David's Blog

You can be as busy as you want to be. Market on purpose

2008-08-29T22:19:47Z

I'm not talking about positive attitude or any mumbo jumbo.

You can choose to sit back and wait for business to come to you based on some general marketing that you and your company may choose to do.

Or, you can be very focused and market for specific types of clients and literally go out and find the business. There's plenty of business to be had,

Decide what you want to focus on and I don't mean "mortgages." Choose to focus on reverse mortgages, commercial loans, first time home buyers, SBA loans, etc....

Create a focus group. Odds are that you have friends or relatives that you can go to that fit the image of your target. Approach your elderly aunt if you plan to do reverse mortgages. Your newlywed cousin if you decide to do first time homebuyers. Your sister-in-law's brother that owns a supply store in his own building if you decide to do commercial or SBA. etc...

Don't do what you probably did a few years ago and try to do their loan. Sit and talk with them about what it is they do, what their needs and wants are, what their short and long term goals are. Who do they deal with on a daily, weekly and monthly basis (a HUGE help in knowing where to go to develop affinity or strategic partners). Use all of this information to develop your marketing.

Be prepared for a longer time period than in the past. Be ready to commit to your marketing plan for 6 to 9 months.

Go out and get the business.......like you should have been doing all along.

A Reverse Mortgage Success Story

2008-05-28T00:26:51Z

This is a recent reverse mortgage that my company closed for a broker:

Based on age, value and rate, the borrower was able to get a Reverse Mortgage which after servicing reserve and closing costs produced about $72,000 in available proceeds after paying off a first mortgage lien of about $25,000. In addition to the first mortgage debt, the borrower owed almost $90,000 in credit card and other debt.

The mortgage broker initially said that he would not offer the reverse mortgage to his client since it did not solve the problem by paying off all of the debt the borrower had. He was going to spend time looking for and selling the borrower on a consolidation loan. This would take some time due to the borrower's credit and inability to qualify for a new loan based on verifiable income.

We then discussed how much the payments were on the $25,000 first mortgage (over $400 per month for principal and interest) and how much they would save by retiring $60,000 of the $90,000 debt (the borrower wanted to be able to put the remaining $12,000 into the credit line feature for future needs). It only took a few more minutes for the broker to realize that the reverse mortgage was the best for this borrower's situation.

Based on quick calculations the broker determined that it would only take about a year for the borrower to become debt free by applying their newly increased cash flow against the remaining $30,000. It actually took him less time to sell the borrower on the idea. They had read about reverse mortgages in information that AARP had sent them.

Borrowers with credit, income or debt problems are just one category of seniors that can benefit from a reverse mortgage.

Get Excited about what you sell or go sell something else

2008-04-19T23:42:56Z

How can you sell anything to any one if you are not excited about it and believe in it your self?

Talked to a broker earlier this week about a reverse mortgage for one of his clients. By the 3rd minute of the conversation he had already talked himself out of it. "I'll present it to my client but I can't see them taking it."

Several other brokers I know just see doom and gloom for the industry instead of opportunity. Some very good people are exiting at a time when they can still make a good living.

Talked to a wholesale AE that I know and he had pretty much convinced himself that his rates and programs suck. Even though he is normally an upbeat person, that is not how he has been. I happen to know that his company offers terrific turn times with rates that are competitive, but because he is doing half of what he used to do, he can't see it. Of course, the half will still make him a good living.

Had a conversation with another AE and she was positive that because she only had agency programs that she could not succeed. She used to work for an Alt A/subprime company and now works for a high profile regional Agency wholesaler. She's busy trying to get her old customers to change their business style rather than find a new core of clients that do her new type of business and earn it from them.

An appraiser I know is actually considering offering some sort of kickback to get more business. He's getting desparate at a time that he doesn't need to be. If he put his efforts into delivering world class service and extra value to his clients he would find success.

Went looking for a television last weekend and the "electronics advisor" didn't make a statement to me until after he had asked me 8 questions - I counted. As soon as we start hiring in my area I'm going to call him. He knew more about what I wanted than I realized I knew. He acted as if he was getting the TV for himself.

