http://issuu.com/nmpmag/docs/gamp_july14/69?e=1230807/8708599
Friday, July 25, 2014
Monday, July 14, 2014
June 2014 - Cal-Culator - Real Estate Index Hits Record High
Atlanta Residential Real Estate Index Hits
Record High With Across the Board Housing Improvements
Amid the summer heat, real estate in Atlanta is sizzling. Last month, the Cal-Culator, Atlanta’s residential real estate index, reached the previous record of 6.0. This month, the June index has climbed to a record high of 6.2 due to across the board improvements in home sales, builder confidence, home prices, increased inventory, foreclosures and more.
Home Sales
Pending, new and existing home sales all saw strong improvements in May. Existing-home sales rose 4.9 percent, with attributions to rising inventory levels, the improving job market and declining mortgage rates. Pending home sales rose “sharply” 6.1 percent, the largest increase since April 2010 when first-time homebuyers scrambled to sign contracts before a lucrative popular tax credit ended, according to the National Association of Realtors.
New-home sales posted an even stronger rebound with a nearly 19 percent increase from last month, the highest rate since May 2008, according to data released by the U.S. Department of Housing and Urban Development with the U.S. Census Bureau. “These numbers are in line with our recent builder surveys, which indicate that more consumers are getting off the fence and coming back into the marketplace,” said Kevin Kelly, chairman of the National Association of Home Builders.
Home prices
RealtyTrac reported that the median sales price of distressed and non-distressed U.S. residential properties rose 6 percent in May from the previous month and 13 percent from a year ago, the second consecutive month in a row with a double-digit annual increase and the biggest annual increase since prices bottomed out in March 2012.
Builder Confidence
New data from the NAHB and Wells Fargo Housing Market Index showed that builder confidence for new single-family homes rose to only one point shy of the threshold of what’s considered good building conditions. The index rose four points to a level of 49. Any number over 50 indicates the majority of homebuilders view conditions as “good” rather than “poor.” “After several months of little fluctuation, a four-point uptick in builder sentiment is a welcome sign and shows some renewed confidence in the industry,” said Kelly.
Foreclosures
Foreclosure levels in Atlanta have continued the downward trend that has permeated the real estate industry in 2014. Foreclosures in June dropped to levels not seen since 2002. The Atlanta Journal-Constitution reported on data from Kennesaw’s Equity Depot that 2,054 foreclosures were reported in June across 13 Atlanta counties, compared to 11,016 during the height of the housing crisis. The Northeast and West aren’t faring as well, however, as foreclosure levels skyrocketed in May, according to Housing Wire.
Stay tuned as we release the next Cal-Culator on August 5 to see if Atlanta’s residential real estate numbers continue on their current path of rebound.
www.southeastmortgage.com
770-279-0222
Amid the summer heat, real estate in Atlanta is sizzling. Last month, the Cal-Culator, Atlanta’s residential real estate index, reached the previous record of 6.0. This month, the June index has climbed to a record high of 6.2 due to across the board improvements in home sales, builder confidence, home prices, increased inventory, foreclosures and more.
The June Cal-Culator
Home Sales
Pending, new and existing home sales all saw strong improvements in May. Existing-home sales rose 4.9 percent, with attributions to rising inventory levels, the improving job market and declining mortgage rates. Pending home sales rose “sharply” 6.1 percent, the largest increase since April 2010 when first-time homebuyers scrambled to sign contracts before a lucrative popular tax credit ended, according to the National Association of Realtors.
New-home sales posted an even stronger rebound with a nearly 19 percent increase from last month, the highest rate since May 2008, according to data released by the U.S. Department of Housing and Urban Development with the U.S. Census Bureau. “These numbers are in line with our recent builder surveys, which indicate that more consumers are getting off the fence and coming back into the marketplace,” said Kevin Kelly, chairman of the National Association of Home Builders.
Home prices
RealtyTrac reported that the median sales price of distressed and non-distressed U.S. residential properties rose 6 percent in May from the previous month and 13 percent from a year ago, the second consecutive month in a row with a double-digit annual increase and the biggest annual increase since prices bottomed out in March 2012.
