliningretained portfolios of Fannie Mae andFreddie Mac, the letter said. In turn,the system helps captive insurers, andby extension their parent companies,by providing flexibility in fundingterms. The ability to match fundingterms with expected asset maturitiesallows these companies to invest in agreater array of mortgages and MBSincluding those to borrowers whoremain underserved. In return, theSystem receives more collateral thanother sources of funding, such as WallStreet repurchase agreements. It isworthwhile to note that the system hasnever lost money on an advance.

The letter was signed by representa-

tives from the Mortgage BankersAssociation, the IndependentCommunity Bankers of America, theNational Association of Real EstateInvestment Trusts and Habitat forHumanity International.

Ocwen CEO Ron FarisHonored With HomeFree-USAs CommunityChampion Award

Ocwen Financial Corpo-ration has announcedthat its President andCEO Ron Faris was pre-sented with theCommunity ChampionAward from HomeFree-

USA, a counseling agency and home-

ownership development organization.The award, presented at HomeFree-USAs Leadership and TrainingConference, recognized Faris for hisvision and innovation in servicing chal-lenging mortgage portfolios as well ashis personal commitment to keep fami-lies in their homes whenever possible.

Ron Faris is a man of character whocares about doing the right thing forstruggling borrowers, said MarciaGriffin, founder and president ofHomeFree-USA. Ocwen has been theresince the beginning. Under Rons lead-ership, Ocwen has employed creativesolutions to help homeowners, particu-larly those in minority communities,better afford their homes and avoidforeclosure.

Griffins experience working withOcwen was echoed by her peers at localand national non-profit organizations,Ocwen customers and Ocwen employ-ees during a brief video that was pre-miered during the event.

On behalf of everyone at Ocwen, itis an honor to receive the HomeFree-USA Community Champion Award,said Faris. Partnering with non-profitcommunity organizations likeHomeFree-USA is integral to our busi-ness model. At Ocwen we respect andvalue the contributions of housingcounselors and are highly motivated tocontinue our partnerships to build onour shared success.

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HomeFree-USA is a HUD-approvedhomeownership development, foreclo-sure intervention and financial empow-erment organization. Since 1995,HomeFree-USA has helped more than23,000 families experience the accom-plishment and joy of purchasing theirfirst home. HomeFree-USA is also amember of Ocwens CommunityAdvisory Council, a diverse 17-membergroup of national, regional, and localnon-profit housing counseling, commu-nity development, and civil rightsorganizations from across the country.

HUD Grants Reliefto Victims of Hurricane Sandy

The U.S. Depart-ment of Hous-ing & UrbanDeve lopment(HUD) has de-cided that it will

not force thousands of New York andNew Jersey homeowners to repay feder-al disaster recovery funds following adecision by the Federal EmergencyManagement Agency (FEMA) to increaseflood insurance claim payments to fam-ilies it initially underpaid followingHurricane Sandy. Federal law providesHUD the discretion to weigh the real-world recovery challenges faced bymany of these families against anotherlegal requirement that prohibits anyfederal duplication of benefits.

Harriet Tregoning, HUDs PrincipalDeputy Assistant Secretary forCommunity Planning and Development,has informed state and local leaders inthe Sandy-impacted region that addi-tional flood insurance proceeds up to$20,000 will not be subject to a duplica-tion of benefits review or collection.This will eliminate the need for HUDgrantees to reclaim assistance fromthese households, or to repay thosefunds through non-federal sources. Todate, three-out-of-four National FloodInsurance Program (NFIP) claimantsreceived less than $20,000 in additionalcompensation from FEMA and wouldnot face any possible repayment.

Families who received/will receivemore than $20,000 in additional floodinsurance payments will still have theopportunity to demonstrate the addedclaim payments address legitimateunmet needs and therefore are notduplicative.

These families have suffered enoughand shouldnt be further victimizedthrough no fault of their own, saidTregoning. We have a larger responsibil-ity to facilitate recovery, not to hinder itjust because these families didnt receivesufficient flood insurance payments.

