december 2007

HR 3915

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providing solutions for brokers and borrowers alike.

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HLTVC

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1651_Cover_r4.pdf 11/13/07 4:53:00 PM

Issue 006

December 2007

TheNicheReport.com

13Will it put you out of business?

After Today16You don't have to be the same.

Conspiracy Theory or Conspiracy Fact

27Fraud doesn't just happen to you.

29When conventional sources have been exhausted.

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© 2007 – Irwin Home Equity Corporation. Irwin Union Bank and Trust Company is an Equal Housing Lender. Irwin Home Equity is a Real Estate Broker (#01230182) licensed by the California Dept. of Real Estate. Irwin Home Equity is an Illinois Residential Mortgage Licensee and in Connecticut, is a BROKER ONLY, NOT A LENDER. Loans are made by Irwin Union Bank and Trust Company, an Indiana banking corporation, located at 1818 E. College Parkway, Carson City, NV 89706. Irwin Home Equity is a subsidiary of Irwin Union Bank and Trust Company (“Irwin”), which is part of the Irwin Financial Corporation family of companies. All loan products are not offered in all states. Information intended for mortgage professional use only. Not intended for consumer distribution.

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1651_NicheReportAd_r6.pdf 11/13/07 4:52:25 PM

6 December 2007

NONPRIME pg 39

PRIME pg 40

ALT–A pg41

COMMERCIAL pg42

HARDMONEY pg43

CONSTRUCTION pg44

NICHEREPORTSCONTENTS Issue 006 December 2007

FOUNDER&PRESIDENTRobert [email protected]

CO-FOUNDER&PRESIDENTDavid [email protected]

EDITORIAL/CONTENTMANAGERKristen [email protected]

ACCOUNTINGMANAGERShawna [email protected]

SALESMANAGERSJason T. [email protected]

Kim [email protected]

Kim [email protected]

DESIGNPlumbline Studios, Inc.Eric Ball

PRINTER/CIRCULATIONMANAGERThe Ovid Bell Press, Inc.

CONTRIBUTINGAUTHORSJoseph AndahazyGardy BloemersMitchell ChapmanDeryck CheneyJerome MayneStewart Mednick

16 After Today

JOEANDAHAZYPrincipalOwnerofMortgageShares,Inc.

Tip of the MonthSTEWARTMEDNICKMORTGAGE BANKER AND REVERSE MORTGAGE SPECIALIST AT AMERICAN MORTGAGE CORPORATION

The Two Minute Mingle.

36

HR 3915DERYCKCHENEYOwNER Of fIRST fINANCIAL MORTGAGE SERVICE, LLC.

Will it put you out of business?

13

Diversify to Maximize Capital MITCHELLCHAPMANEXECUTIVE DIRECTOR Of NATIONAL BUSINESS fINANCE

Set yourself apart from your competition.

24

Conspiracy Theory or Conspiracy FactJEROMEMAYNEfOUNDER AND PRESIDENT Of fRAUDCON INC.

Fraud doesn't just happen to you.

27 DEPARTMENTS

You don't have to be the same.

09 NOTEFROMTHEFOUNDER

10 CALENDAROFEVENTS

45 LENDER&RESOURCEDIRECTORY

When is Hard Money Right?GARDYBLOEMERSVICE PRESIDENT Of ANGLO-AMERICAN fINANCIAL, LLC.

When conventional sources have been exhausted.

29

NONPRIME pg 39

PRIME pg 40

ALT–A pg41

COMMERCIAL pg42

HARDMONEY pg43

CONSTRUCTION pg44

SUBSCRIPTIONS

This publication is intended for real estate finance professionals. If you are a mortgage broker, lender, loan officer and you do not currently receive The Niche Report, please send your name, company name, and address to [email protected].

To opt-out of receiving The Niche Report, please send your request, including name, company name, and address to [email protected].

ADVERTISEMENTS

To inquire about advertising in The Niche Report, please call 540.657.2632, or send an email to [email protected]. Visit our website, www.TheNicheReport.com to download a copy of our Media Kit.

EDITORIALS/ARTICLES

To submit an article for consideration in The Niche Report, please send an email to [email protected] or call 540.657.2632. We are interested in original writings relevant to mortgage brokers and other real estate finance professionals.

If you have a comment or question about an article or editorial published in The Niche Report, or if you have a suggestion for a topic you would like to see featured in a future issue, please send an email to [email protected].

THENICHEREPORTPOLICY

The information and opinions expressed by contributing authors and advertisers within The Niche Report do not necessarily reflect those of BODA Publishing, LLC employees and should not be considered as endorsed or recommended by BODA Publishing, LLC.

Published monthly by BODA Publishing, LLC 6016 Alderdale Place, Haymarket, VA 20169 Phone: 540.657.2632 Fax: 703.991.2362 Email: [email protected] www.TheNicheReport.com

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angloamerican6-7-07.indd 1 6/13/07 10:24:51 AM

Huge thanks to all of you that stopped by our booths at the VAMB Annual Convention in Virginia Beach, the MBA Mid-Atlantic Conference in Reston, VA, and the NAMB/West conference in Las Vegas last month. It was great to meet some of our current readers as well as the many new additions to our distribution list. We appreciate all of the great feedback we’ve received on our first five issues of The Niche Report.

As a result of the feedback we’ve received over the past few months from our readers and advertisers, we’ve decided to expand our distribution. In fact, our main goal in attending the NAMB/West Conference in Las Vegas was to announce our expansion into the California market starting in January 2008, which will increase our distribution to brokers and loan of-

ficers by 50%. We hope this expansion will benefit our current readership as well, as more lending institutions will be able to feature their niche programs in our Niche Reports.

Speaking of the New Year and the resolutions that follow, I think you will enjoy our feature article by Joe Andahazy, a mortgage broker in Alexandria, Virginia. Joe writes about self-reflection and rediscovering your purpose for choosing the real estate finance profession. I think it is a great philosophical article for those still struggling with the decision about whether to stay on board or jump ship. Mitchell Chapman joins us again from our October issue with the 2nd article in his series. This article offers options for diversifying the portfolios of residential mortgage brokers by step-ping into commercial lending and other related services. Jerome Mayne is also back, this time from our July inaugural issue, to discuss the slippery slope of mortgage fraud – always an interesting topic. Gardy Bloemers from Anglo-Amer-ican Financial continues our education on hard money lending and we have a an update on HR 3915 – the Mortgage Reform and Anti-Predatory Lending Act of 2007, which at the time of this writing, has been passed by the House Committee on Financial Services, and now moves on to the full House for vote. Stay tuned for more updates and information on what this Act could mean for our industry.

Finally, on a personal note, I want to thank all of you for your readership and support of The Niche Report over the past six months. It’s been an extremely tough time for our industry as a whole with the sub prime fall-out, lender implosions and recent legislative obstacles, but I am confident that those of us that should be here will be here when this thing turns around – and it will.

Happy Holidays & Best Wishes for a Prosperous New Year,

Robert PeggFounder & Publisher

NOTEFROMTHEFOUNDER

9TheNicheReport.com

CALENDAROFEVENTS

10 December 2007

DECEMBER5

VAMB's NOVA Holiday Party. Ritz Carlton, Tysons Corner, McLean, VA. Visit www.vamb.org for details.