Builder Confidence
New data from the NAHB and Wells Fargo Housing Market Index showed that builder confidence for new single-family homes rose to only one point shy of the threshold of what’s considered good building conditions. The index rose four points to a level of 49. Any number over 50 indicates the majority of homebuilders view conditions as “good” rather than “poor.” “After several months of little fluctuation, a four-point uptick in builder sentiment is a welcome sign and shows some renewed confidence in the industry,” said Kelly.
Foreclosures
Foreclosure levels in Atlanta have continued the downward trend that has permeated the real estate industry in 2014. Foreclosures in June dropped to levels not seen since 2002. The Atlanta Journal-Constitution reported on data from Kennesaw’s Equity Depot that 2,054 foreclosures were reported in June across 13 Atlanta counties, compared to 11,016 during the height of the housing crisis. The Northeast and West aren’t faring as well, however, as foreclosure levels skyrocketed in May, according to Housing Wire.
Stay tuned as we release the next Cal-Culator on August 5 to see if Atlanta’s residential real estate numbers continue on their current path of rebound.
www.southeastmortgage.com
770-279-0222
Friday, July 11, 2014
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
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
Thursday, July 3, 2014
National Professional Mortgage Magazine - June 2014 - Fostering the Intangible Asset by Cal Haupt
Fostering the Intangible Asset: Corporate Culture
Every organization strives to be highly
efficient, effective and achieve better results. Meticulous business strategies, created
through endless hours of meetings, brainstorming sessions, emails and research
help to define and align those strategies with a company’s objectives. Studies show, however, that many businesses
oftentimes fail to see the big picture. Quite often the intangible assets of a
firm such as employee loyalty and engagement, shared values and beliefs,
internal relationships and problem-solving are passed over as either
unimportant and irrelevant or given moderate attention only to be pushed aside
as more pressing issues take priority.
The fact is, these intangible corporate assets, defined as a culture,
have a profound impact on a company’s success.
http://issuu.com/nmpmag/docs/gamp_june14/59?e=1230807/8481459 Page 87
 |
Some reports suggest that happy, engaged
employees lead to increased success and even profits. Though the subject is debatable, there’s
certainly enough evidence out there to suggest that happy employees, in fact,
do correlate to increased profits. Last
year, revenues increased by an average of 22.2 percent for the 2014 Fortune 100 Best Companies to Work For. If
happy employees really do foster success and improve profits, how can an organization
establish an interlocking set of goals, values, attitudes and communication
that are actively encouraged and reinforced? Sometimes you have to throw the
rule book out and get back to basics.
1.)
Refrain from outside influence
Defining and building
a winning culture sounds pretty simple right? Just pick up a book, read an
article or seek outside advice and you’ll be an expert in no time. The truth is
there isn’t a book out there that can specifically define the best culture that
will work for your firm. A great
corporate culture is masterfully blended from within a company. And, because each firm is unique with diverse
management beliefs and styles and employees from entirely different walks of
life and skill levels, it would be nearly impossible to “cookie cut” a
corporate culture. Sure, there are always a few lessons to be learned from the
experts, but to be truly effective, a culture must be defined by its
management, its people and the systems and reinforcements put in place to
foster the corporate values and beliefs.
2.)
Believe in your employees
One of the first
steps to create a winning culture in any firm is to believe in your
employees. Establish a level of trust
that begins at the top. Engage with employees, encourage them and, most
importantly, empower them to make a difference and become a part of the vision
of the firm. Make a point to always
recognize and reward employees for their input, insight, effort and
contribution. Humanize your approach to
business and make your employees feel connected, important and valued. Make
employees feel that they can talk and relate to management and clearly
communicate what is expected of them and encourage their voices to be heard.
3.)
Foster the character of your firm
Have you ever walked into a company and clearly felt upon
entering the character (personality or temperament) of the firm? Right off the bat you could tell employees
seemed engaged and happy or, conversely, particularly detached or serious. Our employees seem happy and engaged is a statement we here from most who visit SEM for
the first time. Depending on the nature of your business and
demographic make-up of your firm, the character of a firm will oftentimes be
defined by its employees. The culture
(way of life, traditions), in turn, will reflect the character of your firm. Therefore,
to foster a winning culture, a firm must first strive to understand and embrace
its character and cultivate a way of life that is in sync with its personality
and people.
