The Niche Report - articles

August 01, 2008
Note from the Founder
This month we decided to open up this spot to Aaron Krowne, Founder of ML-Implode.com. As you may have seen over the past few weeks, Aaron has been interviewed by several mainstream news media outlets about his company and his views on the current and future mortgage markets. Aaron and his team certainly have their collective finger on the pulse of the mortgage industry and we welcome his insight below to The Niche Report.

Aaron Krowne - A year and a half on from when we at ML-Implode helped break the story about the housing market crisis, the financial sector remains in turmoil. As we predicted, the economy is tipping into recession. Many fundamental questions about how the market will repair itself and function going forward, and what the new public policies will be, remain unanswered. We don't pretend to have all, or even many of the answers to these questions, but I'll share a little bit below about a few things we think we /have/ figured out.
August 01, 2008
Tip of the Month - Know Your Customer by Stewart Mednick
In 1964, Dr. David W Merrill and Roger Reid began research to create a model that could predict the success in selling and management careers. What the partners ended up discovering was that people's behaviors and actions are consistent. They used a social style matrix or system to help define a person’s predictable behavior. If you know the style of your customer, you can effectively communicate and develop a relationship rapidly and with a percieved added value.

There are four styles defined: driver, expressive, amiable and analytical. The goal of an effective relationship development specialist; which is what you all are, is:
1) identify which of the four types of social styles you possess.
2) identify the type of your customer, and finally,
3) adjust your behavior to mirror or match that of your customer.

People who recognize and adjust to these behavior patterns have a better relationship with other people. There have been a myriad of studies and redevelopments in this field over the last forty years. I encourage you to research more on the topic if interested (www.wikipedia.com keywords “social styles”). I will focus on these four styles for the purposes of this column.
August 01, 2008
Mortgage Marketing! Is anything working? by Raymond Bartreau
The answer is YES! Figuring it out can be the hard part. Being an owner of one of the largest mortgage marketing firms, I can tell you first hand what I see working for my clients and what is not.

With referrals running out and the industry full of uproar and uncertainty, you must understand that at some point in the chaos you will have to start marketing yourself to survive the storm.

When starting any marketing campaign, you need to take into account the consumers’ point of view. We all see “For Sale” signs up everywhere, news stories about record high foreclosures, and home value’s dropping, etc. The point is that with all the negative publicity on TV, radio, online, and word of mouth, it builds fear in any consumer who is considering making a financial move on their home. It is causing an extra ‘barrier’ you need to break through when trying to reach these people. There are very few ways to break this barrier so I want to share with you how our clients are doing it to stay alive in these tough times.
August 01, 2008
The Short Refinance by Loren Gingerich
A short-refi (short-refinance) has been around for quite a few years. Until its recent exposure, it has been said to be one of the industry’s best kept secrets. It is not common knowledge that a lien holder will accept a short-payoff of the current loan, while allowing borrowers to keep their property and refinance with a new lender. But, that is exactly what can be accomplished with some lien holders and a properly negotiated short-refi offer. You will notice that I said some and not all lien holders. This is because the final decision to accept a short-refi offer is completely in the hands of the investor on that particular mortgage. This is also true with short-sales or loan modifications. There is absolutely no company out there that can guarantee a short-refi, short-sale or loan modification will be accepted. That is one thing that the property owner should keep in mind and acknowledge upfront when hiring a third-party to perform any of these solutions. In getting short-refis completed, our company can say that we do have a 70% success rate, which gives our clients far better odds than most.
August 01, 2008
Learning to Sell by Dan Sullivan
Remember the “good times” in this industry? Remember when getting a loan was as easy as picking up the phone faster than the other Loan Officers in your group? Now, most of the other LO’s in your office are not even in the industry and the phone is dead. The days when the phone rang off the hook with borrowers calling, literally begging you to help them with the refinance or purchase of their home, are in the past.
Have you noticed the one loan officer in your office or across town who is incredibly busy in this market? Have you stopped to ask yourself why that loan officer is getting business and you are not? Chances are, he or she does not think of himself or herself as a Loan Officer, but rather as a sales person. Chances are, that person is a talented sales person. Learning sales as a skill is tough. Selling, according to my friend Tom Ward at Majestic Consulting, is “The ability to get somebody to do something that, if left up to that person, would not otherwise get done.” It’s learning to ask leading questions, knowing when to talk and when to be quiet, and molding conversations to help people to adopt your opinions as their own.
August 01, 2008
FUTURE OF THE MORTGAGE BROKER PART II by George H. Marentis
As a follow-up to my previous article regarding the Future of Mortgage Broker Licensing, this article is intended to focus on the long term survival of the mortgage broker.