DECEMBER10

Housing Forecast/Pending Home Sales Index released by the NAR.

DECEMBER13

MAMB's Holiday Party, M&T Bank Stadium, Baltimore, MD.

Visit www.mamb.org for details.

DECEMBER19

Commercial Real Estate Market Forecast released by the NAR

DECEMBER20

VAMB's NOVA Social. Visit www.vamb.org for details.

DECEMBER31

November Existing Home Sales released by the NAR.

JANUARY8

Housing Forecast / Pending Home Sales Index released by the NAR.

JANUARY24

December Existing-Home Sales released by the NAR.

FEBRUARY3

CREF / Multifamily Housing Convention & Expo, Orlando, FL. Visit www.mbaa.org for details.

FEBRUARY4


FEBRUARY5


FEBRUARY6


FEBRUARY7

Housing Forecast / Pending Home Sales Index released by the NAR.

FEBRUARY14

4th Qtr. Metro Home Prices / State Resales released by the NAR.

FEBRUARY20

Commercial Lending Indicator released by the NAR.

FEBRUARY25

January Existing-Home Sales released by the NAR.

FEBRUARY26

California Association of Mortgage Brokers (CAMB) 2008 Sales & Marketing Conference, Anaheim, CA. Visit www.cambweb.org for details.

FEBRUARY27


FEBRUARY28


FEBRUARY29


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As I’m sure most of you know, HR 3915 is the Mortgage Reform and Anti-Predatory

Lending Act of 2007. And it is amaz-ing the amount of misinformation out there regarding the true understand-ing of this bill. I just received an email that stated, "Hey Deryck, please sign

this petition, if HR 3915 actually passes then mortgage brokers will be out of business by next week". However, this could not be farther from the truth. To summarize the current bill as it stands now (we need to remember that bills get "chopped up" as they work their way through the proper legislative channels), we have four main points: 1.ALICENSINGSYSTEMFORRESIDENTIAL MORTGAGELOANORIGINATORS

Synopsis: This basically proposes that all loan originators will be required to submit to background checks and will have to meet minimum standards including pre-licens-ing education and written tests. This will be regulated by a Nationwide Mortgage Licensing System and Regis-try (NMLSR). This is a great thing for the industry. Almost every other financial industry requires this (i.e. to sell stocks, you must be licensed, to sell insurance, you must be licensed, etc.) This will give greater credibility to our industry. 2.FEDERALDUTYOFCAREANDANTISTEERING.

Synopsis: This would require brokers to ensure that their

clients have a reasonable ability to repay their mort-gages and to ensure that their clients are receiving a net tangible benefit from the mortgage and the mortgages must not contain any predatory lending characteristics. There are problems with this part of the bill. By not clearly defining what the loan officer is required to do in order to assess the reasonability to repay (i.e. DTI under 38%), we are leaving loan officers open for undue lawsuits brought on by clients because they can't repay their mortgages. I expect this part of the bill to get chopped up more before it passes. There is precedent for this, as this happened in the state of New Jersey and it has already proven not to work. 3.THEYSPISSUE

Synopsis: This is how it is currently written: "For mortgage loans that are not Prime loans, no mortgage originator can receive, and no person can pay, any incentive com-pensation (including yield spread premiums) that varies with the terms of the mortgage loan. In its current form, the bill does not abolish the YSP, but it is proposing to take it away from sub prime loans only. But again we are still in early stages of the bill process, so anything can still happen. 4.THEPROHIBITIONOF"FINANCINGPOINTS ANDFEES"

Synopsis: This appears in the "High cost mortgage" section of the bill, and does not apply to prime loans. Also to note, many people have been meeting with the driver

13

HR3915

BYDERYCKCHENEY

Will it put you out of business?

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of this bill, Barney Frank, to educate him on how the mortgage industry works and that a broker often times can offer a lower-cost mortgage to a client versus a simi-lar retail-originated loan. SOWHEREDOESTHISLEGISLATIONLEAVEUS?

I am merely postulating here, but I see our indus-try morphing into the models of the current financial industry, legislatively speaking. Right now the bar-rier of entry into becoming a loan officer for a broker shop is almost non-existent. That will change. All loan officers will have to be individually licensed and insured. I believe that the standards for obtaining a broker’s license will elevate exponentially. Again, the current barrier of entry is not too difficult for any loan officer that has worked in the industry for three years and has some liquid assets and a good credit score. This will change. I think that the sub prime industry could be on its last leg here. Do I think it will completely go away? No, but I believe it will be so highly regulated that there will only be a few companies out there that will offer these loans and we might have to get "sub prime licensed" to even originate one of these (similar to how reverse mortgages are set up now). Importantly, I believe that mortgage brokers are here to stay. There are a lot of signs that big lenders are exiting the wholesale market (Bank of America is out, and Countrywide didn't show up to the NAMB/West Conference last month), but I think this will be a short-term trend. Once this legislation shakes out and lenders again realize that brokers can originate the same quality loans that retail institutions can then lenders will not be able to deny the fact that they save more money and can have higher margins if they get a brokered loan. So ultimately, I believe that as long as the bill gets chopped up properly, this will actually be beneficial for our industry and will lay the ground-work for a great future for us. Deryck Cheney is the owner of First Financial Mortgage Service, LLC. Please contact him via email at [email protected] if you are looking to work with the best and brightest minds in our industry. The company offers unparallelled compensation plans and excellent growth opportunities.

T here’s an ancient story that tells of a traveler from India who went

to Africa to search for exotic merchandise and animals. The story says the man was walking one day in the jungle where he saw hundreds of beautiful multi-colored talking parrots. He was so taken by the discovery he captured one of the parrots to keep as a pet and

when he returned home, placed his new found friend in a cage. Over time, they learned to enjoy each other’s friendship and they communicated daily as the master fed the parrot nutritious seeds and honey, played music and generally treated the

parrot quite well. One day, two years later, the traveler told his parrot he was returning to Africa and asked was there any message to deliver to his former friends back in the jungle. The parrot said to tell them he was very happy living in his cage, is at peace in his new home, was enjoying each and every day and to convey his love to his friends. Once again the traveler entered the jungle and came upon the group of multi-colored talking parrots. He said to them their old friend is well, happy living in his cage back in India and is at peace. And just as he was finishing delivering the message, one of the parrots, with tears welling up in his eyes, fell over dead. Thinking this was odd; the traveler surmised this bird must have been very close to the parrot back home in the cage and that must certainly

