november 2007

The Importanceof Owner'sTitle Insurance

Issue 005

November 2007

TheNicheReport.com

13Avoid consequences laterby insuring now.

Short Sale Solution

16Over-leveraged problem opens door of opportunity.

Get Back to True Value Selling

24Work a lot harder and a lot smarter.

29Owner Aaron Krowne answers our questions.

Spotlight on ML-Implode.com

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COMMERCIAL pg 42

HARD MONEY pg 43

CONSTRUCTION pg 44

NICHE REPORTSCONTENTS Issue 005 November 2007

FOUNDER & PRESIDENTRobert [email protected]

CO-FOUNDER & PRESIDENTDavid [email protected]

EDITORIAL/CONTENT MANAGERKristen [email protected]

ACCOUNTING MANAGERShawna [email protected]

SALES MANAGERSJason T. [email protected]

Kim [email protected]

Kim [email protected]

DESIGNPlumbline Studios, Inc.Eric Ball

PRINTER / CIRCULATION MANAGERThe Ovid Bell Press, Inc.

CONTRIBUTING AUTHORSKarla J. CampbellChristopher M. GeorgeStewart MednickSharon Restrepo

16 Short SaleSolution

SHARON RESTREPOPresident of 5th AvenueFinancial Group.

Tip of the MonthSTEWART MEDNICKMORTGAGE BANKER AND REVERSE MORTGAGE SPECIALIST AT AMERICAN MORTGAGE CORPORATION

W.I.N.ning Strategy.

36The Importance of Owner's Title InsuranceKARLA J. CAMPBELLMARKETING REPRESENTATIVE AND SETTLEMENT AGENT FOR DKS SETTLEMENT GROUP, LLC

Avoid consequences later by insuring now.

13

Get Back to True Value Selling CHRISTOPHER GEORGEPRESIDENT AND CEO OF CMGFINANCIAL SERVICES

Work a lot harder and a lot smarter.

24

Spotlight on ML–Implode.comTHE NICHE REPORT

Owner Aaron Krowne answers our questions.

29

DEPARTMENTS

Over-leveraged problemOver-leveraged problemopens doors of opportunity.opens doors of opportunity.

09 NOTE FROM THE FOUNDER

10 CALENDAR OF EVENTS

29 SPOTLIGHT

36 TIP OF THE MONTH

45 LENDER & RESOURCE DIRECTORY

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SUBSCRIPTIONS

This publication is intended for real estate fi nance professionals. If you are a mortgage broker, lender, loan offi cer, or other real estate fi nance professional and you do not currently receive The Niche Report, please send your name, company name, and address to [email protected].

To opt-out of receiving The Niche Report, please send your request, including name, company name, and address to [email protected].

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To inquire about advertising in The Niche Report, please call 540.657.2632, or send an email to [email protected]. Visit our website, www.TheNicheReport.com to download a copy of our Media Kit.

EDITORIALS / ARTICLES

To submit an article for consideration in The Niche Report, please send an email to [email protected] or call 540.657.2632. We are interested in original writings relevant to mortgage brokers and other real estate fi nance professionals.

If you have a comment or question about an article or editorial published in The Niche Report, or if you have a suggestion for a topic you would like to see featured in a future issue, please send an email to [email protected].

THE NICHE REPORT POLICY

The information and opinions expressed by contributing authors and advertisers within The Niche Report do not necessarily refl ect those of BODA Publishing, LLC employees and should not be considered as endorsed or recommended by BODA Publishing, LLC.

Published monthly by BODA Publishing, LLC6016 Alderdale Place, Haymarket, VA 20169Phone: 540.657.2632 Fax: 703.991.2362Email: [email protected]

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Once when I was a child, maybe six or seven years old, my mother took me to a local res-

taurant for lunch. After we ate, we got up to leave and I grabbed two packets of “Sweet n’

Low” thinking they were actually sugar packets. As we were walking back to our car I tore the

packets open and pored the contents into my mouth expecting a sugary, sweet overload. To

my horror it was worse than anything I had ever eaten – bitter and very unsavory to say the

least. That traumatizing event in time taught me a small yet unforgettable lesson in life – don’t

ever eat the pink packets of sugar. Yes, I learned this lesson the hard way, however the valuable

point to this story is that I learned the lesson and never repeated this mistake again.

As I see it, the current state of the real estate market - the credit crunch and the real estate

bubble - is another “pink packet of sugar”. And the effects of this indulgence are clearly manifested for us on the inter-

net. Recently The Niche Report sat down with Aaron Krowne, the owner of ML-Implode.com to discuss his website

(see our interview on page 29). Now, if you aren’t one of the over 14 million that have visited this website since its

inception in January 2007, let me bring you up to date. Aaron started this website to chronicle the mortgage lenders

that were “imploding” due to the overall market conditions and, from what many have said, careless lending practices.

I met Aaron through a mutual friend, and from my limited contact with him, seems to be an educated, well informed,

conscientious young man who had no clue this site would take off the way it has.

Many have differing opinions towards ML-Implode.com. If you work in the industry you probably have a negative, less

popular image of this website; however when viewing this website you get the distinct feeling that others seem to revel

in the numerous listings of “imploded” wholesale lenders and banks itemized one after another like names on a war

memorial. Either way it serves as a stark reminder, and very hard lesson learned, that “there’s no easy money!”

The only way to move on is to trudge through it and get past it. There will be no easy solution, just a very real market

correction. Those of us in the mortgage industry who will have learned this nasty lesson and persevere will be wiser

and more effective in their job, no matter what their capacity, be it a Loan Offi cer, Underwriter, Processor, Wall Street

analyst, or any one of the many occupations that rely on the mortgage industry.

Let’s never open that pink packet of sugar again.

Robert PeggFounder & Publisher

NOTE FROM THE FOUNDER

9TheNicheReport.com

CALENDAR OF EVENTS

10 November 2007

NOVEMBER 2

NAMB/West Conference, "The Extreme Event", MGM Grand in Las Vegas. Visit www.namb.org for details.

NOVEMBER 3

NAMB/West Conference, "The Extreme Event", MGM Grand in Las Vegas. Visit www.namb.org for details

NOVEMBER 4


NOVEMBER 5


NOVEMBER 6


NOVEMBER 13

Housing Forecast & Pending Home Sales Index Released at the National Association of Relators' annual convention

NOVEMBER 15

Local Event: VAMB's NOVA Social. Visit www.vamb.org for details.

NOVEMBER 20

Commercial Leading IndicatorReleased by the National Association of Realtors

NOVEMBER 21

3rd Quarter Metro Home Prices/State ResalesReleased by the National Association of Realtors

NOVEMBER 28

October Existing-Home SalesReleased by the National Association of Realtors

NOVEMBER 29

Local Event: MBAA's Commercial/Multifamily Capital Markets Conference. Capital Hilton, Washington DC. Visit www.mbaa.org for details.

NOVEMBER 30

Local Event: MBAA's Commercial/Multifamily Capital Markets Conference. Capital Hilton, Washington DC. Visit www.mbaa.org for details.

DECEMBER 5

Local Event: VAMB's NOVA Holiday Party. Ritz Carlton, Tysons Corner, McLean, VA. Visit www.vamb.org for details.

DECEMBER 10

Housing Forecast/Pending Home Sales Index Released by the National Association of Realtors

DECEMBER 19

Commercial Real Estate Market Forecast Released by the National Association of Realtors

DECEMBER 20

Local Event: VAMB's NOVA Social. Visit www.vamb.org for details.

DECEMBER 31

November Existing Home Sales Released by the National Association of Realtors

Upcoming Key Dates & Events: NOVEMBER – DECEMBER

Toll Free (866) 634.1270www.FairviewLending.com

Are the ever changing market conditions affecting your lenders?

How does Fairview Commercial Lending continue to fund while the market is in flux?

W ith all of the stresses and expenses of buying a new home, title insurance is probably the last thing you ever think about, if you ever think of

it at all. In my work as a settlement agent, I can say that I only get calls concerning title insurance in one out of every twenty cases. If I do receive a call, most buyers only want to know how much it costs. When I do get those rare calls when someone really wants to understand what title insur-ance is and what it covers, I fi nd that most buyers know little to nothing before we start our conversation. When they do call, I explain to them what title insurance is, why they need it, and how to protect themselves in this market.

