tnr - november 2010
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Feature Article Securitization: How Our Society Changed When We Learned to Turn Lead Into GoldTRANSCRIPT
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Issue 040
November 2010
TheNicheReport.com
Seizing Control of Your Retirement
12 Market Impact on Technology with CalyxTM Software: Growth, Challenges & Opportunities.
393020 Plan by investing in mortgages, Part IV.
Shhh ... Frank & Brian SpeakNot good for the consumer.
FEATURE ARTICLE! SecuritizationHow our society changed when we learned to turn lead into gold.
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A Mandelman
Feature Article. pg 20
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daY one: Module 1: introduction of Frank and BrianModule 2: intro - how did we get here?Module 3: Workshop: “Why Video Marketing is
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that educates, entices and influences your marketplace”
Module 7: Workshop: “up YouRs! social Media intro: uploading your videos”
daY TWo: Module 8: Workshop: “Why Most people suck at
attracting and keeping raving fans”Module 9 Workshop: “Transform eyeballs into donuts:
how to monetize your herd”Module 10: “how to grow your business, social network
and online influence by using video blog”Module 11: Workshop: “how to become a celebrity in
your market by creating your own internet show” - part i
Module 12: Workshop: “how to become a celebrity in your market by creating your own internet show” - part ii
daY ThRee:Module 13: Workshop: “Video production: an overview”Module 14: “how to make your videos viral by
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6 November 2010
NICHE REPORTSCONTENTS Issue 040 November 2010
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 Karen Deis Molly Dowdy Frank Garay Chris Jones Stewart Mednick Bernie Navarro Rick Roque Jim Russell Brian Stevens Dennis Yu
Seizing Control of Your RetirementbERNIE NAvARROPresident and founder,Benworth CaPital PartnersPlan by investing in mortgages: Part IV.
12
Online Lead GenerationDENNIS YUCeoBlitzloCal.ComMortgage brokers multiply their online presence in 90 minutes.
36
9 Marketing MistakesMOLLY DOwDYevP of marketinga la mode, mortgage solutions div.Originators can no longer afford to neglect marketing.
18
Bringing up the RearMARTIN ANDELMANmandelman mattersml-imPlode.ComThe bank's robo-signer.
62
What Happens to the Last Guy?CHRIS JONESBranCh manager, City 1st mortgage serviCesTurn the lights off on the way out.
16 DEPARTMENTS
20 SecuritizationHow our society changed when we learned to turn lead into gold.
09 FROM THE EDITOR'S DESk
10 LETTERS TO THE EDITOR
30 SHHH ... FRANk & bRIAN SPEAk
39 TECHSPOT
44 RULES & REGULATIONS
43 THE vOICE OF HOUSING
48 TIP OF THE MONTH
58 LENDER & RESOURCE DIRECTORY
PRIME & FHA pg 53
COMMERCIAL pg 53
HARD MONEY & NON-PRIME pg 54
CONSTRUCTION pg 54
SERvICE PROvIDERS pg 55MARTIN ANDELMAN
SUbSCRIPTIONS
This publication is intended for real estate finance professionals. If you are a mortgage broker, lender, loan officer, or real estate professional and you do not currently receive The Niche Report, please go to www.thenichereport.com.
An annual subscription is $47.95 (twelve months/twelve issues.) For additional copies being mailed to the same address please call 866.964.2695 or email us at [email protected] for multi-copy discount.
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To inquire about advertising in The Niche Report, please call 866.964.2695, 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 866.964.2695. 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].
THE NICHE REPORT POLICY
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 PO Box 494, Bentonville, AR 72712 Phone: 866.964.2695 Fax: 703.991.2362 Email: [email protected] www.TheNicheReport.com
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The Niche Report is 40!
Not years old, but issues released. This is huge…HUGE! Over three years old and still crank-ing out quality print during the financial industry’s most challenging period since the origina-tion of the Glass-Steagall Act of 1933. No other magazine or e-zine can make this claim. We are actually growing, to boot! This issue is a ginormous 64 pages cover to cover; the largest The Niche Report has experienced.
All because of readers like you… and George in the next cubical over... and Susan who origi-nates for the “other broker….”
Yep, we are on a roll. However, the banking industry is not. Bad mortgages seem to be re-ceiving more press in the last three years than Brittany Spears, or “Brangelina.” Banks have
failed, brokerages have closed, and if foreclosures were a company on the stock exchange, its stock would be hotter than Microsoft in the 1990s.
Yes, the Glass-Steagall Act was abolished when some provisions of the Act, such as Regulation Q, which allowed the Federal Reserve to regulate interest rates in savings accounts, were repealed by the Depository Institutions Deregulation and Monetary Control Act of 1980. Provisions that prohibit a bank holding company from owning other financial companies were repealed on November 12, 1999, by the Gramm–Leach–Bliley Act. The Foreclosure Protection Act was enacted in… wait, there is none.