BYJOEANDAHAZYPrincipal Owner of Mortgage Shares, Incorporated

AFTER TODAYYou Don't Have To Be The Same.BYJOEANDAHAZY

17

be the reason for the sadness and its ultimate demise. Returning home to India, the traveler told the parrot in the cage what had happened in the jungle. And upon hearing his master’s story, tears welled up in the parrot’s eyes and he fell over dead in his cage. The traveler stood there shocked to witness such an event, but again surmised both parrots must have truly been very close and was overcome by the news of the death of his friend. Himself saddened over losing his own talking parrot; he removed it from the cage and threw it outside on the trash heap. After lying there a few minutes the parrot stood up and flew up onto a branch of a nearby tree. Staring at the bird the master said. “You’re not dead! You’re Alive! You tricked me! Why did you do such a thing?” And the parrot answered, “My friend was sending me a message.” The master demanded to know what the message was and the parrot said, “If you want to escape from your cage, you must die while you’re alive.” So now you’re thinking, OK Joe, what in the world does this story have to do with the niche lending business? The answer…EVERYTHING! In this cyclical soul train of a real estate market, only you can create a new business life. And you must do it now – while you’re still alive. It’s interesting how we become who we are. From all walks of life, soldiers of fortune join ranks, fighting for the few clients “kicking tires” seeking an honest deal while searching for a glimmer of trust in the words of the loan originator’s presentation. In concert

with this we have, in the last twelve months, never had more turbulent waters in the lending business. We all know of someone connected to real estate - a realtor, mortgage broker or lender, appraiser and title agent who have been “taken out” by the winds of change. Those remaining are either seasoned industry icons with deep pockets or desperate-to-die dreamers holding on to the words of Neil Young…“ It’s better to burn out than fade away”. Whoever they are, they’re pondering their choices. However, much like the parrot in the cage, there is really only one. If you need to survive, You must stop being the person you are and re-create yourself with new ideas, new product lines and a new attitude. And you might as well go ahead and get that new power suit while you’re at it. You’ll need it to shield your deficiencies and bolster your persona while you try and persuade a new clientele that you ARE the message. You must become master of your universe! If your current bag of tricks consists of only “30 Year Fixes” and a few “ARM’s”, you’re dead. So how do you make the transition? How do you escape your cage of limited intellectual prowess?

FINDSILENCE There’s a phrase that says…“It is the silence between the notes that makes the music”.I’m sure some of you are thinking…”Hey man, I’ve got plenty of silence. The phone’s not ringing. Silence I don’t need! The silence I’m referring to is a place where you can go and listen to your inner soul and reach back to the life force that drives you. Such

a place should have absolute quiet. No noise, no outside thoughts, no interruptions. One recommendation is to get in your car, close the windows and turn off the radio and your cell phone. Go where you know you won’t be disturbed for a good while. One place I like to go in the middle of a work week is a church or place of worship. There, it is so silent you can almost hear the candles burning. Sit very still and reflect on the last twelve months of your business life. Are you working harder for less money? Are the few deals you have seem to be more problematic? Are you really happy with how things are going? What can you do to fix anything that’s wrong? What exactly is wrong? Think of all the things you’re currently working on to generate more business. Maybe you’ve tried selling reverse mortgages or dipping your toe into the commercial lending world or even private lending. Are you really ready to learn all the requirements to be a formidable player in those new fields against seasoned veterans going after a new kind of client? Now ask yourself this… Is everything I’m doing right now taking me toward my goals and dreams of success or am I being nudged a little off course? With all the crazy news about foreclosures and big mortgage companies pulling the plug or changing program guidelines almost daily so eventually no one will be able to get a loan unless they have a 700+ credit score and putting down 20%. (Just wait, it isn’t over yet!). And on top of all that, we’re being spammed and telemarketed to death with a barrage of comprehensive emails, faxes and phone calls from self-

TheNicheReport.com

18 December 2007

proclaimed - top producing industry gurus. Their neon lit headlines read: Purchase our latest books, seminars on DVD and attend our state-of-the art online webinars to capture the latest sales and success techniques GUARANTEED to jump start your business back to firing on all eight cylinders. You all know what I’m talking about. With wave after wave of information and opportunities galore - onscreen in our faces everyday, how can we stay focused with one eye on our work and the other looking for the next opportunity? Furthermore, why do we continue to “do it all” day after day? How do we continue to sustain some level of sanity in a business that could actually drive you crazy with the financial ups and downs? I believe the reason is because this business is never boring. Our burning desire in maintaining the “open-for-business” sign in the window is fueled by our philosophical dreams, hopes and purpose driven attitudes that we are truly - invincible. Would we dare let the current housing and lending market tear us down to shear nakedness, creating fear of the future and uncertainty? Perish the thought.

TIMETOCOMMITANDREDISCOVERYOURPURPOSE So now, in your silence, if you’re ready for change, mentally strip yourself of all resentful thoughts and any pretense that could generate any negative energy – forever. Commit to yourself to become a brand new person. From today on, you will be different. You won’t be separated from your goals and dreams of success by mad medicine men

wanting your credit card number promising you fortunes by becoming someone else you’re not. Don’t get me wrong - change is OK as long as you know you are changing for what you believe in and you know you can see it through. After today you can create a life and a business that is “on purpose”. Where do you start?Out of the purity of the silence, start with yourself. Commit to “being” in this business, not just existing in it. Commit to learning all that you can to be proficient in your specialized area of lending. Yes, the market has changed, but now so can you. Here are a few tips to help you get started on your extreme business makeover. Take a complete full week and personally call everybody you know related to your business – clients, associates, third party contractors, everybody. Be honest and let them know that whatever happens in the market, you really care about them and their success. Inform them you are so excited about who you are, what you’re doing to educate yourself more about the market and how it relates to their situation. Then ask what can you do right now for them. Listen to their concerns and what’s important to them. Commit to them that you will truly try your best to represent their interests in the marketplace. Do it “on purpose”. Take a stroll down main street and walk up to every house and into every place of business and introduce yourself with a smile, a handshake and a business card. Tell them this is your town too and you’re there for them. Make sure your business card is also a coupon with a discount for something valuable. Example: FREE

Appraisal or FREE golf Lessons or $300 Gift Cards for a local store to be awarded to them at settlement. Ask for referrals right there. Tell them to keep your card, because if they throw it away, they’re throwing away money! Yes, after today you can be a new person. When you go home tonight, stop and buy flowers for your spouse or significant other for no reason. When the florist sees your excitement and asks what the occasion is, you can announce it’s because you’re now living and managing your life and business – on purpose. Give them your card. Believe me they won’t forget you and they will tell others about you. Be a new energy. Once in a while drive a different way to work and back home. Become more aware of the homes and businesses you see and look for opportunity everywhere you go. Volunteer at a non-profit and become engaged in an organization that helps others. Be courteous to others in traffic and wave, smile at everybody instead of resenting that person who cut you off, let it go. Responding to an incident with negative energy only adds to your resentment and bad feelings, not theirs.

CHOOSINGYOURPATH Now I understand this idea of freeing yourself from your past to become a new person in the lending business may not work for everybody. Maybe you’re one of the ones truly overcome by the winds of market change, and you’ve already chose to get out of the business. For some, it may be too difficult to overcome the adversities and no positive attitude or phone booth superman “presto change-o” will work for you. Your

21TheNicheReport.com

destiny and your course of actions may already be set to navigate a different path. In some respects, there can be a sense of peace in that decision. It can be the start of finding your real purpose and doing what you were really meant to do. Something that when you get engaged in your work, you’ll excel to a level higher than you ever thought you could reach. Maybe being in this business was just another part of the life puzzle and now you’re moving on to develop even more skills for you, your family and your community. Wouldn’t that be a wonderful thing. So just like the fisherman who says, “If there are no fish to catch, it’s time to move to another spot and

maybe try different bait. Whatever the reason, it is all good. Sometimes we are not in total control of the Big Plan. What makes life interesting are the changes we make voluntarily along with the ones we are force to make. But one thing is for sure and it’s a guarantee you can bank on…Just as in the seasons of life, we will experience cold winters as we are challenged through adversity. However, spring always follows winter and we are once again given the opportunity to plant new ideas and take on new projects. If we’re diligent and cultivate our ideas and prospects in the summer and work on ourselves mentally, spiritually and physically to be better people to the

ones most important to us, we shall be rewarded with a bountiful harvest in the fall. It’s all good if you just see it, know it, work it and share it. So you see - after today, you don’t have to be the same.