WHAT IS TITLE INSURANCE? Like most insurance, title insurance provides protection to the homeowner against a loss. This loss would arise from any problem associated with the title to the property being different than it was insured. The buyer should also under-stand that there are three types of policies sold by most title insurance companies. These include: a Lender’s Policy, a Basic Owner’s Policy, and an Extended Coverage Owner’s Policy. If you buy a home and use a national lender, they usually require you to purchase a Lender’s Policy, especially on loans greater than $100,000. The Lender’s Policy only protects the lender against any loss it may suffer if there is a claim. The Owner’s policy is what the buyer needs to protect his or her investment in the property. A Basic Owner’s Title Policy would provide clear title coverage to the property and protect against risks such as forgery and fraud; defective recordation; undisclosed, but recorded liens, mortgages, easements, and use restrictions; a party’s lack of competency, capacity or legal authority to act; a missing or defective legal description; and missing parties to a deed. An Enhanced Owner’s Title Policy usually costs about ten percent more than a Standard Policy, but includes additional coverage regarding access to the

property, zoning violations, easement coverage, encroachment removal, building permit violations, and infl ation coverage.

WHY DO YOU NEED TITLE INSURANCE? Once buyers understand the basics of title insurance and what it covers, the next question I always get is “Why do I need it?” The possible title problems I mentioned seem improbable and unlikely so much so that many buyers think they do not need to buy title insurance when they purchase their home. They believe that they are covered by the lender’s title insurance policy. They also believe the title is clear be-cause the title company does a search of the land records and would not let the seller transfer the ownership unless it was free from problems. But these buyers are wrong! An Owner’s Title Insurance is an absolute must for two main reasons. As I stated previously, the Lender’s policy only protects the Lender for the amount of the loan and this coverage declines as you pay down the mortgage. But an Owner’s Policy would pro-tect the homebuyer for at least the value of the property and the coverage does not decrease in value. The second reason Owner’s Title Insurance is a must is because the title search is not always accurate. Humans are involved in the process and the search may be fl awed as certain problems may not be obvious from a title search. For example, many claims result from a simple mistake by the title examiner in missing a recorded lien or by the settlement agent typing the wrong parking space number in a legal description. Just like with car insurance, one needs title insurance to cover those “accidents” that just happen, no matter the diligence of the parties.

TITLE INSURANCE: MORE IMPORTANT THAN EVER WITH THE CLAIMS ON THE RISEIf you are still unsure about why title insurance is a critical purchase for your clients, the current state of the real estate market will show that title insurance coverage is more impor-

13

THE IMPORTANCE OF OWNER'S TITLE INSURANCE

BY KARLA J. CAMPBELL

Avoid consequences later by insuring now.

TheNicheReport.com

tant than ever. We have all been reading and hearing about the unprecedented rates of foreclosures across the country and many homeowners are desperate to off load their homes. With these desperate times, buyers are led to desperate measures. Even with increased diligence by title insurance and lender underwriters, these desperate homeowners, and the other affi liated parties, are fi nding ways to defraud and scam the new homebuyers in methods ranging from the simple to the very complex. Some of the more straight-forward and frequently seen crimes leading to claims include identity theft, illegal fl ips, defalcation/embezzlement by attorneys and agents, forged releases, and intentional delays in record-ings. Recently, new warnings have come out about the more complex real estate fraud schemes, especially those involving Foreclosure Rescue Firms. These programs usually involve several versions of a Lease/Buy Back Option. In the differ-ent versions, the fi rms offer to have the title transferred to an investor with good credit. The investor will pay the mortgage while the homeowner rents the property and rebuilds their credit to buy back the home at a later date. Subsequently, the new owner either refi nances and pockets all of the equity or sells the property and pockets the equity. Both scenarios result in the homeowner being evicted and losing the home. If these homeowners have title insurance, many will have claims, but they must be innocent parties and never involved in scam. Additionally, it is important to remember that anyone involved in the real estate transaction might be a source of the fraud. Therefore you should encourage your clients to be diligent in monitoring their closing. It is your client’s responsi-bility to ensure that all parties follow the rules and procedures to prevent even the possibility of fraud. If your client does everything they can to prevent the fraud, but something still goes wrong, then title insurance will protect them. Your clients can avoid the consequences later by insuring themselves now.

Karla J. Campbell is a Marketing Representative and Settlement Agent for DKS Settlement Group in Northern Virginia. She holds a B.A. in Political Science form the University of North Caro-lina at Chapel Hill, a M.A. in International Relations from the University of Wollongong (in New South Wales, Australia), and a J.D. from American University’s Washington College of Law. She is available to conduct Home Buyer workshops or to speak about Home Buying to your local organization’s next meeting. For more information about title insurance and residential real estate closings in DC, Maryland, and Northern Virginia, please contact Karla at 703.338.3301 or by email - [email protected] or visit the company’s website at www.dkstitle.com.

14 November 2007

SHORT SALE SOLUTIONOver-Leveraged

Problem Opens Doors

Of Opportunity.

I n a market where so many homeowners are overleveraged, home sales and loan refi nancing slow down. Business slows for real estate agents, investors

and mortgage brokers. Lenders struggle to come up with new loan solutions for those borrowers in trouble and attempt to change their own lending criteria to avoid making more of the bad loans they encouraged in the fi rst place. As you know, many very low interest rate loans with upward adjusting rates were introduced within the last several years. Borrowers who wanted more house than they could actually afford used these loans to make the

BY SHARON RESTREPO

17

acquisition affordable, believing that as the interest rate increased, so would their income and/or appreciation of the property. When that didn’t happen, consequences followed. For example, borrowers (now homeowners) struggled to make mortgage payments, and many homes went on the market for sale in an attempt to avoid foreclosure. When that happens in large quantity, values drop. That’s what we are watching occur today…the consequence of the pursuit of the American Dream, whether affordable or not.

HOW DO THOSE IN THE REAL ESTATE INDUSTRY CONTINUE TO EARN A PAYCHECK DURING TIMES SUCH AS THESE?

They must learn how to help these over-leveraged homeowners use the solutions available to them, such as the short sale solution. Most homeowners in trouble are not aware of all of the solutions available to them. Although their lender is required to send a letter outlining possible solutions to qualifying borrowers when they become delinquent, the solutions mentioned in the letter are not explained. This is where a savvy mortgage broker makes the difference in helping a troubled homeowner with the right solution and being rewarded for that knowledgeable assistance can come with a paycheck. This creates a win-win solution. The homeowner may have a real solution and the mortgage broker may earn more business. The short sale is one of the most valuable solutions in an over-leveraged market such as the one covering most of the nation right now.

HOW IS A SHORT SALE ACCOMPLISHED? A short sale is done when the seller of a property whose mortgage is in default cannot sell it for enough to satisfy all of the debt. Based on criteria the seller’s lender reviews, the lender may agree to reduce the loan balance to allow the seller to sell or often times refi nance the property through a lender other than them. When the seller and buyer can meet the lender’s short sale criteria, a short sale will be accepted. Lenders would rather take a short sale than take the property through foreclosure and own it. The lender does not allow the seller to earn sale proceeds in a short sale transaction. Although lenders agree to pay the seller’s real estate commission and reasonable closing costs, understandably, they will not tolerate allowing a delinquent seller to profi t from the lender’s loss. Additionally, the superior lien-holders accepting a short sale will not allow inferior liens to be paid in full. Keep in mind that a short sale offer may be submitted when a borrower is in default, in foreclosure or in a redemption period. Short sales will be entertained by every lien-holder against the subject property. Note that the more inferior liens are expected to accept the deepest discounts, as they are in the most jeopardy of receiving nothing at foreclosure sale. Some states honor a redemption period, which is a period following the foreclosure sale where the homeowner still has the right to redeem ownership by paying all that is owed the foreclosing lender(s). However, when a property has already been vacated by its’ owners,

the foreclosing lender may plead with the court to receive ownership sooner and it will be granted. In real estate market cycles called buyers markets, short sales are common. Real estate values have dropped for a variety of reasons, making it diffi cult for sellers to unload over-leveraged properties. With the right ingredients in your package, lenders will entertain your short sale offer. Short sale ingredients look like this…lenders will require the seller to fax or mail them an executed sales agreement stating the price the buyer is willing to pay; an estimated HUD-1 form, also known as a closing statement; real estate listing agreement; the borrower’s (seller’s) two most recent tax returns, bank statements and paycheck stubs; the seller’s letter explaining their current situation (also known as a hardship letter); along with the buyer’s loan pre-qualifi cation letter or proof of funds. In order for the buyer, real estate agent, or mortgage broker to speak with the lender about the short sale offer, the seller must fax an authorization to release form to the lender allowing the buyer to discuss their private loan information. Keep in mind that faxing is the most prevalent and recommended short sale offer delivery method. If you must mail the short sale offer, be sure to use a delivery method that gives the sender proof of receipt, and never send your only copies. Be sure to put the seller’s/borrower’s loan number on every single sheet being submitted to the lender. Always call to confi rm receipt as you cannot afford any delays in this already long process. Short sales can be done in one telephone call, but