4.)
Respect one another
Clearly, the fastest
way to break down corporate culture is to disregard the importance of respect
within an organization. Regardless of
status, position, title, wage or salary, employees must respect one another’s
opinions and contributions to the firm – no matter how insignificant they may
seem from the top. Expectations for employees respect and interaction must be
clearly defined and communicated with employees being held accountable for a
breakdown. As Albert Einstein was quoted as saying, “Let every man be respected as
an individual and no man idolized.”
5.)
At the end of the day – have fun
It’s time to walk away from office politics
and the corporate rat-race and make work fun again. Companies need to find ways to reduce stress
and build passion back into in the workplace and that strategy may involve a
few non-traditional ideas of “employee engagement.” What makes a company fun to
work for involves not only understanding what your employees need, but also
what they want including such things as flexible schedules, great employee
benefits, unique perks or services or opportunities to enhance and develop
their careers. Taking a step back and
viewing “fun” from an out-of-the-box perspective may help you better strategize
ways to put the passion back into your organization.
Cal Haupt,
Chairman and Chief Executive Officer
Southeast Mortgage of Georgia, Inc.
Cal Haupt founded Southeast
Mortgage in 1993 with the vision and goal to fill the
void between banks and mortgage brokers for clients who want competent advice
and great service from a direct lender. Today,
Southeast Mortgage has eleven office locations throughout Metro Atlanta and is
licensed in Georgia, Alabama, Florida and South Carolina. Cal is a regular
contributor to the Atlanta “Home
Mortgages” section of SaportaReport
where he reports on major changes in the housing industry and is the brainchild
of Atlanta’s newest residential real estate index, The
Cal-Culator. He may
be reached at Cal.Haupt@southeastmortgage.comSoutheast Mortgage of Georgia, Inc.
http://issuu.com/nmpmag/docs/gamp_june14/59?e=1230807/8481459 Page 87
Tuesday, July 1, 2014
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
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.
Cal Haupt
Chairman and CEO
Southeast Mortgage of Georgia, Inc.
www.southeastmortgage.com
Wednesday, June 25, 2014
Qualified Mortgage (QM) - Lender Responsibility and Definition
Residential Mortgage Lenders primary purpose is to provide consumer loans secured by single family housing to facilitate acquisition for a consumer purpose. Consumer purpose is housing the primary borrower, co-borrower, and or family. Residential Mortgage Lenders have due care responsibility to ensure applicants can afford the loan for the term of the loan and it fits the applicants purpose.
Commercial Purpose loans secured by residential zoned property (Rental Properties, Industrial, and general purpose) should be handled by a small business lender that is tasked to originate this type of credit facility.
IMO: Just because a Residential Non-Qualified Mortgage product is offered for a residential consumer purposes is not a justification for a licensed or registered residential mortgage professional to sell it. Licensed Mortgage Loan Originators (NMLS and State License Compliant Mortgage Loan Originators) and Registered Bank Mortgage Employees (Bank Employees whose job is to Originate Mortgages and is not Licensed) should be a fiduciary for the consumer and ensure they recommend the right product. Mortgage product recommendations should only be made after understanding the client's needs through an interview process and ensuring the client can afford the loan today and for the term of the loan. In the future all Bank and Non-Bank Mortgage Professionals will be licensed to the same standard which will ensure all consumers have consistent protection when shopping for their mortgage.
This trust and due care is the key to referrals and the key to longevity in this business.
In its simplest form, Qualified Mortgages (QM) meet the following requirements:
> A loan that meets the requirements of GSEs, FHA, VA, or USDA and can be sold in the primary secondary market
> Consumer has a documented and verified ability to repay
1. General definition of QMs
Any loan that meets the product feature requirements with a debt-to-income ratio of 43% or less is a QM
If you have less than $2B in assets and originate 500 or fewer first mortgages per year, loans you make and hold in portfolio are QMs as long as you have considered and verified a borrower’s debt-to-income ratio (though no specific DTI limit applies).
