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Sometimes there are things in life that simply take people by storm – most recently, Avatar the insanely successful movie from James Cameron, Facebook & Twitter, Jersey Shore the reality MTV series (come on! you know you watch it) and Lady Gaga the hit pop artist, just to name a few. Each of these examples has made a lasting mark on their respective industry. Right now, in our much smaller industry by comparison, there is another phenomenon growing wildly fast. And in case you’ve never heard of them, by way of living under a large rock, their name is ThinkBigWorkSmall.com or TBWS or Frank and Brian or even FnB as we’ve learned to affectionately call them.  TBWS is a place where real estate professionals can catch up on the most important issues facing them today inside a daily seven minute video dialogue AND be completely entertained while doing so.  I discovered their daily show last year and can attest to their addictive qualities.  In fact, even their theme song jingle is so simple it’s pure genius; it can get stuck in your head for days inspiring you to sing it over and over at the dinner table (my wife was about to rip my head off, my kids loved it).  Who knew mortgage and real estate finance news could be this fun. It’s as if your favorite morning local TV news met Jim Cramer of Mad Money with a guest spot from Benny Hill, but even better. 

 

After meeting FnB at NAMB West this past December and hitting it off, they happened to mention The Niche Report on their December 10^th Daily show. I awoke to my iPhone being blown up with subscription requests and a small army of TBWS followers demanding we put FnB in the magazine, which we were happy to oblige. Hell, forget their crazy army of followers making demands, we had to learn about who these enigmatic, mysterious industry personalities are and where they come from, so we set forth to talk with these two and the following is what transpired.

Pay Per Click (PPC) advertising in the mortgage industry is confusing:

Ø      There are 124,000,000 searches for mortgage related terms on Google per month in the United States, according to KeywordSpy.com. The average cost per click is $13.69—but terms like “mortgage refinance” are up to $32 per click and “loans” can be $3 a click, but are more plentiful. What words should you use?

Ø      The bulk of the traffic is among 96 national advertisers with deep pockets—you already know who they are. Should you try to compete against them?

Ø      Some leads are worth more than other, depending on factors such as type of loan, value of home, credit score, and so forth. How do you obtain the right traffic at the right price?

Ø      What about the multiple search engines and display ad networks—is it worth going beyond Google AdWords?

Ø      Do you hire someone else to do this or keep in-house—and, either way, how do you make your PPC accountable from a ROI standpoint?

Since May 1^st 2009, a law was put in place in regards to appraiser, lender, Broker and Realtor relationships. The idea was to sever the appraisers ties primarily with Brokers and lenders in order to help stop the possibility of coercion. It is the Home Valuation Code of Conduct (HVCC).

 

Since then, appraisal management companies have become the source of work for appraisers. The amc’s control how an appraiser is paid, when an appraiser is paid, how much an appraiser is paid, where an appraiser will work (yes, they can turn down an assignment, but when you do not receive a lot of work?) and in some cases the appraiser is charged to use the amc’s “portal”. Since then, many Brokers have complained about the accuracy and the efficiency of appraisal reports.  

Today’s real estate market feels like a new frontier to homebuyers. While they prospect for good, smart housing buys, they also want assistance from people they can trust, just to be sure that a golden opportunity isn’t actually fool’s gold.

With the first-time homebuyer tax credit prompting a younger demographic to enter the market, many people currently purchasing homes are under age 35. In fact, 25 to 34-year-olds represented 51percent of first-time buyers in 2009, according to the National Association of Realtors. These house hunters are relying heavily on the Internet to dig up answers and information. Therefore, now is the perfect time to begin social media networking and market yourself to the online community. Interacting with consumers this way will help you gain their trust and build relationships.

The year was1974, the first time HUD required a uniform, standard closing statement (HUD1) and a Good Faith Estimate. Not much had changed since then—but expect 2010 to be the year the mortgage industry, as we know it, changes forever.

 

After waiting almost six months for the new HUD Settlement Cost Booklet, it was finally released on Dec 16, 2009 (HUD’s website) and incorporates the new GFE, HUD 1, MDIA disclosure dates.   

With so many changes in the industry, mortgage brokers have to adapt and redefine themselves at a rate and speed the likes of which have not been seen. It’s not just the rule changes and the adoption of HEOPA, HERA, HVCC, and all of the other acronyms that sound so innocuous but require new training and a new level of vigilance in order to remain compliant and a bulletin board of timelines and dates highlighted so that we can remember when to order appraisals, etc.; but it has also been the need to redefine ourselves from the niche markets that once dominated many of our pipelines, to the first time home buyers and government loans that are now the only option for most borrowers.

 

 

            Roohmz Mortgage Enterprise is a Web-based workflow management system that intelligently manages the progression of mortgage loan applications from origination to closing, enforces compliance and provides a robust communication platform that delivers e-signature enabled loan documents. The loan management system creates transparency in the loan origination process for both borrowers and lenders by continually monitoring application status, providing real-time updates and ensuring each step is completed in full compliance. The product was built to complement and enhance any LOS system.

It was almost exactly one year ago that President Obama told the country about his Making Home Affordable plan to save the housing markets from their free fall, and thus save the American Dream as we knew it. Okay, so it didn’t work worth a damn, so what? Obama had his shot at stopping us from plunging into a deflationary collapse that is at this point all but certain to last a decade or longer… and he blew it.

You get a little breather here! The last time we counted, there were 16 rule and reg changes that occurred on January 1, 2010 including the biggie GFE disclosures. However, it goes without saying that there are a couple of things announced this month that will impact your business. 

 

Be sure to read VA Little-Known Seller Concession Rules! Mortgage Talking Points® Flyer/Email for your real estate agents to help them negotiate better terms for VA Buyers! 

This past month has proven to be an exciting one here at The Niche Report. We have been experiencing more growth and developing some new columns as a result of the new friends we have. The guys at Think Big Work Small have become fans of TNR and vice versa. Robert Pegg met these guys at NAMB West in December. This month, we are honored to have an exclusive interview inside this very issue you hold in your hands; an amazing organization that provides top tier daily news related to our industry. Go to their website to experience all they have to offer. I am sure you will be big fans, if not already, once you read the interview.

 

Lost amid the much higher visibility mortgage crisis and the all too common foreclosure stories is the state of affordable rental housing in America.

 

While the housing and economic downturn has slowed the development and construction of both single- and multifamily residential housing available to families earning 80 percent and above of area median family income (AMFI), that is not to imply an ample supply of affordable housing exists (especially for those earning less than 80 percent of AMFI).

Not another name for a Belly Flop, but floating is an option.

Two issues ago, we introduced you to the “Grand Unified Theory of Floating or Locking Origination Pipelines,” or what we refer to as “The GUTFLOP.” Don’t let the tongue-in-cheek nod to nuclear physics fool you though. The concepts in the GUTFLOP play an important role in the creation and implementation of your own personal profit strategy when it comes to the age old question: “should I lock or float.”