Joseph Andahazy is a real estate financing consultant in Alexandria, Virginia and principal owner of Mortgage Shares, Inc. The company specializes in providing residential and commercial financing options through traditional, portfolio and private lenders. Joe is available to speak at your company’s next meeting and can be reached at 703-980-1569 or [email protected] website: www.mortgageshares.com

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Advertise it monthly inThe Niche Report. Send us a request for subscription [email protected].

24 December 2007

S uccessful businesspeople such as the Rockefellers, Carnegies and Vanderbilts didn’t get

to where they did without a keen sense of business awareness. They took advantage of many strategies to maximize their capital and to streamline their assets.

Typically, successful businesspeople wisely diversify their portfolios by offering more products. They also work with the best and most knowledgeable group of people in the business. A large number of residential mortgage brokers and loan officers, however, are not experienced with one diversification option — commercial mortgages or other types of financing for their clients’ projects. Therefore, they often lose out on a lucrative additional stream of income. By learning about what your clients need and diversifying your business to offer services to fit those needs — from commercial lending and business lines of credit to equipment leasing and factoring — you can maximize your capital.

COMMERCIALLENDING Commercial lending can be frightening to many residential mortgage brokers and loan officers. The truth, though, is that your competitors might be unfamiliar with and will not attempt to learn the basic details of commercial lending. By doing some homework and becoming familiar with different capital sources and their programs, you can set yourself apart from your competition successfully. You also will be able to provide a value-

added service for your clients if you work with a professional commercial mortgage broker who has other products to offer. From the beginning of the process, it is critical to establish proper expectations with clients. Unlike residential loans, the average commercial mortgage takes longer to close and involves more paperwork. The appraisal process, overall costs and timeframes can discourage clients. Be certain to help these clients understand the differences and to explain why. Your clients may become confused about the various types of financing available because advertisements can offer low credit requirements, as well as documentation and costs similar to those found in residential mortgages.Although commercial mortgages do require credit and background documents, there are other types of commercial loan products available to your clients. Some will rely heavily on credit scores, while others will require business plans and projected revenues. By establishing proper expectations, you can minimize the unpleasant surprises. Generally, commercial projects receive funding and loan programs from much different sources than residential projects. Once you are familiar with the available programs, you will add value to your services. UNSECUREDBUSINESSLINESOFCREDIT Along with commercial lending, you can offer many other products to commercial clients. One such product is an unsecured business line of credit. These products provide lines of credit to 2-or-more-year-old businesses for their operating needs as a source of additional working capital. The principal’s

DIVERSIFYTOMAXIMIZECAPITAL

BYMITCHELLCHAPMAN

Set yourself apart from your competition.


credit requirements often are a minimum FICO score of 660 from all credit bureaus. Lenders generally will loan money to a company based on application only without collateral, business financials or tax returns. The interest rates range from the prime rate to the prime rate plus four. These unsecured business lines of credit have interest-only payments, are revolving and perpetual with no prepayment penalties, have no zero-balance requirements and will never convert to a term loan. Think of these as a home-equity line of credit for businesses — but unsecured and not convertible.

EqUIPMENTLEASING Another service to consider offering commercial clients is equipment-leasing. Businesses often free up their cash by leasing needed equipment instead of buying it. By leasing equipment, a business only needs to invest a small amount of cash. The benefits include having less cash tied to the assets and few worries about obsolescence. Plus, businesses often can write off leased equipment for tax purposes. (Advise clients to consult a financial adviser for more information on tax write-offs.)

FACTORING Factoring is a form of commercial finance in which a business sells its accounts-receivable invoices at a discount. Businesses always need cash to operate efficiently. Instead of waiting for invoices due in 30 to 90 days, they can benefit from the factoring process by selling these invoices for cash. They can then receive instant cash that they can invest immediately and through which they can produce a greater return. Another great benefit is that factoring is off-balance-sheet financing, so it is not a form of debt or equity. This makes factoring accounts receivable more attractive to many businesses than traditional bank and equity financing. Offering new products and services to your clients will help you to be more professional. By developing your knowledge of commercial capital products and by offering a more diverse product line to your clients, you will set yourself apart from your competition.

Mitchell Chapman is the Executive Director of National Business Finance, a business-consulting firm. The company provides alternative financial solutions for small businesses. Mr. Chapman can be reached by telephone at(954) 495-4791; via e-mail at [email protected]; You can also browse online at www.nationalbusinessfinance.com

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THEFRANCISCOCONSPIRACY It’s 1:36 a.m. and a silent black helicopter lands behind a warehouse on the outskirts of the city. Rafael exits this stealth aircraft toting a dark blue metal attaché case. He bends low to avoid the rotors as he scurries up to the nondescript door on the nondescript building. He delivers two quick knocks, waits, then two more. A voice from behind the door says, “The eagle flies at midnight.” Rafael responds, “Nocturnal” (the coded response). The door opens. Francisco gives his partner Rafael a nod, then withdraws a penlight and gives three short flashes to the chopper pilot, “all clear.” They close the door and the duo descends the metal staircase, into the darkness. A half dozen computer monitors barely illuminate the warehouse basement. Rafael sets his attaché case atop a waist high wooden crate. From his shoe he produces a tiny silver key and inserts it into the lock - turns. The case pops open to reveal a clear plastic flash drive embedded in a block of foam padding. Rafael withdraws the memory device and hands it to his partner. In low tones he says, “With these codes you’ll be able to divert all wire transfers coming into the escrow company. The diverted funds will be deposited into our offshore account. The codes will work for the next fifteen hours.” Rafael turns to leave. At the stairs he turns back, “I’ll see you in Costa Rica on Friday where we execute the final phase – the laundering of all the money.” Francisco replies, “Godspeed my friend.”

THEMIKEANDJOECONSPIRACY Mike gets up from his desk and walks over to his

processors cubicle. “Hey Joe, do me a favor would ya? That one guy we’re doin’ that loan for – Johnson – anyways, he lost his job.” Joe replies, “Wait, he’s supposed to close this Monday. Now he can’t.” Mike says, “I need it to close because I need the money.” A bit confused Joe says, “But if he’s got no job, he’s got no income, and then he can’t close on Monday.” Mike pokes his head around the corner and sees that they’re alone. Mike whispers, “Okay, here’s the thing. I think he’s got a new job. But the whole thing is, is the loan’s already approved with the job he had. Nobody’ll know the better if he closes on the Monday – specially if no one says nuthin’ ‘bout him gettin’ fired and all.” Joe stands up and looks in the next cubicle to see if anybody is there, then replies, “What are you sayin’?” Mike rolls his eyes, “For cryin’ out loud Joe. Just keep your mouth shut and don’t be such an idiot. He’s got the good credit. Come on. I’ll buy you a real nice jacket or a new cat or something.” Joe sits down, turns back to his computer and says, “Okay then, I won’t say nuthin’.”

