Homeowners believe home prices will rise, according to results from Fannie Mae’s April 2012 National Housing Survey. The report noted that the continued stabilization of consumer attitudes combined with growth in areas such as home price expectations, whether it is a good time to sell, the direction of the economy and the percentage of Americans who have had an increase in their personal income indicate an alignment of factors that may influence their decision making about purchasing a home. The survey noted that on average, Americans expect home prices to increase 1.3 percent over the next 12 months, while the percentage of Americans who say it is a good time to sell their home continued to rise to 15 percent in April, which is a jump from last year’s levels.

The U.S. residential home mortgage delinquency rate (defined as the number of home mortgages more than 60 days past due) fell for the first quarter of 2012 to 5.78%, according to a new report from TransUnion. The two previous quarters had seen a rise in such delinquencies, but first quarter 2012 results indicate mortgage delinquencies are at their lowest levels since the first quarter of 2009. “To see that quarter over quarter, and year over year, more homeowners were able to make their mortgage payments is certainly welcome news,” notes Tim Martin, group vice president of U.S. Housing at TransUnion. “Before this, we saw two quarters of delinquency increases and while we are still about three-times above the pre-recession norm, this should mark the start of consistent improvement each quarter.

Richard Cordray, director of the Consumer Financial Protection Bureau. Joshua Roberts/Bloomberg via Getty Images.

On May 9, the CFPB issued a press release outlining proposed rules changes for mortgage loan originators.

Chief among the changes being considered for MLOs is a ban on origination fees that vary with the size of the loan (flat fees would be acceptable).

Also being considered are changes that would create qualification and screening standards for all originators no matter what channel they originate in.

To view the press release, click here.

To view the  complete proposal (37 pages), click here.

The public can email the CFPB their comments and feedback at MortgageLoanOrigination@cfpb.gov.

Please be sure to weigh in with your opinion about the flat fee proposal on our poll on our Home Page.

The Safe Act “generally prohibits an individual from engaging in the business of a loan originator without first obtaining, and maintaining annually, a unique identifier from the Nationwide Licensing System and Registry System (NMLSR) and either: a registration as a registered loan originator or a license and registration as a State-licensed loan originator.”

According to Regulation H, for an individual to be eligible for a loan originator license, “a state must require and find, at a minimum, that an individual” has met certain standards. The SAFE Act and Reg. H enable states to provide a transitional loan originator license to individuals who hold a valid loan originator license from another state.  HUD has stated that the final rule doesn’t “limit the extent to which a state may take into consideration or rely upon the findings made by another state in determining whether an individual is eligible under its own laws.”

To obtain a transitional loan originator license from the second state, an individual must meet either a net worth or surety bond requirement, or pay into a state fund, as required by the second state’s loan originator supervisory authority (consistent with Reg H and the SAFE Act).

There is another consideration for those changing employment and are no longer employees of depository institutions or “certain other” federally regulated institutions. Transitional licenses for such individuals would enable them to act as originators while seeking SAFE Act-compliant state loan originator licenses.  However, Reg H requires that states prohibit individuals from “engaging in the business of a loan originator with respect to any dwelling or residential real estate in the state unless they first register as a loan originator through and obtains a unique identifier from the NMLSR, and obtains and maintains a valid originator license from the state, except as otherwise permitted.

(Consult your legal/other counsel for additional details and to confirm your specific situation.)

However, personal calls can be even better. They not only offer a chance to catch up with customers, but also enable you to strengthen relationships and obtain referrals.

Some originators are hesitant to make calls, not necessarily because of call reluctance—being uncomfortable to talk on the phone—but rather because they are unsure of what to discuss. Or perhaps they simply rely on e-mails to communicate. “In our world of the Internet and texting, we tend to forget about our most important business tool, the phone,” said Amanda Sessa, SWBC Mortgage, Boulder, Colo.

Reasons to Call

There are some great opportunities to call customers, Realtors and others. For example:

Post Closing—An obvious reason to call is to follow up soon after customers close. “I like to check in after they have closed and see how things are going with their new home,” said Sessa. “It is a great time to ask for referrals and thank them for their business. It is also an excellent chance to catch up with clients on their new home, new marriage, new baby, retirement and so on. The Media Center, which is the database management tool we use, also has an excellent way of keeping notes on clients so when you call you have all their personal information in front of you.”

