What Just Happened to the Georgia Mortgage Industry?

Many of you in the Mortgage and Real Estate Industry may be scratching your head thinking "What in the World Just Happened to my volume"?

Let me explain:

The Holiday Season in late 2013 landed on two Wednesdays.  Human nature inspires employees to maximize holidays by wrapping them into vacation days.  When a holiday lands on Wednesday and you are full of cheer, taking Thursday and Friday as vacation days makes a great weekend.  Then... Hmmm since I am taking a long weekend, why come in on Monday and Tuesday because I will be thinking about the long weekend any way.  This thought process across a large segment of the industry and consumer market creates a significant hole in demand.  In theory, this took two weeks of production out of the pipeline.

Two significant snow events along with the pre and post anxiety, took out another 7 days.

The same psychology that impairs the average consumer affects MLOs.  As a result, demand lags and business development slows compounding the events.

The data proofs that the economy is on the same trajectory forecasted for 2014.  These events although unfortunate for business pass and 2+2 will = 4 again.  On the bright side, the financial impact on companies during this period was transposed into family building and reconnecting on a personal basis.

Not sure your creditors will see the trade off the same way but your employees enjoyed a great gift of fellowship and will make your company better as a result.

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

www.southeastmortgage.com
770-279-0222

January Cal-Culator Starts New Year in Right Direction

January Cal-Culator Starts New Year in Right Direction

Posted on February 10, 2014 by admin

The December Cal-Culator’s outlook and promise for Atlanta’s residential real estate market in the new year seems to be ringing true. For the first time in The Cal-Culator’s history, the index has risen to 6.0 in part due to national and local rising home prices, increased home sales, a decrease in foreclosures and lowered interest rates, among other factors.

The January Cal-Culator

The Atlanta Board of Realtors reported home sales in the 11-county metro region experienced a 1.9 percent increase in December from the year prior.  National home sales of new and existing homes saw a 6.8 percent increase from the year earlier with the South having the strongest surge at 10.6 percent.

“We expect these statistics to begin rising as the warmer weather arrives, but this reversal of the downward trend established over the last several months is a welcome change,” said Atlanta Board of Realtors President Todd Emerson.

The latest data from CoreLogic found that metro Atlanta home prices rose 15.7 percent year-over-year in November­­. Home prices appreciated 13.3 percent overall in Georgia ­– the fifth highest in the nation.

“The market appears to be shrugging off rising interest rates, sluggishness in [national] employment growth and an uncertain economic environment,” said Steve Murray, editor of REAL Trends Housing Market Report.

However, some national month-to month numbers are moving in a negative direction, according to the S&P/Case-Shiller index posted on Jan. 28. The national measure of home prices posted its first month-over-month decline, 0.1 percent, in 10 months.

“While housing will make further contributions to the economy in 2014, the pace of price gains is likely to slow during the year,” said David Blitzer, chairman of the index committee at S&P Dow Jones Indices.

Foreclosures reached a decade-low in Atlanta in January, according to the Atlanta Board of Realtors. Metro Atlanta foreclosure notices were down 56 percent from January 2013, continuing the trend of decreased foreclosures since 2011. The decline has been attributed to the improving economy, including the lowered unemployment rate in Georgia. Decreased foreclosures, combined with historically low inventory of for-sale homes, increased new-home construction by 38 percent in 2013 as builders try to fill the void of the housing crunch.

“The market’s no longer getting weighed down by foreclosures,” said Daren Blomquist, vice president at RealtyTrac. “There’s a more normal, healthy pattern going forward.”
In December, the Federal Reserve announced it would buy $10 billion less in bonds per month in an effort to hold down long-term interest rates. The effects may already be reverberating throughout the industry. Though interest rates have risen a full percentage point since roughly a year ago, mortgage buyer Freddie Mac announced the average 30-year-loan fell to 4.32 percent during the last week of January, much to hopeful homebuyers’ delight.

The next Cal-Culator will be released March 11 and will hopefully reflect a positive month in Atlanta residential real estate.

www.southeastmortgage.com
770-279-0222
http://saportareport.com/leadership/homemortgages/ 

Kim Arrington - Executive Mortgage Originator at Southeast Mortgage

Kim Arrington was a Bank Registered Mortgage Originator and is now a Licensed Mortgage Originator at Southeast Mortgage. 

Kim Arrington

"We are pleased to have Kim join our team and know she will continue to grow her business faster with our Operations Team and Client Services Team providing best in class service.  Her partners will appreciate the added value we provide through our CRM Team"

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

Every Successful Business has and can benefit from Green-Eyed Monsters

Every Successful Business has and can benefit from Green-Eyed Monsters

I was watching the movie RUSH which is the story of two formula one race car drivers with two differing styles and skills that desire the same outcome.  Throughout the movie various nefarious attacks were made to slow down a more skilled competitor until the covetous character realized having a competitor to chase actually made him a better competitor despite his arrogance.

