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 http://www.nmlsconsumeraccess.org/ . Registered 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. 770-279-0222 www.southeastmortgage.com
Southeast
Mortgage has re-aligned its methodology to adapt to industry
changes and capitalize on critical paths and learning identified through
objective analysis.The result is a highly
accurate efficient decision and verification process that expedites a file to the
closing queue.
“I am a
Georgia Tech grad, so I am an engineer at heart that also understands finance,
sales theory, and production management.The enhancements for 2016 are simply amazing.Our MLOs will have a competitive advantage to
leverage organic growth from our client’s life cycle and win more Builder and
Realtor relationships through smarter underwriting and fantastic
communication.2016 will be a year to
remember”Cal Haupt, Chairman and CEO.
Would you get mortgage advice from a disc jockey with a nice conference room?Can you tell the difference?
Mortgages are an important Consumer Product and meeting educational
certifications along with passing the national NMLS with state content exam is
the safeguard a consumer deserves supported by laws passed by your government.
With 80% of the pre 2009
mortgage service providers out of the mortgage industry, the value of a
Mortgage Loan Originator’s, MLO’s, career is at an all-time high and its
continuation depends on choices made today.
As the yield curve begins to
hold trend in a northerly direction, our industry is entering a phase of the
recovery cycle similar to the 2001 – 2005 surge without the unsustainable high
risk products. The products that will be
sold are primarily QRM or “Standard Loans” provided by the GSEs, “Fannie,
Freddie & Ginnie (Conforming, FHA, & VA)”.MLOs will need to be close to the source of
these products which is the Seller / Servicers approved by these entities.As you move away from the GSE source as a
correspondent, local bank registered MLO, or broker; service, accessibility,
and pricing suffer.Do you get a better price buying an apple direct from an apple farmer
or Publix?Same concept and principle in the mortgage
industry and both are commodities.
The mortgage service providers
in this cycle will primarily be two types:
ØBanks that employ Registered Mortgage Originators and cannot sponsor a Licensed Mortgage Originator
AND
ØNon-Bank Mortgage Lenders that employ only Licensed Mortgage
Originators.Non-Bank participants can be a broker, correspondent, or
a vertically integrated GSE Seller / Servicer.All specialize in mortgage products and employ Licensed Mortgage
Originators according to the S.A.F.E. Act, Dodd Frank Act and State banking
agency requirements.
MLOs in our industry have to
make choices today to secure their career as our industry evolves.As everyone knows, if anything is certain its
change in the Mortgage Industry.
Understanding the truth about earning
a higher certification as a Licensed Mortgage Originator versus being a
Registered Bank Mortgage Originator is critical to a good choice.Avoid the fear tactics and miscommunication
and focus on the facts that dispel the myths.
The Truth
·Based on prior
history of other products requiring a license to sell, regulators will require
banks to license all Registered Loan Originators.Banks have similar experience with Mutual
Fund Sales (Series 6/63) and Consumer Loan Insurance.Both had a period of adjustment and both eventually
required all sales people selling the products to be licensed by FINRA
(formerly the NASD) and the Insurance Commissioner respectively.Neither of those caused a recession,
Mortgages did?Either through reserves
or direct intervention, Banks will license all MLOs at some point.
·Non-Bank Mortgage
Lender’s like Southeast Mortgage (SEM), have higher mortgage certifications
than many Banks.
·Get licensed today
and remove uncertainty before time runs out.It will.
·Non-Bank Mortgage
Companies pay MLOs more than Banks.Same
work why not receive higher pay?Why?
Because registered originators allow it and inertia has them.
·Since Non-Bank
Mortgage Companies specialize in one product, service is superior and faster.
·Name your
shareholders at a Bank?Are you a member
of the LLC?Do you really know who you work
for?Build a career and trust your
shareholders and hopefully they work alongside you.
Dispel the Myths
·Don’t succumb to
fear tactics.Becoming a Licensed
Mortgage Originator is a straight forward process.Would you buy stock from an unlicensed stock
broker?Would you seek retirement advice
from a Disc Jockey that appears to talk the talk?Your family deserves the certainty of
licensing as set forth by Congress.
·Don’t talk yourself
into believing Bank comparable training is the same thing as studying and
passing the national NMLS with state content exam.Ask any Bank Registered MLO that has passed
the test if there is a difference.
·The Georgia Department
of Banking and Finance is very cooperative and will discuss issues to help you
through the process.They respond
promptly and will answer your questions.It is important to follow the rules during the licensing process.
·For Realtors and
Builder’s service and speed matters.
·If you have a
license, you will welcome change.If you
are unable to be licensed, you know the deficiencies and can make a plan to
correct them before it’s too late.
Becoming a Licensed Mortgage
Originator removes the inherent risk of Banks switching to employing only licensed
MLOs.Protect your career and your family’s
income by earning your MLO License and enjoy the next 5 years without concern.
www.southeastmortgage.com Southeast Mortgage of Georgia, Inc. 3496 Club Drive, Lawrenceville, Georgia 30044 Phone: (770) 279-0222 Georgia Residental Mortgage Licensee #6578 NMLS #103956
Mortgage
Loan Rates are a commodity set by the market.
Mortgage Rates,
Economy, Home Prices, and Labor Market are all relative.Rarely is there a dislocation in the
relativity that provides a true benefit.
ØWhen rates are low, the economy is generally
struggling, employment is low, and home prices are depressed.
ØWhen rates are higher or increasing, the economy is strong,
employment and wages are high, and home prices are rising. As a result, consumers always get the relative best rate based on surrounding fundamentals that set the current mortgage rate.
Choosing
a mortgage loan based on fit and suitability is the most important decision a
consumer can make.
Every Consumer deserves an interview
with a Licensed Mortgage Originator to ensure their needs are met with the most
appropriate mortgage product.
ØRates are relative and if someone offers a lower
than market rate – something else is compensating for the concession.Buyer Beware.
True value to a Consumer is a function of Lender Type and Overhead Cost.
Many consumers see a headline rate and do not
look at the details.Work with a Lender
that has the highest certifications thus you get the best access to markets without the additional cost. Southeast Mortgage is type 1 - Direct with Broker Dealer Capability.
Hierarchy of Mortgage Lender Certifications
from Highest to Lowest
1.Direct with Broker Dealer Capability (This is Southeast Mortgage's Class) a.Lowest cost of all b.Same as direct with potential cost reductions
from trade operations c. Best Product Availability and best rates for MLOs and Clients 2.Direct Fannie, Freddie, and FHA “Ginnie” Lender a.Lower cost due to access to GSEs and no middle
men b.Relative rates and cost due to proximity to
primary market c. Good Product Availability and rates for MLOs and Clients 3.Correspondent a.Moderate Cost b.Lower cost than a Broker with some rate
flexibility based on delivery c.Works on behalf of another Direct Lender d. Limited Product Availability, higher rates for MLOs and Clients 4.Broker a.Highest cost of all b.Middle person between Consumer and a Direct
Lender and or Correspondent c. Very Limited Product Availability, higher rates for MLOs and Clients
A Registered Mortgage Loan Originator (Employed by State and Federal Banks) has not passed the NMLS test set
forth by the government to protect consumers.All banks employ Registered Mortgage Loan Originators under their
federal exemption.
Would you buy stocks and mutual funds from an unlicensed sales person?Consumers deserve the protection a Licensed
Loan Originator provides.
