Gwinnett Business Radio - J.D. Crowe with Southeast Mortgage and Jim Clark with The APocket Company

10-9-2014 J.D. Crowe

 
















Click Link to Listen to the conversation
  http://gwinnettbusinessradio.businessradiox.com/2014/10/09/southeast-mortgage/

"Get Involved"

Mo did a fantastic job engaging all to support MBAG’s government affairs and asking all to “get involved” at the Mortgage Bankers Association of Georgia Savannah Chapter monthly meeting.

J.D. Crowe, Mo Thrash, and Cal Haupt

MLOs always filter the noise to a clear path - MLOs want a strong foundation that can weather recessions and grow their referrals

Recently I was meeting with a Mortgage Loan Originator, MLO, candidate from a local competitor and he was impressed with what he saw at our Club Drive Operations Center and the Senior Officers he met.  He looked at me and said "a guy at a competitors barbecue said you were a #$@%*^#".  I simply asked, did he ever meet me.  He said "no".  I told him this is exactly why every MLO should form their own opinion of career alternatives and form it from first hand knowledge.  He signed with Southeast Mortgage the next day along with his very talented Sales Assistant.

Grapevine and malicious statements, slander, not formed from first hand knowledge but fabricated in dark corners and or prefaced by "don't tell anyone I said this" should be put in perspective by MLOs.  In the industry, we all know the negative recruiters and characters that use defamation (usually verbal "slander" and not "libel" written form) due to the legal consequences that could result.  They do this to make themselves or their company appear better or they harbor personal resentment due to some perceived wrong.  People using slander are masking their respect for the company referenced.  When a person uses this tactic be assured the company in focus is strong and tangible weakness is not present.  MLOs should get more interested and interview the targeted company when this occurs.  People only slander companies that matter and present a formidable strength that is capturing market share.  MLO's opportunity to grow their client base, referral sources, and weather the next recession may be based in the noise.  Growing careers and supporting families is the priority.

If you talk to anyone who knows or has worked with me at the banks or at Southeast Mortgage of Georgia, Inc., SEM, they will tell you “Cal is not a politician.  He knows what he is doing, always does what he says, and always gets it done.  Most importantly he always keeps his word and you can trust him”.  The essence of a company generally incorporates its developer’s core beliefs.  The long tenure of my team is a testament to the trust and respect we have in each other.  The TEAM is SEM.

Back in 1993 when SEM began, you never heard about a 8-day close, “the street’s needs”, “MLO friendly”, great support for Realtors and MLOs, etc.  However, all were the basis for the formation and development of SEM processes before they were cool.  We understood in 1993 what clients and Realtors would demand and the facade around products would not last which ultimately was dismantled in 2009 along with many companies selling them.  Due to the financial crisis with its epicenter in the Mortgage industry, 80% of mortgage companies in Georgia closed their doors.  What we have today are companies formed less than 6 years ago and some less than that.  Most have operations in other states supporting a multi-state foot print. 

 

The 8-day close used to be a 7-day close at SEM prior to the law change in 2009.  Closing fast reduces rate fluctuation risk and reduces client uncertainty and stress. 

The Street’s Needs – Realtors and MLOs want to close more business.  SEM created the first vertically integrated Georgia Mortgage Client Relationship Management, CRM, TEAM which provides added value and visual marketing support to both Realtors and MLOs at no cost to them.  As a result, our CRM TEAM is like having your own marketing team for free and ensures your image stays in front of past clients and Realtors.  Networking Socials at our Max Centers at no cost ensures you connect on a personal level.  Closing fast and approving more deals is a given.

SEM Processing – Our process was developed based on efficiency and MLO need.  Although it is different than most companies who use the same processes, SEM’s process has a 98% pull through and frees up 30% of MLOs time while increasing their earnings by 26%.  This time savings can be applied to your family, hobbies, or generating more business.