HUD determined that below $20,000,any benefit gained by going through aprotracted process of reexamining anddocumenting costs incurred by home-owners would not outweigh the larger

financial and human costs associatedwith doing so. For those NFIP policy-holders who receive more than $20,000in additional claim payments, HUD willrequire its grantees (primarily New YorkState, New York City, and the State ofNew Jersey) to determine whether anyamount over $20,000 duplicates feder-al assistance already provided.

On Oct. 29th, 2012, Hurricane Sandydevastated the East Coast of the U.S.,damaging or destroying 650,000 homesand generating nearly 145,000 claimsfrom homeowners to FEMAs NationalFlood Insurance Program (NFIP).Thousands of these policyholdersreceived insufficient flood insurancepayments due to alleged fraud on thepart of FEMA contractors charged withdetermining damage payouts. FEMAinvited homeowners to appeal theirclaim payments which resulted (andwill continue to result) in additionalflood insurance payments.

The Stafford Act requires the FederalGovernment and its state and localgrantees to assure that any Federalassistance deemed duplicative to berepaid. Prior to the decision, many pub-lic leaders and homeowners alikeexpressed concerns that any additionalFEMA flood insurance payments wouldtrigger the laws prohibition againstduplication of benefits. However, theAct also gives HUDs Secretary discretionin those cases where recovering anyduplicated benefits would not be in theFederal Governments interest.

Residential ConstructionUp in August

Residential con-struction was ata seasonallyadjusted annu-al rate of$383.3 billion

in August, 1.3 percent above the revisedJuly estimate of $378.5 billion, accord-ing to new data from the U.S. CensusBureau of the Department ofCommerce. Nonresidential constructionwas at a seasonally adjusted annualrate of $404.7 billion in August, 0.2 per-cent above the revised July estimate of$403.8 billion.

Overall construction spending dur-ing August was estimated at a seasonal-ly adjusted annual rate of $1,08 billion,a very slight 0.7 percent increase abovethe revised July estimate of $1,07 bil-lion but 13.7 percent above the August2014 estimate of $955 billion. Duringthe first eight months of this year, con-struction spending amounted to $683.4billion, 9.8 percent above the $622.4billion for the same period in 2014.

Spending on private constructionwas at a seasonally adjusted annualrate of $788.0 billion, 0.7 percent abovethe revised July estimate of $782.3 bil-

continued on page 38SPONSORED ED ITORIAL

Learn how to use the new TRID regulations and credit data to grow yourbusiness. Nowadays, organizations cannot rely on miracles to keep themout of hot water with governing agencies. In this competitive environ-ment, mortgage companies are being compelled to continuously growingtheir business and attract new clients and also to stay in compliance withfederal regulations.

One of the largest regulations to be handed down to the mortgageindustry in recent times is known as TRID. TRID says you have to give theborrower a three-day loan estimate and the customer can walk awayfrom the table at any point, and for any reason, during that three-dayperiod.

As mortgage professionals, you have access to extremely sensitive in-formation. Use the tools you have at your disposal as a lender to generatemore business. As a lender, whether you are a banker or a broker, youhave access to extremely specific information to target consumers foryour marketing and to generate new business. Only lenders can accesscredit information. Utilize credit data to help you personalize your mar-keting campaigns in many different ways. You can use credit data to de-fend yourself against things like the new three-day TRID rule. It can bematched perfectly with the many compliance enforcement guidelinesand all of the new regulations that seem to be popping up.

Extremely specific campaigns that require an understanding of theguidelines, but also an understanding of the data available to you. TRID'sthree-day loan estimate won't be a problem if you pre-screen yourprospects. Create your own personal market by selecting the customersyou want to work with. You can pre-screen your prospect list in manydifferent ways. The most common selects to pre-qualify the borrowerare; loan amount, revolving debt, loan type, income, LTV, mortgage opendate, credit score, and debt ratio. By following the guidelines around theuse of credit data and pre-screening your target borrower, you alreadyknow they qualify so you are not wasting the borrowers time or yourown. This creates a sense of trust and loyalty with the borrower by show-ing that you care.

TagQuest was recently awarded the status of being a fully authorizedagent with one of the major credit reporting agencies. That is the highestrank you can get as a marketing company. As a marketer, it is our job tokeep you informed as to what is available to you.

