Lust vs. Love by Cal Haupt

In society the terms Lust and love are sometimes confused as being the same thing.  Lust is a personal inclination or longing with little basis for the future.  Love is the unselfish loyal and benevolent concern for the good of another.

The two are confused; however, have very different meanings.  The one most important difference in the terms is longevity.  Lust never lasts; however, Love survives the test of time because it is built on more than shallow cues or flash.

You might wonder why a financial expert would write about Lust and Love?

The reason is simple.  Every day I see mortgage professionals and consumers making life decisions based on Lust rather than Love.

Both mortgage professionals and consumers should make choices based on their fit versus an artificial inclination built on a sales pitch, fancy dinner, etc. and look deeper to the core of a long term fit.  Both mortgage professionals and consumers tend to make decisions about where they work or get important financial products to support their family based cues that are not aligned with core need or sustainability.  Love has a higher duty of care in the selection process.

Although you may Lust, always look deeper to find a company that truly puts its mortgage professionals first and its clients in the product that fits them the best.  The best choice may not have the bling but it will be there when the going gets tough.  There is a reason family gathers in tough times and everyone is your buddy during good times.  A key distinction between Lust and Love.

When I was about 5 years old in a small southern town, my two best friends at the time, the Tyson brothers, were smitten by the Sear’s Screamer Bicycle and were promised one for Christmas.  Needless to say, their enthusiasm and Lust transferred to my subconscious quickly.  As a result, I only had one item on my letter to Santa that year and dropped the appropriate hints to my parents to ensure success.  After all, everyone in my world "at that time my world was three houses in either direction due to Mother Law" wanted a Sears Screamer, it was so flashy, and I want to fit in with me best friends.

 

Sears Screamer (Left) Schwinn Apple Krate (Right)

On Christmas morning a woke up to the laughter of the Tysons riding their shiny new Sears Screamers in front my bedroom window.  I could not wait to run into the den to get mine.  As I slid into the den, my world ended as some red bicycle was sitting near the tree in place of my dream bike.  I yelled, how could you do this to me…..   I am ruined…. Etc.  Obviously my parents looked at me in disbelief.  Since I would not come out of the house, the Tysons came to my house around noon wondering why I was not riding with them.

I hung my head in shame and explained what happened to me that morning.  As good friends do, they rubbed in the fact their bikes where Sears Screamers and I just had to settle for what I got.  Peer pressure and the “green eyed monster affect” were in full force.

My mother and father tried to explain why I got a Schwinn Apple Krate over the Sears bike.  Due to Love, they only had concern for my well being and not social pressures.  Better quality, shock absorbers, better gears, reputation of the manufacturer etc.  They were providing me with the quality over fad speech and all I heard was blah blah blah due to the pre-programmed peer pressure already in place.  After all, I was 5.  How could they know more than me and the Tysons.

I came to grips with my fate and reluctantly headed out Christmas afternoon to ride my new bicycle.

During the next six months, I noticed my bike was a little faster and handled better than the Tyson’s Screamer.  I noticed they stopped more for repairs and after about seven months their bikes were rusting leaned against their house.  My Apple Krate retained it’s just like new qualities and became my steed for neighborhood adventures.

I rode that bike for another 6 years and then used the frame for a motocross jumping bike for another 3 years.  The best bike I ever had and I loved that bike due to the unbiased benevolent concern my parents had for my well being.  The lust for a Sears Screamer faded in short order as quality and fit came into focus.  Due to Love my needs were met with the best fit and the Lust I had for that in vogue shiny bike faded faster than the screamer’s paint job. 

I have told this story to my sales teams for as long as I remember.  In 2000, my Senior Officers at Southeast Mortgage presented me with another chance at childhood.  My own Schwinn Orange Krate Bicycle. 

 

Ride to Live

They could not find an Apple Krate; however, it was the best most thoughtful gift a person could get from friends.

 

Cal Haupt

Chief Executive Officer

Southeast Mortgage of Georgia, Inc.

www.southeastmortgage.com

770-279-0222

Safe Harbor for Mortgage Loan Originators Career? – Licensed vs. Registered MLO

Would you get mortgage advice from a disc jockey with a nice conference room?  Can you tell the difference?     

Mortgages are an important Consumer Product and meeting educational certifications along with passing the national NMLS with state content exam is the safeguard a consumer deserves supported by laws passed by your government. 

With 80% of the pre 2009 mortgage service providers out of the mortgage industry, the value of a Mortgage Loan Originator’s, MLO’s, career is at an all-time high and its continuation depends on choices made today.

As the yield curve begins to hold trend in a northerly direction, our industry is entering a phase of the recovery cycle similar to the 2001 – 2005 surge without the unsustainable high risk products.  The products that will be sold are primarily QRM or “Standard Loans” provided by the GSEs, “Fannie, Freddie & Ginnie (Conforming, FHA, & VA)”.  MLOs will need to be close to the source of these products which is the Seller / Servicers approved by these entities.  As you move away from the GSE source as a correspondent, local bank registered MLO, or broker; service, accessibility, and pricing suffer.  Do you get a better price buying an apple direct from an apple farmer or Publix?  Same concept and principle in the mortgage industry and both are commodities.