Although there are many hard working good people in our industry, when you look around you will find the core beliefs of many stated on websites were part of SEM's DNA since 1993.  SEM created the most productive origination process in the industry by building an operations and origination process designed to close more faster which organically grows Realtor and Client relationships.  This earns our MLOs 26% more than their competition with the same effort.

From 2010 –2013, MLOs flocked to the internal bank refinance opportunity. 

Unfortunately, a 100% refinance strategy never lasts and just like the signs say at the marina “please do not feed the birds”, MLOs that are fed leads forget how to hunt in a normalized market.  In a typical 7 year economic cycle from recession to recovery top, only 2 years on average is related to rate dislocation and the other 71% or 5 years is Realtor or Life Cycle Client dependent. 

Which strategy has the better odds for an MLO?  Yes, Realtor and Repeat Client focus is 3 times as effective as refinance only.  An interesting data point, the current recession started in 2009, it is 2014 or 5 years down the road.  Also note the DOW is at 17,100 which is near an all-time high.  Can you sense the déjà vu?  Recession resistant companies with evolved strategies like SEM should be in the forefront of every MLOs mind considering the demographics of our Georgia MLO population.  Today, MLOs are now flocking from the banks to participate in the purchase recovery which started two years ago.  Recruiters and Company websites all pitch 8-day close, MLO friendly, “the street needs”, etc. 

 



Truck pictured Left - Pinto pictured Right

The only issue is you can put a Truck body on a Ford Pinto; however, it is still a Ford Pinto.  MLOs need to form their own opinion and meet future employers face to face. 

Due to our service focused team and security at Club Drive, seeing what we do requires MLO applicants visit us at Club Drive headquarters.  SEM built a large engine and truck to support our TEAM.  This engine absorbs volume fluctuations and efficiently creates organic referrals from Realtors and past Clients. This consistently great Realtor and Client experience is why we enjoy one of the highest growth rates among our peers and MLOs can have confidence that operations will be ready when their applications surge.  We simply underwrite more effectively, close faster, and support our MLOs with the best Realtor and client awareness programs.  This creates SEM’s organic growth and why we prospered through three recessions to become the largest local Georgia-based, Non-bank Lender.

I talk a lot about a Village, and I truly believe a TEAM is security and in today’s mortgage market every MLO needs a Village to support them.  The Village is proven and why MLOs make 26% more working with our team.  You owe it to yourself to better understand the companies that service the Georgia Mortgage Market.  When you run into that negative recruiter or the "green eyed monster" bashing a company, make a first hand opinion.  No matter who the company is that is being defamed, go visit them face to face and make your own opinion.  

If you are a professional MLO closing 3-4 deals a month and you want to create or grow your current Realtor and Client referrals, you owe it to yourself to hear directly from me why SEM is the most emulated company in Georgia.  I will guarantee confidentiality.  Meet with me for 10 minutes at my Club Drive Office and see first-hand why SEM can close faster.  See "Who we hire".

 

 

Cal Haupt

Chairman and Chief Executive Officer
770-279-0222 (Just ask Admin to locate me and they will transfer you to my cell phone)

Qualified Mortgage (QM) - Lender Responsibility and Definition

Residential Mortgage Lenders primary purpose is to provide consumer loans secured by single family housing to facilitate acquisition for a consumer purpose.  Consumer purpose is housing the primary borrower, co-borrower, and or family.  Residential Mortgage Lenders have due care responsibility to ensure applicants can afford the loan for the term of the loan and it fits the applicants purpose.
 
Commercial Purpose loans secured by residential zoned property (Rental Properties, Industrial, and general purpose) should be handled by a small business lender that is tasked to originate this type of credit facility.
 