I truly hope our industry learned from the last recession that mortgages are a cornerstone of the US economy. We make a difference every day and should govern the products we offer consumers with due care at the fore front. Today we are seeing a similar trend to 2006 - 2009 when the industry evolved product features to target a broader category of borrower to increase origination volume. I believe there are some products that are needed for borrowers that are not currently participating in today's mortgage market; however, we need to ensure industry risk remains low.
Cal Haupt
Chairman and CEO
Southeast Mortgage of Georgia, Inc.
770-279-0222
www.southeastmortgage.com
Commercial Purpose loans secured by residential zoned property (Rental Properties, Industrial, and general purpose) should be handled by a small business lender that is tasked to originate this type of credit facility.
This trust and due care is the key to referrals and the key to longevity in this business.
> A loan that meets the requirements of GSEs, FHA, VA, or USDA and can be sold in the primary secondary market
> Consumer has a documented and verified ability to repay
Starting January 10, 2014, you must assess the borrower’s ability to repay all term residential mortgage loans. All QMs are presumed to comply with this requirement. As described below, a loan that meets the product feature requirements can be a QM under any of three main categories:
Mandatory product feature requirements for all QMs
- Points and fees must be less than or equal to 3% of the loan amount (amounts less than $100k, higher % thresholds are allowed);
- No negative amortization, interest-only, or balloon loans that increase risk (BUT NOTE: balloon loans originated until January 10, 2016 that meet the other product features are QMs if originated and held in portfolio by small creditors);
- Maximum loan term is less than or = 30 years.
1. General definition of QMs
Any loan that meets the product feature requirements with a debt-to-income ratio of 43% or less is a QM
2. "GSE-eligible" category of QMs
Any loan that meets the product feature requirements and is eligible for purchase, guarantee, or insurance by a GSE, FHA, VA, or USDA is QM regardless of the debt-to-income ratio (this QM category applies for GSE loans as long as the GSEs are in FHFA conservatorship and for federal agency loans until an agency issues its own QM rules, or January 10, 2021, whichever occurs first).
3. Small creditor category of QMs
I truly hope our industry learned from the last recession that mortgages are a cornerstone of the US economy. We make a difference every day and should govern the products we offer consumers with due care at the fore front. Today we are seeing a similar trend to 2006 - 2009 when the industry evolved product features to target a broader category of borrower to increase origination volume. I believe there are some products that are needed for borrowers that are not currently participating in today's mortgage market; however, we need to ensure industry risk remains low.
Cal Haupt
Chairman and CEO
Southeast Mortgage of Georgia, Inc.
770-279-0222
www.southeastmortgage.com
Tuesday, June 24, 2014
Atlanta's unique housing price rise due to its unique nature... S&P Case Shiller Index Confirms at 13.7%
Atlanta continues to lead the nation in residential real estate price stability and growth.
Due to Metro Atlanta's diverse economy, lack of industry concentration, and transportation; Atlanta housing fares better than most through a recession and recovers quickly and more dynamically than most states during recoveries.With the economic growth now reporting what has been obvious from the wait times at restaurants, full airplanes, and congested traffic; consumers are rushing to participate in the housing recovery. Whether it is the new home buyer, trading up, or baby boomers streamlining for retirement; housing demand is pushing Atlanta home prices up and will continue into the foreseeable future. (See list below)
US prices are up 22.6% since bottoming out just over three years ago, but are still 18% below the peak set in July, 2006. The home price index covering 10 major U.S. cities increased 10.8% in the year ended in April according to the S&P/Case-Shiller Home Price Index report. The 20-city price index also advanced 10.8%. That is down from a 12.4% yearly pace in March and less than the 11.4% expected by economists. Although many analyst are reporting year-over-year gains are slowing, this is not the case for Metro Atlanta, Georgia..
Cal Haupt
Chairman and CEO
Southeast Mortgage of Georgia, Inc.
www.southeastmortgage.com
770-279-0222
Subscribe to:
Posts (Atom)