Economic Downturn: Safe Path for Client's and Companies

As everyone is starting to realize, the economy is slowing due to the Federal Reserve tightening (raising rates), Tariff battles, and inflation creeping into our daily lives.  

What should not be a surprise is we are 10+ years past the last recession.  The historical average recovery period is 7 years. 

In the mortgage industry we all basically get money from the same place to lend to clients.  The

competence and service we provide is the differentiator for clients.  Unlicensed Bank Originators and Licensed Non-Bank Originators, spend 6-8 hours working with a client.  The client spends 15 – 30 years with their advice.  Based on the automated underwriting systems (AUS aka LP / DU), the final rate is realized after application.  Clients are better served not to worry about an 1/8  or a 1/4 percent up or down.  Get the best product for your needs and choose a Loan Originator that is licensed by your state and that focuses on need and not rate.  Rate will be what it is based on the verified data in the mortgage application.

Mortgage companies generally compete on the basis of Competence, Service, or Rate.  There is a prudent balance for new home buyers.  Rates are set by secondary markets and the risk / financial dynamics of the company offering them.  Unfortunately many companies are not aware of their risk profile nor the data that impacts their net margins.  I call that driving with a blacked out front windshield and no speedometer.

The relationship between the rate a client gets and the rate prior to risk premium and allocation of costs to close generally has a fixed “spread” or margin.  There is no special in the mortgage rate market.  If you reduce rates past what natural spreads state without cutting costs or lending to higher FICO, LTV, DTI borrowers, there is a consequence down the road.  Most Mortgage Originators do not care; however, their consequence is finding a new employer down the road.

In reality, as the economy slows borrowers have higher interest payments on credit cards, their job may fall prey to downsizing, etc.  As a result, the risk premium required in pricing mortgage loans should go up not down.  Best case, the margin stays the same but the rates will rise proportionately with the market or ignoring sustainable growth will claim its first recessionary mortgage company victim.  366 Mortgage Companies failed https://ml-implode.com/ starting in 2006 (6 years after the recovery) with the capitulation in 2008.  Many of you have some of these companies on your resume.  Learn from their mistakes.

At the end of every economic cycle I see groups of mortgage companies panic and artificially reduce rates to create a short-term increase in volume.  If they did the analysis, they would find this does not change the trajectory of an economic cycle’s impact on mortgage volume.  It’s sort of like flapping your arms while falling off a mountain.  Flapping may make you feel better but gravity has its own plan that you will not alter the outcome.

Cal Haupt, Chairman & CEO

Southeast Mortgage of Georgia, Inc.

Celebrating 25 years

My advice based on my learnings from three successful recession crossings, focus on client need and remember origination volume does not pay the bills.  Revenue and Competence is the safe bridge to cross uncertain waters. 

The product you put your client in is not just another closed loan, it’s the foundation for your client’s family and future.

www.southeastmortgage.com Phone: 770-279-0222

2 or 33 - Put the odds in your favor

If you had to choose a TEAM to compete with that would give you the best chance to win and share in the rewards of success, what is your logical choice.

Choices (Click for Definition)
A.    2   LLC Members
B.         Family Owned Business
C.  33   Shareholders that Share a Common Vision

If it were a basketball game, who would probably win?
If it were a dodge ball game, who would probably win?
If it were a baseball game, who would probably win?
When you have to compete in the Mortgage Industry?

Employee ownership has its benefits.  It is hard to compete with a large team that possesses a diverse skill set that has a passion to be the best.

Can you join the LLC?  NO
Can you join the Family?  NO
If there is no path to ownership or being a part of ownership, what does that say about the value placed on your contribution to the LLC or somebody's family.  Are you really part of the TEAM? 

Choose you, Choose your Family, Choose

www.southeastmortgage.com

If You Don’t Innovate, You Die - Proven Success Requires Innovation to Adapt

Jeff Brown, Senior Vice President at Southeast Mortgage and our lead Builder Relationship Development Officer, sent me this article.  Although Metro Atlanta is the most resilient housing market in the US, the article points out an important and fundamental "Hello" moment that Southeast Mortgage saw 4 years ago.

"All professions have to adapt to the current needs of their clients and partners.  We observed the patterns of our own millennial work force and realized Social Media and Other Practices were critical to driving sales to our partners and creating client awareness for our Licensed Loan Originators, MLO, Team.  Our other observation was organic clients are the key to the growth of a successful mortgage service provider like Southeast Mortgage.  Program oriented pitches to first time buyers that we see from a few seasoned mortgage personalities create unproductive activity and insignificant benefit to any participant.  