TheNicheReport.com

18 November 2007

more commonly take approximately 90 days. If a foreclosure sale date has been set for the seller’s/borrower’s property already, be sure your fax cover letter requests a foreclosure sale cancellation or postponement in order to close the short sale transaction. The majority of the time, the lender will cancel the sale, especially when the short sale offer package has all of the ingredients mentioned here. Remember, they don’t want to own this property either…let’s help them out. Next, the lender reviews the sales agreement to fi nd any red-fl ags, such as large seller concessions to the buyer for closing costs or repair costs. Lenders will typically deny an offer with large seller concessions and sometimes any concession at all. The proposed HUD-1 is reviewed because it refl ects all of the closing costs the lender is expected to pay and also shows their net proceeds. This net proceeds amount is what the lender is being asked to accept in the short sale offer. A real estate listing agreement is required to verify that the public is aware that this property is available for sale. The hardship letter is reviewed to show why the sellers are in need of the short sale (for example, job loss, medical emergency, mortgage interest rate adjusted upward and it is no longer affordable, or real estate tax or homeowner’s insurance increases); lenders will generally not accept short sales from sellers who can afford to pay but choose not to. The buyer’s loan pre-qualifi cation or proof of funds letter shows the lender that when they accept this offer, the buyer will be able to perform. Lastly, the tax returns, bank statements and paycheck stubs

are used to verify the seller’s inability to qualify to keep the property. The tax returns may still refl ect a time when things were better for the sellers, but the current bank statements and paycheck stubs should refl ect a different situation. When a short sale is being requested for refi nance purposes, the short sale package would include the refi nance pre-approval documentation in place of a real estate sales contract. The net sheet would show the lender what they would receive at closing of the refi nance. A typical short sale acceptance is approximately 80% of today’s appraised value, minus closing costs. The lender will order their own appraisal or real estate agent’s opinion of value (called a “BPO”) to be done once they begin to entertain the short sale offer. This is the value they will use and base their short sale decision on, not the owing mortgage balance. Lenders will agree to pay up to 5% in real estate commissions as well as reasonable closing costs. They will typically agree to pay delinquent homeowner’s association dues and items they would be “stuck” paying if they ended up owning via foreclosure proceedings. If there are inferior liens, those must be negotiated to very small amounts. Keep in mind that inferior liens are in jeopardy of being “wiped away” at a foreclosure sale by the superior foreclosing lien, so they are usually agreeable in short sale negotiations. The worse the condition of the home, the more of a discounted short sale may be asked of the lender. When you move away from the typical 80% acceptance rate, the

short sale will become more diffi cult to accomplish, but not impossible. Absorbing this knowledge will allow those working in the real estate industry to refocus their business efforts in a new direction and begin earning again. Real estate agents can now take listings they would normally not be able to sell and with the lender’s permission, mark down the list price to encourage offers. They are able to increase their inventory of correctly-priced listings and increase their ability to earn commissions. Mortgage brokers can assist homeowners with their short sale in order to obtain a refi nance loan for them, and actually close new loans. They can also work along side real estate agents with short sale listings by helping their buyers obtain the fi nancing they will need to close on this new inventory of properties. Mortgage brokers can also benefi t by doing the following to prepare their business for short sale refi nances and sales. First, learn which lenders (starting with those you already have relationships with) will approve a short sale in order for their borrower to refi nance rather than sell as their only option. Once locating the lenders who allow their defaulting borrowers to obtain refi nance loans using the short sale solution, make a list. Then, put a plan together to market to and locate delinquent homeowners mortgaged by this list of lenders. This may open a door to a whole new source of refi nance mortgage brokerage income. Secondly, network with real estate agents who can bring you their overleveraged sellers along with a buyer/borrower willing to purchase

21

the home. Explain that you can qualify and obtain fi nancing for their buyer while you are also able to reduce the mortgage balance of the seller’s home to the amount the buyer is willing and able to pay, not to mention the actual appropriate market value. Let’s discuss some additional details regarding the short sale. With respect to the seller’s credit rating as affected by a short sale: in most cases, when the short sale transaction closes, the mortgage credit line will refl ect a paid or settled status, which is less damaging to the score than a foreclosure. Credit is still damaged as all of the late mortgage payments already dropped the credit score. WHAT HAPPENS TO THE DOLLAR AMOUNT THAT THE LENDER DISCOUNTED? In most states, when a hom-eowner loses their home in fore-closure OR avoids foreclosure by selling in a short sale transaction, the loss taken by their lender will result in either the issuance to them from the lender of an IRS form 1099 refl ecting the income earned by the borrower (borrowing on the loan and paying back less for full satisfaction, thereby earning), OR a defi ciency judgment, which the lender can pursue at their will. Only a full satisfaction of debt can prevent these consequences. The seller may consult his tax advisor to see how either consequence will affect his fi nancial and/or tax situation. Keep in mind that at the writing of this article, the IRS is changing their rules regarding this loss and its’ af-fect on the homeowner with regard to the tax consequence.

HOW DO SHORT SALES AFFECT OUR REAL ESTATE MARKETS? When a market is saturated with foreclosures, the market is already negatively affected. The result is an abundance of homes on the market for sale. When this happens, prices must drop to stimulate sales. When folks in trouble owe more than their neighbor is selling for, they fi nd themselves unable to sell, with no solution. A short sale is one of their only options. Their lender(s) will have to agree to accept less than what is owed as payment in full in order for their home to be sold. As this market continues, lower sales begin to be recorded in public records. This new data causes markets to drop because appraisers must use these newly recorded lower values when appraising the next home. In this situation, buyers who can wait to purchase a home will because they become convinced that prices will continue to fall, so they should wait for a better deal. A domino effect takes place and home values as well as home sales drop. This creates what is called a “buyer’s market.” In the big picture, lenders are much better off accepting viable short sale offers and removing defaulting loans from their portfolio rather than suffering the effects of taking the properties through foreclosure and owning them. Once owned by the lenders, they are referred to as REOs, which stands for “real estate owned.” These REOs are listed with real estate brokers and offered for sale to the public. WHAT IS THE MOST IMPORTANT PART OF THE SHORT SALE? In my opinion, the most important short sale piece beside the

written offer package is the lender’s appraisal or BPO of the subject property. It is important to have someone meet the person doing the BPO or appraisal at the property to personally show it to them. It is this opinion of value appraisal that gives the lender their grounds for counter-offering, accepting or denying the short sale offer. In Summary, this “over-leveraged” problem opens doors of opportunity. Opportunity for you to help more homeowners fi nd good solutions, learn how to negotiate short sales, and make more benefi cial lender contacts than ever. Remember to keep the needs of the homeowner fi rst in any transaction and learn from the mistakes of others so that you don’t fall into this situation yourself.

Sharon Restrepo has been investing in foreclosed and distressed real estate for over a decade and has been a nationally-acclaimed real estate educator for nearly ten years, specializing in foreclosure investing and short sales. She is President of 5th Ave Financial Group which specializes in wholesaling distressed real estate to investors; Broker and President of 32 West Realty; President of HomeRescueSolutions.com, a marketing company designed for investors to reach and obtain seller leads; and Vice President of REIP The Rewards®, which provides real estate education resources for investors. Sharon also co-founded the Florida Real Estate Investors’ Association (the “FLREIA”). Additionally, she has authored real estate investment guides and recorded numerous popular audio and video lessons. Find out more about her and her instructional courses at www.fl reia.com and www.32westrealty.com.