WHICHSCENARIOISACONSPIRACY? If you guessed both, you need more training. Not because you’d be wrong, but because you shouldn’t be guessing. They both fall under the definition of a criminal conspiracy. In both scenarios there is an agreement between two people to commit a crime at some point in the future. Even though the crime hasn’t been committed, yet it still falls under the category of a criminal conspiracy. In fact, the crime doesn’t even have to be carried out or successful. Francisco could flub up his part of the crime. Perhaps he accidentally drops the flash

CONSPIRACYTHEORYORCONSPIRACYFACT

BYJEROMEMAYNE

Fraud doesn't just happen to you.


drive in a hot cup of coffee and the data gets erased; still a conspiracy. In the mortgage scenario above, the borrower, Johnson could wind up short cash to close and his closing comes to a screeching halt, on the Monday; still a conspiracy. There doesn’t have to be any profit or loss as a result of the crime either. Maybe Mike priced the loan wrong and he loses his commission. He doesn’t get any money for the loan and Joe doesn’t get the new jacket. Maybe Johnson’s loan does close and he actually makes timely monthly payments for the next thirty years – a performing loan and no losses by the lender. No harm no foul? Nope. It’s still a crime. Most cases that are prosecuted however, the crime is carried out, there is a victim, someone loses money and somebody profits. Let’s face it; terrorism is still the biggest concern for the feds and Joe and Mike are a bit further down on the priority list. But they are still on the list. It should also be noted, that there is no limit to the number of people who can be involved in a conspiracy. Perhaps Johnson is a “flipper” and he has twenty five different closings going on during the same week; all owner occupied, all different lenders and all different closing companies. Maybe he’s heading to Costa Rica. Will they all result in first payment defaults? Probably. You never know, with absolute certainty, the scope of the activity of the other players. In the event of an investigation, Mike’s name will come up. The FBI can look at all his old loan files. If Mike and Joe were willing to break the rules for this transaction, do they have any other skeletons in their closet? Also, guilt by association is a very real thing. We all want to think that one is innocent until proven guilty, but let’s face it; we as a society have become pretty numb to headlines such as, “INSIDERS ACCUSED OF MONEY LAUNDERING.” Most of us glaze right over the ACCUSED part of the headline. Sure, we’re innocent in the federal court system, but to the public, the accused are guilty and should be avoided like the plague. If you’re a mortgage broker and your name was substituted for the word “Insiders” in the above headline, do you think your wholesale lenders would continue to accept loans from you? Most would cancel their agreements with your company in a heartbeat and would probably deny ever having done business with you.

Staying out of the murky area is absolutely critical. Always be consistent and diligent. You can’t cross the line because you think it will be okay just this one time, “I’m sure the borrower will pay back the loan – he’s got good credit.” Blah, blah, blah. By breaking the rules just once, not only are you susceptible to being positively involved in fraud, but the first time you justify unethical behavior, the next time becomes SO much easier – and the next time and the next time… It’s that slippery slope theory. Don’t ever give anyone a reason to question your integrity. A great man once said to me, “The appearance of impropriety is as bad as impropriety itself.” This gem however, was communicated to me about nine months too late. Here’s an idea; make an agreement to NOT commit a crime at some point in the future. If you have to conspire, do it that way. Make the agreement with your boss, your coworkers or your business partners, and put it in writing. Make the agreement with your spouse. I’m not saying that it’s impossible to resist the temptation to commit fraud. It is possible and people do it every day. But, most people who commit fraud don’t wake up one morning and say to themselves, “Today, I’m going to commit a crime.” It starts on the slippery slope. On the other hand, fraud doesn’t just “happen” to you. You have to allow fraud to occur; actually do something. You are in control and you are responsible. For what it’s worth, coming from a convicted felon, stay on course. If someone tries to temp you to the dark side, ask them if they’ll be able to give your kids a ride to prison on visiting days or if they can arrange daycare for a couple of years while your spouse gets a second or third job. And how about rebuilding your reputation, career, self esteem, self confidence…

Jerome Mayne is founder and president of Fraudcon Inc., a fraud-deterrent company, and author of the book Life Saving Lessons: The Diary of a White-Collar Criminal. He is also an ex-mortgage felon. Today, he speaks and trains real estate and mortgage associations, as well as Fortune 500 companies across the country about the true consequences of fraud. Visit www.fraudcon.com for more information. Contact him at [email protected] or call 612-919-3007.

28 December 2007


I t is interesting to consider the origin of the term “hard money.” In fact, when researching

this on the Internet, it became clear that a number of sources attribute the descriptive “hard” to a number of different factors. One source indicated that the terms are particularly hard

or harsh, while another attributed it to the fact that this stemmed from finance terminology, where hard money refers to the fact that the lender is lending their money, while another cited that it was “just hard to get.” Typically, financial institutions such as banks borrow money and then lend it out; this is considered “soft money.” Although this may have originally been the source of the descriptive “hard” for hard money lenders, currently many do borrow their money from banks or hedge funds, and in turn lend these funds. More importantly, it is important to understand that a hard money loan is nothing other than an asset-based loan. So, against what type of assets is a hard money loan secured and at what terms? Typically, these loans are made by securing real estate, but they can also be secured by consumer receivables, such as credit card receivables or service contracts, equipment, airplanes or shipping vessels. Outlined below are some of the key elements which comprise the terms and conditions of a hard money loan highlighted for consideration. Every lender has defined its loan criteria, and a broker must be familiar with these prior to making an approach. Lenders may exhibit some degree of flexibility, but overall the general terms and conditions will remain in place. Term: The term is usually two, three or five years as hard money is not a permanent financing solution.

Lenders may provide Borrowers with an option to extend the term but this is usually conditional and is likely to involve additional expense. Rates: Rates may float or be fixed. Typically they will float over the current prime rate. If your Borrower would prefer fixed rates and are offered floating rates, lenders may be willing to offer fixed rates at a slightly higher rate of interest.

Interest Payments: These are usually payable monthly. However, if the Borrower wishes to pay these quarterly, for example, this may be possible at a slightly higher interest rate.

Interest Reserve: An interest reserve is generally not a requirement specified in the hard money loan but it is a requirement for the borrower to be able to make interest payments. Interest may not always be generated by the assets financed. Payment from other revenue streams is likely to be acceptable.

Fees: These comes in various sizes, and are payable at various stages in the loan application process. Borrowers will be hard pressed to find lenders that do not charge any fees. In fact, this may be an impossible task. A portion of the fees must be paid upfront, at the time the commitment is executed. Both hard money and conventional lenders including Wall Street investment banks will ask for some percentage of the loan amount to be paid at that time (typically 1% of the loan amount) to ensure that 1) the borrower stops shopping the loan elsewhere and 2) to cover advance payment of expenses associated with carrying out due diligence on the loan request. This is standard practice and to avoid fee grabbers, check lender references and explore the

WHENISHARDMONEYRIGHT?

