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

February Cal-Culator Remains Unchanged

Posted on March 10, 2014 by admin  

After an usually “hot” winter in Atlanta real estate, the Atlanta housing industry appears to have adjusted with outdoor temperatures and has cooled off ­– for now. Last month’s Cal-Culator hit a record 6.0, where it will stay for another month. Although sales of homes and home prices increased as did inventory, sluggish pending home sales and decreased home construction due to crippling winter weather were factors that kept the index the same.

 

The U.S. Department of Commerce  released its U.S. Census Bureau News for January, which showed that sales of new single-family homes rose 9.6 percent from December and 2.2 percent year-over-year.

Home prices increased by 12 percent year-over-year in January, marking the 23rd consecutive month of year-over-year home price gains, according to CoreLogic. Prices increased by 0.9 percent in January compared to December data.  “The last time January month-over-month and year-over-year price appreciation was this strong was at the height of the housing bubble in 2006,” said CoreLogic Chief Economist Dr. Mark Fleming.

Zillow’s January Real Estate Marketing Reports found the number of homes listed for sale on Zillow was up 11.1 percent nationwide from the year prior, making January the fifth straight month of rising year-over-year inventory. Atlanta experienced a 10.7 percent increase in inventory from the previous year in January.

The U.S. Department of Commerce also indicated that the housing crunch is slowly beginning to ease. The department found that the U.S. now holds a 4.7-month supply of homes, though a 6-month supply of homes is recommended.

Unfortunately, the housing industry is not exempt from external factors. Just as the industry was negatively affected by the government shutdown last fall, it has also suffered from recent extreme winter weather. Though home sales rose, pending home sales remained unchanged, according to the National Association of Realtors, partly due to the weather.

“Ongoing disruptive weather patterns in much of the U.S. inhibited home shopping,” said Lawrence Yun, NAR chief economist. “Limited inventory is also playing a role … while credit remains tight and affordability isn’t as favorable as it was a year ago.”

U.S. home construction fell in January for the second consecutive month, down 16 percent from December, according to the U.S. Department of Commerce. Construction had increased every month in 2013 before severe winter weather struck the nation beginning in December. Applications for building permits also fell in January by 5.4 percent, according to the report.

Even Zillow reported that mortgage rates had declined for the first time in four weeks, during the last week of February, to 4.11 percent due to global unrest.

“Rates drifted downwards last week as geopolitical concerns emerged from the turmoil in Ukraine,” said Erin Lantz, director of mortgages at Zillow.

The next Cal-Culator will be released April 8 and will hopefully chart positive growth in the industry without severe weather or global chaos inhibiting growth.

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