Following a client for life strategy supported by a co branded awareness program creates organic growth for our MLOs and Partners instead of the "program oriented pitch with no follow up after close".  Although someone has been successful for 20-30 years in this business, adaptation and the technology is essential to remain relevant and remain successful in the changing mortgage services market we are in.

If you look at the Permit Trend below, you can see a strong building cycle is coming online.  Loan Originators have to embrace the new normal and the "Exposure / Social Presence" Builders and Realtors need to drive their sales.  Simply posting a selfie video was a thing a year or two ago but has now evolved into Professional Movie Quality video presentations that project the image and quality Builders and Realtors need and want.  Southeast Mortgage made the large investment needed years ago to support the innovation required to be best in class for our TEAM.  The view is much better in the front of the pack than from rear."  Cal Haupt, Chairman and CEO, Southeast Mortgage of Georgia, Inc.
www.southeastmortgage.com

Atlanta, the former No. 1 new-home market, remains a barometer for the nation. At 25,000 permits, Atlanta is still the third largest new home market in the U.S., but almost nine years into our “recovery,” we are still 50% below our pre-bubble normal

(Atlanta permit chart). This is in spite of nearly a decade of positive job growth, positive in-migration and population growth. All of MarketNsight’s 18 cities across the Southeast exhibit this trend. Most cities are still anywhere from 30% to 60% below pre-recession levels. Whom are we missing?

Old Normal versus New Normal
In our “Old Normal” before the 2003 to 2006 bubble, first-time buyers and first-move-up buyers made up 60% of all new home sales. In that old normal, people typically bought their

first home at the age of 25, started a family and moved to their second home (first move-up) by the age of 32. Currently, they account for less than 40% of new home sales. Today’s first-time buyer is 33-years-old and getting older! We are missing many of the 25- to 32-year-old buyers who previously accounted for 60% of all new home sales. We call that age group today...millennials. Moreover, we will never achieve our “Old Normal” sales numbers in this country without them.

If You Don’t Innovate, You Die
We can simply look to our retail sector to see the desperate need for innovation. We are witnessing a complete reset in that all-important industry, with some 8,600 brick and mortar locations closing last year[1] and that pace quickening this year. Changes in shopping habits, driven by technology and millennials, have caught many traditional retailers unprepared. We would do well to take note of this in our own industry.

Source:

Welcome to Housing's New Normal - Can we break our 10-year cycle of mediocrity?

By John Hunt

This is The SEM Difference "Great Insight"

www.southeastmortgage.com
770-279-0222

People are meant to work together...

Periodically I see these Ant pictures on social media.  This morning it seemed more meaningful to me in that I saw why SEM always adapts to new regulations and challenges and makes them a permanent strength.  Although SEM employs 160+, we function as a TEAM and together build bridges for others to cross.  We do this as a culture knowing our bridges will be there when a teammate needs one.

During my many years in the Mortgage Industry, I have seen a lot  of solo people who rely on nobody except themselves.  Or they follow flash that attracts more solo players.  A group is not a team until they care about a common goal and share a common belief.  We are all humans and I could not imagine they share that philosophy in their personal life.  We all need people to rely on and know they have our back.  Happy times you need to high five and stressful times you need a sounding board.  That's a team.  That is why SEM's turnover rate is the lowest in the business and many of us have been together 20+ years.

The reason Southeast Mortgage of Georgia, Inc. is one of the very few Mortgage Companies that has survived 3 recessions (profitable in every month since inception) with the same name and ownership is due to our ability to build bridges over any adversary or economic event.  We build strong bridges that survive the test of time.

 

Cal Haupt

Chairman and Chief Executive Officer

Southeast Mortgage of Georgia, Inc.

www.southeastmortgage.com

770-279-0222

Closing times increasing? Check your undercarriage... by Cal Haupt

No matter how big your engine is or how fancy your marketing is you have to have all cylinders firing in the right sequence to get the speed and power with a chassis that can deliver the power to the road.  Operations and mortgage loan file flow is no different.  You have to have the right people working together in a sequence that optimizes speed and accuracy with a foundation that conveys the service to the client.

JD Crowe, President, Southeast Mortgage, sent me an article this morning.