Customer Spotlight: Jason P., Branch Manager in GeorgiaEach month, we talk with our clients to see how their campaigns aregoing. Heres some feedback we received from Jason P., a branch man-ager in Georgia.

Marketing method: Direct maill Volume: 5,000 piecesl Response rate: More than one percent l Results: More than a 20 percent conversion rate into working loans

that will close

Highlights of the campaign that worked well Easy! Its really turnkey.

Highlights of the campaign that might appeal to others in the mort-gage industry Even with the Internet and all of the technology today, direct mail stillhas its place, and it can offer a better ROI than most other forms of mar-keting/advertising you just have to do it the right way.

Based in Medford, Ore., TagQuest Inc. is a full-service marketing firm de-veloped throughout the ever-changing mortgage industry. Utilizing industryknowledge, marketing expertise, and technology we implement any or allaspects of your marketing and/or advertising campaigns. With a proventrack record, more than 10 years in business, and decades of experienceTagQuest knows what it takes to produce unprecedented results in todaysfast-paced mortgage environment. For more information, call (888) 717-8980 or visit www.tagquest.com.

Compliance in Marketing

nmp news flashcontinued from page 15

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Your lender should beyour strongest link.

Some restrictions may apply. All borrowers are subject to credit approval. Programs subject to change. The information provided herein is for dissemination to and for real estate and financial business entities only and is not an advertisement for the extension of credit to consumers.

With decades of industry know-how,Flagstar is a partner you can rely on.

Warehouse lines up to $100 million Agency/government products Multi-channel delivery Underwriting flexibility TRID-ready Local account executivesdirect point of contact

Connect with us. Visit flagstar.com/ae to find an account executive near you.

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SPONSORED ED ITORIAL

By K. Justin Restaino

With so many marketing channels available, it can be diffi-cult to determine the best strategy to reach prospects. How-ever, wed argue that direct mail is so impactful that everymortgage lender should consider incorporating it into their

marketing efforts.Direct mail offers you the advantage of personalization that other

mediumslike television, radio, flyers and billboardsdont. Rather thansending out generic, one-size-fits-all pieces, incorporate personalizationinto your mailing. For example, dont send your mailer to Dear Home-owner at 15 Main Street. Instead, try the more personal, Dear Amanda.This month, well share helpful advice to maximize your direct mail piecewriting and composition of the piece.

The copyWhat constitutes appealing copy? you might be wondering. In a nutshell,the copy that is going to be the most successful with your target audiencehas the following attributes:l The copy is direct, straightforward and to the point.l Its written the way people speak, rather than in flowery language.l It avoids lots of industry jargon that might be confusing for recipients.l The copy is benefits-driven, i.e., it speaks to what a loan can do for the

prospect (save hundreds of dollars a month, free up more money totravel, go from being a renter to grilling in the backyard of your firsthome, etc.).

The formatBy and large, people tend to skim lengthy pieces. However, dont let thatstop you from getting your point across. Fortunately, formatting can helpand to guarantee that people will immediately notice and read the mainbenefits of your services, we recommend the following:l Avoid using lengthy blocks of text. Instead, keep paragraphs to two to

three sentences. l Bold important sentences and use bullet points or subheads if necessary.l Create a headline and a PS. Studies show that these attract lots of at-

tention. Take advantage of that by writing something attention-grab-bing in these sections.

The executionA call-to-action (CTA) is critical in any direct mail piece. Essentially, theCTA is a guide that instructs the recipient to take a specific action after re-ceiving your mailer. Your CTA will also allow you to track the success ofyour campaign, because you can easily evaluate how many of your directmail recipients performed your CTA. The best CTAs are time-sensitive (Fora limited time ) and easy to do.l Some CTAs you might want to consider include: Signing up for your e-

mail marketing list, downloading a free e-book, liking your socialmedia page, visiting a landing page that you specifically designed forthe mailer, etc.

Direct mail yields excellent results for mortgage lenders for a numberof reasons: Its easy to target to a specific demographic, offers measurableresults, conveys legitimacy, enables personalization, and provides manydifferent types of mailers to help marketers differentiate themselves fromtheir competition.

