march 2011
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The Niche Report - March 2011TRANSCRIPT
Issue 044
March 2011
TheNicheReport.com
Mortgage Marketing 2.0Get connected or get out!
14 Bringing Up The RearDavid Stern, the foreclosure king.
542820 Litigating Better Terms for Distressed HomeownersHopelessly underwater and starving for a loan mod.
FEATURE ARTICLE! Clients Can't Get Financed?Their securities portfolio could provide the loan they need ... and FAST.
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6 March 2011
NICHE REPORTSCONTENTS Issue 044 March 2011
FOUNDER & PRESIDENT Robert Pegg [email protected]
CO-FOUNDER & PRESIDENT David Pegg [email protected]
MANAGING EDITOR Stewart Mednick [email protected]
EDITORIAL / CONTENT MANAGER Kristen Moser [email protected]
ACCOUNTING MANAGER Shawna Ingram [email protected]
ADvERTISING DIRECTOR Jessica Grizzle [email protected]
ADvERTISING SALES Heather Bopp [email protected]
PRODUCTION MANAGER Henry Suchman [email protected]
PRODUCTION ASSISTANT Dawn Exner [email protected]
COLUMNISTS & CONTRIbUTING AUTHORS Martin Andelman Joseph Andahazy BJ Bounds Karen Deis Chris Fuelling Rocky Foroutan Santiago Herreros de Tejada Frank Garay Stewart Mednick Brian Stevens Geoff Zimpfer
Mortgage Marketing 2.0ROCky FOROUTANCeO, Lender411
Get connected or get out!
14
Three Steps to a Steady Stream of REALTOR ReferralsGEOFF ZIMPFERSpeed Marketing™ fOr LOan OffiCerSTraditional methods simply no longer work.
26
Litigating Better Terms for Distressed HomeownersCHRIS FUELLINGCeO, the LOan pOStHopelessly underwater and starving for a loan mod.
28
Center Stage with Lender411.comTHE NICHE REPORT
The Niche Report talks with Rocky Foroutan, CEO.
38
The Right Place at the Right TimebJ bOUNDSSr. Marketing COMMuniCatiOnS SpeCiaLiSt, CaLyx SOftwareOptimize your marketing potential.
17 DEPARTMENTS
09 EDITOR'S FORwARD
10 LETTERS TO THE EDITOR
34 APPRAISER SOUND OFF
31 FRANk & bRIAN SPEAk
43 wHAT'S yOUR MORTGAGE IQ?
40 TIP OF THE MONTH
54 bRINGING UP THE REAR
50 LENDER & RESOURCE DIRECTORy
AGENCy & FHA pg 45HARD MONEy & NON-PRIME pg 45COMMERCIAL pg 46CONSTRUCTION pg 46JUMbO pg 46REvERSE MORTGAGE pg 46SERvICE PROvIDERS pg 47
20 Clients Can't Get Financed?Their Securities Portfolio could provide the loans they need ... and FAST
JOSEPH ANDAHAZy
Rooted forSucceSS
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In recent breaking news, quoted from TradingMarkets.com:
“In a move that had been widely anticipated, the Obama administration … wants to get the government out of the mortgage business by winding down operations at Fannie Mae and Freddie Mac over the next five to seven years. "Fundamental reform" is the aim, Treasury Secretary Timothy Geithner said in announcing the plan to not only "shrink the government footprint in housing," but also "strengthen consumer protection and preserve access to afford-able housing for people who need it…."
Withdrawing government support of housing financing by gradually eliminating Fannie Mae and Freddie Mac, would bring private capital back into the market. The government now guarantees nine of every 10 home loans, which Geithner says has discouraged private capital's return.
The 160,000-member California Association of Realtors said the plan would raise borrowing costs and restrict a safe and affordable flow of financing, further impeding a still-fragile housing recovery. American Bankers Association CEO Frank Keating suggested that rather than develop a "silver bullet" solution to housing finance, policymakers should cre-ate a well-regulated covered bond market and enhance the Federal Home Loan Banks "to better help them meet their mission of providing advances to private market portfolio lenders with minimal taxpayer exposure."