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possibility of placing these fees into an escrow account. In addition to fees payable at commitment, borrowers will also require fees to be paid at closing. Total fees usually average between 4% and 8% for hard money loans secured by real estate assets in the United States. Other types of assets may be more or less expensive.

Loan Amount/ Loan to Value (LTV): Lenders will typically provide between 50-65% of either the “As Is” value of an asset, or its Liquidation Value. For construction loans, Lenders will typically offer a loan expressed as a percentage of the Completed Value. Be sure to understand the lender’s definition of value as this is a key determinant to making a deal work or not.

Broker’s Commission: Lenders survive on deals referred by brokers and it is in their interest to make sure their brokers are paid. Compensation may be arranged directly with the borrower also, but typically brokers are paid a percentage of the loan amount from closing proceeds. Yes the terms are harsh or “hard”, but in many cases having this money at these terms is much better than having no money at all and certainly much better than selling equity in a project, for example. An expensive loan is better than giving someone a significant piece of the pie. Many people unfamiliar with this type of loan find it incredulous that there is demand in the marketplace for this type of loan product; they also are amazed that anyone is prepared to pay the fees and points required and wonder if these are not usurious. You may ask yourself the question: When does hard money make sense? The following scenarios will provide you with insight as to when it may.

1. Hard money is an option to discuss with potential borrowers once they have exhausted conventional financing sources without success. Banks are becoming more and more stringent with their underwriting criteria and/or may not have an ability to fund additional loans given their current loan portfolios especially in today’s market. If this is a first foray into the world of hard money it is essential that brokers advise their borrower in advance what terms they can expect and determine if the borrower has the appetite and willingness to consider those terms.

2. Conventional financing is available but it will take too long to obtain and the borrower will miss an opportunity to purchase a particular asset without financing. Provided the borrower and his legal counsel are able to provide all of the documentation necessary to complete due diligence and close the loan, hard money lenders can move fast and will close loans in relatively short time periods, starting within five days of commitment, and more typically within two to four weeks.

3. Conventional financing is not available but with certain improvements to the asset, it will be and the borrower requires additional finances to complete the transaction. The borrower may be able to purchase an asset without tenants but has the ability to place tenants into the facility, be it an office or commercial warehouse for example. Hard money is not necessarily “hard to get” but it is more important than ever to ensure that brokers do their due diligence on deals before presenting them to lenders. This ensures that when submitting the deal to the lender, the broker can provide substantive responses to some basic questions: complete description of the asset, an estimation of its liquidation value and/or market value and/or completed value (whatever the lender requires), a summary of the development project and the use of proceeds, a credible exit strategy for the lender, information on the experience and net worth of the borrowers. Hard money has a role to play in our economy, although it is certainly not right for every deal or project. In most cases, however, hard money is certainly better than no money.

Gardy Bloemers, Vice President of Anglo-American Financial, LLC, is responsible for loan origination and underwriting. Prior to joining Anglo in 2005, Gardy worked for Citibank in London as Director, Wealth Management, responsible for sales and marketing of Wealth Management products and services across Europe. Before this position, she held various positions with Citibank both in the UK and Germany, and also established the UK office of US-based venture capital firm, Katalyst. Gardy holds a MBA from Erasmus University’s Rotterdam School of Management and a BA in International Relations and French Literature from Tufts University.

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36 December 2007

TIPOFTHEMONTH

BYSTEWARTMEDNICK

The Two Minute MingleSM.

I believe that you are reading this column because you want to learn something new and

helpful. Perhaps, you seek a Holy Grail of knowledge and a sip of this column will bear eternal closings. I should be blessed with such influ-ence, however, I am not. Although,

I can paraphrase a biblical syllogism; give a broker a closing and he or she will eat for a month… teach a broker to close and he or she will eat for a lifetime. To close a deal, one must have a deal to close. To obtain a deal, one must gain the trust of the prospects and provide information that will gain their favor. More often than not, we have very limited time to do all this. So how does a person capture the attention of a prospect in the first minute of conversation? One word can answer this question; practice. Let’s explore the art of client interaction and a technique I created to perfect the skills needed. This technique is The Two Minute MingleSM. The Two Minute MingleSM is an exercise that is utilized to develop the innate skills needed to be a successful “ambassador” of your business. I can ex-plain the philosophy behind this technique by draw-ing an analogy to sports teams in preseason practice. The all-stars and rookies alike start training with the basics; ball handling, throwing, conditioning, catch-ing, etc. The mental and repetitious conditioning through the basic training creates actions that will become second nature, so during a game the body responds and acts without conscience thought; innate actions. If I were to focus on an athlete to provide an

example, I would choose Michael Jordan. Mr. Jordan won six NBA championship rings. He practiced for countless hours to be a great basketball player. Even in college at the University of North Carolina, he prac-ticed every season. Practice makes perfect. If practicing often is a successful formula to achieve great results, then why do we not do so in sales? We compete to win the prospect, but how have we learned to do so in the past? My experience has been through OJT, or on the job training. When I started with my first brokerage, I was handed three leads and was told to call them. I was scared. I was unsuccessful as well. What if Michael Jordan never practiced and just showed up at the game to play? I bet he would not be the star he came to be today. So, again I ask, why do we not practice in sales? The “sell” is the same. The Two Minute MingleSM is the practice that develops the basics so when in conversation with customers, the ability to speak actively, respond and state necessary information without faltering is second nature. How many times can you remember hanging up a phone or leaving a client meeting and thinking to yourself, “I should have said….” Or, “Why didn’t I counter their comment with…” This is because no practice has been performed and the recitation was none existent or unpolished. Let’s take a look at how a Two Minute MingleSM works. The purpose is to develop three key aspects of a conversation. First, you want to have an innate repertoire of comments, phrases, statistics, and be authentic in the delivery. Second, you want to con-trol the conversation in the direction you want it to go. Third, you want to complete the conversation or

TIPOFTHEMONTH


encounter with the exchange of contact information; preferably you obtain the other person’s information. All this is performed inside a two minute timeframe. I have decided on two minutes from my experience in hundreds of situations. Two minutes is a realistic window of opportunity to gain a person’s attention, direct the conversation to a desired outcome, and to ask for contact information by piquing the interest of the other person to whom you are talking. The exercise would start with two people to stand and face each other. A scenario of two people in an everyday setting (for example) would be waiting in a line for food at a restaurant, while in a bathroom, on a bus, shopping for food or clothes in a grocery store or department store, respectively, or on an elevator. The two people establish the situation and one is the initiator. A third person is the timer and judge to give impartial opinion on how well the Two Minute Min-gleSM proceeded. This exercise can also be performed

in a company’s weekly meeting, as part of training, or do it by yourself in the car when driving. This last suggestion is for a more advanced Two Minute Min-gler. In a meeting or training setting, more than one person or everyone can judge. I have developed a score card with specific points to be judged. You can mingle as often as you want. Remember, practice makes perfect. Perhaps perfection will never be obtained, but the outcome should be more favor-able than, “I should have said…”

Stewart Mednick is a seasoned mortgage banker and published author. His writing focuses on relationship development, customer satisfaction, marketing and sales techniques. Mednick is also a business coach and con-sults on these topics. Mednick can be contacted for a Two Minute MingleSM training engagement or for other train-ing engagements at 651-895-5122 or [email protected]

TIPOFTHEMONTH

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Financing may not be available in all states. The above summaries are intended for Mortgage Professionals only, and not intended for distribution to consum-ers, as defined by Section 226.2 of Regulation Z, which implements the Truth-In-Lending Act. Information is subject to change without notice. Refer to each lender’s information on products, program, procedures, representations, and warranties for details.