If you can't find excitement in what you're selling, its time to find something else to sell. It might be different than what you sold before but if you don't adapt, you won't survive.

Call To Action - Protect your livlihood

2008-04-02T07:42:28Z

The following is from the Florida Association of Mortgage Brokers but it applies to Mortgage Professionals in every state. If you are a member of your state's mortgage broker association, visit its web site as I am sure they will have a similar Call to Action. I apologize in advance if the links do not work.

We need your help!

If you plan on staying in this business, you must respond to our National Call To Action.

The Federal Reserve Board has issued a proposed rule that will potentially and dramatically harm your business. The required public comment period expires April 8^th, 2008. Review the information and links below then follow the instructions. Time is very short - get your comments in today!

The Rule proposes multiple changes to the mortgage industry, which include:

¨ A new category of "higher-cost" loans, which will eliminate stated and no-doc loans under any circumstance.

¨ New APR triggers of 3% (1^st mortgages) and 5% (subordinate mortgages) above the 10-year U.S. Treasury, causing nearly every mortgage made in America to be classified as a "higher cost" loan. As such, the provisions of the Fed Rule will make financing nearly impossible.

¨ A new disclosure for Mortgage Brokers only that will require you to disclose, before application, what your mortgage brokerage fee (front end AND back end fees) will be on the loan and this cannot change.

¨ The Originator to determine that the borrower has the ability to repay the mortgage for at least 7 years.

What can you do?

Please have everyone in your place of business submit comments. THE FED RULE COMMENTS NEED TO BE MADE AT ONCE! NAMB has prepared a 3-page bullet-point summary as an outline with guidance on how to write your comments including suggested points. To access summary, please click here. It's very important that you carefully craft your own comments following NAMB's suggested points. In addition, a copy of the entire Fed Rule can be found below. Comments must be RECEIVED (not postmarked) by the Federal Reserve Board no later than April 8^th.

You may submit comments, identified by "Docket No. R-1305" by any of the following methods:

E-mail: regs.comments@federalreserve.gov. Include the docket number in the subject line of the message.
Fax: (202) 452-3819 or (202) 452-3102.
Mail: Jennifer J. Johnson, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue, NW, Washington, D.C. 20551.

All public comments will be made available on the Board's Web site at http://rs6.net/tn.jsp?e=001yfm3gi_mN0uhDBir8OuoRoW8Q8xkvy1M0Ie-6vVbuICpRZDkWmLnmftvTn7L5lMnk05K29yH5nAwfK7jSyL18GYxK5YwquXkfthfJBb8X2n6h4qnIvJMgjAy1D4qoBctU6ZPmqvk9HVQEC3A6qS92M0QYBTGu1zFFtAGMtnnTZE= as submitted, unless modified for technical reasons. Accordingly, comments will not be edited to remove any identifying or contact information. Public comments may also be viewed electronically or in paper in Room MP-500 of the Board's Martin Building (20th and C Streets, NW) between 9am and 5pm on weekdays.

This is a critical time in the mortgage industry and Mortgage Brokers must act NOW! Please submit your comments today!

For more information from FAMB...

To view Draft Federal Register Notice...

To view Highlights of Proposed Rule...

Call To Action - Protect your livlihood

2008-04-02T07:41:24Z

We need your help!

If you plan on staying in this business, you must respond to our National Call To Action.

The Rule proposes multiple changes to the mortgage industry, which include:

¨ A new category of "higher-cost" loans, which will eliminate stated and no-doc loans under any circumstance.

¨ The Originator to determine that the borrower has the ability to repay the mortgage for at least 7 years.

What can you do?

You may submit comments, identified by "Docket No. R-1305" by any of the following methods:

E-mail: regs.comments@federalreserve.gov. Include the docket number in the subject line of the message.
Fax: (202) 452-3819 or (202) 452-3102.
Mail: Jennifer J. Johnson, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue, NW, Washington, D.C. 20551.

This is a critical time in the mortgage industry and Mortgage Brokers must act NOW! Please submit your comments today!

For more information from FAMB...

To view Draft Federal Register Notice...

To view Highlights of Proposed Rule...

