From the Editor
By Will McDermott
Take time to reflect on the past year
January is traditionally a month to reflect on everything we have accomplished in the past year and to begin
planning and setting goals for the year to come. Unfortunately, between political turmoil in Europe, a contentious presidential campaign here at home and a large number of high-profile celebrity deaths, 2016 proved to
be a tough year that dampened the spirits of many.
For the housing industry, however, 2016 was an almost unqualified success. Low interest rates along with increasing home values spurred refinancing activity across the nation. Both new- and existing-home sales were
robust, and housing starts — which have been sluggish since the recession — started to show signs of new life
this past October. Tight housing supply was one negative point, which put upward pressure on home prices
and rents, and impacted affordability.
The true mark of success for many readers of Scotsman Guide each year, however,
is getting listed in our annual Top Originators rankings. The lists we publish every
April are among the most comprehensive and intensely verified rankings of their
kind in the industry. To be considered, originators must submit their 2016 origination numbers this month. Submissions are open from Jan. 3 through the end of
the month. Visit Scotsman Guide.com/Rankings for more information.
To be eligible for consideration in Scotsman Guide’s Top Originators 2016, you
must have a total residential loan volume of $40 million or have personally closed
100 home loans in 2016. If your numbers haven’t reached that level yet, roll up
your sleeves, set some new goals and keep reading Scotsman Guide. Every month
we present tips and insights on specific residential mortgage topics from professionals across the country. This month, we focus on hard money lending.
Our lead article by Jeffrey Tesch of RCN Capital LLC discusses how to work with
private money lenders to increase profitability. His article begins on Page 35.
Continuing our look into the topic of hard money, Paul Smoot of LendingOne
discusses opportunities that originators can find in the rental-investment market. Turn to Page 81 for this article. Finally, Ian Walsh of Hard Money Lenders takes
a look at how private lenders can help originators address the needs of fix-and-flippers and other residential property investors. His article begins on Page 68.
It wouldn’t be a January issue without a look ahead at the coming year. If you’re wondering what trends will
impact the mortgage industry in 2017, turn to Page 138 and read the article by Greg Holmes of Credit Plus
Inc. This year also brings a major update to Fannie Mae’s Desktop Underwriter software. Chad Kusner of CRR
Consulting and Credit Repair Resources LLC details some of the major changes originators will find in DU 10.0.
His article starts on Page 101. For a long-term view of how the mortgage industry may change in the future because of technology advances and funding consolidation, read the article by Fintech consultant Loren Picard,
which begins on Page 55.
These are just a smattering of the articles in this first issue of 2017. In addition, you will find information about
setting goals, managing branches, speeding up loan approvals, determining why borrowers shop around and
improving direct-marketing efforts. We present articles like these every month to help mortgage originators
break into and remain in the upper echelons of the industry. For those already there, don’t forget to submit
your numbers for Top Originators 2016 by the Jan. 31, 2017, deadline.
Will McDermott is editor of Scotsman Guide Residential Edition.
Reach him at (800) 297-6061 or firstname.lastname@example.org.