IMO: Just because a Residential Non-Qualified Mortgage product is offered for a residential consumer purposes is not a justification for a licensed or registered residential mortgage professional to sell it.  Licensed Mortgage Loan Originators (NMLS and State License Compliant Mortgage Loan Originators) and Registered Bank Mortgage Employees (Bank Employees whose job is to Originate Mortgages and is not Licensed) should be a fiduciary for the consumer and ensure they recommend the right product.  Mortgage product recommendations should only be made after understanding the client's needs through an interview process and ensuring the client can afford the loan today and for the term of the loan.  In the future all Bank and Non-Bank Mortgage Professionals will be licensed to the same standard which will ensure all consumers have consistent protection when shopping for their mortgage.
This trust and due care is the key to referrals and the key to longevity in this business. 
 

In its simplest form, Qualified Mortgages (QM) meet the following requirements:
> A loan that meets the requirements of GSEs, FHA, VA, or USDA and can be sold in the primary secondary market
> Consumer has a documented and verified ability to repay
 

Starting January 10, 2014, you must assess the borrower’s ability to repay all term residential mortgage loans. All QMs are presumed to comply with this requirement. As described below, a loan that meets the product feature requirements can be a QM under any of three main categories:

 

 

Mandatory product feature requirements for all QMs

1. Points and fees must be less than or equal to 3% of the loan amount (amounts less than $100k, higher % thresholds are allowed);
2. No negative amortization, interest-only, or balloon loans that increase risk (BUT NOTE: balloon loans originated until January 10, 2016 that meet the other product features are QMs if originated and held in portfolio by small creditors);
3. Maximum loan term is less than or = 30 years. 

Three main categories (CFPB Definition) 
1. General definition of QMs

Any loan that meets the product feature requirements with a debt-to-income ratio of 43% or less is a QM

2. "GSE-eligible" category of QMs

 

Any loan that meets the product feature requirements and is eligible for purchase, guarantee, or insurance by a GSE, FHA, VA, or USDA is QM regardless of the debt-to-income ratio (this QM category applies for GSE loans as long as the GSEs are in FHFA conservatorship and for federal agency loans until an agency issues its own QM rules, or January 10, 2021, whichever occurs first).

 

3. Small creditor category of QMs  

 

If you have less than $2B in assets and originate 500 or fewer first mortgages per year, loans you make and hold in portfolio are QMs as long as you have considered and verified a borrower’s debt-to-income ratio (though no specific DTI limit applies).

I truly hope our industry learned from the last recession that mortgages are a cornerstone of the US economy.  We make a difference every day and should govern the products we offer consumers with due care at the fore front.  Today we are seeing a similar trend to 2006 - 2009 when the industry evolved product features to target a broader category of borrower to increase origination volume.  I believe there are some products that are needed for borrowers that are not currently participating in today's mortgage market; however, we need to ensure industry risk remains low.   

Cal Haupt
Chairman and CEO
Southeast Mortgage of Georgia, Inc.
770-279-0222
www.southeastmortgage.com

National Mortgage Professional - J.D. Crowe Elected Mortgage Bankers Association of Georgia President

J.D. Crowe Elected Mortgage Bankers Association of Georgia President

Wed, 2014-05-28 11:00 — NationalMortgag...

 

The Mortgage Bankers Association of Georgia (MBAG) board of governors has elected John David Crowe, president of Southeast Mortgage of Georgia, Inc., to serve as 2014-2015 president of the association. The MBAG is a trade association comprised of mortgage lenders, brokers and affiliated industry associates dedicated to the preservation and improvement of the mortgage banking correspondent system. J.D. assumes his role as president on May 17, 2014 and will serve a one-year term.

With more than 15 years experience in the mortgage industry, J.D. Crowe has been actively involved in the MBAG for years and served as first vice president for one term in 2013-2014. He is also two-time past president of the Georgia Association of Mortgage Bankers (GAMB), has served on the GAMB board of directors, the board of directors for the Georgia Real Estate Fraud Prevention and Awareness Coalition, the Georgia Mortgage Brokers Political Action Committee board and has been active in the GAMB legislative committee. J.D.’s involvement has aided these groups in strengthening relationships with state and national officials.