The mortgage service providers in this cycle will primarily be two types:

Ø  Banks that employ Registered Mortgage Originators and cannot sponsor a Licensed Mortgage Originator

AND

Ø  Non-Bank Mortgage Lenders that employ only Licensed Mortgage Originators.  Non-Bank participants can be a broker, correspondent, or a vertically integrated GSE Seller / Servicer.  All specialize in mortgage products and employ Licensed Mortgage Originators according to the S.A.F.E. Act, Dodd Frank Act and State banking agency requirements.

MLOs in our industry have to make choices today to secure their career as our industry evolves.  As everyone knows, if anything is certain its change in the Mortgage Industry.

Understanding the truth about earning a higher certification as a Licensed Mortgage Originator versus being a Registered Bank Mortgage Originator is critical to a good choice.  Avoid the fear tactics and miscommunication and focus on the facts that dispel the myths.

The Truth

·        Based on prior history of other products requiring a license to sell, regulators will require banks to license all Registered Loan Originators.  Banks have similar experience with Mutual Fund Sales (Series 6/63) and Consumer Loan Insurance.  Both had a period of adjustment and both eventually required all sales people selling the products to be licensed by FINRA (formerly the NASD) and the Insurance Commissioner respectively.  Neither of those caused a recession, Mortgages did?  Either through reserves or direct intervention, Banks will license all MLOs at some point.

·        Non-Bank Mortgage Lender’s like Southeast Mortgage (SEM), have higher mortgage certifications than many Banks.

·        Get licensed today and remove uncertainty before time runs out.  It will.

·        Non-Bank Mortgage Companies pay MLOs more than Banks.  Same work why not receive higher pay?  Why? Because registered originators allow it and inertia has them.

·        Since Non-Bank Mortgage Companies specialize in one product, service is superior and faster.

·        Name your shareholders at a Bank?  Are you a member of the LLC?  Do you really know who you work for?  Build a career and trust your shareholders and hopefully they work alongside you.

 

Dispel the Myths

·        Don’t succumb to fear tactics.  Becoming a Licensed Mortgage Originator is a straight forward process.  Would you buy stock from an unlicensed stock broker?  Would you seek retirement advice from a Disc Jockey that appears to talk the talk?  Your family deserves the certainty of licensing as set forth by Congress.

·        Don’t talk yourself into believing Bank comparable training is the same thing as studying and passing the national NMLS with state content exam.  Ask any Bank Registered MLO that has passed the test if there is a difference.

·        The Georgia Department of Banking and Finance is very cooperative and will discuss issues to help you through the process.  They respond promptly and will answer your questions.  It is important to follow the rules during the licensing process.

·        For Realtors and Builder’s service and speed matters.

·        If you have a license, you will welcome change.  If you are unable to be licensed, you know the deficiencies and can make a plan to correct them before it’s too late.

Becoming a Licensed Mortgage Originator removes the inherent risk of Banks switching to employing only licensed MLOs.  Protect your career and your family’s income by earning your MLO License and enjoy the next 5 years without concern.

www.southeastmortgage.com
Southeast Mortgage of Georgia, Inc.
3496 Club Drive, Lawrenceville, Georgia 30044
Phone: (770) 279-0222
Georgia Residental Mortgage Licensee #6578
NMLS #103956

Declined March Cal-Culator Breaks Record Run

Declined March Cal-Culator Breaks Record Run

Posted on April 7, 2014 by admin

     

After a sensational winter for the Atlanta residential real estate industry, the market has ended its record streak of two months consecutively reaching 6.0 and has declined to a 5.7 in 2014’s first spring month. Declining new, pending and existing home sales combined with negative home price gains contributed to the weakened Cal-Culator this month.

 

The U.S. Department of Commerce released its U.S. Census Bureau News for February, which showed that sales of new single-family homes in February were 3.3 percent below January. Though new home sales are only a small portion of homes purchased in the U.S., the sales represents a lot more.

“They [new home sales] provide a more current gauge of market conditions than some other indicators because they are tallied at the moment a contract is signed rather than at its closing,” said The Wall Street Journal in ‘New-Home Sales Fell 3.3% in February.’
The article also found that existing home sales, 90 percent of all home purchases, fell for the second consecutive month.

Pending home sales also fell 0.8 percent in February, marking the eighth straight month of decline, according to Bloomberg data. Pending home sales can be used to predict future home sales’ activity, as most pending home sales become existing home sales in a few months.

The latest S&P/Case-Shiller Home Price Indices indicated that a majority of the cities in the 20-City Composite saw declines in home prices gains, including Atlanta, which posted a 0.1 percent decline.
“The housing recovery may have taken a breather due to the cold weather,” said David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices. “Twelve cities reported declining prices in January vs. December; eight of those were worse than the month before.”

The National Association of Realtors’ 2014 Investment Home Buyers Survey conducted in March found that investment sales, a necessary part of the recovery, fell to 20 percent of all transactions in 2013, a drop of 8.5 percent.