In business history, this type of relationship has created some of our most iconic businesses known to the modern economy.

Even if you take the benevolent approach to business, business history is full of baseless malice and invidious behavior by individuals against innovative successful companies.  Fortunately, the envious actors do not realize their behavior is a great team building exercise for the company they covet. 

Being the focal point of a Green-Eyed Monster has its benefits:

Ø  Makes your team more resilient and a stronger company to serve its clients.

Ø  Points out potential risk prior to incurring the cost in a real scenario

Ø  Provides free advertising via social gossip “As long as they talk about you, it is good for business”

Ø  When a competitor or their agent talks about you, that means you are making a difference.  When grapevine or twisted stories is their only tool, your strategy has merit.  Keep up the good work.

In RUSH you have two individuals competing with different skill sets, thus their options are limited due to the individual nature of their career.  In business especially the Mortgage Industry, we are fortunate that we can develop the skill that is coveted in the team. 

In the mortgage industry, we have a choice as to how we compete.  If the CEO, Owner, or Principal derives their identity from their ego it will drive the Green-Eyed Monster behavior.  Strengths and weaknesses have to be viewed objectively and egos should be checked in the interest of the team.  Ego or self-interest drives invidious agendas and prevents the team from rising to a higher level of service and competition. 

Unlike RUSH, build a team that can develop the strength that is coveted or will help your team serve your clients better.  There is only one seat in a formula one race car; however, there are unlimited seats of opportunity in benevolent companies with great people who are valued and share a common goal.

Embrace the Green-Eyed Monsters you meet during your career.  They are your biggest fan.  They point out new opportunity that can grow your business and or perfect your strategy.
http://www.merriam-webster.com/dictionary/green%20eyed%20monster

 

Cal Haupt

Chief Executive Officer

Southeast Mortgage

www.southeastmortgage.com

Strong December Cal-Culator Shows Promise for 2014

Strong December Cal-Culator Shows Promise for 2014

After a bitterly cold winter in Atlanta, both in temperature and in the housing industry, things are beginning to thaw. Last month, The Cal-Culator rose 0.1 to a 5.1, from October’s record low of 5.0. The December Cal-Culator jumps to a 5.5 and closes 2013 on a positive note.  Rising home prices, fewer distressed sales, increased inventory and rising number of home sales all contribute to Atlanta’s road to recovery into the New Year.

The December Cal-Culator

One of the defining characteristics of the Atlanta residential real estate market in 2013 was the housing inventory crunch. Luckily, the past few months have offered relief for hopeful homebuyers locally and nationally. The December Case-Shiller Index reported that listing inventory in Atlanta was up 21.4 percent from February 2012. The inventory of national homes for sale in November was up 5 percent from the previous year, the first year-over-year gain in inventory since early 2011, according to The Wall Street Journal.

“We saw an extended period of low inventory late last year and early in 2013. But the recent trend is rising and we appear headed for a more normal level of inventory for next spring,” reported Atlanta Real Estate Scoop. “Buyer activity remains strong led by baby boomers and first-time buyers.”

Home prices, an indicator of a strong housing industry, steadily increased in the last quarter of 2013. A Clear Capital Home Data Index Market Report indicated that national home prices rose from 10.9 percent from 2012 while Atlanta saw home prices rise 13.6 percent over the past year, as reported in the latest Case-Shiller Index.

The rise can partially be attributed to buyers holding out to sell their homes for more than their appraisal value and fewer foreclosures on the market, according to Atlanta INtown, “Market Watch: A real estate forecast for 2014.”  As home prices are rising, so are new home sales data.  The Commerce Department’s new-home sales reports for November reported that sales were up nearly 17 percent from November 2012, making it of the strongest months of new home sales since 2008. However, overall sales decreased ­­– but for a good reason!

“While existing and pending home sales have slipped in recent months, distressed sales – foreclosures and short sales – account for much of the drop,” said Jed Kolko, chief economist for Trulia. “The mix of sales continues to shift from distressed to non-distressed, which is a sign of market recovery.”

Construction starts for homes are also seeing double-digit gains. The U.S. Census Bureau reported that November saw a 20.8 percent increase, amounting to a seasonally adjusted annual rate of 727,000, for single-family homes from October.

Economists believe that these trends will likely carry over into the New Year as buyers are continuing to take advantage of historically low mortgage rates and home prices. Check back for the next Cal-Culator on Feb. 11 to see how 2014 is faring.

Happy New Year! 2014 should be a very good year....

Another new year is a few hours away.  We encourage everyone to never settle and make your hopes and dreams

for the new year a reality. 

With good friends and family your year is already on the right track.  Have a Very Happy New Year!

Exec Offices 5:00 pm toast to the end of a great year.

www.southeastmortgage.com