TheNicheReport.com

Let the fund begin.SM

© 2007 IndyMac Bank, F.S.B. Registered trade/service marks are the property of IndyMac Bank, F.S.B., and/or its subsidiaries. Information shown is subject to change without notice. Financing may not be available in all states. Information is intended for Mortgage Professionals only, and not intended for distribution to consumers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Guidelines are only for reference. Refer to the Indymac

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24 November 2007

T hirty years ago, mortgage brokers fi rst opened for business. They offered a clear value to bor-rowers: For a reasonable fee, the broker would

shop the client’s loan for them and fi nd them the best deal possible. The borrower saw a true value in paying that fee. As a result, mortgage brokering caught on as a useful addition to the home loan business. Over time, though, we drifted away from that busi-ness model. As refi booms came and went, bad practices crept into the profession. Lenders began to compete for broker business by offering compensation, and “no cost loans” hid the fact that the borrower was still paying the broker. To survive today, you need to break out of that less upfront approach and get back to basics. Earn your commissions directly from the borrower by offer-ing true value in exchange. The challenge of fi nding loans for customers in today’s credit crunch dwarfs any previous market con-tractions in my twenty years in this business. Yet, in a recent interview, I was quoted as saying “it’s a great time to be in the mortgage business”. I really believe that. I have lived and worked through previous mort-gage industry contractions, and the experience taught me that good mortgage brokers can fi nd opportunities in any business cycle to lay the foundation for future success. Surviving a diffi cult market will make you a better mortgage broker because you will truly regain the selling skills and marketing savvy you need to out-com-pete competitors long-term. And as weaker competitors exit the business, you will be positioned to expand your market share. Of course, if you want to remain a mort-gage broker long-term, “working harder” barely begins to describe what you will have to do over the next year or two. Smart agents are working harder and smarter,

taking steps today that may not pay off for a couple of years, but will lead to a comfortable, thriving business when they do pay off.

RESIST DESPERATION! You know today’s tight market allows no room for error. You feel like each lost lead or denied file means a lost meal on the table and you may be tempted to chase every available transaction and maximize the return on each. A broker who called me last month to discuss how to sell CMG’s Home Ownership Accel-erator® loan was astounded when I laid out the time he needed to invest in building a pipeline of this new loan product. His response: “Who has time for that? I need loans that will fund today!” I strongly urge you to resist that impulse. Never lose your focus on long-term gain. Keep your customer’s needs first, not yours. Happy customers are your best insurance of future income. If you abuse them in an attempt to maximize current income, you are throwing away big chunks of a profitable future. Smart loan agents continue to add real value to their client relationships, even if it costs them some commission on the current deal. They consider that “lost income” to be an excellent marketing investment. Smart loan agents also built up a financial cushion during the refi boom, and are now in a position to invest that money in the future, laying the pipe they need to ensure that when the crunch eases, they will be best positioned to profit from the increase in volume. Even without a financial cushion, however, you have a lot of opportunities to improve your business productivity to lay the pipe needed for future success.The first thing you need to do is break those bad refi

GET BACK TO TRUE VALUE SELLING

BY CHRISTOPHER M. GEORGE

Work a lot harder and a lot smarter.

25TheNicheReport.com

boom habits. Do you:

• Work 9-5, or less?• Live off of leads exclusively?• Neglect your past clients and referral partners?• Sell “no cost loans” and live on YSP?

If so, a smart broker may be in the process of stealing your future business volume.

GET BACK TO WORK. Let’s start with work habits. If you are still working 9-5 today, you will be in a different business by next year. Any person who has been in our business at least ten years remembers how brokers originally made a living. Just like the old family doctor, you were always on call. It is time to get back to that full-service business model. Weekends and evenings are your prime hunting hours for business development. Every weekend should be dedicated to help-ing realtor partners sell their listings. Every evening should fi nd you at someone’s kitchen table, laying out sound advice about their fi nancing options, becoming a full partner in their fi nancial life and asking for referrals. Your successful fi nancial planner partners are working evenings. You should be working right along with them, if you want to keep them as partners. The second source of opportunity is a bit harder for all of us: Manage your time better. Everyone knows this is important, but it is still easier to busy yourself with an active fi le than it is to call four or fi ve past clients to reconnect. If you let it, work still expands to fi ll the available space. You have more time to develop new business because you have fewer fi les to work, but stay vigilant. Be jealous of your time. Work your loan fi les as intensely as you did during the boom to keep the rest of your day free for business building projects. A third opportunity lies in education. While you work harder, you should also work hard at being smarter. Use some of your time to learn more about being a full fi nancial consultant, say, through an outfi t like the CMPS Institute. Also learn everything about any new loan product that is currently available, and include them in your discussion with every client. A broker who sells a lot of our Accelerator loans told me he mentions it to everyone, even if they can’t qualify for it. He gets two benefi ts from this approach: First, he looks smarter that a competing agent who can’t talk

intelligently about all available options, and second, the person who doesn’t qualify knows people who may, which primes his referral pump.

REVIVE THE IDEA THAT A BROKER IS PAID A COMMISSION FOR PROVIDING A VALUABLE SERVICE. The fourth opportunity to set you apart lies in actu-ally charging them a commission directly. This, frankly, may be the hardest step to take, because we as an indus-try have painted ourselves into a corner by selling “no cost loans”, giving borrowers the false impression that brokers work for free. How, then, can you successfully sell a commission today? The answer is surprisingly simple: Tell the truth. One of my favorite business partners has always told her clients that she doesn’t work for free. “I tell my clients up front that I don’t work for free,” she told me. “I always explain in detail what value they will get for that fee, though. Most clients are happy to pay a fee that brings them real value. Of course, you have to truly deliver that value!” Be honest with your clients about how our business works. Make them smarter consumers by explaining how rebates, points and interest rates are really related. Draw up a full schedule of pricing for them on the loans you are recommending. Explain how points are prepaid interest, and rebates are deferred interest paid over the life of the loan through the higher rate. Tell them up front what your fee will be, and (this is critical) why it is worth paying. For the fee, they are buying:

Knowledge – You know more than they do, and can fi nd better deals.Time – You shop for them, freeing them for other professional or personal projects that need attention.Effort – You become their advocate, taking charge of the hassles of paperwork and negotiation on their behalf. A smarter client is also able to resist seemingly tempt-ing offers from your competitors, because you have armed them with the needed tools to see through the hype. They won’t forget where they got the help, either, especially when you remind them about it in your ongoing commu-nications to them.

STOP LIVING ON YSP. Frankly, when an agent lives on YSP, they end

26 November 2007

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up working for the lender, and the borrower’s needs become secondary. Turn that to your advantage by edu-cating your clients on how YSP really works. Let them know that if a rebate loan is chosen, you will transfer that value to them. In effect, you should stop working for the lender, and return to working for the client. Referrals come from happy clients, not happy lenders.

GIVE TO GET. The ironic result of putting the client fi rst is that each transaction may very well net you less money. It is hard not to try for every dollar in these lean times, but the smart broker resists the temptation. If you clearly lay out for the client just how much money you are saving him or her, both at the funding table and long-term in less total interest paid (the ultimate goal), you will create happier clients and more referrals. More referrals also means less

money spent on leads and other marketing initiatives down the road. So, giving a little now really can result in maximizing income overall. Honesty, placing the client fi rst, and offering an objective menu of loan options all will lay the groundwork for years of productive relationships and referrals. “Back to Basics” may sound like a hackneyed old cliché, but it fully applies to your business model today. If you are truly ready to work a lot harder, and a lot smarter, then 2007 really will turn out to be a great time for you to be in the mortgage business!

Christopher M. George is president and CEO of CMG Financial Services, headquartered in San Ramon, Calif. CMG Mortgage Inc., CMG’s wholesale-mortgage-bank division, has six regional offi ces that lend in 40 states. Find CMG Mortgage at www.cmgbanking.com.