Respond to Mailers—Some originators make a point to call customers after sending them a mailer of some type. Norman Calvo and team send customers a letter and financial spreadsheets that compare their loan program/rate with the current marketplace. “We also make follow-up calls to make sure they understand the information and explain we’re looking out for their best interests,” said Calvo, Universal Mortgage, Brooklyn, NY. “This system has been extremely successful.”

Annual audits—One of the most effective calls involves the annual mortgage audit, enabling you to review the customer’s current loan and options. “I like to do an annual check-in with my clients via the telephone each year,” noted Sessa. “It is a difficult task to accomplish and I am not always successful at contacting all of them, but I make the effort nonetheless.”

You also can combine an initial mailer with a subsequent audit call. For instance, Amy Bonis, Hearthstone Mortgage (part of 1^st Medallion Mortgage), Raleigh, NC, prepares a proprietary life planning document called DreamMaker that outlines the customer’s current loan status and their three- to five-year goals. “We then discuss this with clients when we do an annual review call,” Bonis said. “We call them once a year on their closing anniversary month.  We may ask the client family to read a book or specific articles that may apply to their goals and family vision. Clients love the fact that we ask them about their lives and help them reach their dreams and goals. I believe this helps keep customers coming back to us.

Birthday Greetings—Most people appreciate being remembered at their birthday. Ed Naworol, SunTrust Mortgage, Bel Air, MD, combines sending birthday cards with $1 scratch-off tickets to past clients and a personal call. “I will call them on their birthdays, 365 days a year and on weekends,” he said. “If they aren’t there I will leave a message wishing them a happy birthday and at the end of the message saying ‘If you have family or friends thinking about buying or refinancing, have them call me.’ If I get a chance to wish them happy birthday on the phone, I will say the same thing. People are surprised when you call them on Christmas, another holiday or on the weekend. The latter (about 5 p.m.) is a good time to call because they are usually home, prior to going out for the evening.  Making birthday calls is a personal touch that customers appreciate and reminds them that I’m here and available to help them, their friends and neighbors.”

 A Few Tips

According to these and other loan originators, it is important to follow a few basic guidelines.   *Maintain good notes on your previous customer contacts so that you can discuss their current loan, along with family and other personal information when you call.

• Make the call useful, rather than strictly commercial (asking for business). Always emphasize the benefit to the customer; for example that you are providing information that will save them money.
• Of course, you want to conclude the call by mentioning potential referrals, which should also appeal to their interests. For example: “I would like to offer the same level of service I have strived to provide you to a family member or friend. Do you know anyone I might assist?”
• Be sure to avoid contacting customers/others who have indicated they would rather not receive calls. (It’s a good idea to periodically survey them to see what they prefer.)
• Make the calls brief. Keep your audience attentive by highlighting the key message and asking if they have any questions or special requests.

E-mails are definitely an efficient way to communicate with your customers. However, continue to look for ways to have a personal conversation; thereby enhancing your relationships and also developing new business.

David Robinson is associate editor of Broker Banker.

Jane was not looking forward to going through her parents’ belongings to get their house ready to sell. Their health had been failing for some time and they finally agreed to move to a retirement community. Now that they were both comfortably moved into their new apartment, it was up to Jane to get rid of the things they no longer needed.

Her parents had lived in the same house for more than 50 years, so Jane expected to find things that should have been tossed out years ago. But she was amazed to discover 50 years of tax returns and bank statements carefully stored in boxes in the attic. Her parents had saved all their financial records!

Many people are confused about what records they need to keep and for how long. They hold onto tax returns, bank records, brokerage statements and other financial information simply because they don’t know if they’ll need it again. Like Jane’s parents, the documents get packed in boxes that eventually take over valuable living or storage space.