“It’s a great honor to serve as the MBAG President for 2015,” said Crowe. "I am grateful to Greg Shumate for his dedicated service to the association as president this past year and the entire board for offering me the opportunity to make a difference in our industry. Throughout my term I will continue the association’s dedicated efforts to provide value and benefits to our members and the finance industry through continued communication, education and advocacy.”

"The Mortgage Bankers Association of Georgia elected the perfect choice for its next President. J.D. brings a wealth of knowledge to his position drawn from his experience in the broker industry, correspondent industry, and now from a direct non-bank lender's perspective. He is ideally placed to help steer the association as they work with businesses to accelerate growth,” said Cal Haupt, CEO of Southeast Mortgage of Georgia.

JD Crowe, MBAG President, Acceptance Speech 2014

JD Crowe, Mortgage Bankers Association of Georgia President, Acceptance Speech at MBAG Conference in Destin, Florida May 17, 2014

 

 

www.southeastmortgage.com

770-279-0222

JD Crowe - Next President of Mortgage Bankers Association of Georgia

J.D. Crowe

On May 17, 2014 JD Crowe will be installed as the next President of the Mortgage Bankers Association of Georgia, a trade association dedicated to the preservation and improvement of the mortgage banking industry.

JD Crowe is currently the President of Southeast Mortgage of Georgia, Inc. responsible for Licensed Mortgage Loan Originator Sales and Secondary Marketing.

"Mortgage Bankers Association of Georgia elected the perfect choice for their next President.  JD brings a wealth of knowledge to his position drawn from his experience in the Broker Industry, Correspondent Industry, and now from a Direct Non-Bank Lender's perspective.  This broad scope of knowledge will add substantial value to the membership." Cal Haupt, Chief Executive Officer, Southeast Mortgage of Georgia, Inc.

www.southeastmortgage.com

770-279-0222

JD Crowe on Atlanta Business Radio talks about the mortgage industry

http://atlantabusinessradio.businessradiox.com/2014/03/20/southeast-mortgage/

John David “J.D.” Crowe is the president of Southeast Mortgage of Georgia, Inc., a full- service Atlanta mortgage company. J.D. will also serve as president of the Mortgage Bankers Association of Georgia, assuming that position later this year. Crowe joined Southeast Mortgage as senior vice president in 2010.

Crowe is responsible for licensed mortgage originator sales while maintaining the company’s top service standards and capital markets operations. As president of Georgia’s largest non-bank lender, Crowe will continue to deliver exceptional mortgage services to Southeast Mortgage’s clients and referral partners.

www.southeastmortgage.com
770-279-0222

Over Time must be paid to Mortgage Originators - DOL - Time Tracking Required

Historically Mortgage Loan Officers (MLO), Mortgage Processors, Closers, and Sales Assistants positions were classified as exempt (no overtime) under Part 541.200 Administrative exemption. These positions were reclassified as non-exempt (time tracking and payment of overtime required) by the U.S. Department of Labor, DOL. 

Under the current regulations as interpreted by the DOL, all MLO job classifications are non-exempt and their employer is required to track hours worked on a weekly basis and pay overtime. 

With a two year look back on hours worked and Plaintiff attorney fees paid by Employer, the liability can be staggering.  All Employers of MLOs are required and the burden of proof is on the Employer to track MLO hours worked including overtime.  The Plaintiff's Attorney, employee's attorney, can file in Federal Court as a class which includes all current and ex-employees in the settlement unless they opt out.  Employers rarely prevail these cases. 

DOL Determination: Mortgage Loan Officer Job Classification is Non-Exempt

 

Sales activity conducted via internet, email, phone, and fax is no longer incidental to, but is the primary way business is conducted. As a result, all MLO positions are non-exempt.  To satisfy the exempt test, MLOs have to meet with clients at their client’s home at least 80% of their work time.  MLOs will still be able to work both in and out of offices on an at will basis, but will be required to record hours worked on a weekly basis.