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If you didn’t read the “Note from the Founder” on page 9, please go back and read it as a prelude to the following interview with Aaron.

T he Niche Report recently sat down with Aaron Krowne, the owner of ML-Implode.com. ML-Implode.com is a website that chronicles the

“implosion” of mortgage lenders from the much publi-cized downturn in the market, and as of this printing, has had over 14 million visitors. I believe Aaron and his site have been misunderstood by many folks in the industry who only see this as a website bent on revel-ing in others misfortune, coming across as a villain of sorts with the lenders it unassumingly mocks. The site is actually full of up to date industry news and a great deal of satire; one must view ML-Implode.com with this in mind. This website has caused such uproar that a large wholesale lender has banned their employees from view-ing this site; but like him or not, he’s getting a message out load and clear.

Please give our audience a brief description of Aaron Krowne. Also, please include your age, education and background.

"I’m twenty-seven; live in Atlanta, GA (though I’m from the Alexandria, VA area), and was trained as a computer scientist (MS) and in mathematics (BS). I also studied some philosophy and physics. I worked as a computer scientist on grant projects until recently, when I left my job to work on ML and other web-based information ventures. I’ve been investing and studying economics on the side for almost a decade now. I’ve been blogging in various forms since around 2002 (most recently at autoDogmatic.com and the

Wall Street Examiner). I’ve also run the planetmath.org wiki-like site since I co-founded it in 2001. I’m a “unique” blend of technician, scientist, entrepreneur, activist, economist, and investor. Now I guess I could add “media and marketing guy”."

When did you launch ML-Implode.com?

"January 1, 2007."

What was your inspiration and/or motivation for starting ML-Implode.com?

"I thought the fate of housing fi nance was tremen-dously important to the fate of the economy, and saw that a major turning point had arrived. Since no one else had made a “story” of it, I put together the fi rst cut of the Implode-o-Meter as a simple web page with six lenders, and began posting about it to various blogs. Apparently I made the right call and the site caught on like wildfi re. The point of the site is to document the impact of the fi nancial side of the housing bubble, now on its downside, and to cover the causes of the situation and the reaction to it. There has been tremendous success already in raising awareness of housing fi nance’s impor-tance to the economy, and the issues with how sub-prime was fi nanced. There has been some success in getting people to realize that prices do need to come down, and that the Fed and “dollar recycling” fi nancing by other central banks played a major role in the debacle. There has not yet been much success in getting people to realize that the problems go beyond sub-prime and that banks have not yet admitted too much of the impact – so there is work still to be done."

SPOTLIGHT ON ML-IMPLODE.COM

BY THE NICHE REPORT

Owner Aaron Krowne answers our questions.

SPOTLIGHT

30 November 2007

ML-Implode.com seems to be the fl agship site for folks who can’t stop watching the “implosion” of the current state of the mortgage market (much like a car wreck), including industry professionals, why is this?

"Well many have told me they check for information that might let them know whether they will have a job tomorrow, or whether their correspondents will still be there. I’m sure most would rather not “have” to look…"

Some have referred to ML-Implode as a “doom n’ gloom” website for the mortgage industry. Do you agree or disagree and why?

"I agree. But sometimes times are gloomy. We’re trying to provide “constructive” services to help out (by popular demand.)"

ML-Implode is known for having the most up-to-date list of defunct and “imploded” lenders. Tell us how this happens.

"The community makes it happen. At fi rst, I just skimmed what I could from the news. However, once the broker/LO community (and others involved in mortgage banking) started paying some attention to the site, ad-vance tips started fl owing in. We were able to stay on top of events better with those tips. This made the site more useful to that same community, which caused even more tips to come in. Now we get literally hundreds of emails a day. It takes multiple people to go through all that, and we’d like to hire more."

With all the attention ML-Implode has received over the last 6 months, where do you see ML-Implode one year, three years or even ten years down the road?

"Some people are surprised the site has stayed relevant this long. I don’t know how long the site will stay “active” in the sense of having a huge industry following -- I certainly plan to keep it going as long as there is demand for it. But I certainly plan to leave it up indefi nitely as a “time capsule” of what happened. We should never forget!"

We heard that you recently bought Casey Serins site IAmFacingForeclosure.com. Can you tell us about his

website and your motivation behind the acquisition?

"Casey was a blogger who blogged about his own mis-adventures in attempting to be a big real estate investor at age 24, egged on by all the motivational real estate seminar folks. He was at one point stuck with 8 proper-ties and was $2.2 million in debt. Unfortunately the blog failed to do much more than become a huge distrac-tion in itself, causing him more grief than help, and in the end he couldn’t do much to help others in similar (though typically of smaller scale) situations. He decided to shut it down and I happened to be on his mailing list from some brief earlier correspondence and worked out a deal with him. Foreclosures are unfortunately going to be a growth industry for the next few years, and I thought this would be a reasonable play on the trend. There is still much more to be done to build out the site, but I plan for it to be primarily a free information resource for people in and facing foreclosure, with additional commercial services available if desired. That was a fun week because I had to raise the funds to buy IamFacingForeclosure.com, and at the same time I found out the lawsuit against ML would not be dis-missed as per California anti-SLAPP statute, implying much greater total costs for that suit."

What’s going on with the lawsuit pending against you and ML-Implode (or as much as you can tell us)?

"The suit is from a company (LCC) claiming that they were harmed by a message we posted from an informant claiming various negative things about them to the effect that they were “imploding”. The post generally checked out with other tips we had received and public articles about LCC’s troubles. Nevertheless, we posted an advi-sory on the entry when LCC complained to us, then took it down within a day. However we are still being held to damages for warehouse lines that were pulled in that brief time interval. It seems odd to us that notice-and-take-down conventions should not apply for “bad” informa-tion in this sort of setting, and doubly odd that we should be held responsible for the decisions of bankers who should have been doing their own follow-up research. But the suit is stubbornly not going away. I think the court made a bad call in not dismissing the suit as per California “anti-SLAPP” statute. In our opinion (as

SPOTLIGHT

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Paul Fogle or Art Bennett

First Mount Vernon is a privately-owned, equity-based lender which specializes in lending to borrowers who require expedited closings or cannot secure funding from traditional financing sources. Loans

typically funded within two business days upon receipt of completed package


per above) there is little substance to the suit – it seems the plaintiff just wants to get back at this contentious “whistleblower” and is putting ML in fi nancial peril to exert pressure. Unfortunately for both of us, we don’t believe in “ratting out” informants for expediency. Anyway, as a sorry consequence of this course of events, our costs (already past $25,000 for a few months of motions) are expected to accelerate. This once again puts the survival of the site in jeopardy. It has also made it very diffi cult to expand, so ironically, LCC is ending up hurting the quality of the site, while their core claim is effectively that we were not doing a good enough job."

What kind of feedback do you get from the folks who visit ML-Implode, any death threats from bank executives (jokingly)?

"The vast majority of the feedback is supportive. Most of the complainers seem to largely misunderstand the site. They are the types who buy the simplistic Angelo-Mozilo style argument that anything one does to get a person into a home is legitimate – never mind future foreclo-sures or bankruptcies or a lifetime of excessive debt burden or out of control home prices. Most others realize that things got out of control, and want to see what the impact is, and try to understand what went wrong."

What would you like say to the over 10,000 mortgage brokers, loan offi cers and industry professionals who receive this magazine?

"We’re going through a return to fi nancial prudence, concern for customer well being, and the need to add real value to the housing fi nance process. Those who were in it for the “easy buck” will be gone. Ultimately it will be a good thing for the industry. "

I noticed ML-Implode was now allowing the “Top Non-Imploded” lenders (a small beacon of hope for those of us still in the industry). How does one get on this list?

"If you are a lender who plans on being around for a while and has some basic evidence to make a good case for that, you should consider putting yourself forward on our list. Just send an email to the address in the non-im-ploded box on the page, and we will send you our rates

and evaluation questionnaire. There are spots available at a variety of rates starting at $500/mo, which we think is not bad for a site with 100-300k unique visitors (chiefl y in the industry) each day. The industry needs strong hands and stable companies, so please do come forward if this is you!"