K. Justin Restaino is vice president of Titan List & Mailing Services Inc. Formore than 15 years, he has led Titans Mortgage Division, helping lendersof all capacities grow their businesses utilizing targeted direct mail. With aspecialized focus in refinance and purchase markets, Restaino has the insightfor proper data and mail application for success. He may be reached byphone at (800) 544-8060, ext. 204 or e-mail [email protected].

Writing and Formatting Your Mailer

to audit their compliance with the newregulations.

LoanLogics has completed severalTRID enhancements to our ComplianceAudit interface to help clients cost effec-tively evaluate their compliance withTRID and relieve some of their concernsaround defects related to these changes,said Brian K. Fitzpatrick, president andCEO of LoanLogics. Our technology canhelp drive a culture of lending whereteamwork, timing and tracking are para-mount to ensure loan quality and compli-ance while reducing the manual tasksand associated labor costs.

MBA Launches TRIDResource for Consumersand Lenders

The Mortgage Bankers Association(MBA) launched a set of resource guide-lines to educate both consumers andlenders and their business partnersneeding to comply with the new KnowBefore You Owe or TILA RESPAIntegrated Disclosure (TRID) regulationsthat went into effect Oct. 3, 2015.

MBA has worked closely with theCFPB to create these materials so thatboth consumers and the real estatecommunity can comply with the newprocedures in an efficient and smoothprocess, said MBA President and CEODavid Stevens. Our industry has beenpreparing for these changes over thelast several months and we are confi-dent that everyone involved in the clos-ing process will benefit as a result ofthese new rules.

The resources are comprised of sev-eral documents designed to assist con-sumers and the broader real estatecommunity in plain, easy-to-under-stand language.

They include:l Consumer One-Pager: Targeted for

consumers and covering the changesof Know Before You Owe;

l Lender One-Pager: Targeted for realestate agents and broker partners,also covering the changes broughtby Know Before You Owe;

l PowerPoint Slide Deck: Targeted forreal estate agents and brokerpartners to use in presentations withcolleagues.

eOriginal LaunchesDatalytics Auditing andCompliance Solution

eOriginal Inc. has announced thelaunch of a fully-electronic, disruptive

mortgage platform. eOriginal has spear-headed the collaboration of several inte-gration partners to deliver a fully digitalprocess that includes eNotarization,eRecording, eWarehousing, eCustodianservices and integration with MortgageIndustry Standards MaintenanceOrganization (MISMO) compliantSmartDocs and Forms.

Ahead of the mortgage technologyadoption, eOriginal pioneered what isbelieved to be the first all-digital paper-less home purchase and mortgagetransactions in the U.S. in July of 2000through a patented process. The entirehomebuying processfrom closing theloan, recording the documents anddelivering the package to the secondarymortgage markettook less than threehours to complete.

eOriginal is and has been ready forend-to-end digital mortgage for morethan 15 years, said Stephen Bisbee, CEOand president of eOriginal Inc. Now thatthe marketplace has caught up to us, weare excited to see how our eMortgageplatform will empower marketplacelenders and lending industriesprovid-ing consumers with anticipated innova-tion and supporting the requirements ofregulators like the Consumer FinancialProtection Bureau.

eOriginal has also announced thedebut of Datalytics, a real-time asset-levelauditing and compliance solution for thefinancial services industry. Originally driv-en by the increasing demand for detailedreal-time monitoring in support ofeOriginals electronic mortgage solution,Datalytics provides analysis, monitoringand reporting of origination data for fasteraudit request response and to preventerrors and resubmissions. The solutionprovides a full chain of custody for dataacross the loan process at the asset-level,which will enable an unprecedented levelof insight and due diligence while savingtime, reducing risk and decreasing costs.

The new solution complementseOriginals eAsset Management Platform,one of the most secure platforms on themarket for managing electronic businesstransactions and protecting financialassets post-signature throughout theirlifecycle.

Incorporating origination data into aconfigurable dashboard with intuitivedrill down capabilities, Datalytics pro-vides asset-backed security (ABS) buyerswith asset-level data and document asso-ciation with confirmation that there havebeen no modifications and alerts if thereare any.