I glanced at it the other day.  I disregarded the catchy title given SEM continues to execute in our 8 - 10 day time frames even with the new layers of client protection.

This morning it dawned on me what is happening.  The industry apparently is processing with the same methodology used since 2007-2008.

New regulation and client protection requires an updated and innovative approach to processing.  Even SEM had to evaluate the final implementation of TRID before we crafted the final map and sequence to guarantee our 8-10 day turns at volume.

The best way to look at it is to refer to a 1908 Ford Model T suspension.  Would a 1908 suspension work with modern engines in the shiny new cars with the flashy marketing of today?  The car looks modern, it sounds great, and smells new BUT how do you think it will drive with a 1908 suspension?  Our industry has new improved regulations and risk models that require a NEW suspension to harness the power and provide the client and referral sources with the Competent FAST service that a shiny new car portrays in their marketing.

In my opinion, look underneath the car before believing the flashy marketing or be prepared to dance for the 50 days to close.

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

Client Testimonials October 2015 - Southeast Mortgage

Southeast Mortgage prides itself on 360 degree accountability.  MLOs survey SEM Operations and our Clients Survey our MLOs.  Holding our team accountable is why Southeast consistently delivers the best service in the markets it serves.  Set the expectation, manage to it, and the outcome remains consistent. 
The Lender you can Trust with the Service our Clients deserve!

Cal Haupt
Chairman and CEO
www.southeastmortgage.com
770-279-0222

Why aligning Operations with our Builders Matters! Read The Testimonial

Below is an email from Sam to Jeff.  Sam was gracious to allow us to share his experience with the public.  Those who have not experienced the Southeast Mortgage Experience can read an industry veteran's perspective on Southeast Mortgage Service.  Southeast Mortgage was built one client and one relationship at a time focusing on a great experience that creates added value for our Originators, Clients, and Referral Partners.  If we close your client's loan fast, accurately, and on time; that client refers their friends and family to you.

From: Sam Bass <SBass@acadiahomes>
Date: July 9, 2015 at 9:20:13 PM EDT
To: Jeff Brown <Jeff.Brown@southeastmortgage.com>
Cc: Sam Bass <SBass@acadiahomes>
Subject: Southeast Mortgage Testimonial

Jeff,

I am thrilled to be writing you this letter of appreciation for yet another job well done.  Your most recent success is our latest closing at Liberty Crossing.  Once again when our Acadia preferred lender was unable to provide financing for our buyer, your outstanding team stepped up and found a solution for our buyer and we are closing early next week!!

Over the past couple of years, you and your staff have really helped Acadia out by providing Us with great solutions in financing for countless Acadia customers.  Jeff, you have a tremendous staff and they really perform what they say they can do when working with our customers.  Your team makes it easy for us to know where to send our customers to get their financing done when our lender is unable to help them.  Thank you Jeff, and the entire Southeast Mortgage Team!!!. Awesome job!

Sincerely,

Sam Bass
Acadia Homes & Neighborhoods
VP Sales & Marketing

Southeast Mortgage of Georgia, Inc.
Since 1993
www.southeastmortgage.com
770-279-0222

Money vs. Passion by Cal Haupt

Historical observation of my commercial clients and consumer clients as a banker and mortgage provider helped me refine my perception of what matters between chasing the money or following a passion.  The consistency of outcome for my clients with respect to the two methodologies is compelling as to which one accomplishes their longer term monetary goal. 

When I hear “xyz company is paying more” my next question is tell me about the company and the people who make the company what it is.  The typical response is “it’s about the money; I did not research their longevity, financial strength or long term goals”.  For money chasers, this is consistent across all industries.

When you look at monetarily successful people, they all started with a passion and followed a path that met a need in the market.  Most believed in a better widget, better service, or a faster way to accomplish a process.  They did not chase higher pay without a passion for the company or strategy.  They were all passionate about what they were doing, the people, and philosophy.  This is the path the majority of wealthy people take.  The money always follows over time when passion is in the forefront.  "Slow and steady wins the race" 

Most that focus on the best deal at the time without regard to passion or the team tend to have inconsistent outcomes and move to the next best deal without regard to the stability of the underlying foundation.  They tend to cycle monetarily up and down as clients adjust to the change rather than making a smooth trend higher as their referral leverage increases. 

A few observations:

> People are social and need to feel responsible for others to stay engaged long term.  The same reason families have such strong bonds. 