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40 December 2007

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Jumbo – Super Jumbo, full Doc, SIVA, DTI up to 50%Industry leading rates, work Visa’s accepted

3/1, 5/1, 7/1, and 10/1 LIBOR ARMs; 15- and 30-year fixed; 10-year I/O period available for ARMs and 30-year. Temporary buydowns and long-term locks also available.

full Doc up to 97% LTV with a minimum 680 Decision Credit Score (DCS); Stated Income up to 95% LTV with a minimum 660 DCS; No Ratio up to 95% with a minimum 700 DCS; DTI as high as 55%; NINA doc type also available

100% LTV first Mortgage with no PMI, full Doc, Cash Back up to $200K Combo programs; 100% first with 125% Second for complete financing with no PMI, full Doc, Cash Back up to $100K


41

ADVERTISEYOURALT–ANICHEHEREWITHIN

TheNicheReport.com

42 December 2007

NICHEREPORTS

COMMERCIAL


AcuPen Financial305.666.1879

Commercial Loan Capital800.979.4470


Equitable Commercial Lender, Inc213.249.9113 or 626.296.0120

Fairview Commercial Lending866.634.1270

First Deposit Capital866.484.7555




Ocean Capital877.337.3757

Manaseh, Epharim & Associates678.387.3230

Metro Funding Corp866.302.6360

Strongtower Financial Inc.800.333.9893 ext. 111

High LTVs, and low debt coverage ratio requirements

Loans to $8 million on Multifamily and Commercial Properties, Loans to $5 million on Hospitality

full Doc and Stated Income/Stated Asset Programs

Nationwide wholesale Commercial Lender. Stated Income, full Doc & SBA programs available. Loan amounts from $100k - 5 Million. Easy Broker Approval Process No minimum credit score, foreclosure bailouts, Quick Closings nationwide, commitments in 24 hours Nation wide lender, Stated program, No tax returns needed, full Doc & SBA & Conduit programs

YSP Commercial Loans, full doc and Stated income. Earn up to 3% YSP + 2 points. Loan amounts to $5 million; 3-, 5-, 7, and 10-year Hybrid ARMs (30-year fully amortized with Interest Only option)

Multi-family and Commercial property eligible; 3-, 5-, 7, and 10-year Hybrid ARMs (30-year Interest Only option)

we’re the real deal for subprime owner-occupied commercial mortgages to $2M. Credit scores to 500. Up to 90% financing. Low debt-service coverage. Stated & investment programs. Difficult-to-finance industries welcome

fast, flexible funding for all your commercial financing needs

fast closing, no points upfront, all commercial properties including land, acquisitions, refis, and development loans

Loans for churches, nonprofits, schools and assisted living centers – bond, bridge and permanent loans for purchase, refinance and remodel/renovation.

HARDMONEY

NICHEREPORTS


43

Anglo–American Financial434.981.1017

Anglo–American Financial512.657.9310

BlueWater Funding, LLC301.656.6566 or toll free 866.551.BLUE

BlueWater Funding, LLC301.656.6566 or toll free 866.551.BLUE


Commercial Lending, LLC800.755.7310 ext. 201

Fairview Commercial Lending866.634.1270

First Deposit Capital866.484.7555

First Mount Vernon866.908.fMV1 (3681)

First Mount Vernon866.908.fMV1 (3681)


Metro Funding Corp866.302.6360

DIP (Debtor in Possession) financing Available

Asset-based lending on real estate, consumer receivables and other readily marketable assets

Direct Lender, 65% Loan-To-Value, No prepayment penalty, Lending throughout the Mid Atlantic Region

Apply online www.bluewaterfundingllc.com,Immediate response, Brokers Protected and Respected

Hard Money on Commercial Properties with no prepayment penalties

Direct Lender of Non O/O, Equity-Based, No Prepayment, No minimum credit score, Rehab, fix & flip, Construction, Land, Up to 70% LTV, No Payment Programs, Online Broker Portal

No minimum credit score, foreclosure bailouts, Quick Closings nationwide, commitments in 24 hours

Nation wide lender, 65-70% LTV, fast funding, Multiple property types, Broker program, Call for a free consultation!

No seasoning requirements, No upfront commitment or processing fees, Minimum credit score 400

Minimal documentation required, Combined Loan-to-Values to 105%

Private hard money financing for commercial real estate investments

fast closing, no points upfront, all commercial properties including land, acquisitions, refis, and development loans

TheNicheReport.com

44 December 2007

NICHEREPORTS

CONSTRUCTION

Bismark Mortgage503.741.7334

Commercial Lending, LLC800.755.7310 ext. 201

Imperial Capital Bank888.886.3580




Presidential Bank866.725.5825 ext. 2103

Strongtower Financial Inc.800.333.9893 ext. 111

Residential construction loans for custom, owner-builder, spec and construction completion projects. All programs Stated Income/Stated Asset. Nationwide lender.

Equity Based, No Prepayment, No Minumum Credit Score, 6 month and 12 month programs, No pay and interest only pay programs, Up to 70% LTV, Online Broker Portal

Loan amounts up to $10 Mil, 80% LTC & 75% Stabilized value. Term up to 30 months. Negotiable fee based on LTC and tenor. Common sense underwriting with uncommon flexibility

Purchase and Refinance Lot Loans to $1,000,000; Interest Only owner-occupied lot available; full Doc and Stated Income

Construction-to-Permanent (CTP) Loans up to $5,000,000, Owner-builder program; 24/7 Online Draw Requests; full Doc and Stated Income; dedicated construction support

Private lender specializing in commercial real estate loans nationwide and internationally

100% New Construction, Renovation, and Lot Loans in VA, MD, DE, PA, wV and NC. Self builds, Modulars, Cross Collateralization, flexible draw schedules and an experienced, creative staff

New construction and renovation loans for churches, nonprofits, schools and assisted living centers.