Employees who fall under non-exempt classifications are entitled to a guaranteed minimum wage of $7.25 per hour, http://www.dol.gov/whd/minimumwage.htm for every hour worked between 1 and 40 in a work week and are entitled to overtime pay at a rate not less than one and one-half times their regular rates of pay after 40 hours of work in a workweek.  Regular rates of pay are calculated based upon weekly earnings including commissions.  All compensation must be paid on a W2 basis.

 

Under the current regulations as interpreted by the DOL, all Mortgage Loan Officer job classifications are non-exempt and are required to use time tracking systems to report hours worked on a weekly basis.

 

Cal Haupt, CEO, Southeast Mortgage of Georgia, Inc.

 

www.southeastmortgage.com

John David “J.D.” Crowe Promoted to President of Southeast Mortgage of Georgia, Inc.

Southeast Mortgage of Georgia, Inc., SEM, is pleased to announce that John David “J.D.” Crowe has been promoted to President of Southeast Mortgage of Georgia, Inc., SEM, effective January 1, 2014.

JD will be responsible for Licensed Mortgage Originator sales, maintaining SEM’s best in class service standards, and Secondary Operations.  JD will manage the three primary functions required to deliver exceptional mortgage services to our referral partners and clients.

JD is a proven high producing Licensed Mortgage Loan Originator who not only knows how to develop sustained Realtor and referral relationships he also fully understands Direct GSE Lender Operations.  Both skills developed in one individual is rare and a formidable leadership trait in the Mortgage Industry.

JD has owned his own mortgage operation, originated as a broker, originated as a correspondent, originated in a National Bank, and has originated mortgages at a Direct Non-Bank Lender.  JD has experienced all the avenues available to today’s mortgage originators which makes him uniquely qualified to leverage his knowledge of the various channels.

JD has been the Georgia Broker Association President twice with his final tenure responsible for coordinating the merge of the Broker Association with the Georgia Mortgage Bankers Association.  In 2014, JD will be the President of the Georgia Mortgage Bankers Association.

“JD has been a good friend and effective member of our Executive Group for the past 4 years.  He has proven himself as a well-rounded tenacious Executive that can abstractly think and engineer to a desired result.  I am confident as President JD will continue to adapt SEM to serve its Licensed MLOs, Clients, and Referral Partners with innovative strategies to ensure SEM accomplishes its mission to fill the mortgage service provider void in Georgia.”  Cal Haupt, Chief Executive Officer, Southeast Mortgage of Georgia, Inc.

Cal Haupt is the Chief Executive Officer at Southeast Mortgage of Georgia, Inc. with primary responsibility for Organizational Effectiveness, Overall Strategy, Finance / Accounting Oversight, and the long term direction of SEM.

Janice Shell is the Chief Operating Officer at Southeast Mortgage of Georgia, Inc. with primary responsibility for Risk Management and Production.

 

www.southeastmortgage.com

770-279-0222

2014 will be a year of evolution at Southeast Mortgage

Thank you all for the 20 years of great memories and the fulfilling challenge of growing the State's largest Non-bank Lender from one client.

2014 will be a year of evolution at Southeast Mortgage and exciting announcements that give our Mortgage Loan Originators and Referral Partners more resources and a WOW experience.

Left - Beverly Straka Lazar, Cal Haupt, Jan Shell

2014 Senior Officer Group

 

www.southeastmortgage.com

770-279-0222

Mortgage Originator Employers still required to track hours worked and pay overtime

Background:

Historically Mortgage Loan Officers, Mortgage Processors, Closers, and Sales Assistants positions were classified as exempt under Part 541.200 Administrative exemption. These positions were reclassified as non-exempt by the U.S. Department of Labor, DOL. 

Under the current regulations as interpreted by the DOL, all Mortgage Loan Officer job classifications are non-exempt and are required to track hours worked and report hours on a weekly basis. 