And last, but certainly not least, what’s with that big, bright “VOTE Ron Paul” banner ad on Ml-Implode (now is your chance to give a “shout out” for Ron)?

"I’m glad you noticed. I see the banking system and the Fed in specifi c as the ultimate causes of the housing fi nance collapse. One of Ron Paul’s main platform elements is the reform or abolishment of the Fed, to bring sanity back to the bank-ing system. Dr. Paul suggests hard money (a precious metals-based standard). This is little more than going back to what the Constitution spelled out in terms of a monetary system, which was in place from the founding of the Republic until 1913 when the Fed was created, arguably violating the Constitution. During this (pre-1913) era, the dollar gained value, workers made more money in real terms every year, and regular folks could accumulate their retirement with simple savings (even without the use of a bank or investments). We also had no major economic depressions or recessions. So go-ing back to such a system is certainly worth considering and not dismissing out-of-hand just because the “main-stream” candidates never discuss these things! Incidentally, Kucinich is also calling for major re-form of the Fed, so you have an option on both sides for some meaningful banking and monetary system reform."

SPOTLIGHT

MORE OPTIONS FROM US

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36 November 2007

TIP OF THE MONTH

BY STEWART MEDNICK

W.I.N.ning Strategy.

T he other day I was chat-ting with a friend and fellow football coach, Haywood

Simmons. Yes, I am an assistant varsity football coach at a local high school. I love the game and as a former football player myself, I believe that many lifelong lessons are learned on

the grid-iron. Coach Simmons and I were sitting at my kitchen table sipping morning coffee. Every time he raised his mug for a sip, I was mesmerized by the large, multi-jeweled National Championship ring adorning his right hand. He earned the ring in the 1993-1994 season as a defensive tackle for the Wisconsin Badgers football team after beating UCLA in the Rose Bowl. “Hey Coach,” I started, “I bet you have some great stories of the glory days, huh?” “Some of the greatest lessons in life I learned from Head Coach Barry Alvarez. He is, to this day, one of the most infl uential people in my life. He taught me about the ‘W.I.N.ning Strategy’ I use in my everyday life…”.

W.I.N. WHAT’S IMPORTANT NOW. I listened intently as I learned about using time wisely and prioritizing events. I started to think of many motivational and time management gurus and how many of the tips I gleaned from them over years seemed to fi t nicely into this framework. Mundane, unprofi table and unanticipated tasks have a way of eating up massive chunks of time in any business day. Here are some sug-gestions for focusing on profi table and important tasks daily with W.I.N. The wonderful aspect of W.I.N. is the ability to easily customize a system to fi t anyone’s needs for any event or length of time. In all situations, the fi rst step is to deter-mine relevance of activities to a specifi c goal. Perhaps you

are prioritizing necessary actions to clear conditions on a loan amongst other daily activities like returning phone calls, keeping appointments outside of the offi ce, or re-sponding to emails. Prioritize these activities. Some activi-ties may be Deleted, Delegated or Deferred. Do the rest. I will explain more on the “Four Ds” later in this article. Assessing which tasks to do immediately can be pooled in two categories: what tasks are prerequisites for goal completion and what tasks make money. Each task should stage the next one on the list when completed, so a natural progression and smooth transition from task to task transpires. When a task is completed, think to yourself, “What’s Important Now?” and move to that task, which should be the next one staged from the newly ac-complished task. Seems easy and obvious, but a good way to mentally take a role-call of tasks and the order they will be performed. In the example of clearing conditions on a loan, you should take actions as needed for acquiring neces-sary papers for clearing each condition and perhaps the next logical step would be to fax or overnight them to the underwriter. What’s Important Now? Call the people involved so they can be updated. Task completed and goal accomplished for clearing conditions. What’s Impor-tant Now? Look at your ‘makes money’ or deferred list and attack the next item. Perhaps you have an important email from a prospect to which you need to respond. That took ten minutes and it is done. What’s Important Now? Twenty minutes before you have to leave to meet a client…enough time to call a fi nancial planner or banker acquaintance you have not talked to in months; a deferred list item. Refresh the relationship and inquire about any possible referrals. What’s Important Now? It is now time to leave for the appointment; a ‘makes money’ list item. The appointment took 90 minutes and you are driving back to the offi ce. Perhaps you should stop for lunch and

TIP OF THE MONTH


utilize the ubiquitous business card technique I wrote about in last month’s column to establish a new relation-ship. Perhaps the same technique can be used when paying for gas. You are back in the offi ce. What’s Important Now? You should be thinking about the next task when driving to the offi ce. I have some of my best ideas when driving. I created six months worth of ideas for “Tip of the Month” in just over 100 miles of total daily commutes. The concept of time management is built in to this simple system so time is always being utilized effectively. A day of condition clearing, phone call making, appoint-ment keeping, and meeting going can be very hectic. How will you stay on task and still leave work on time to pick up the baby from daycare? The Four D’s is a decision mak-ing tool for this purpose. Coach Simmons talked about this and how he uses it. He will look at an item and ask himself, “Is it important to my goal?” If “no” is the answer, then assess if it should be deferred for later. If so, defer it. Is it even important? If not, delete it. Can another person do it for you? If so, delegate it. What are left are the money making activities. Prioritize and do it! Sally McGhee, a nationally recognized productivity specialist, talks about this technique as well. She applies it to managing email. Email can occupy an hour or more in our day. She says you can generally delete half the emails you receive daily. Then she will see if any emails require a specifi c action that can be completed in a two minute period. If so, do it. If you can not delete it or do it, then can the email be delegated? If so, spend no more than two minutes to forward an email to delegate it to someone. If you cannot delegate it in two minutes or a task is required

that will take more time, defer it. With the W.I.N. tech-nique, the Four D’s dovetail nicely into the structure of organizing a day. My dad had a question he would spout off every time I would become frustrated or overwhelmed with many tasks or tight time constraints, “How do you eat a whale?” I would respond, “One bite at a time.” Each time you ask yourself, “What’s Important Now?” you are taking a bite of that proverbial whale. Each bite is decisive, relevant, and timely in accomplishing a goal. Coach Simmons runs a very successful marketing company as a result of his ability to prioritize and stay on task to accomplish goals and satisfy the customer’s needs. He creates and delivers great internet and hard copy products customized to the desires of the clients which include many professional athletes and sports teams as well as mortgage and fi nance companies. He follows a W.I.N.ning strategy everyday. I laughed when coach fi nished talking over our cof-fees. He asked, “What is so funny?” I told him, “From football, I learned to eat a whale!”

Stewart Mednick is a seasoned mortgage banker and pub-lished author. His writing focuses on relationship develop-ment, customer satisfaction, marketing and sales techniques. Mednick is also a business coach and consults on these topics. Mednick can be contacted at 651-895-5122 or [email protected]

Coach Haywood Simmons is President of Advance Marketing Group and can be contacted at 612-239-2617 or [email protected]

TIP OF THE MONTH

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90% to 580 Cr-90CLTV to 530(seller 2nd)-Cr 80% to 500 Cr-6x60 okay-90% Rural-2 Trades at 12 mo.

More information @ www.nonprimewholesale.com-Get ID/PW to GPS Pricing / email [email protected] Packet on Rates Page www.nonprimewholesale.com

Full Doc and Stated income commercial loans. 3% YSP +2 points paid to brokers

100% to 620 Mid Full Doc w/unlimited 60 day MTG lates OK. Co/borrower w/scores below 500 OK No reserves, No seasoning refi ’s. 1 day off MLS OK/ 55 DTI. Loan amounts 750K. Higher on exception, case by case

G-Rate will pay 3 YSP on 100% loan, and will pay YSP in no PrePay States

D - Product: Foreclosure/BK bailout. 100K - $999,999, 75% max LTV Full Doc, 65% max for Stated Income, No minimum FICO required, DTI up to 50%

C – Product: 100K - $999,999 Min FICO of 500 , no NOD’s or BK’s in 12 months, 1 x 120 (no rolling) DTI up to 50%

Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consum-ers, as defi ned by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.