ISGN Enhances ItsSettlement ServicesPlatform to Conform toTRID Mandate

ISGN Corporation hasannounced enhance-ments to its Gators set-

new to marketcontinued from page 12

continued on page 32

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It has been a whirlwind13 months as your NAMBpresident. As I look back,I see many of my originalgoals were accomplished,but some were not. Im

certain that is typical of any leadershiprole. It actually surprised me to findhow many of my original 50 goals wereeither accomplished, set in motion, ortried and found not to be as wonderfulas I had thought. Many items I suggest-

ed would not have worked without theinput of the board and staff.

Im not disappearing into the night,although there may be a few peoplewho wouldnt mind that. I look forwardto working with NAMBs new president,Rocke Andrews, and the new board inthe coming year. I even get to vote likea regular board member rather thanjust chair board meetings.

If you would aspire to a leadership

role within NAMB, let me or someoneon the board know. We need peoplewith a passion for the industry to stepup and make a difference.

Sincerely,

John L. Councilman, CMC, CRMSNAMB [email protected]

The Presidents Message: October 2015

N A M B P E R S P E C T I V E

The CEO PerspectiveA Message From NAMB CEO Donald J. Frommeyer, CRMS

Well here we are atanother NAMB Nation-al its that time ofthe year. Its a timewhen we change overto a new board of

directors, a new set of exhibitorsthat will make this NAMB Nationalone of the best yet. I personallywant to welcome you to the bestconference we have put on to date.Your attendance at NAMB Nationalstates that we are all on the wayback and are doing incredible thingsas mortgage professionals.

As I depart the board of directorsas immediate past president, wewill welcome three new board mem-bers: Bob Sweeney from Indiana,Michele Velez from California andNathan Pierce from Utah. These are

excellent choices to be added to theboard, and they will be led by yournew President Rocke Andrews.

For those of you who do not knowa lot about Rocke, he is a statewidepast president from the ArizonaAssociation of Mortgage Professionals.Rocke comes to the presidency work-ing his way up the ladder. He becamea board member in 2011, and hashelped me and John Councilman outin a lot of ways. He has definitelyearned your support and is an excel-lent choice for your next president.

I would be remiss if I didnt men-tion the job that John Councilmanhas done this past year. To be truth-ful, following my three-year presi-dency had to be hard, and John setsome goals and was successful withmost of them. As president, you set a

number of goals and hope you canaccomplish a few. But the one thingthat remains to me as the one I wishI had thought about was to set up asub-committee on diversity. Johnhad a great idea and this committeewill be a continuing committeethroughout the next five years or so.Great job John and welcome to theelite world of NAMB past presidents.

I am also excited about theupcoming year to serve as your CEO. Isigned a new three-year agreementto do this and I really am excited tocontinue to work with all of you forthat period of time. One of my jobsthis year is to be the ConferenceCommittee Chair to oversee all threeNAMB conferences. Yes I saidthree. NAMB will be adding a newconference called NAMB EAST 2016,which will be held Tuesday-Friday,March 8-11, 2016 at the WestinHilton Head Island Resort & Spa inHilton Head, S.C. and will be a greatexperience for all who attend. We aregoing to change up the format forthis, so stay tuned.

With that said, you cannot forgetthe NAMB 2016 Legislative &Regulatory Conference, set forSunday-Wednesday, April 10-13,2016 in Washington, D.C.

So while you are attending NAMBNational in Vegas, please take noteof the things you liked and thethings you did not. We will be send-ing out a survey to get your ideas. Ithank you for your support on this.It will only make your event betterin the future.

I also need you to join the party you need to become an NAMBmember today! We are aiming tobreak the 15,000 member mark. Logon to JoinNAMB.org to become amember today. Let me be frank we need you! So come and help usand become part of a great organi-zation that believes in you and whatyou do. No questions asked!

Donald J. Frommeyer, CRMS is chief execu-tive officer for NAMBThe Association ofMortgage Professional. He may be reachedby e-mail at [email protected].

NAMBs WholesalePartnership

By Rocke Andrews,CMC, CRMS

NAMB recently com-pleted its SecondWholesale Summit. This

was a very successful event andhelped to further cement our part-ner relationships in this third-partyorigination (TPO) channel. Thewholesalers are looking to NAMB tohelp in educating loan originators,as well as account executives, andNAMB is looking at what we can doto improve broker relationships.