Call To Action - Protect your livlihood

2008-04-02T07:39:46Z

We need your help!

If you plan on staying in this business, you must respond to our National Call To Action.

The Rule proposes multiple changes to the mortgage industry, which include:

¨ A new category of "higher-cost" loans, which will eliminate stated and no-doc loans under any circumstance.

¨ The Originator to determine that the borrower has the ability to repay the mortgage for at least 7 years.

What can you do?

You may submit comments, identified by "Docket No. R-1305" by any of the following methods:

E-mail: regs.comments@federalreserve.gov. Include the docket number in the subject line of the message.
Fax: (202) 452-3819 or (202) 452-3102.
Mail: Jennifer J. Johnson, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue, NW, Washington, D.C. 20551.

This is a critical time in the mortgage industry and Mortgage Brokers must act NOW! Please submit your comments today!

For more information from FAMB...

To view Draft Federal Register Notice...

To view Highlights of Proposed Rule...

Time Management Tool - Just say No

2008-04-01T23:16:48Z

Over the years I've found myself not having sufficient time to complete those things that are most important. I've come to realize that one of the main reasons is my inability to say no at the right time and in the right way.

You certainly do not want to simply say no without an explanation and at the same time you don't want to get into a debate with whom you are saying no to. If you are going to say no, offer a brief explanation that leaves no room for discussion. this takes skill and I actually attended a seminar on this about 20 years ago. I obviously needed to go through a few refresher courses over the years.

Think about those things that are not the highest and best uses of your time and consider saying no the next time you are asked. You'll be amazed at the amount of time it frees up.

Think about this in terms of not only activities but also in terms of the loans that come your way. How much time do you spend working on files that have a very low possiblility of closing? how much of that time could you spend on marketing for better files? If you work B2B, think about those clients who are not worth the amount of time you are investing into them.

Keep on moving forward and protect your most valuable asset - your time.

Time Management Tool - Just say No

2008-04-01T23:13:44Z

Think about those things that are not the highest and best uses of your time and consider saying no the next time you are asked. You'll be amazed at the amount of time it frees up.

Keep on moving forward and protect your most valuable asset - your time.

Biggest mistake many experienced mortgage brokers make when getting into reverse mortgages

2008-03-26T00:38:03Z

One of the biggest mistakes many experienced mortgage brokers make when they get into reverse mortgages is assuming that it is just another mortgage product.

Truth is that although reverse mortgages are not difficult, they are different.

The marketing has to be handled differently than forward or standard mortgages

The relationship between broker and client has to be handled differently

The taking of the application has to be handled differently

The documents within the application package are different

The process is almost the same but has subtle differences. The major difference is the requirement to not begin the processing of the loan until after the borrower has completed their required third party counseling.

so, what happens when an experienced broker thinks they know what to do and does not take the time to educate themselves on the product, relationship building or processing of the loan? They end up losing the business to those brokers who realize that they must focus on this product rather than just handle it like just another loan. They also end up paying for appraisals and credit reports because they order them too soon in the process and then cannot pass the cost on to the borrower.

bottom line is that education is key in reverse mortgages. Take advantage of the education that your wholesale lender offers. understand that more than any other product, it is key that you build a foundation with the education before you talk to your first client or try to take your first application.

Why is it so important? Reverse Mortgages can change lives for the better and provide extremely satisfying closings for your clients...... and you can make very decent money from them.

If you are going to get involved in reverse mortgages, do it correctly and make it a focus.

Biggest mistake many experienced mortgage brokers make when getting into reverse mortgages

2008-03-26T00:37:08Z

One of the biggest mistakes many experienced mortgage brokers make when they get into reverse mortgages is assuming that it is just another mortgage product.

Truth is that although reverse mortgages are not difficult, they are different.

The marketing has to be handled differently than forward or standard mortgages

The relationship between broker and client has to be handled differently

The taking of the application has to be handled differently

The documents within the application package are different

Why is it so important? Reverse Mortgages can change lives for the better and provide extremely satisfying closings for your clients...... and you can make very decent money from them.

If you are going to get involved in reverse mortgages, do it correctly and make it a focus.