Saying that Fannie Mae and Freddie Mac's multifamily programs "were not part of the meltdown" and are a "vital capi-tal source for the rental-housing sector," National Multi Housing Council President Doug Bibby urged the government to be cautious in its reform efforts.
Yet economist Anthony Sanders, a professor of real estate finance at George Mason University in Fairfax, Va., said that aside from saving U.S. taxpayers hundreds of billions of dollars in the future, not much will change in a world without Fannie and Freddie. "After pumping trillions into the mortgage market since 1998 through the government-sponsored enterprises (GSEs), the homeownership rate is back to 1998 levels," Sanders said. "Enormous pain and suffering oc-curred in the United States trying to go from 66 percent to 70 percent homeownership…."
So, what do you think of this recent news? Here is my take: Let’s learn from a historical event that took place in Egypt. 18 days of full-out public protesting brought down a thirty year dictatorship. The people spoke and the government listened and acted according to what the people wanted, not what the government wanted to do. Can the mortgage, real-estate and appraisal communities band together to forge a united front to speak loud enough so the government will act in accordance to our desires and not the government’s political aspirations?
The front starts here!
Cheers!
Stewart MednickManaging Editor
EDITOR'S FORwARD
9TheNicheReport.com
MEMBEROfficial
Stewart - I just wanted to say thank you for your work with The Niche Report. I faithfully read it every month and I am sure that I have learned a lot. I say that simply by way of telling you that I have been saving them for the “Tip of the Month”. I am not sure why but they have really touched me lately. Personal Mission Statements, the Four Agreements (found it, read it, reading it again – great stuff ), I have started to scan them and toss the rest. I appreciate your candor and your encouragement. Never cloying or over sentimentalized. I feel like you feel my pain and frustration and confusion.
I also saw the article this month by Kurt Reisig. I used to work for Kurt and I think the world of him and APMC. I think it should be THE model of how branching companies (or any company) should be run. You could do a great article on developing a great corporate culture by just spending a day with Kurt.
Douglas W Woods Mortgage Advisor
Axia Financial, LLC
Is Really An Audit? by Peter Hebert, Feature Article, Jan 2011
I just want to reach out to you and let you know how much I enjoyed reading Jan '11 edition of The Niche Report. Even though it was a history lesson I really enjoyed learning about the banking system. That was quality education.
I hope things otherwise are going well for you.
Tommy Duncan
Securitization by Martin Andelman, Nov 2010, pg 20
Martin - Your article in the November, 2010, Niche Report was the best, most honest appraisal of the meltdown I had ever read. You explained a very difficult situation in a clear and unemotional way.
In the article you say, "Don't you get it? We're not going to have any sort of a recovery until we stop the foreclosure crisis. And we can't stop the foreclosure crisis without... The foreclosure crisis is entirely unnecessary..."
Looking forward to more of your great articles.
Jim C, Mortgage Consultant
From an honest heart you have exposed the criminal invasion of our nation. The banking industry must be punished sufficiently to discourage it from ever returning to the scene of the crime.
R Moss
Mr. Andlemans commentary on securitization causing our economy to collapse left big questions unanswered in the minds of readers.
One question is on page 29 with the paragraph that begins with “So when things changed…”, leaves even the casual reader asking “So what did change?” The premise of the whole article hinges upon this one question – but no explanation is given.
Another question is ‘Why were bonds downgraded on 7/10/2007?” He
states the downgrading of bonds as the cause of our economic collapse, offers his thoughts on what was not responsible, but offers no insight as to why the bonds were downgraded.
Your readers deserve know how he supports his opinions.
Thank you.
Brian Tata
Bringing up the Rear, Dec 2010, pg 54
Thanks for shining a light on the appearance of conflict of interest and impropriety in Eagle County. The bottom line is that if you or I had been Erzinger's position, we would have been charged with felony hit and run and we would not have been "offered" a plea bargain of two lesser included misdemeanor offenses.
Timothy Kells Nixon, J.D.
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10 March 2011
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