According to financial planner Rick Rodgers, author of The New Three-Legged Stool: A Tax Efficient Approach To Retirement Planning (www.TheNewThreeLeggedStool.com), tax time is a great time to get organized. “Most people are going through their records to get ready to file their return,” he said. “This is the time to get smart about what you need to keep and then set up a system to store it efficiently going forward.”

Rodgers suggests these five steps to help you effectively organize your finances for 2012 and beyond:

1. Out with the old – Discard the records you no longer need: Tax returns older than seven years; bank records and credit card statements that are not related to the tax returns you’re keeping; brokerage statements that aren’t related to purchases of current holdings. Be sure to shred all your old documents before throwing them out.
2. Go digital – Convert the documents you plan to save into digital images that are stored on your hard drive. Invest in a good scanner and scan as you go through your paperwork, shredding and tossing the hard copies as you go. On your computer, file by tax year, so your 2011 folder will contain your tax return for 2011 and all pertinent bank records and receipts. Organize the previous six years the same way. Next year you can delete the oldest folder when you add the 2012 folder.
3. Save a forest – All of the financial institutions you deal with would prefer to send your statements electronically. Stop receiving paper statements. Instead, download your statements electronically and store them in your new filing system. Most banks and credit card companies keep at least a year’s worth of statements available. You need to download these files only once a year to complete the year’s file.
4. Save backups in case of emergency – Make backup copies of your files on a CD. Choose a CD-R (recordable) as opposed to a CD-RW (rewriteable), because CD-R cannot accidentally be overwritten. Depending on your computer operating system, you may be able to continue adding data to a CD-R each year, until the CD is full. However, some operating systems won’t allow that, so you’ll need a new CD for each year.
5. Go paperless – Your new electronic filing system can be expanded to include all your financial records, from car maintenance receipts to pay stubs. Wills and insurance policies can also be scanned and stored but, of course, keep the originals of those in a safe deposit box or fireproof safe.

Gone are the days of saving your financial documents in box and shoving it into the attic. Technology advances have made organizing your personal finances easier with minimal cost. Make 2012 the year you get organized by moving your finances into a 21st century filing system.

Certified Financial Planner Rick Rodgers is president of Rodgers & Associates, “The Retirement Specialists,” in Lancaster, Pa. He’s a Certified Retirement Counselor and member of the National Association of Personal Financial Advisers. Rodgers has been featured on national radio and TV shows, including “FOX Business News” and “The 700 Club.”

Ending a campaign too soon
Too many small business owners pull the plug on a campaign before it has a chance to perform.

Not having a plan of action
I didn’t list these in any particular order but if I had to pick one reason, not having a plan would be number one.

Not enough research and then picking the wrong medium
This goes hand in hand with not having a plan. Research will save you a lot of money, headaches and sleepless nights.

Not knowing your target customers
Who is your client? Is it a man or a woman? Are your clients young, old or a mix? Where does your client live? Is it a family or a single person? Not knowing your client will make it difficult to determine what type of marketing will work for you. Define your client and then go after him , her or them.

Unrealistic expectations
Expecting that direct mail piece or commercial to make or break your year? Be ready to be let down. Set the right expectations for each marketing campaign and monitor your returns closely.

Thinking that it’s going to be easy
“Here’s what we’ll do, we’ll set up a landing page and throw some money at Adwords”. It doesn’t quite work that way. Any successful marketing campaign takes work. From concept and delivery to managing the response, it requires time and effort.

Not using media (or technology) to the fullest
I base this mainly on the Internet, not utilizing the Internet to the fullest but it really lends itself to any medium.

Putting all eggs in one basket (no media mix)
Many business owners make the mistake of putting their entire budget into a specific media. Like most things in life, that is a big mistake. Spreading your marketing and advertising will help you keep your ROI balanced.

Boring and uninteresting advertising
Seek to stand out without distracting from your main message – be interesting

Learn from the mistakes of others and go out and market yourself successfully.

Byron G. Torres is the founder and creative director of Pritzer Media (www.pritzer.com), a local marketing firm based out of Southern California. As a former originator, Byron understands the needs of mortgage professionals. Pritzer’s services include: Local marketing, website design for small businesses, and local video marketing.
Byron G. Torres can be reached at 909-689-4043

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