What Does It Take to be an LO By Meredith

What Does It Take to be an LO? By Meredith Wilson, Past President, Indiana Mortgage Bankers Association and Vice President /National Credit Operations Manager, 1st Mortgage Bank One, N.A. Loan originators are our vital link to the interest-paying customer, our marketing gurus in developing pipelines for application referral volume, our source for setting the proper customer expectations for documentation/ costs/time frames, and our first line of defense against fraud. The loans they originate are the source of employment for all of the rest of us in the business. We expect them to know loan product parameters; loan pricing; documentation requirements; income calculations from tax returns and pay stubs; compliance requirements for such regulations as RESPA/ECOA/Truth-in-Lending, FHA, and VA; special investor requirements; sales skills; and time management. Loan originators come in assorted sizes and shapes, have the energy of marathon runners, the resourcefulness of James Bond, and the tenacity of bulldogs. They can be found everywhere in the pursuit of new loans—on top of, underneath, inside of, climbing over, or jumping to. Sales Managers love them, underwriters are amazed at the deals they find, competitors tolerate them, and heaven protects them. No one else can cram more into a pocket than an LO—four loan applications, three GFEs and TILs, two VOEs, a bank statement, 185 business cards, a Palm Pilot, three pens, a candy bar, and a half-empty bottle of Alka Seltzer. Above all, the key to an LO’s long-term survival and success in the mortgage business is the ability to serve four masters—all at the same time! If you ask LOs who they MUST serve, they will probably tell you “the customer, of course,” meaning the borrower. BUT, they must also meet the requirements of three other masters—the secondary market that is putting up the money to lend, their employer/company code of ethics and quality mandate, and the demands of regulatory compliance. Since each of the four masters have requirements that conflict with the other three (for example, the borrower wants the lowest rate/ fees/documentation while the secondary market wants the opposite), the LO must possess the maturity to be able to satisfy the requirements of all four masters at the same time. THAT is a professional LO! Ye Olde Editor, Meredith Wilson Reprinted with permission. New Hampshire Escrow Account Interest Rate Bank Commissioner Peter C. Hildreth has, pursuant to NH RSA 384:16-e, I, announced the minimum interest rate payable by law on moneys deposited in escrow accounts for the payment of taxes and/or insurance premiums Inside this issue: related to loans on real estate mortgages. January 2003 Economic Outlook Effective February 1, 2003, until August 1, 2003, the minimum real estate escrow interest rate is 0.32%. MBBA-NH Welcomes New Members Course I has Record Attendance H. S. Seniors Sought for Scholarship Mortgage Personnel Invited to Gathering Annual Joint Mortgage Conference Program Schedule 3002 YRAUNAJ .cnI ,erihspmaH weN fo noitaicossA srekorB dna sreknaB egagtroM fo noitacilbuP A HN-ABBM 2 2 3 3 3 4 4 January 2003 Economic Outlook Expected Ranges for Outlook Projections By Frank E. Nothaft, Chief Economist, Freddie Mac • Our estimate of real GDP growth is in the middle of the range of growth projected by other economic forecasters. Consumer confidence continues to erode with talk of war, corporate layoffs and uncertain economic recovery and lackluster holiday sales put a drag on fourth quarter performance but leading indicators are showing signs of life. Interest rates are highly volatile due to uncertainty about the economy, the potential for war and the nervous behavior of investors. Estimates of financial market measures like mortgage originations and, tangentially, real estate market indicators like home sales and home prices, are very sensitive to interest rates. Interest rates could go as high 6.5 percent rapidly or fall once again below 6 percent, however, we do not anticipate that they will linger in either range for long. Relatively tame inflation expectations will keep rates low in the absence of war. • House prices have been growing at consecutively slower rates for six quarters now, and we anticipate that the trend will continue on a national level. However, we have started to see increasing volatility across the Census Divisions and across states. Our forecasting model indicates further slowing in the growth of home values, but growth rates (nationally) should stay ahead of the overall rate of inflation by 2 to 3 percentage points in 2003. • MBBA-NH Welcomes New Members Mortgage Broker Members Bauer Mortgage Group, LLC 36 Country Club Road, Suite 822 Gilford, NH 03246 Steve Bauer Member/Manager Phone: (603) 528-3737 Fax: (603) 528-3535 steve@bauermortgage.com Best Mortgage Company, Inc. 120 West Broadway Derry, NH 03038 Ralph Valentine President Phone: (603) 434-9700 Fax: (603) 434-9184 rvalentine@bestmort.com MortgageMade4You. com 75 Witham Road Belmont, NH 03220 Dieuw Thonet President Phone: (603) 524-1958 Fax: (603) 524-9344 mortgagemade4you@aol.com Renaissance Mortgage Corp. 22 Stiles Road, Suite 103 Salem, NH 03079 John Dahlinger President Phone: (603) 893-4100 Fax: (603) 898-4566 rdahlinger@rmcmortgage.com Capital Quest Financial Services, Inc. 957 Union Avenue Laconia, NH 03246 Sean McGuire President Phone: (603) 528-3796 Fax: (603) 524-9188 cqfs@aol.com