> One person does not possess all the skills necessary to push through certain paradigms or maintain all critical functions of a business.

> People get tired and life does not always follow a predictable path.  Having a team step in to maintain your revenue stream when the unthinkable happens is priceless. 

Look at the people you view as monetarily successful.  I use the term monetarily successful because I think there is variations of success.  Monetarily Successful, Great Family Success, Great Friends Success, etc.  Everyone has their own view of success and I can only hope everyone enjoys all the facets of success and you are that fortunate in life.  Back to my discussion. 

The majority of monetarily successful people achieved that goal through a passion facilitated by a group of trusted people who share a similar belief with them.  Each person in the group generally has a unique set of skills and capabilities that together make them better than they are apart.  Together, they make each other better and thus leverage the skills of all into greater monetary success for all. 

IMO "Money Chasers" tend to get by and miss the joy and sense of accomplishment shared among a trusted group that shares a passion and a common belief.  My career has always been team based and I have foregone many higher paid consulting opportunities that required only my skill set.  I would not trade the relationships and friends I have made over the many years for any dollar amount.  Money will never talk to you, Money will not visit you when you are sick, Money will not give you a hug when you need it, and Money will never brain storm with you to engineer a challenge.  Money derived from a passion supported by a team of like minded people creates a fulfilling experience and security for all.

Follow your passion, enjoy your team, enjoy the ride, and the money will follow over time….  It always does.

 

Cal Haupt

Chairman and CEO

Southeast Mortgage of Georgia, Inc.

770-279-0222

 

Behind the Mortgage Rate Curtain - by Cal Haupt

For the past twenty plus years I have stated Mortgage Rates are what they are and are set by the market.  There is only a market rate.  I.E. If you want to buy AT&T stock, there is one market for the public and the price is set by supply, demand, and valuation and sold by SEC licensed agents.  This holds true for Mortgage Rates except valuation is a little more complicated.  Focusing on client needs and matching the correct product to those needs is the path to organic revenue and a stability for Mortgage Loan Originators, MLOs, and Mortgage Companies.

Only Mortgage Lenders with access to secondary markets can provide true adjustments to market rates via dislocations in hedge activities.  This only lowers rates IF it is not reserved for the unfavorable consequence of the dislocation assuming the market moves to a less favorable level.

I constantly see rate focused MLOs moving from company to company.  The reason they cannot build a career is they are teased with lower unsustainable rates and then move when the company returns rates to sustainable levels.  Brokers and Correspondents cannot take advantage of secondary market dislocation so when they lower rates, the offsetting revenue has to come from somewhere or expenses must be lowered which can reduce MLO service needed for referrals.  In some cases, unsustainable rates are obtained from Wholesalers that sell servicing over and over and over which angers clients and potentially risks their credit rating if they cannot keep up with where their payment should go.

Mortgage Rates are set by the market and if a rate advertised is lower than market the company probably did not account properly and will not be able to balance the equation over time.  Time is not a friend to unsustainable low rate strategies.  Look at history and the names that used this strategy and are no longer in existence.  This is the primary reason companies fail over time or when the economy enters challenging periods.

My advice to MLOs and Clients is to work with the highest certified lender you can find.  The same logic applies to buying stock from an SEC licensed agent, choose a Licensed Mortgage Originator.  The higher the certification, the better access to efficient market rates due to the reduction of hands in the pot and benefits derived from hedging activities. 

This is the hierarchy of Mortgage Providers:

#1 Highest Certification - Direct Lender - Secondary Broker Dealer, Fannie & Freddie Seller Servicer (GSEs), with FHA
Direct Lender with full access to secondary markets and can trade between the GSEs- Can Service Production - Southeast Mortgage of Georgia, Inc., operates in this category of certification

#2 Direct Lender - Fannie & Freddie Seller Servicer
Access to GSEs and considered a direct lender that can service production

#3 Fannie or Freddie Seller
Access to GSEs BUT not qualified or approved to service and will sell servicing rights
#4 Correspondent
Works on behalf of another Direct Lender.  Usually has small warehouse lines and servicing can be re-sold for higher yield by wholesalers 
#5 Broker (very few of these after 2009)
Middle person in the transaction - Works to put a consumer together with a Direct Lender.  Consumer pays the extra cost of the middle person even if the rate appears lower.  Servicing can be sold several times to account for the extra hand in the transaction.