Recent Developments:

Mortgage Bankers Association v. Harris - http://scholar.google.com/scholar_case?case=4110371758046837108&hl=en&as_sdt=2&as_vis=1&oi=scholarr :  A federal Court of Appeals vacated an Administrator’s Interpretation issued in 2010 by the DOL Wage and Hour Division, DOL, regarding the non-exempt status of mortgage loan officers.  Not tracking Mortgage Loan Originator, MLO, hours creates a significant liability for employers in the mortgage industry during this debate. 

With a two year look back on hours worked and Plaintiff attorney fees paid by Employer, the liability can be staggering.  All Employers of MLOs are required and the burden of proof is on them to track MLO hours worked including overtime.  There are many lawyers that dedicate their practice to this area of law and seek out MLOs who are not required to track hours worked.  In addition to attorney fees paid by the employer, MLO's can be awarded back wages based on stated hours.  Employers rarely prevail in this type of case. 

This court decision reinstates a prior Opinion Letter issued by the DOL in 2006 that had concluded loan officers in the mortgage banking industry generally may qualify as exempt from overtime under the administrative exemption of the federal Fair Labor Standards Act.  MBA had challenged the contrary 2010 Interpretation because it had been issued by the DOL without first conducting the “notice and comment” rule making process required under the Administrative Procedure Act.

The Appeals Court agreed with the MBA, but took no position on the merits of whether mortgage loan officers may in fact qualify under the administrative exemption to be exempt from the payment of overtime wages. Thus, the DOL may subsequently readopt the 2010 Interpretation after conducting the proper rule making procedures. 

 

In the interim, mortgage industry employers may choose to rely on the 2006 Opinion Letter to potentially escape overtime liability regarding their loan officers at their own peril. 

Southeast Mortgage’s General Counsel opinion on the recent court decision:

After review of the 2006 DOL Administrator's Interpretation and the 2010 Administrator's Interpretation, and the summary of the Court of Appeals ruling, SEM believes there is a very high likelihood that the DOL will reissue the Administrator's Interpretation and follow the proper rule making procedures and then formally adopt the 2010 Interpretation as the prevailing rule on the treatment of MLO's as non-exempt.

The rationale of the 2010 Interpretation is consistent with the views of a Democratic Party appointee, and the rule making process can be completed relatively quickly. SEM does not see a high probability that a different interpretation will be adopted, and there would be an unacceptable risk to revisit treating MLO's as exempt employees. 

 

The rationale used in the 2010 Interpretation has valid reasoning and cites relevant court cases that support the interpretation and the Court of Appeals does not criticize the rationale of the 2010 Interpretation, just the procedure followed in implementing a new rule that overturns a prior, contrary interpretation.

DOL Determination: Mortgage Loan Officer Job Classification

Historically Mortgage Loan Officers, Mortgage Processors, Closers, Specialists and Sales Assistants positions were classified as exempt under Part 541.200 Administrative exemption. These positions were reclassified as non-exempt. 

Mortgage Loan Officer, MLO, sales positions have historically been classified as exempt under the Outside Sales Exemption US Wage & Hour Part 541.500, 541.501 and 541.502.

The outside sales exemption requires that the majority of the employee’s time be spent developing business and meeting face to face with clients and referral partners outside and away from the employer’s place of business. A place of business is an office or an MLOs home office. Due to the convenience of technology today, the majority of the business conducted by MLOs is done via internet, email, phone, and fax. In the past, this activity has been more incidental to an outside sale (face to face appointment with a client) and thus did not present a problem relative to meeting the outside sales exemption under Part 541.  In the present, sales activity conducted via internet, email, phone, and fax is no longer incidental to, but is the primary way business is conducted. As a result, all MLO positions are non-exempt.  To satisfy the exempt test, MLOs have to meet with clients at their client’s home at least 80% of their work time.  MLOs will still be able to work both in and out of offices on an at will basis, but will be required to record hours worked on a weekly basis.

Although the U.S. Department of Labor (DOL) has not issued an official opinion letter specifically regarding the MLO position and the “outside sales exemption,” it did previously issue an opinion in 2006 which concluded that typical loan officers were exempt from Fair Labor Standards Act (FLSA) requirements for overtime payments under the “administrative exemption”. More recently in March of 2010, the DOL reversed the 2006 opinion and stated that the typical loan officer position no longer met the “administrative exemption.”