The repeal of the Glass–Steagall Act effectively removed the separation that previously existed between Wall Street investment banks and depository banks, “... exacerbating the damage caused by the collapse of the subprime mortgage market that led to the financial crisis of 2007 to the present….”
The potential to make enormous profits, trading mortgage-backed securities with artificially high ratings, encouraged banks to take on otherwise intolerable risk in the form of bad loans. I don’t know much of the insider stuff about this, but if you read Martin Andelman’s feature article on securitization, it will become much more understandable.
Martin continues on his ‘slam-fest’ of the banking industry with a very enlightening Bringing up the Rear where the concept of ‘robo-signing’ is introduced… you got to read it to believe it. I have even heard say, that judges may consider some mortgages invalid because of artificial signatures? What?
Molly Dowdy, EVP of the omniscient company a la mode, writes about marketing mistakes and how to correct them… a must read!
Bernie Navarro continues his series on retirement with part four.
My personal favorite for this month is Chris Jones’ “What Happens to the Last Guy?”
The usual cast of characters including the brilliant Dennis Yu, Frank and Brian, Karen Deis and Rick Roque all shine as well in this landmark issue.
Don’t forget to have your fill of my “Tip of the Month” also; I think it is my best column yet! So get ‘tipped-off!’
Stewart Mednick
FROM THE EDITOR'S DESk
9TheNicheReport.com
MEMBEROfficial
10 November 2010
Be A Celebrity Expert, Issue 038, Sept 2010I read Karen Deis’ article in The Niche Report and discussed it
at our office meeting today. I have always felt that she brings great value to our industry and think she is a great leader. I just wanted you to know that we are listening and supporting her.
Also, wanted you to know that I have always paid attention to her messaging and appreciate her contribution to our industry.
Cindy ErtmanNational Sales Manager l RPM Mortgage
Bringing Up The Rear: Senator Chris Dodd with Kudos to Elizabeth Warren, Issue 038, Sept 2010
Bravo Martin. Where and how do we cast our vote and weight for her?
Steve Carrigan
* * *
I just read your article in this month’s issue of The Niche Report and certainly, Dodd deserves more than his fair share of derision. However, your applause for Elizabeth Warren may be undeserved. You state that Warren wants to protect the consumers and suggest she is anti-bank. An officer of the company I work for has related some of her anti-mortgage broker remarks.
Apparently, she does not see a place for the mortgage broker.
The Mortgage Broker has been very consumer friendly. Granted; some have helped to shoot ourselves in the foot, but those are being weeded out. Unfortunately, the same thing can not be said at the banking level. I would be concerned about her taking
the reins of something this important. The protected and enclosed environment of the college elite does not necessarily transfer into common sense or practicality.
Bill West Amtrust Mortgage
Bringing Up The Rear: Me, Martin Andelman, Issue 037, Aug 2010
I just wanted to say what a great article you wrote in the August edition. Your comments hit home to many on my staff. Anyone over the age of 40 could not stop laughing. Not sure if you are a regular contributor to the magazine, but I will look for your articles each month.
John J. Doerr
* * *
Awesome!
Terry Penn
* * *
Just wanted to drop you a quick note to let you know how much I enjoy the “Bringing up the rear” column. It’s obvious that Martin writes straight from the heart – and with a lot of humor. I always enjoy his columns, and I just wanted to say thanks for making them so “real life” and “human”. Thanks again.
Kim Cook North Georgia Homes, Inc.
LETTERS TO THE EDITOR
Include your full name, email address, and daytime phone number. We are unable to publish all letters and may edit letters for length and clarity. Visit us online at www.TheNicheReport.com to subscribe to our magazine and/or eNewsletter. Or call toll-free at 866-964-2695 for more information.
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SubScribe Today for $19.99* (reg. $47.95) per year! The first 5,000 subscribers will receive the following:
* Use discount code tnr1999 to receive discount.
• TheNicheReportMagazine Receive each month thru 2010 & all of 2011! This is up to over12 issues!
• ActNow!OrbeforeJan.1st2011 After Jan 1st 2011 our discount code will expire. The subscription rate will then be $47.95 (12 issues/12 months)
• AFacebookBusinessPagebyBlitzlocal($199value) Attract Realtor partners or potential local borrowers to fan your page. We’ll be providing Facebook ad dollars later in the year! First 5,000 subscribers only.
• TheSuperStarAudioInterviews ($47permonthvalue) ALL subscribers get access to interviews of high performing loan officers by Mortgage Marketing Animals marketing guru Carl White.