“Investment buyers slowed their purchasing in 2013 because prices were rising quickly along with a declining availability of discounted foreclosures over the course of the year,” said NAR Chief Economist Lawrence Yun.

Despite the setbacks, the month did have a few bright spots. Nation-wide inventory is continuing to rise and now is at a 5.2-month supply, up from a 4.7-monthly supply last month. Though month-over-month home price gains declined, Atlanta experienced a 16.8 percent year-over-year change in home prices.

“Expectations and recent data point to continued home price gains for 2014. Although most analysts do not expect the same rapid increases we saw law year, the consensus is for moderating gains,” said Blitzer.

The next Cal-Culator will be released May 13 and will hopefully follow normal spring strides in the housing industry.

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

Do Mortgage Rates Matter?

I was scanning through LinkedIn this morning and a chart caught my eye.  It was a 200 year US 30 year Mortgage graph.

Over the years, I have seen some Mortgage Originators who watch rates like you would a stock in your portfolio.  I see blogs about what rates may be doing.  The only thing certain about mortgage rates is they will go up or down and they are a function of other variables.  For the consumer, mortgage rates do not matter in that they are relative to the economy.

 

When mortgage rates are high inflation is generally high along with home prices, wages, employment etc.  When mortgage rates are low inflation is generally low along with home prices, wages, employment etc.  The most recent recession was caused by an unsustainable product portfolios which required significant monetary policy inputs (QE1, QE2, QE3) to correct which created the artificial lows in mortgage rates we saw in the past year.

 

The one thing that is always true is markets are rational and always find an equilibrium.

 

Look at it this way.  Does a boat run differently in low tide vs. high tide? http://southeastmortgage.blogspot.com/2011/12/low-country-view-of-recessions-from.html

No it is the same.  Does a higher rate matter if the home you are buying is appreciating 7% a year or your families income is increasing 10% a year due to the great economy?  Rates do not matter in that they are relative to the surrounding economy and a rate lower than the market generally has a catch since mortgage rates are a commodity.  As you require your stock broker to be licensed, be sure your Mortgage Originator is licensed and not just registered.  http://southeastmortgage.blogspot.com/2013/09/what-consumers-must-know-about-mortgage.html

 

What is important to consumers is a home provides security for their family, a hedge against inflation, and potential tax benefits while providing an environment to create memories.  As an industry, we should focus on client need today and five years down the road.

 

Rates are a commodity and are a function of the economy.  The consumer is always getting a relatively good deal any day they lock given they economy is the tide in which their boat floats and their boat is always floating the same way in a high tide vs. a low tide.

 

Cal Haupt

Chief Executive Officer

Southeast Mortgage of Georgia, Inc.

www.southeastmortgage.com

Hibernian Society of Savannah 202nd Anniversary Dinner

In 1812 the Hibernian Society of Savannah was organized by forty-four prominent Savannah gentlemen for the purpose of tendering aid to needy Irish immigrants.

In 1813 the Hibernian Society held a private St. Patrick's Day celebration at Independent Presbyterian Church.

 

In 1824 James Hunter, President of the Hibernian Society, invited all local Irishmen to attend mass and then join in a parade through the streets of Savannah in honor of St. Patrick's Day. This was the birth of the St. Patrick's Day Parade in Savannah.

 

Dr. Jurgensen Center Current President

On St. Patrick's Day, 1874, members of the Hibernian Society awakened the whole City of Savannah by firing off an 18 gun salute with Revolutionary War cannons at 6:30 in the morning. We can't imagine why such a great tradition was apparently discontinued after only one year.

 

In 1908, by pure coincidence, Savannah's two oldest heritage societies, the St. Andrew's Society and the Hibernian Society, held separate meetings on the same night at the Hussars' Club. Afterwards the Scotsmen and the Irishmen gathered together for libations and toasts.

202nd Dinner Savannah, Georgia

 

In 1912 President William Howard Taft addressed the 100th Anniversary Dinner of the Hibernian Society of Savannah.

In 1937 President Franklin D. Roosevelt sent greetings to the Hibernian Society in a radio address from Warm Springs, Georgia.

In 1940 the cover of the Anniversary Dinner Program honored Tara Hall, the O'Hara Family home in Gone With the Wind, which had premiered the previous year.

In 1962 former President Harry Truman addressed the Society's 150th Anniversary Dinner.

In 1977 Archbishop Fulton J. Sheen was the featured speaker at the Society's Anniversary Dinner.

President Jimmy Carter addressed the Society's Anniversary Dinner in 1978.
 

2012 - Four-star Admiral William McRaven, commander of U.S. Special Forces, was the guest speaker for the 200th Anniversary of the Hibernian Society.  McRaven is credited for organizing and executing Operation Neptune's Spear, the special Ops raid that led to the death of Osama bin Laden on May 2, 2011.

 

www.southeastmortgage.com

Client Relationship Management has a new Crib.....

The CRM is moving into their new space at Club Drive.  The facility is designed to improve the delivery of the added value we provide our Licensed Mortgage Originators, Realtor / Real Estate Agents, and Builder groups.