Note: Banks (state-chartered, national banks, or federal thrift/savings banks) can operate in any of the categories above.  Most Georgia Community Banks engage as a correspondent or Fannie / Freddie variation.  Being an FDIC insured institution or Georgia State Bank only exempts their Loan Originators from Federal and State Licensing.  At Banks consumers work with Registered MLOs.  At Non-Bank Mortgage Companies consumers work with Licensed Mortgage Originators as set forth by the 2008 SAFE Act.  Click to learn more about the 2008 SAFE Act passed by our Government.

How can consumers or MLOs find the daily Mortgage Market Rate?  You have to average the daily par rate of Direct Lenders in your geographic area (50 mile circumference) with a sample size of at least 5.  Southeast Mortgage does this daily to keep our Referral partners and clients informed.

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

Visit Us 

COMPARE US

    and discover how we can help you grow your business like no other.  Join US

• Our MLOs Earn 26% more on average than at other Lenders
• Free up 30% of your time at the same production level.  Our process is simple and efficient.
• Client Relationship TEAM (CRM) to support your referral sources and find you loans 24/7
• Individual Web Page to Promote yourself & team (in compliance)
• 8-day close – No Hype we do it day in and day out
• 98% application to close pull through rate so you close more with our team
• 20 years of experience - Unique Innovation and Forward thinking allowed SEM to prosper through 3 Recessions. SEM's large liquid balance sheet provides a stable platform so you can focus on what matters, your clients.
• On site Builder opportunities available
• MLO friendly process that is remotely accessible

If you are a $1MM+ a month mortgage loan originator, take 10 minutes to meet with us to better understand how we can accelerate your career and income. 

Call 770-279-0222 and ask for Cal, JD, or Kathy

Read more about the SEM Difference (click)

www.southeastmortgage.com

 

Success is a TEAM Activity

When you look at the biography of sales people who are successful in their careers over a long period of time, they all have one common denominator, they were part of a cohesive, diverse skilled, and mission focused TEAM. 

Although humans tend to self-preserve and put their own and family's needs first, in business it takes a village to sustain scale and income growth. 

One person only has 24 hours a day, X amount of energy, and typically cannot master all skills in business.  There is no doubt self focused people can be successful in their career, the issue is their success is limited to their individual resources and health. 

Although I can individually sell with the best of them, I have never wanted to sell without a TEAM.  In Banking and in the Mortgage Industry, I have always ensured I had a caring competent TEAM with diverse skills around me.  There is no better feeling or more fun than working with people who care about each other and respect the trust required to support the TEAM's overall success and continued growth.  As a result, the TEAM provides you and your family with safety and stability. 

A sales person that has to make sales calls, follow up with clients, process loans, handle the inevitable client or Realtor Issue, close loans, and stay in touch with clients and Realtors after the closing has a daunting task and tends to be too much for any one person.  Something has to be forgone in this scenario given time, energy, and skill create restraints to incremental success. 

Less time with your family, Not Staying in touch with past clients and Realtors, and that one issue that takes up a whole day putting you further behind are the accumulated limiter to scaling the income from a large referral base of Realtors and closed happy Clients.  What if this sales person gets sick or disabled?  Who will step up during difficult times?  The one constant in life is the unexpected always happens.  There is a reason commercial airplanes have two engines.  Redundancy matters. 

To truly maximize a sales career, the most efficient and successful path is to be part of a TEAM or a Village that has one common goal and belief system.  http://southeastmortgage.blogspot.com/2013/03/the-village-by-cal-haupt.html  With this mentality, a person’s career can scale up due to complimentary resources supporting the individual’s efforts.  With a TEAM, a sales person can rely on competent processing, underwriting, closing, and Client Relationship Management to provide great experiences for Clients and Realtors while staying in front of them for years of consistent growing referrals and applications.  A TEAM focused sales person has 75% of their time to develop more business, provide more personalized service, and time to spend with their family or go see their kids play sports.  If the TEAM sales person gets sick or has another hardship, they have a TEAM of people supporting them and maintaining their pipeline and closings.  This ensures their income from years of referral growth and their family is protected. 

My life experience has taught me individual success is not mutually exclusive from TEAM success.  Individual scalable results (more results with less effort over time) can only be achieved through a TEAM approach.  TEAM really means TOGETHER EVERYONE ACHIEVES MORE.   

