Scotsman Guide - September 2011 Residential Edition

From the Editor

BY IVANNA C. SUKKAR, EDITOR

I don’t need to tell you how much the mortgage InduStry haS changed
theSe paSt few yearS. you’ve lIved through It — and becauSe you’re StIll
readIng ScotSman Guide, your buSIneSS lIkely haS SurvIved.

So how did you do it? I would wager that you stayed on top of the regulatory and legislative changes, as well as lenders’ underwriting guidelines, and educated yourself about how they affected you and your business along the way. And you likely adapted your business practices as you better understood what these changes meant to you.

Ultimately, the main effect of change isn’t necessarily the changes themselves; rather, it is how people react and adapt. this is one of the points Ginger Bell of Go2training makes in her article this month (page 21). By educating yourself on changes — and keeping a positive attitude about them — you can keep your business going.

Looking back, it can be said that a lack of education and licensing requirements contributed to the industry’s darker days. there are countless stories of people who became mortgage brokers for a quick buck, defrauding clients, lenders and others along the way. Many were not caught, but many were and faced the consequences.

One such fraudster — Matthew B. Cox — was a student of Jim Montrym, owner of Jim Montrym’s National Mortgage Loan Originator School. Cox now sits behind bars in a Florida prison. Montrym spoke to Cox about his fraudulent practices — and wrote about it for this month’s BackSpace column. Read the story on page 66.

It was the unscrupulous mortgage brokers that gave this industry a bad name and caused a backlash against the term “mortgage broker” in recent years. Many organizations started moving away from it, preferring to use “mortgage professionals” in their names instead. At least one organization stuck with it, though.

the Upfront Mortgage Brokers Association prides itself on serving the broker community and says that because its members already adhered to many of the standards put forth in recent regulations, they were not as affected by them. Read our interview with Kevin Iverson, co-founder and president of the organization, on page 16.

• • •
Speaking of adapting to the changing industry, Scotsman Guide is happy to present a new
matrix in this month’s issue. Our Branch Opportunities matrix on page 25 offers you a list of
branch companies that are actively seeking new branch operations.

Also: this month marks the 10th anniversary of 9/11. progress is being made on the buildings at the World trade Center site, and the entire project is expected to be complete by 2016. Meanwhile, a memorial for those who lost their lives on 9/11 is expected to open this month.

ivannas@scotsmanguide.com

NEXT MONTH

… in October’s Scotsman Guide

•;What;they;don’t;teach;you
in mortgage school
•;Getting;back;to;purchase
business
•;Marketing;ideas;for;an
ever-changing industry
•;Shining;the;Spotlight;on
Oregon

… and much more.

Online? Check out current and past editions of Scotsman Guide at scotsmanguide.com.

HELPING HANDS

Professionals making a difference

Employees at eLynx’s Cincinnati and portland, Ore., offices raised $7,000 for the American Cancer Society this past May. Employees in Cincinnati participated in the society’s Relay for Life event, while those in portland participated in the Making Strides Against Breast Cancer walk.

Laura Venerable, senior product manager at eLynx, led the Relay for Life team. “Supporting the American Cancer Society is a part of a larger [goal] at eLynx to give back to the communities in which [we] live,” she said.

—TO LEARN MORE, READ THE REST OF THIS STORy AT

sctsm.in/4720.

Does your company give back to the community? to share your story, e-mail helpinghands@scotsmanguide.com.

In the Past Month
Home-prices and -sales
reports vary widely

U.S. home prices increased month-to-month for only the second time in eight months this past May, the closely watched S&p/Case-Shiller Home price Index reported. the 10-city index increased 1.1 percent, and the 20-city index increased 1 percent from April to May.

Compared to May 2010, however, home prices remained down in most cities. Washington, D.C., was the only city with a year-over-year increase.

Meanwhile, sales of new single-family homes fell 1 percent from May to June, the U.S. Commerce Department reported. June’s rate came in 1.6 percent greater than June 2010.

the average sales price for a new home sold in May was $235,200, according to the report. At the end of June, there were 164,000 new homes on the market, a 6.3-month supply at the current rate of sales.

pending U.S. home sales, on the other hand, increased this past June for the second consecutive month, the National Association of Realtors (NAR) reported. the pending-home-sales index — measuring contracts that were likely to close in August — rose 2.4 percent, NAR said.

NAR also reported that sales of existing U.S. homes slipped in June as contract cancellations rose unexpectedly.

Next release Existing-home sales: Sept. 21 New-home sales: Sept. 26 S&p/Case-Shiller Home price Index: Sept. 27 pending home sales: Sept. 29

Freddie predicts
decent close to 2011

MCLEAN, Va. — the U.S. housing market is unlikely to experience a double-dip setback, Freddie Mac reported.

In a July report, Freddie officials said housing likely will follow the performance of the overall economy for the rest of 2011.

the report also indicated that despite record levels of home affordability and historically low mortgage rates, household decisionmakers were concerned about their financial futures and holding off home purchases.

Builder confidence flat

WASHINGtON, D.C. — Builder confidence in the U. S. market for newly built, single-family homes increased 2 points to 15 this past July, a national housing market index indicated.

the gain largely offset a 3-point drop in June, and is the ninth time in 10 months the index was within the same 3-point range, the National Association of Home Builders (NAHB) reported.

“the improvement in builder confidence in July is a positive sign that the outlook perhaps isn’t quite as bleak as was feared in June,” said Bob Nielsen, NAHB chairman.

Unemployment picture
differs widely by state

WASHINGtON, D.C. — twenty-eight states and the District of Columbia saw their unemployment rates increase this past June, the U.S. Department of Labor reported. the unemployment rate was highest in Nevada, where the rate jumped from 12.1 percent in May to 12. 4 percent. California’s unemployment rate, second highest in the nation, was 11. 8 percent.

As for job creation, texas added the most nonfarm jobs in June, gaining 32,000. California added 28,800 jobs in the month — having lost 29,200 in the previous month — while Michigan added 18,000 jobs.