Thursday, July 20, 2017

Chase the Horizon Beyond your Goals

Chase the Horizon Beyond your Goals
> Accomplish what has been un-accomplished
> Go beyond your safety zone
> Get uncomfortable with new experiences
> Be bold before you are too old
> The journey is the reward

Certified and tested by Cal Haupt.

Sunday, July 16, 2017

Headline: Realtors Can Be Registered & Not Licensed

The headline is shocking and luckily fiction today; however,  it is a Hidden Reality in the Mortgage Industry today and most Realtors and Clients do not know.

What if a large Hedge Fund decided to enter the Real Estate Business and found a loophole to only Register Realtors exempt from State licensing.  Imagine they only have to pay Registered Realtors 1/3 what a Licensed Realtors make pocketing the difference.  Registered Realtors are not required to comply with Continuing Education, or State Regulation?

Trades (Realtors, Mortgage Lenders, Attorneys, Appraisers, Etc.) should support and insist on working with State Licensed Professionals who have met State Standards of Education, Credit, and Ethics.  Would you use an unlicensed Architect, Attorney, Doctor, Electrician, Plumber, Teacher, Appraiser, etc.  I certainly would not!

Does anyone ask if their Mortgage Originator is State Licensed?  That should be one of the first questions for a Realtor before referring a client and a client before applying with a Mortgage Originator. Just check if they are licensed at Mortgage Originators do not have a GAR or DBF for client complaint resolution.  Clients and Realtors can only file a complaint with their employer which is a Bank.

Southeast Mortgage works with Licensed Attorneys, Appraisers, and Realtors.  Support the integrity of State Licensing and only work with Licensed Mortgage Originators.  Protect the integrity of the Real Estate Industry and ensure we do not see another 2008-2009.  Everyone knows what and who caused it.


Monday, July 10, 2017

I am Still in Shock? Licenses Matter!

After the 2009 financial Crisis, I assumed everyone understood risky and unsustainable Mortgage Loans were created by Non-Licensed Mortgage Originators which caused the financial disaster that hurt so many families?  There was a reason Congress passed a law requiring Mortgage Originators to be Licensed.  8 years later, the lesson was missed.

Over the weekend, I was working with a Licensed Real Estate Agent, Realtor, to sell a house.  The Realtor I chose knew the market very well and has a proven track record.  I only work with Licensed Real Estate Agents and I always check their license at .  The Realtors I know appreciate people who choose Licensed Real Estate Agents and many have the same view with respect to Mortgage Lending.

Over the weekend, I got an offer on the house with a Bank Originator written into the contract.  I happen to know the Bank Originator given I hired the person into the Banking Industry from the waste disposal industry a long time ago.  The person has a super personality and is likable.  I explained to the Realtor that I did not have confidence in an agreement that was contingent on a Non-Licensed Mortgage Originator handling the buyers loan.  You can find out if a Loan Officer is Licensed by clicking here .  See picture below.  Look for there State license below that will also have a consumer complaint link.  If the are just registered "Not Licensed" there is no State License information nor Consumer Complaint Link.

The Realtor had no idea that there are Non-Licensed Mortgage Originators engaged in the Georgia Mortgage Industry.  I explained it to her this way.  Would you buy your home from a Non-Licensed Real Estate Agent?  She said NO.  My POINT.  Just because someone is likable is not a basis to put a client's home purchase or sale in the hands of someone NOT State Licensed to do it.  They deserve a Mortgage Originator that has passed a competency test and is regulated by the State they are taking mortgage applications.
  • Would you hire a Plumber who is registered with his supplier and not licensed?
  • Would you hire an Electrician who is registered with his supplier and not licensed?
  • Would you trust your health to a Doctor who is registered with a drug supplier rather than licensed?  Should your Doctor be required to pass competency exams?
  • Would you hire a Realtor who is registered with their employer and not licensed?
Bank Mortgage Originators are Registered and do not have State Licenses, they have not passed a standardized competency test, and there is no State Regulatory Complaint Recourse for Consumers.  If a Licensed Real Estate Agent creates an issue for you, you can complain  to (Real Estate Agents State Regulator).  Attorneys have the State BAR.   If you have an issue with a Federally Registered Non-Licensed Bank Mortgage Originator, who do you complain to?  Who regulates them?  Their Employer?  Remember 2009.  