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

20% growth trend confirms recovery in June 2014

Over the past few years, we have written about the recovery in the Metro Atlanta Real Estate Market; however, we continued to see barriers from activities in Washington, Weather, etc.

Normally new record months are set in August.  2014 is different supported by record volume arriving early in June.  The Cal-Culator  http://southeastmortgage.blogspot.com/2014/06/may-2014-cal-culator-atlanta.html indicated this trend would occur.

With a 20% growth in June, I can say with certainty 2014 will be a great year for the Real Estate Industry.

The issue we see in recovery periods is a lack of planning.  Volume surges are only as good as the production channel to close the applications.  Production channels (Mortgage Application Processing Structures) take years to develop and require a significant investment by the company to design and deploy them.  Pipelines have to be converted to closings in order to maintain referral relationships and add value to Real Estate Professionals.  Realtors demand great service to grow their business and clients need fast dependable communication and service to reduce the inherent uncertainty in buying a home.

Mortgage Originators will need a solid production platform that adapts quickly to volume surges to convert their pipelines to closings and grow their business.  If service and closing certainty is faltering at this level of volume, it is not ready for the months ahead.  This recovery is what everyone in the mortgage industry has been waiting for so ensure you have the service and production capacity to fully participate in the record months ahead.

Cal Haupt
Chairman and CEO
Southeast Mortgage of Georgia, Inc.
www.southeastmortgage.com

Qualified Mortgages Being Introduced In January to Protect Lenders and Consumers

Starting on Jan. 10, qualified mortgages, sometimes referred to as “Q.M.”, will be introduced as a new way of conducting home mortgage loan origination in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Kathy Gyselinck is Executive Vice President for Southeast Mortgage

“A qualified mortgage is a fixed-rate mortgage, with a debt-to-income ratio (including the proposed mortgage payment) that does not exceed 43 percent of the borrower’s gross income,” according to an article on Credit.com, “How Upcoming Mortgage Changes Could Affect You.” A “non-qualified mortgage” is a loan that exceeds 43 percent of the borrower’s income.
Other stipulations include that the loan must be fully paid off with a term not to exceed 30 years. Additionally, points and fees paid by the borrower cannot exceed 3 percent of the total loan amount and lenders must be able to prove the borrower’s ability to repay the loan.
The new procedure helps protect mortgage loan originators more than ever. If a lender meets the conditions and underwriting standards, they are promised amnesty from legal challenges that may arise from those loans. The American Bankers Association is recommending that lenders exhaustively examine all mortgage portfolios to ensure each loan falls with the qualified mortgage guidelines.
“The QM standards include various safe harbor provisions that are likely to mitigate short-term shocks to the real estate lending markets,” according to the ABA. “In crafting these regulations the bureau recognized the need for a safe harbor to prevent a reduction in credit availability and unwarranted lawsuits that ultimately drive up the cost of loans for consumers.”
In other words, the goal is for fewer risky loans to be given, though many lenders believe that most loans given out today already fall under the same rules.
The ABA indicates there could be apprehension that lenders may not be prepared for the changes by January’s implementation. The ABA is urging Congress and the Consumer Financial Protection Bureau to extend a trial period for lenders. Lenders are also concerned that the new regulations are a “narrowly defined box” that consumers must fit in to in order to qualify for a loan­­, limiting consumers’ access to mortgage credit.
“We must get this right for the sake of our customers, our banks’ reputations, and to promote the nascent recovery of the housing market,” said James Gardill, a Virginia bank chairman who testified before the House Financial Intuitions Subcommittee. “For some institutions, stopping any mortgage lending is the answer to this unreasonable deadline because the consequences are too great if the implementation is not done correctly.”

Most frequently asked MLO questions

Although Southeast Mortgage has been in Georgia since 1993 and employs a full time PR and social media assets, we continue to get the same questions.  I thought I would share a few of them and some more common points about one of the oldest Mortgage lenders in Georgia on our 20^th anniversary.

 

Why is a company the size of Southeast Mortgage Corporate/Operations located at Club Drive rather than a High end Office Building?

 

Ø  SEM has owned the 2 acres on Club Drive since 1997 and currently uses 15,000 square feet for Operations (Processing, Underwriting, Closing, Post Closing, Capital Markets, and Client Relationship Management).  SEM is pad ready for another 8,000 square feet when needed.

Ø  Having your TEAM at one site builds team work, better communication, and faster response.