As of January 12, 2011, The Mortgage Bankers Association (MBA) filed suit against the U.S. Department of Labor (DOL) in the United States District Court for the District of Columbia under the Administrative Procedure Act (APA). The suit seeks to set aside DOL’s Wage and Hour Division Administrator’s Interpretation No. 2010-1 (March 24, 2010) that reversed and withdrew a 2006 opinion letter from DOL to MBA.

Employees who fall under non-exempt classifications are entitled to a guaranteed minimum wage of $7.25 per hour for every hour worked between 1 and 40 in a work week and are entitled to overtime pay at a rate not less than one and one-half times their regular rates of pay after 40 hours of work in a workweek.  Regular rates of pay are calculated based upon weekly earnings including commissions.  All compensation must be paid on a W2 basis.

Under the current regulations as interpreted by the DOL, all Mortgage Loan Officer job classifications are non-exempt and are required to use time tracking systems to report hours worked on a weekly basis.

 

Cal Haupt, President and CEO, Southeast Mortgage

www.southeastmortgage.com
770-279-0222

Why Mortgage Rates Don’t Matter (And Why They Do)

It seems that every day we open our newspapers (or Internet browser) there’s more news of mortgage rates hitting new record lows. In 2011, the record low was 4.45%. Last week, rates dropped to 3.56%. The low rates garner media attention, but they don’t matter to buyers as much as you’d think.

Someone confident in the economy, their own job security, and ready to move into a home of their own is a potential buyer regardless of rates. In the 1990s, the average mortgage rate was 8.2%. It was also the decade of the housing boom. It’s consumer confidence, not rates, that puts buyers into homes.

We can easily look to our history for more evidence that rates don’t make much difference. When rates took a dip in 2011, the media compared it to the low rates of the 1950s and 60s. In the post-WWII economy, pent-up consumer demand fueled economic growth and a housing boom. Mortgage rates in that era averaged from 5.5 to 6%. Low rates weren’t putting people into homes; returning GIs and the baby boom were responsible for the growth in housing.

Even though rates arguably don’t matter to buyers, they should matter more, especially right now. I’ve written in this column before that now is a great time to buy, despite what some naysayers believe. There has never been a time in history when low rates and a still recovering housing market have combined to create the most housing value. Consumers can buy a lot more house for a lot less money over time.

Homeowners with good credit ratings should watch rates as well. Even if there’s no pressing need for you to refinance, with rates as low as they are, it’s a smart financial move. Here’s an example of what homeowners have done, and what you could save: one of our clients purchased a home in May of 2010 with a 5% 30-year fixed interest rate. Say their home cost $200,000. That would mean they’d pay $186,511 in interest over 30 years.

A little over a year later, when rates dropped, the client was able to get a refinance with no closing costs, rolling the initial equity line into the first mortgage and lowering their rate to 4.38%. Eight months after the initial refinance, they were able to refinance again and get a 3.88% rate. A $200,000 home with a 3.88% rate costs $138,777 in interest over 30 years. All told, the client was able to save themselves $47,734.

Unfortunately, consumer confidence remains low. We focus on the fear that comes with buying a home in uncertain times. This is the best time in our history to become a homeowner if you are reasonably confident in your personal economy. The benefits of buying a home in this market should be enough to overcome buyer apprehension.

– J.D. Crowe, Senior Vice President, Southeast Mortgage

JD Crowe - Installed as Secretary / Treasurer - MBAG 2012 / 2013

John David "JD" Crowe, Senior Vice President, Southeast Mortgage

Installed as 2012/2013 Secretary/Treasurer - Mortgage Bankers Association of Georgia in Destin, Florida. JD is also a Member of the Executive Committee for MBAG. His responsibilities will be the budget of the association and for the minutes of the board meetings.

Congratulations JD.