IS THE MORTGAGE BROKER UNFAIRLY BEING TARGETED?

As we all know the mortgage broker has been the key focus for state and federal legislation with a significant concentration on licensing and education. I am all for consumer protection, so having some controls and regulations to monitor the industry is not necessarily a bad thing. However, I feel that whatever is put in place needs to be applied equally to all parties in the lending industry who have direct consumer contact.

As new legislation is being implemented, the focus is on the individual mortgage broker. What about the loan officer with less then a year of experience who was just hired by a bank or credit union to originate loans through a retail channel? Is that loan officer going to be required to go through the same education requirements or be licensed? The answer appears to be no, because by virtue of a bank or credit unions exemption status, that bank or credit union loan officer will not need to meet the same requirements as a mortgage broker with 20 years of experience.
August 01, 2008
The Student Housing Niche by Tim Bradley
University enrollment is currently at an all-time high as the children of the Baby Boomers, (the Echo Boomers) search for their ideal college experience. Student enrollment is expected to jump 11% over the next decade, outpacing the amount of on-campus housing options currently available. As a result, student housing has become increasingly attractive to developers and investors for the short term and long term returns depending upon the transaction.

Upscale living

The student housing market, unlike other sectors, remains relatively unaffected by today’s tough economy, creating an overflow of students on campus and increase in demand for appropriate living accommodations. To sustain increased enrollment and make up for the lack of funding for on campus housing facilities, many schools are looking to private developers to develop amenity-rich student housing that will meet the needs of the students, parents and the university. Universities know that to recruit and retain the growing student population, they must offer modern housing options that appeal to today’s sophisticated student consumer who demand advanced technology, private baths, and resort-style amenities.
August 01, 2008
Positioning Yourself for a Successful Sales Call by Tom Ninness
You finally got the opportunity to meet with John, a top Realtor. You share all of the different loan programs you have available, the great staff you have, and that you are committed to excellence. You mention that you are available to do pre-qualifications over the weekends and you’ll do finance flyers for the agent’s open house. You pull out some of the open house flyers that you’ve done for some of the other agents and the agent is impressed. The meeting goes well. You leave some of the flyers and your card and promise to follow up with the agent the next week.

The next week you leave a message, then another message a couple of days later, then one on Friday to remind the agent that you are available that weekend if any needs come up. After attempting another couple of times to get hold of the agent, the agent finally calls you and says that he is happy with the current lender that he is working with and if anything changes, he will call you. What just happened?
August 01, 2008
Center Stage With TrainingPro
The National Leader in Mortgage Education

By The Niche Report

Introduction
Since the year 2000, at least two states every year have enacted legislation requiring mortgage training for their loan officers, mortgage brokers, and/or mortgage lenders. Only three states had adopted such requirements eight years ago, and today, more than 34 states have joined the mortgage education initiative that is sweeping the nation.

One company has successfully managed to support and lead the mortgage industry through this dramatic integration of mortgage training with licensing requirements. Setting industry standards along the way, TrainingPro not only provides the state-approved mortgage training, it has positioned itself as a resource and partner for companies large and small through an active legislative tracking program, license management software, and professional development training.

READ THE NICHE REPORT NOW!