ADVERTISE YOUR NONPRIME NICHE HERE WITHIN

TheNicheReport.com

40 November 2007

NICHE REPORTS

PRIME


817.545.6153


817.545.6153

Guaranteed Rate

703.989.2276 Ask for John Lovell

Guaranteed Rate


Indymac Bank

866.690.2240

Indymac Bank

866.690.2240

Irwin Home Equity

888.524.7946

Irwin Home Equity

888.524.7946

“Best in Business” Technology giving you 24/7 access to the industry leading rates and service you should expect from an Inc. 500 organization

To EAIIs-VA-Manual FHA Available to 550 Credit-Broker Packet on Rates Page www.nonprimewholesale.com

Jumbo - Super Jumbo, Full Doc, SIVA, DTI up to 50%Industry leading rates,Work Visa’s accepted

Levels I, II, and III, Flex 97 and 100, NO MI (Lender Paid), Program up to 100%, No hit on SISA w/720+, My Community Rates consistently ranked in top 3

Agency Conforming and Fannie Mae programs available, including MyCommunityMortgage™, Flexible 97™, Flexible 100®

Reverse Mortgage products available for FHA- and Non-FHA-approved customers. Flexible lending limits for higher value homes

100% LTV First Mortgage with no PMI, Full Doc, Cash Back up to $200K

Combo programs; 100% First with 125% Second for complete fi nancing with no PMI, Full Doc, Cash Back up to $100K


ADVERTISE YOUR PRIME NICHE HERE WITHIN

ALT–A


817.545.6153


817.545.6153


800.710.6762

Guaranteed Rate


Guaranteed Rate


Indymac Bank

866.690.2242

Indymac Bank

866.690.2242

Irwin Home Equity

888.524.7946

Irwin Home Equity

888.524.7946

NICHE REPORTS

NOO to 90% @ 625 Cr-SISA to 90% @ 625 Cr-80% NOO to 620 Cr/4 units-No Seasoning of Funds <$15,ooo

More info @ www.nonprimewholesale.com-ID/PW to GPS Pricing / emial [email protected] Packet on Rates Page www.nonprimewholesale.com

Full Doc and Stated income commercial loans. 3% YSP +2 points paid to brokers

90% NOO Full Doc, 90% NOO SIVA , Non-WarrantableCondo’s Allowed

Jumbo – Super Jumbo, Full Doc, SIVA, DTI up to 50%Industry leading rates, Work Visa’s accepted

3/1, 5/1, 7/1, and 10/1 LIBOR ARMs; 15- and 30-year Fixed; 10-year I/O period available for ARMs and 30-year. Temporary buydowns and long-term locks also available.

Full Doc up to 97% LTV with a minimum 680 Decision Credit Score (DCS); Stated Income up to 95% LTV with a minimum 660 DCS; No Ratio up to 95% with a minimum 700 DCS; DTI as high as 55%; NINA doc type also available

100% LTV First Mortgage with no PMI, Full Doc, Cash Back up to $200K

Combo programs; 100% First with 125% Second for complete fi nancing with no PMI, Full Doc, Cash Back up to $100K


41

ADVERTISE YOUR ALT–A NICHE HERE WITHIN

TheNicheReport.com

42 November 2007

NICHE REPORTS

COMMERCIAL


AcuPen Financial

305.299.7197

Commercial Loan Capital

800.979.4470


800.979.4470

Equitable Commercial Lender, Inc

213.249.9113 or 626.296.0120

Fairview Commercial Lending

866.634.1270

First Deposit Capital

866.484.7555


800.710.6762

Indymac Bank

866.908.3279

Indymac Bank

866.908.3279

Ocean Capital

877.337.3757

Metro Funding Corp

866.302.6360

Strongtower Financial Inc.

800.333.9893 ext. 111

High LTVs, and low debt coverage ratio requirements

Loans to $8 million on Multifamily and Commercial Properties, Loans to $5 million on Hospitality

Full Doc and Stated Income/Stated Asset Programs

Nationwide Wholesale Commercial Lender. Stated Income, Full Doc & SBA programs available. Loan amounts from $100k - 5 Million. Easy Broker Approval Process

No minimum credit score, foreclosure bailouts, Quick Closings nationwide, commitments in 24 hours

Nation wide lender, Stated program, No tax returns needed, Full Doc &SBA & Conduit programs

YSP Commercial Loans, Full doc and Stated income. Earn up to 3% YSP + 2 points.

Loan amounts to $5 million; 3-, 5-, 7, and 10-year Hybrid ARMs (30-year fully amortized with Interest Only option)

Multi-family and Commercial property eligible; 3-, 5-, 7, and 10-year Hybrid ARMs (30-year Interest Only option)

We’re the real deal for subprime owner-occupied commercial mortgages to $2M. Credit scores to 500. Up to 90% fi nancing. Low debt-service coverage. Stated & investment programs. Diffi cult-to-fi nance industries welcome

Fast closing, no points upfront, all commercial properties including land, acquisitions, refi s, and development loans

Loans for churches, nonprofi ts, schools and assisted living centers – bond, bridge and permanent loans for purchase, refi nance and remodel/renovation.

HARDMONEY

NICHE REPORTS


43

Anglo–American Financial

434.981.1017

Anglo–American Financial

512.657.9310

BlueWater Funding, LLC

301.656.6566

BlueWater Funding, LLC

301.656.6566


800.979.4470

Commercial Lending, LLC

800.755.7310 ext. 201

Equity Funding

206.226.5548

Fairview Commercial Lending

866.634.1270

First Mount Vernon

866.908.FMV1 (3681)

First Mount Vernon

866.908.FMV1 (3681)

Metro Funding Corp

866.302.6360

Miner Capital Funding, LLC

702.466.8952

DIP (Debtor in Possession) Financing, Loans from $1M up to $200M, Nationwide

Fast, fl exible, full range of real estate collateral accepted, nationwide and international

Direct Lender, 65% Loan-To-Value, No prepayment penalty, Brokers Protected , Lending throughout the Mid Atlantic Region

Apply online www.bluewaterfundingllc.com,Immediate response, Closing in 7 days, Loan amounts up to 2 million

Hard Money on Commercial Properties with no prepayment penalties

Direct Lender of Non O/O, Equity-Based, No Prepayment, No minimum credit score, Rehab, Fix & Flip, Construction, Land, Up to 70% LTV, No Payment Programs, Online Broker Portal

Commercial Equity Loans, Direct Lender, Low docs, fast evaluation

No minimum credit score, foreclosure bailouts, Quick Closings nationwide, commitments in 24 hours

No seasoning requirements, No upfront commitment or processing fees, Minimum credit score 400

Minimal documentation required, Combined Loan-to-Values to 105%

Fast closing, no points upfront, all commercial properties including land, acquisitions, refi s, and development loans

Specializing in collateral-based real estate loans nationwide. We get deals done!! As fast as 4 days! Loan amounts 1 million to 20 million

TheNicheReport.com

44 November 2007

NICHE REPORTS

CONSTRUCTION

Bismark Mortgage

800.350.7199 ext. 103

Commercial Lending, LLC

800.755.7310 ext. 201

Imperial Capital Bank

888.886.3580

Indymac Bank

866.913.3863

Indymac Bank

866.913.3863

Normandy

585.256.2600

Normandy

585.256.2600

Strongtower Financial Inc.

800.333.9893 ext. 111

Unique programs for new construction fi nancing on SFR (1-4 units) and Modular Homes

Equity Based, No Prepayment, No Minumum Credit Score, 6 month and 12 month programs, No pay and interest only pay programs, Up to 70% LTV, Online Broker Portal

Loan amounts up to $10 Mil, 80% LTC & 75% Stabilized value. Term up to 30 months. Negotiable fee based on LTC and tenor. Common sense underwriting with uncommon fl exibility

Purchase and Refi nance Lot Loans to $1,000,000; Interest Only owner-occupied lot available; Full Doc and Stated Income

Construction-to-Permanent (CTP) Loans up to $5,000,000, Owner-builder program; 24/7 Online Draw Requests; Full Doc and Stated Income; dedicated construction support

Construction to Permanent, Self Build, Spec, Pre-Sold, Custom Build, Multi-Family Construction and Lot Loans for owner and non-owner occupied properties, Creative fi nancing using additional collateral is also available

Commercial construction programs for properties that include but are not limited to offi ce space, restaurants, gas stations and small strip plaza’s

New construction and renovation loans for churches, nonprofi ts, schools and assisted living centers.


