By Don Kracl
Founder and president
Improving Today’s Origination Technology
Know how to change and customize your loan-origination system
There are still professionals work- ing in the mortgage industry who remember taking applications
with a pencil and a sheet of paper. The
industry is certainly lucky to have the
technology it has today, but that doesn’t
mean that your loan-origination system
(LOS) is as powerful a point-of-sale technology as it once was — a reality that
may have been disguised until recently
by high loan volumes.
Now that good deals are at a premium, more originators are realizing
that they have to make better decisions
at the point-of-sale if they hope to preserve the resources that they need in
order to effectively compete. Nobody
can afford to waste time on deals that
will never get past the under writer.
During the days of the refinance
boom, the point-of-sale was whenever
the loan office collected the informa-
tion for a given application. Many busi-
nesses operated almost as if they had
no underwriter — who needs a staff of
underwriters if you’re simply going to
sell the loan to another company that’s
already provided a technology that de-
termines whether or not they’ll buy?
Don Kracl is the founder and president of
Mortech and the mortgage technology
visionary behind the MarksmanLMP Lending
Management Platform. He has worked to
make mortgage lending easier for the industry and homeowners for more than 30 years.
reach him at firstname.lastname@example.org.
By Bob Waun
Getting Creative with Foreclosed Properties
Add value to your clients’ lots and to your business
Some mortgage professionals believe that higher housing- start figures are the scourge of a
housing recovery — not a harbinger of
better times. america has an oversupply of housing, and it seems sensible
to believe that building more will only
drive values lower.
The best way to improve prices is by
tearing down the bottom rung of the
housing ladder. Many foreclosed homes
are beyond repair. after even a few
months without heat or air conditioning,
mold and decay can make these structures worth less than the sum of their
parts. arguably, there’s a significant
amount of housing stock that’s already
past its useful life. Why not take advantage of it in some shape or form?
Eliminating derelict or otherwise undesirable houses will, in turn, increase
other houses’ respective values. Entire
neighborhoods could benefit from
the disappearance of nearby empty
homes. Interest rates are still not spurring home sales, even if those rates are
lower than they’ve been in the past.
If demand is going to be sufficiently
stimulated, it’s time for a more creative
elimination of undesirable houses.
recycling old and decaying housing
stock can make way for new land use.
Consider how a foreclosed 60-by-120
suburban lot could reduce the number of vacant homes if neighbors were
encouraged to reverse-split the foreclosed home between them, allowing
each neighbor to expand to a 90-by-
120 lot. bigger lots equal higher values.
yet most homeowners lack the skills or
finances to recycle the derelict property
next door. banks should provide this financing and, as industry participants,
mortgage professionals can encourage
these types of loan programs.
Mortgage professionals working with
banks that hold real estate owned (rEO)
properties should approach these hypo-
thetical borrowers with payment plans
to buy a rEO property and reverse-split
the lot. Would you buy the lot next door
for $100 extra each month if it meant
that you could rid your neighborhood
of a derelict house while also increasing
your back and side yards? The multiplier
effect on your home’s value would be
two-fold: your home would improve in
value and dimension while the derelict
property next door would be eliminated
Bob Waun is managing director of americor
Mortgage/Vacation finance. He has more
than 20 years of residential finance experience and has engineered innovative mortgage solutions for many of the top real estate
projects in america. reach him at bwaun@
vacation-finance.com or (248) 722-9286.