Friday, June 2, 2017

Putting Builder and Realtor Value First

Although 85% of Southeast Mortgage's volume is derived from retail clients, we are very proud of our accomplishment in the New Homes Sales Channel.

"Builders want to work with Southeast Mortgage due to our value added proposition.  We are the best at delivering great predictable service; however, the videos and other media we co-market with our Builders and Realtors simply drives more potential clients to their open houses and subdivisions.  More traffic = more sales.  We believe in adding value to our partner's franchises rather than just taking applications."  Cal Haupt, Chairman and CEO of Southeast Mortgage of Georgia, Inc.

With our extremely high pull through from application to close and accurate reporting to partners, Southeast Mortgage delivers the best overall solution to its partners and is why we are growing rapidly and earning more Builder and Realtor requests to partner.

Friday, May 19, 2017

Fake News is a Path Best Avoided

In my opinion, the truth is always the righteous path to good works.  History has proven that "green eyed monsters" orchestrate stratagems but the smoke always clears uncovering their true intent before it has any tangible effect.

Recruiters probably have one of the toughest occupations in our industry.  They are on the phone all day talking to hundreds of people trying to differentiate one company from the others.  In our business if you exist after 2009, you are probably doing a few things right.

Very few good Originators leave because of a company, they leave to fill a void or a need not being met.  The void could be a breach of trust, health care coverage, pay, an argument, the list is long.  The need not being met by their current company is what recruiters should focus on and like a good originator they just have to uncover the need not being met to close the deal.
Text to an MLO at SEM
The problem with “Fake News” is it eventually makes the person creating it unbelievable and their ability to recruit tougher.  I am sure everyone knows some of the characters in our industry that make outrageous fake statements.  As the target of many “fake statements” over the past 24 years, I learned that “fake statement” purveyors always attack your strengths.

If someone says you are running out of money and you will be out of business next week, you probably bank mid-8 figures in reserves.  If someone says you are a crook, you are probably a trusted fiduciary.  If someone says you are a bully, you probably care deeply about your team’s welfare and protect their livelihood and families from deceptive practices.
History has proven it is always good to be talked about whether good or bad.  If it’s good and truthful the world is working the way it should and good deeds are appreciated, if it’s bad assume the reverse.

I encourage everyone in our small industry to take the high ground and recruit based on need.  Need based selling is more effective with clients and recruits.  It is the righteous sustainable way to effectively accomplish your goals.

Tuesday, May 9, 2017

ART in Mortgage Industy - by Cal Haupt

Have you ever seen an ART Class where all the participants paint a subject from the same perspective and look over at each other to see how others are doing? 

Over the weekend, I was
reminded how important organically adapting a company to the market yields a major advantage and return. 

ART is a diverse range of executive activities creating a tangible expression of the executive’s technical skill intended to be appreciated by the shareholders and community analyst. 

Being able to see the beauty in the Mortgage Industry and its opportunity is a unique skill needed to see a path to incremental success over varying market conditions.  Most in the Mortgage Industry listens to the same paid service view of the market and act upon that data.  As a result, everyone is following the same path and by definition, if you are all doing the same thing an average result is the certain outcome.

The client and secondary market is a zero-sum game.  The client will always get a market rate and the secondary market will hedge and arbitrage that rate to an acceptable return without impact to the client.  How a company functions and the perspective they have of this known universe is what quantifies the rewards.

When I meet someone who follows Southeast Mortgage they always want to quantify us by volume.  I always respond that we track Revenue which is your ability “ART” to convert volume to revenue.  Revenue to Net Income is easy with a grasp on GOGS and Operating Expense.  I have combined 14 companies into Southeast Mortgage over the years and the net margins I observed left a lot of opportunity on the table.  Southeast Mortgage shared a unique perspective with the owners that yielded a significantly greater return for them from the same volume.  Given any volume of production has a theoretical maximum rate of return most only capture ¼ of what is available because that is all they see is available on others canvases.  I call it wasting opportunity.
If I could offer one suggestion to those that participate in the Mortgage Industry, it would be to keep an open mind to a better path.  If you can accomplish your goal 3x faster, don’t discount the opportunity just because the other canvases have the same picture resulting from pack mediocrity and shared expectation.  Traveling the same path always yields the same result.  Take a new educated perspective and create beautiful ART.

Cal Haupt
Chairman and Chief Executive Officer
Southeast Mortgage of Georgia, Inc.