Affiliate Members Hubbard & Quinn Settlement Services, Inc. 1750 Elm Street, Suite 604 Manchester, NH 03104 Kristin Prince Closing – Marketing Phone: (603) 673-7171 Fax: (603) 672-2029 kprince@hubbardandquinn.com 2 egaP Record Number of Students Enrolled in the Fall Session of Course I Last fall, for nine consecutive Wednesdays, beginning on September 18 through November 13, 2002, Course I: An Introduction to Residential Mortgage Lending took place at Hesser College in Manchester, New Hampshire. We are pleased to report that the course surpassed all previous attendance records with 36 full-time students. The course instructors are experienced professionals in the residential mortgage lending field and volunteer their time to teach the students. We gratefully acknowledge and thank our dedicated instructors for their time and expertise: Andrea Carr, Marketing Rep., Credit Bureau Services of NH Mark Chalifour, Vice President, Merrimack Title Co., Inc. Donna Howard, Senior Mortgage Officer, Beacon Mortgage Co. Bonnie Leclerc, Vice President, Franklin Savings Bank Mary Ellen MacInnis, Regional Manager, United Guaranty Melissa A. Mansfield, Processing/Junior U/W, Franklin Savings Bank William F. Murphy, Account Manager, GE Mortgage Insurance P. Ben Niles, Account Manager, Freddie Mac Pamela J. Ordway, Vice President, Merrimack County Savings Bank Laura J. Patten, Assistant Vice President, Citizens Mortgage Corp. Attorney Anna Roulston, Sweeney Closing Services, LLC Michael B. Sherlock, Owner, Sherlock Appraisal Associates Genie Smith, Branch Manager, Chase Manhattan Mortgage Corp. Course I is perfect for people with less than two years of experience in residential mortgage lending. It introduces students to a variety of topics and activities associated with mortgage lending in order to expand their understanding of the complexity of the industry. Students can earn two college credits from Hesser College and receive a certificate of completion from MBBA-NH, after passing a final, take home exam, at the end of the course. The registration form for the spring session of Course I has already been mailed. The course will meet for nine consecutive Wednesdays, beginning on February 26 through April 23, 2003, at Hesser in Manchester, New Hampshire. Registration deadline for the nineweek course is Wednesday, February 19, 2003, and for individual classes, the Wednesday before the appropriate class. Contact MBBA-NH for more information. High School Seniors Sought for College Scholarship MBBA-NH is offering a scholarship to members and their employees, children, and family members who are senior high school students. Factors considered are official transcripts, SAT or ACT scores, financial need, community involvement, acceptance to a post-secondary institution, and evidence of leadership abilities. Last year, two senior high school students received scholarships. Contact the MBBA-NH office (603-226-4486) for more information or a scholarship application. All Mortgage Personnel Invited to Informal Gathering A regular gathering of all mortgage personnel will be taking place on Thursday, February 13, 2003, after 5:00 p.m. for dinner at Ruby Tuesday’s in Manchester at the Mall of New Hampshire. For more information, contact Bj Cirnigliaro, Radian Guaranty, (800) 4330188, Ext. 3033. 3 egaP PRSRT STD U.S. POSTAGE PAID CONCORD, NH PERMIT New Hampshire Bankers Association and Mortgage Bankers and Brokers Association of New Hampshire Co-sponsored with the Vermont and Maine Bankers Associations and Mortgage Bankers Associations of Maine and Vermont February 5 and 6, 2003 Sheraton Portsmouth Harborside Hotel Portsmouth, New Hampshire COST: $125 per person/member The topics are hot, the speakers are knowledgeable, and what better time is there to learn more about the mortgage industry while networking with mortgage professionals from Maine, New Hampshire, and Vermont? February 5 and 6, 2003 – Joint Mortgage Conference at the Sheraton Harborside Hotel, Portsmouth, New Hampshire. February 26, 2003 – April 23, 2003 – Course I: An Introduction to Residential Mortgage Lending meets on nine consecutive Wednesdays from 2:00 p.m. to 5:00 p.m. at Hesser College, Manchester, New Hampshire. .CNI ,ERIHSPMAH WEN FO NOITAICOSSA SREKORB DNA SREKNAB EGAGTROM ANNUAL JOINT MORTGAGE CONFERENCE Meet the Vendors Reception: Wednesday, February 5, 2003, from 5:00 p.m. to 7:00 p.m. with appetizers, beverages, and raffles. Full-day Program: Thursday, February 6, 2003, from 8:30 a.m. to 3:15 p.m. Topics include: State Legislative Update, Washington Economic Outlook, RESPA Reform, Update on New Hampshire’s Document Formatting Standards, Interest Rate Environment and Its Effect on the Housing Market, Get Ahead and Stay Ahead? Key Sales Strategies for a Changing Market, and FISH! Philosophy (Catch the Energy). To register or for information on becoming an exhibitor and sponsor, please contact Sandy Stanton at the New Hampshire Bankers Association, (603) 224-5373. FO NOITACILBUP A #1551 gro.hn-abbm.www :etis beW gro.hn-abbm@ofni :liamE 5885-622-306 :xaF 6844-622-306 :enohP 10330 HN ,drocnoC 101 etiuS teertS etatS htroN 19 Program Schedule March 26, 2003 – DU/LP seminar at the Manchester Country Club, Bedford, New Hampshire. April 26, 2003 – Rebuilding Together (formerly Christmas in April) helps a senior citizen or disabled person fix up his/her house for oneday. Make a big difference in a person’s life, contact MBBA-NH to sign up for one-day as a volunteer!