Biggest mistake many experienced mortgage brokers make when getting into reverse mortgages

2008-03-26T00:36:07Z

One of the biggest mistakes many experienced mortgage brokers make when they get into reverse mortgages is assuming that it is just another mortgage product.

Truth is that although reverse mortgages are not difficult, they are different.

The marketing has to be handled differently than forward or standard mortgages

The relationship between broker and client has to be handled differently

The taking of the application has to be handled differently

The documents within the application package are different

Why is it so important? Reverse Mortgages can change lives for the better and provide extremely satisfying closings for your clients...... and you can make very decent money from them.

If you are going to get involved in reverse mortgages, do it correctly and make it a focus.

What would you prefer of your wholesale AE?

2008-03-22T22:34:41Z

Would you rather your wholesale AE:

1. dropped by periodically with leave behind info

2. Was available when you need him/her by phone

3. Was available when you need him/her by email

This is a sort of trick question because if you are like most brokers, you want all three.

Everytime a survey is taken of mortgage originators about their relationship with their wholesale AE's, communication is the primary item that brokers want. They want their calls returned in a timely manner.

Meeting designated turn times, product knowledge, good pricing are all givens.

Communication is key.

what do you think?

What would you prefer of your wholesale AE?

2008-03-22T22:33:43Z

Would you rather your wholesale AE:

1. dropped by periodically with leave behind info

2. Was available when you need him/her by phone

3. Was available when you need him/her by email

This is a sort of trick question because if you are like most brokers, you want all three.

Meeting designated turn times, product knowledge, good pricing are all givens.

Communication is key.

what do you think?

What would you prefer of your wholesale AE?

2008-03-22T22:32:28Z

Would you rather your wholesale AE:

1. dropped by periodically with leave behind info

2. Was available when you need him/her by phone

3. Was available when you need him/her by email

This is a sort of trick question because if you are like most brokers, you want all three.

Meeting designated turn times, product knowledge, good pricing are all givens.

Communication is key.

what do you think?

Why don't brokers and processors take the time to learn? ...or at least raise their hand?

2008-03-20T23:20:28Z

I just had a few loans where the LO or the processor are going to have to pay for the appraisal. When doing a reverse mortgage, you cannot order the appraisal until after the effective date of the counseling certificate.

In one case, it was an honest mistake as it was ordered after the counseling was done but before the borrowers signed the certificate which in HUD's eyes, makes the certificate valid and is the date you are to use - this is something that HUD has cracked down on in the last 6 months or so.

However, in the other two cases, the processors - both experienced - thought they knew everything and ordered the appraisals immediately upon receipt of the file. I spent a considerable amount of time going over the process with the LO's and the processors who it turned out really weren't listening because - as one said - they let their processor handle everything. In both cases, the processors knew how to process FHA loans and couldn't be bothered to learn the subtle differences between a forward mortgage and a reverse mortgage.

This basically amounted to a $350 seminar for each of them.

Never ever think you know everything! Never ever stop learning!!!

Why don't brokers and processors take the time to learn? ...or at least raise their hand?

2008-03-20T23:19:09Z

This basically amounted to a $350 seminar for each of them.

Never ever think you know everything! Never ever stop learning!!!

Florida Association of Mortgage Brokers at work for all originators

2008-03-20T22:57:42Z

I have been an active member of the Florida Association of Mortgage Brokers since 1979 and served as its state president in 1989. there have been many "proud" moments in the last 30 years but this particular one is one of the best:

On Tuesday March 11, 2008, the Florida Association of Mortgage Brokers met with Florida Governor Charlie Crist as part of their Tallahassee Lobby Days. In addition, FAMB leadership had the privilege of meeting with State Senator Bill Posey and State Represenative Marco Rubio. This event also featured a tent on the capitol grounds showcasing Florida's mortgage broker and their importance in the homebuying process as well as numerous visits by chapter members to their local legislators.

Go here to see the photo of 100 or so very active and involved Florida Mortgage Brokers with Florida Governor Crist:

http://www.famb.org/Group-with-Governor-2wCaption.jpg

Are you a member of the professional association that helps to protect your industry? Why not? The cost is very low and the benefits are fantastic - they keep you in business.