ADVERTISE YOUR CONSTRUCTION NICHE HERE WITHIN

TheNicheReport.com

LENDER & RESOURCE DIRECTORY

45

ACUPEN FINANCIAL, LLCThe Premier One-Stop Commerical Mortgage HUBwww.acupenfi nancial.com

ANGLO-AMERICAN FINANCIAL www.anglofi nancial.com675 Berkmar Court Charlottesville, VA 22901 Gardy Bloemers: 434.981.1017 [e] gardybloemers@anglofi nancial.com Tom Finnegan: 512.657.9310 [e] tomfi [email protected]

APPRAISERLOFTwww.appraiserloft.com[phone] 877.229.7799 [fax] 877.797.0280

ASCENT HOME LOANS, INC.www.ascenthomeloans.com6465 S. Greenwood Plaza Blvd.Englewood, CO 80111[phone] 866.467.3157 ext. 2605

BISMARK MORTGAGEwww.bismarkmortgage.com[phone] 800.350.7199 ext. 103

BLUEWATER FUNDING, LLC www.bluewaterfundingllc.com4925 St. Elmo AvenueBethesda, Maryland 20814[phone] 301.656.6566 [fax] 240.766.0609[e] [email protected]

THEBOARDNETWORK.COM www.mortgageboard.comwww.titleboard.comwww.bankingboard.comwww.creditunionboard.comwww.escrowboard.com101 Continental Blvd. 16 Floor, Suite 1657[phone] 866.452.8800 [fax] 866.452.8799Contact: Julie Messina or Jodie Messina[e] [email protected]

CMG MORTGAGEwww.homeownershipaccelerator.com[phone] 800.501.2001 ext. 3043

COMMERCIAL LENDING, LLCwww.commericallendingllc.com7603 Maple Branch RoadClifton, VA 20124[phone] 800.755.7310 ext. 201[fax] 703.852.7933Contact: Will Lansing[e] [email protected]

COMMERCIAL LOAN CAPITALwww.clcloans.net868 West Street Road #401[phone] 610.272.3553[fax] 206.350.5900Contact: Carl Shorley[e] [email protected]

DIRECT MARKETING ASSOCIATESwww.dmaleads.com5215 NW 33rd AvenueFt. Lauderdale, FL 33309[phone] 561.807.6909[fax] 877.984.9401Contact: Shanna Glatz[e] [email protected]

DKS SETTLEMENT GROUP, LLCwww.dkstitle.com15852 Montview Dr.Montclair, VA 22052[phone] 703.730.9737[fax] 703.656.4915Contact: Shanna Glatz

DOUBLE POSITIVE MARKETINGwww.doublepositive.comCorporate HeadquartersTide Point - Cascade Building1030 Hull St. Ste 300Baltimore MD 21230[phone] 888.DPOSITIVE (888.376.7484)[fax] 410.332.1059

EQUITABLE COMMERCIAL LENDER, INC3250 Wilshire Blvd Suite 1001 Los Angeles, CA 90010[phone] 213.249.9113[fax] 213.249.9116

EQUITY FUNDINGwww.equity-funding.com2101 Fourth Avenue, Suite 1300 Seattle, WA 98121[phone] 866.332.3863

FAIRVIEW COMMERCIAL LENDINGwww.fairviewcommerciallending.com1932 North Druid Hills Road Suite 250Atlanta, GA 30319[phone] 866.634.1270[fax] 404.634.0319

FANNIE MAEwww.efanniemae.com

FIRST DEPOSIT CAPITALwww.fi rstdepositcapital.com484 South Mobil #25Camarillo, CA 93010[phone] 866.484.7555[fax] 805.456.7701[e] newaccounts@fi rstdepositcapital.com

FIRST FINANCIAL MORTGAGE SERVICE, LLCwww.ffmloans.com[phone] 703.989.2293[fax] 703.991.2362[e] [email protected]

FIRST MOUNT VERNON I.L.A.www.FMV1.com6019 Tower CourtAlexandria, VA 22304[phone] 703.823.6800[fax] 703.997.2499

continued on next page

GATEWAY MORTGAGE GROUPwww.nonprimewholesale.com3820 Laurel LaneBedford, Texas 76021[e] [email protected]: Jerry Lair [phone] 972.365.4090[fax] 918.392.8364

GRIFFIN CAPITAL FUNDINGwww.ysploans.com1135 Heatherstone Dr. Suite 102Fredericksburg, VA 22407Contact: Mike Brewer [e] [email protected][phone] 540.548.1001 ext. 105[fax] 540.548.1117

GUARANTEED RATE, INC.www.griwholesale.com3940 N. Ravenswood Chicago, IL 60613Contact: Tim Dooley [e] [email protected][phone] 877.377.4067[fax] 877.377.4970

INDYMAC BANKwww.indymacb2b.com3465 East Foothill BoulevardPasadena, CA 91107[phone] 866.419.4639

IRWIN HOME EQUITYwww.ihepartners.com12677 Alcosta Blvd., Suite 500[e] [email protected][phone] 888.524.7946

LOANBRIGHT.COMwww.loanbright.com[e] [email protected][phone] 888.330.3330[fax] 303.265.9683

METRO FUNDING CORPwww.metrofundingcorp.comOne Kalisa Way, Suite 310Paramus, NJ 07652Contact: Jennifer Smith[e] [email protected][phone] 866.302.6360[fax] 201.262.6910

MINER CAPITAL FUNDING, LLC www.minercapitalfunding.com144 Winchester PlaceFairview Heights, IL 62208[e] [email protected][phone] 702.466.8952[fax] 314.667.3092

NORMANDYwww.normandy.comContact: Rodney Buchbinder[phone] 585.256.2600[fax] 585.256.2836

OCEAN CAPITALwww.oceancapitalonline.com2 Altieri WayWarwick, RI 02886[e] [email protected][phone] 877.337.3757[fax] 401.739.9711

OSI EXPRESSwww.openhousefl yers.comOrange County, CA[phone] 866.674.1999 or 714.748.4199[fax] 714.748.4192

PLUMBLINE STUDIOS, INC.www.plumbline.com830 School Street, Suite 12Napa, CA 94559

[phone] 888.282.1248 [direct] 707.251.9884

PRO SOURCE MORTGAGE MARKETINGwww.prosourcemm.com[phone] 503.624.4841[cell] 350.606.8404[toll free] 866.761.7767[fax] 503.684.2900[e] [email protected]

STRONGTOWER FINANCIAL INC.www.strongtowerfi nancial.com7120 North Whitney Avenue, Suite 105Fresno, CA 93720[phone] 800.333.9893 ext. 111[fax] 973.695.9381

TRIBECA LENDING CORP.www.tribeca-wholesale.com[phone] 888.285.2536 (888.2.tlc.lend)

TROIKA MARKETINGwww.mynfcredit.com[phone] 404.949.9598[fax] 404.949.9450

WEBB INSURANCE AGENCYwww.farmersagent.com/pwebbContact: Pete Webb[phone] 703.753.5526

LENDER & RESOURCE DIRECTORY CONT.

46 November 2007

Has your company closed their doors?

Are you an experienced Loan Officer with a built-up referral network?

Do you check the ten year bond every hour to see if you can make a .125 more in spread?

Do you have to charge a minimum or give a minimum portion of the gross commission up front before

you get your split?

If you answered YES to any of these questions, then NOW is the time to find a homeworthy of your efforts. We pay the best and expect the best. There is no complex splitto make you lose sight of what belongs to you – your commission.

• Hiring experienced loan officers

• The best loan processors in the industry

• Solid lender relationships to get your loans closed

• Licensed in VA and MD

Call 703.989.2293 or fax resume to 703.991.2362

HIRING LOAN OFFICERS

"TheNicheReport currently serves real estate fi nance professionals licensed in Virginia, Maryland, and Washington DC."

PRSRT STDUS POSTAGE PAID

FULTON, MO PERMIT # 38

november 2007

Documents

commercial pg

n d s o

construction pg

alta pg

nonprime pg

hard money pg

lot harder

lot smarter