How can SEM pay 130 bps to MLOs?  Is there a catch?

Ø  Because SEM owns 50% of its space and utilizes the best technology in the industry, our overhead is lower which allows us to pay the best MLOs higher rates.

What makes SEM different than other Non-Bank and Bank mortgage competitors?

Ø  SEM has been in business for 20 years and holds one of the oldest lender licenses in Georgia.

Ø  SEM is a direct lender to GSEs and operates in the broker dealer market which provides us with better market access and the best prices available.

Ø  Many of the Senior Leadership at SEM have worked together over 20 years.

Why should I choose SEM?

Ø  SEM has flourished in 3 recessions and knows how to adapt.

Ø  SEM’s 25 Senior Officers guide our sales and operations efforts allowing for a deep bench and resources.

Ø  SEM executes a direct GSE model focused on QRM so we are not dependent on Correspondent, Broker, or Bank boards to dictate our future.

Ø  SEM has one of the lowest breakeven points in the industry due to low variable overhead and a vertically integrated operation.

Ø  SEM focused on a 7 day high service close since 1998 and now has a 8 day close due to changes in the industry.  Fast Service from competent licensed originators has always been our strength.

Ø  Longevity, stability, redundancy, and a Great Group of People with one common focus is what makes Southeast Mortgage the Largest Non-Bank Mortgage Lender in Georgia.

 

www.southeastmortgage.com

770-279-0222

Southeast Mortgage's 2nd MLO Associate Class - 100% Pass Rate

Southeast Mortgage is pleased to announce four new Licensed Mortgage Loan Originators to serve the Georgia Market.

This group is our 2nd class hired for our Mortgage Loan Originator Associates Group.  We are very proud we had a 100% pass rate on the Federal and Georgia Test.  This is testament to the quality of training and support we are providing this new breed of Licensed MLO.

If you are interested in joining our next class of Associates, please call 770-279-022 or visit www.southeastmortgage.com

Southeast Mortgage’s New State of the Art Social Max Mortgage Retail Center Opens Monday 8/19/2013

 
 

www.southeastmortgage.com



 

The "Secret" Key to Success in this phase of the Mortgage Cycle

The Mortgage Industry and Consumer Mortgage Demand follow definitive patterns that span 7 year periods.

If you are a Mortgage Professional who pays attention to this pattern, you will be prepared as opportunity presents itself.  Focusing on life cycle changes is the key to staying ahead of the pattern.  Great service and competent advice is what survives the test of time in the Mortgage Industry.  There are not short cuts that last.

Many in the industry think mortgage rates matter.  They do not.  Although clients want market rates, we sell a commodity that has limited variability.  Mortgages satisfy a need that is different for each client.  Lower rates make loans more accessible and give clients a sense of a better deal; however, everything in the economy holds certain relationships. 

When rates are at 4%, employment is low, housing valuations are low, consumer confidence is generally low.  When rates move higher as they are today, employment is generally improving, housing valuations are inflating, and consumer confidence is strong due to higher stock prices and rising wages.  Mortgages that meet a consumer’s need are always a great idea in any market.  Focus on the mortgage product and how it benefits your life. 

Work with a Licensed Mortgage Originator.  At Southeast Mortgage, we train our Originators to ask questions to determine the true client need so they can fit the product properly.  Although mortgage rates are rising, everything else is also.  If your expenses double and your income double, has anything changed?  Need matters.

Real Estate Agents and Realtors that want client referrals and clients throughout their life cycle choose Mortgage Service Providers like Southeast Mortgage to ensure the service is fast and pleasant with the client getting the right product for their need.  A great Client Relationship Management process that keeps Realtors in front of their past clients each year builds organic growth for Realtors and Mortgage Professionals.  As the cycle repeats, you will be prepared.

Cal Haupt
Chief Executive Officer
Southeast Mortgage of Georgia, Inc. est. 1993

www.southeastmortgage.com
770-279-0222

Good article from CNBC discussing the surge in applications that results from this phase of the cycle.  Although rates are moving up, everything else is moving up faster thus mortgage volumes surge.  The issue is you have to be structured properly to support Real Estate Agents and Realtors in the purchase side of the mortgage industry.  90% of Southeast Mortgage's volume is purchase loans due to a structure that meets client need and helps Realtor's grow their business through great service and our free Client Relationship Manager.

http://www.cnbc.com/id/100944993