Florida Association of Mortgage Brokers at work for all originators

2008-03-20T22:56:57Z

Go here to see the photo of 100 or so very active and involved Florida Mortgage Brokers with Florida Governor Crist:

http://www.famb.org/Group-with-Governor-2wCaption.jpg

Are you a member of the professional association that helps to protect your industry? Why not? The cost is very low and the benefits are fantastic - they keep you in business.

The Florida Association of Mortgage Brokers at work for all originators

2008-03-20T22:55:46Z

Go here to see the photo of 100 or so very active and involved Florida Mortgage Brokers with Florida Governor Crist:

http://www.famb.org/Group-with-Governor-2wCaption.jpg

Are you a member of the professional association that helps to protect your industry? Why not? The cost is very low and the benefits are fantastic - they keep you in business.

The Florida Association of Mortgage Brokers at work for all originators

2008-03-20T22:54:33Z

Go here to see the photo of 100 or so very active and involved Florida Mortgage Brokers with Florida Governor Crist:

http://www.famb.org/Group-with-Governor-2wCaption.jpg

Are you a member of the professional association that helps to protect your industry? Why not? The cost is very low and the benefits are fantastic - they keep you in business.

Join New Group - wholesale Account Executives

2008-03-20T21:25:03Z

Looking for wholesale AE's to exchange info with - Wholesale Mortgage Account Executives

Join this group and exchange info with your peers. War stories of best and worst brokers are allowed.

How have you been surviving the last 18 months?

How have you changed the way you relate with your clients?

What are you doing that has kept you going and successful?

Lets share and make this a better industry.

Join new Group - Wholesale Account Executives

2008-03-20T21:23:50Z

Looking for wholesale AE's to exchange info with - Wholesale Mortgage Account Executives

Join this group and exchange info with your peers. War stories of best and worst brokers are allowed.

How have you been surviving the last 18 months?

How have you changed the way you relate with your clients?

What are you doing that has kept you going and successful?

Lets share and make this a better industry.

Most of my Senior Clients are well off and don't need a reverse mortgage!

2008-03-15T23:02:41Z

I was talking to financial planner friend of mine that I had not talked to in quite a while. He told me about a few of his clients that were seniors in their early 70's. In both cases, he managed several hundred thousand dollars for them. He was watching their portfolios shrink because they were dipping into them to create monthly income and in today's market, their rate of return was not creating enough return to keep them from having to use principal dollars.

After we talked, he is referring both of them to a broker of mine for reverse mortgages. In both cases, the seniors initially didn't think a reverse mortgage was for them because they were not destitute or barely surviving. In both cases, their properties were free and clear and a reverse mortgage would produce over $1,000 in monthly income and would keep them from having to access their portfolios.

This kept their money working for them as well as the equity in their property.

Don't think that reverse mortgages are just for those that are having problems making ends meet.

Just Say No

2008-03-03T23:43:27Z

With the recent items in the press regarding the sale of annuities to reverse mortgage borrowers, is it better to just say no to CFP's?

In our current market, it is certainly a tough choice to make to cut off an entire segment of your referral sources because of this. I don't think you need to do so as long as your relationship is based on the goal of helping the client and not how much each of you can make.

You need to be straight with your financial planner referral sources. Let them know that the last place you want to see your name is in an article bad mouthing reverse mortgages because of this practice. if the CFP is truly helping his/her client, they'll understand.

go get 'em.

Listen

2008-02-02T23:33:03Z

Listening-a very simple concept but one of the hardest habits to perfect

Remember: two ears and one mouth - use them in that proportion!

Listen to what your client is saying and don't assume you know what they are going to say. You may have really heard it 100 times but it won't take more than an extra minute or two to let them say it their way. If you assume you know what they are going to say then you will find that you are not listening with full attention and you will miss what they are telling you.

Ask permission to take notes and then do so. Ask them to repeat themselves if you are not sure what you heard. You are there to help them achieve a goal with the use of a reverse mortgage and you want to make sure you understand what that goal is.

If you have kids, follow the advise you give them when you ask or tell them to listen to you.