ADVERTISEYOURCONSTRUCTIONNICHEHEREWITHIN

TheNicheReport.com

LENDER&RESOURCEDIRECTORY

45

ACUPENFINANCIAL,LLCThe Premier One-Stop Commerical Mortgage HUBwww.acupenfinancial.com

ANGLO-AMERICANFINANCIAL www.anglofinancial.com675 Berkmar Court Charlottesville, VA 22901 Gardy Bloemers: 434.981.1017 [e] [email protected] Tom Finnegan: 512.657.9310 [e] [email protected]

APPRAISERLOFTwww.appraiserloft.com[phone] 877.229.7799 [fax] 877.797.0280

ASCENTHOMELOANS,INC.www.ascenthomeloans.com6465 S. Greenwood Plaza Blvd.Englewood, CO 80111[phone] 866.467.3157 ext. 2605

BISMARKMORTGAGEwww.bismarkmortgage.com10500 NE 8th St. Suite 700Bellevue, WA 98004Contact: Ron Maes[phone] 503.741.7334[fax] 425.283.5005[e] [email protected]

BLUEWATERFUNDING,LLC www.bluewaterfundingllc.com4925 St. Elmo AvenueBethesda, Maryland 20814[phone] 301.656.6566 [fax] 240.766.0609[e] [email protected]

THEBOARDNETWORK.COM www.mortgageboard.comwww.titleboard.comwww.bankingboard.com

www.creditunionboard.comwww.escrowboard.com101 Continental Blvd. 16 Floor, Suite 1657[phone] 866.452.8800 [fax] 866.452.8799Contact: Julie Messina or Jodie Messina[e] [email protected]

CMGMORTGAGEwww.homeownershipaccelerator.com[phone] 800.501.2001 ext. 3043

COMMERCIALLENDING,LLCwww.commericallendingllc.com7603 Maple Branch RoadClifton, VA 20124[phone] 800.755.7310 ext. 201[fax] 703.852.7933Contact: Will Lansing[e] [email protected]

COMMERCIALLOANCAPITALwww.clcloans.net868 West Street Road #401[phone] 610.272.3553[fax] 206.350.5900Contact: Carl Shorley[e] [email protected]

DKSSETTLEMENTGROUP,LLCwww.dkstitle.com15852 Montview Dr.Montclair, VA 22052[phone] 703.730.9737[fax] 703.656.4915Contact: Shanna Glatz

DOUBLEPOSITIVEMARKETINGwww.doublepositive.comCorporate HeadquartersTide Point - Cascade Building1030 Hull St. Ste 300Baltimore MD 21230[phone] 888.DPOSITIVE (888.376.7484)[fax] 410.332.1059

EqUITABLECOMMERCIALLENDER,INC3250 Wilshire Blvd Suite 1001 Los Angeles, CA 90010

[phone] 213.249.9113[fax] 213.249.9116

FAIRVIEWCOMMERCIALLENDINGwww.fairviewlending.com1932 North Druid Hills Road Suite 250Atlanta, GA 30319[phone] 866.634.1270[fax] 404.634.0319

FANNIEMAEwww.efanniemae.com

FIRSTDEPOSITCAPITALwww.firstdepositcapital.com484 South Mobil #25Camarillo, CA 93010[phone] 866.484.7555[fax] 805.456.7701[e] [email protected]

FIRSTFINANCIALMORTGAGESERVICE,LLCwww.ffmloans.com[phone] 703.989.2293[fax] 703.991.2362[e] [email protected]

FIRSTMOUNTVERNONI.L.A.www.FMV1.com6019 Tower CourtAlexandria, VA 22304[phone] 703.823.6800[fax] 703.997.2499

GATEWAYMORTGAGEGROUPwww.nonprimewholesale.com3820 Laurel LaneBedford, Texas 76021[e] [email protected]: Jerry Lair [phone] 817.545.6153[fax] 918.392.8364

continued on next page

GRIFFINCAPITALFUNDINGwww.ysploans.com1135 Heatherstone Dr. Suite 102Fredericksburg, VA 22407Contact: Mike Brewer [e] [email protected][phone] 540.548.1001 ext. 105[fax] 540.548.1117

GUARANTEEDRATE,INC.www.griwholesale.com3940 N. Ravenswood Chicago, IL 60613Contact: Tim Dooley [e] [email protected][phone] 877.377.4067[fax] 877.377.4970

HEARTLANDWHOLESALEFUNDINGwww.heartlandwholesale.com1150 Hanley Industrial Court St. Louis, MO 63144Contact: Michael Brenning [e] [email protected][phone] 800.860.0878[fax] 314.963.2316

INDYMACBANKwww.indymacb2b.com3465 East Foothill BoulevardPasadena, CA 91107[phone] 866.419.4639

IRWINHOMEEqUITYwww.ihepartners.com12677 Alcosta Blvd., Suite 500[e] [email protected][phone] 888.524.7946

LOANBRIGHT.COMwww.loanbright.com[e] [email protected][phone] 888.330.3330[fax] 303.265.9683

MANASEH,EPHARIM&ASSOCIATESwww.meandassociates.com5932 Hugh Howell Rd. Suite 109Stone Mountain, GA 30087Contact: R.D. Walker[e] [email protected][phone] 678.387.3230[fax] 678.302.6444

METROFUNDINGCORPwww.metrofundingcorp.comOne Kalisa Way, Suite 310Paramus, NJ 07652Contact: Jennifer Smith[e] [email protected][phone] 866.302.6360[fax] 201.262.6910

OCEANCAPITALwww.oceancapitalonline.com2 Altieri WayWarwick, RI 02886[e] [email protected][phone] 877.337.3757[fax] 401.739.9711

PRESIDENTIALBANKwww.prezbank.com8840 Stanford Blvd, Suite 1900Columbia, MD 21045[phone] 866.725.5825 ext. 2103 [fax] 443.285.0089[e] [email protected]

PROSOURCEMORTGAGEMARKETINGwww.prosourcemm.com[phone] 503.624.4841[cell] 350.606.8404[toll free] 866.761.7767[fax] 503.684.2900[e] [email protected]

SEARCHMYLOAN.COM"It's All About The Search!"www.searchmyloan.com921 Port Washington Blvd. Suite 2Port Washington, NY 11050Contact: Tom Sato[phone] 516.767.9292 ext. 302[fax] 516.767.9218[e] [email protected]

STRONGTOWERFINANCIALINC.www.strongtowerfinancial.com7120 North Whitney Avenue, Suite 105Fresno, CA 93720[phone] 800.333.9893 ext. 111[fax] 973.695.9381

TROIKAMARKETINGwww.mynfcredit.com[phone] 404.949.9598[fax] 404.949.9450

WEBBINSURANCEAGENCYwww.farmersagent.com/pwebbContact: Pete Webb[phone] 703.753.5526

LENDER&RESOURCEDIRECTORYCONT.

46 December 2007

Has your company closed their doors?

Are you an experienced Loan Officer with a built-up referral network?

Do you check the ten year bond every hour to see if you can make a .125 more in spread?

Do you have to charge a minimum or give a minimum portion of the gross commission up front before

you get your split?

If you answered YES to any of these questions, then NOW is the time to find a homeworthy of your efforts. We pay the best and expect the best. There is no complex splitto make you lose sight of what belongs to you – your commission.

• Hiring experienced loan officers

• The best loan processors in the industry

• Solid lender relationships to get your loans closed

• Licensed in VA and MD

Call 703.989.2293 or fax resume to 703.991.2362

HIRING LOAN OFFICERS

"TheNicheReport currently serves real estate finance professionals licensed in Virginia, Maryland, and Washington DC."Presort Standard

U.S. POSTAGEPAID

PERMIT #180BOLINGBROOK, IL

december 2007

Documents

irwin home equity corporation

trust company irwin

subsidiary of irwin

broker commission

little equity

smart solutions

smart high loan

mortgage financingland