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.

What You Need to Know Before Buying Your First Home

What You Need to Know Before Buying Your First Home

Posted on May 27, 2014 by admin 

 

Last week, we introduced our two-part series about first-time homebuyers with “Are You Ready to Buy Your First Home?”, a look inside the factors that indicate if hopeful homebuyers are ready to make the plunge. This week, we discuss a few things that you need to know as a first-time homebuyer.

Shaun Graham, Vice President of Southeast Mortgage

 

Do I need to be pre-approved for a loan?
A “mortgage pre-approval” is a written statement from a lender indicating that the borrower will most likely qualify for a loan at a certain rate based on income and credit information. However, the pre-approval doesn’t guarantee the loan or the rate quoted.
Though the loan isn’t guaranteed, there are multiple reasons why you should obtain pre-approval. Sellers and Realtors are more likely to engage with someone that is seen as a credible buyer and stands out in a competitive market. The pre-approval will also offer you an idea of what kind of house you can truly afford given the rate.
If you aren’t able to secure pre-approval the first time around there are things you can do to secure approval in the future, including striving to improve your credit score, decreasing your debt-to-income ratio and working toward a more substantial down payment.

What should I take with me with when applying for a mortgage?
With 2014 being labeled as the “year of documentation” by HSH , consumers will need to be extra-prepared with their paperwork when applying for a mortgage. Even if you’re not a first-time homebuyer, the necessary documentation will be new to you if you haven’t applied for a mortgage in the past five years. To satisfy mortgage lenders you will need:

• Photo identification
• Tax returns from the last two years
• Two recent pay stubs
• Bank statements from the last two months
• Proof of homeowner’s insurance
• Rent or utility checks. First-time homebuyers will need to prove they have a history of making payments on time.
• Verification of position and salary
• List of credit card accounts and amount owed on each
• List of assets such as bonds or stocks

Other forms may be need to be provided on a case-by-case basis such as 1099 forms if you are self-employed, gift letters and a signed sales contract after making an offer on a residence.

 Do I need a Realtor?
Having a Realtor is an invaluable asset when shopping for a home as outlined in our previous column “Why Enlisting a Realtor’s Assistance is Still a Necessity for Buyers.” Contracts, often up to 50-pages long, and negotiations can be extremely tricky whether it’s a buyer’s first home or fifth home. Contrary to popular belief, Realtors are bound by to law to act in the buyer’s best interest, therefore, it is highly recommended to take advantage of a Realtor’s experience and guidance.
Though buying your first home can be overwhelming, a mortgage lender and Realtor can be extremely beneficial to help ease the process. In addition, many Realtors offer first-time homebuyers seminars and workshops, often for free.

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

April Cal-Culator Reveals Continued Spring Setback

April Cal-Culator Reveals Continued Spring Setback

 After a strong winter in the real estate industry, the spring season continues to disappoint with sluggish market performance. Though the industry hit a record-breaking 6.0 twice earlier this year, the April Cal-Culator
lingered at a 5.7. Positive gains in underwater mortgages (home loans with a higher balance than the market value of the home) and foreclosures were offset by slow growth in existing-home sales and home prices.

The April Cal-Culator

Foreclosures
One of the bright spots of the month is CoreLogic’s latest National Foreclosure Report.  The report found that foreclosure rates (the 12-month sum of completed foreclosures) are back to November 2008 levels and foreclosure inventory is down 5.1 percent year-over-year.
“The inventory of homes in foreclosure and serious delinquency status are back to 2008 levels, yet remain elevated from a historic perspective,” said Dr. Mark Fleming, chief economist for CoreLogic. “While getting healthier, the housing market is still a long way from being fully recovered.”
Unfortunately, Georgia was leading the nation with the fifth-highest number of completed foreclosures during the past 12 months – 33,000.
Home Prices
The most recent S&P/Case-Shiller Home Price Indices showed little growth in home price gains for the majority of the 10-City and 20-City Composite, where Atlanta is included. Atlanta posted a -0.6 percent change, seasonally adjusted, month-over-month and -0.1 percent change year-over-year. David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, said these “annual rates cooled the most we’ve seen in some time” and that the recovery in housing starts is “faltering.”
Home Sales
A report from the National Association of Realtors found that existing-home sales remained stagnant in March. Declining sales in the West and South offset gains in the Northeast and Midwest. Overall total existing-home sales slipped 0.2 percent.
“There should really be stronger levels of home sales given our population growth,” said Lawrence Yun, NAR chief economist. “In contrast, price growth is rising faster than historical norms because of inventory shortages.”
However, pending home sales increased for the first time in nine months. The Pending Home Sales Index, a “forward-looking indicator,” rose 3.4 percent nationwide and 5.6 percent in the South in March.
“After a dismal winter, more buyers got an opportunity to look at homes last month and are beginning to make contract offers,” said Yun. “Sales activity is expected to steadily pick up as more inventory reaches the market, and from ongoing job creation in the economy.”
Underwater Properties
RealtyTrac’s U.S. Home Equity & Underwater Report for the first quarter of 2014 showed that 17 percent of all properties with a mortgage were seriously underwater, where the combined loan amount of the property is at least 25 percent higher than the property’s estimated value, the lowest level since RealtyTrac began tracking negative equity in 2012. Unfortunately, Georgia has the 10th-highest number of underwater mortgages in the nation.
“U.S. homeowners are continuing to recover equity lost during the Great Recession, but the pace of that recovering equity slowed in the first quarter, corresponding to slowing home price appreciation,” said Daren Blomquist, vice president at RealtyTrac.
The May Cal-Culator will be released June 10 and will hopefully represent resurgence in the housing industry.

April 2014 CRM News Letter

www.southeastmortgage.com

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