In an informal setting, we bringoriginator problems to the investorsand they bring their challenges to

us. This open line of communicationhelps each side understand the otherbetter.

The primary topic of discussion thistime was TRID and how each whole-saler is going to handle the LoanEstimate and the Closing Disclosureforms. Obviously this will probablychange by the time we meet again,but it helps us to coordinate solu-tions. They explained their technolo-gy issues. One item that came up wasonly one originator may disclose perborrower. So if your borrower is shop-ping and the other competitor isusing the same source as you the firstto input the data will get the disclo-sures and the other is out of luck. If

your borrower decides to go withyou, but another disclosed throughtheir site the borrower will need torequest you so they can delete theother filesimilar to what hasalways happened for dual loans, butsomething that will arise more oftenin the new era of TRID disclosures.

We also asked our partners to par-ticipate in our legislative efforts. Theyagreed to pass on our requests forgrassroots participation and local con-tacts with members of Congress tohelp get our mutual concernsaddressed with laws and regulations.

They, in turn, asked us to helpthem with a certification for theiraccount representatives that theycould use to show our memberstheir knowledge and dedication forour industry. Wholesalers are alsoconcerned with bringing new work-ers to our field and are working toprovide a path to new entrants tolearn and be successful in the loan

origination business.Topics we are looking at working

on in the future include a more uni-form and reasonable broker agree-ment, sales training for originators,and joint efforts to solve regulationissues. We are all really on the sameteam trying to increase the TPOchannel, while best serving the con-sumer. It has, and will continue tobe, a profitable channel for whole-salers and brokers, while providing aknowledgeable and lower-pricedoption for the consumer. Please sup-port our wholesale partners as theyare supporting you through numer-ous efforts to better our industry andorganization.

Rocke Andrews, CMC, CRMS of LendingArizona LLC in Tucson, Ariz. is president-elect of NAMBThe Association ofMortgage Professionals. He may bereached by phone at (520) 886-7283 ore-mail [email protected].

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N A M B P E R S P E C T I V ENAMB is Back!

By John L.Councilman, CMC,CRMS

A few years ago, thingslooked very bleak for

NAMB and for our industry. We werentat all certain the country would surviveeconomically, much less our industry.NAMB was $1.5 million in debt andhad no money in the bank. Our whole-sale lenders were going bankrupt, thebig banks had left the wholesale chan-nel, membership was plummeting,and our conferences were only draw-ing a few hundred people and losingmoney. Even voices inside NAMB werecalling for us to declare bankruptcyand start a new association. A few ofNAMBs top leaders said, No way! Wewill not declare bankruptcy. We willnot quit! That is not the news that oureconomy needs. We have a responsibil-ity to our industry and to our country.

As NAMBs treasurer, perhaps theonly person foolish enough to take the

job, I insisted we would survive, nomatter what we had to cut and whatwork we would have to do ourselves.NAMBs board took on the monumentaltask of doing all that a paid staffer haddone previously. It took a lot of sacri-fice. Wounds that had divided our mem-bership and our state chapters werehealed, in no small part due to theuncanny ability of Don Frommeyer tobuild consensus. Within two years, ourstate chapters were solidly back in thefold and NAMB was in the black. Therest is something of a fairytale-like story.

As people began to realize thatNAMB was here to stay, membershipbegan to slowly rise. Our social mediachannels began to pick up membersand followers. Government officials stillknew NAMB and probably didnt realizehow perilously close we can come toextinction. Picking up the ball on leg-islative issues was much easier, espe-cially since we were able to maintainour primary lobbyist, Roy DeLoach.

The last shoe to drop into place was

the restoration of NAMBs conferences.Vince Valvo has been a godsend. Hetook our great content, sold out theexhibitor booths and made attendancesoar.

Today, NAMB is back! EverythingNAMB did at its peak is now back inplace. Our conferences are great andvery well-attended. NAMB National isvying to become the largest mortgageconference in the United States. Topspeakers are back at our Legislative &Regulatory Conference, and we will beunveiling the details on N