Peter Charles- Mortgage Loan Originator

Posted & filed under Blog, Tips From Residential Home Funding's Experts.

peter chareles mfc

When shopping for a mortgage, don’t simply select the best price quoted over the phone or printed in the media. Trust and relationship are very important factors in selecting your mortgage provider. Work with a diligent professional that is willing to provide personalized service. Throughout the loan process you’ll come to appreciate heightened levels of service. And be open with your banker; a true professional will address your concerns including the overall cost of the transaction. Now that’s a win-win scenario!

 

 

This is not a commitment to lend. All rates, fees and loan terms are subject to a formal loan application, credit risk, appraisal evaluation and other lending criteria. Programs, rates, terms and conditions are subject to change without notice. Other restrictions may apply. The views and opinions expressed on this web site are solely those of the original authors and other contributors.

John Zura- Branch Manager & Mortgage Loan Originator

Posted & filed under Blog, Tips From Residential Home Funding's Experts.

John zura mfc

 

 

Buyer’s Get Moving!

With rates near the bottom and home prices on the rise, it’s still a perfect time to buy a house. If you can afford a home and qualify for a mortgage, this may be your last chance to take advantage of the market and own a home for less. To speed up the home buying process, get a mortgage preapproval before you start shopping.

This is not a commitment to lend. All rates, fees and loan terms are subject to a formal loan application, credit risk, appraisal evaluation and other lending criteria. Programs, rates, terms and conditions are subject to change without notice. Other restrictions may apply. The views and opinions expressed on this web site are solely those of the original authors and other contributors.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE STORY ON CONTINUING EDUCATION

Posted & filed under News, Tips From Residential Home Funding's Experts.

Continuing Education Requirements:
More Than Compliance; A Path To Success

By Barbara Scalera, Residential Home Funding

There’s one school of thought that says continuing education requirements are here and mortgage originators have to live with it. There’s another that says the regulation and oversight are too much, and it’s time to leave the industry. And finally, there’s the school of thought that says mandatory education is not only necessary, it’s great for the industry, and should be embraced.

Considering where the mortgage industry has been, this last option seems the best by far.

The number of hours vary, depending on the state, but the goal of continuing education is uniform throughout the country: equip mortgage loan originators with the necessary information to most effectively and efficiently provide mortgage services. The time spent in class will help eliminate problems and issues throughout the year.

There’s no doubt that some mortgage originators view continuing education as a necessary evil. They are the same ones who will be cramming at the end of the year to squeeze in their continuing education classes, like cars lined up at a motor vehicle inspection station on the last day of the month.

This “compliance” mentality toward continuing education is great news for the portion of mortgage originators who view yearly coursework as a way to improve themselves and separate themselves from the competition. Remember pre-2008, when just about anyone could hang a shingle and claim they were mortgage loan officers? Recall how difficult that made it for the experienced MLOs who actually had expertise and training, knew the ins and outs, and could expertly guide a new home buyer through the maze of the mortgage process. The real estate bubble and the new licensing requirements effectively took care of those who were less professional, leaving a leaner and smarter group of mortgage professionals to improve the industry’s reputation, loan by loan.

The annual continuing education requirements may have the same effect on the unmotivated and sometimes incompetent loan originators and they may drop out of the industry because of the hassle. And as previously noted, there are some originators who will take the courses, but do so begrudgingly, and not really become a more professional MLO because of the additional education.

Continuing Education Benefits:

Mortgage loan officers may think they have heard or seen just about every scenario, but the truth is that 1. They haven’t; and 2. The mortgage industry is in a state of flux, and the rules and regulations are constantly changing based on the events of 2008-09. When faced with a unique situation, asking a colleague, company executive or a compliance officer is better than providing an educated guess, but not as good as knowing the answer yourself. Prospects and customers are typically impressed when you are educated, confident and can answer the tough questions.

Even with continuing education, it’s not unusual for mortgage loan originators to have questions, especially if they’ve heard or read conflicting information. The mandatory continuing education courses are a great venue to have these questions answered, even if the coursework doesn’t address them directly. Most expert instructors can provide their perspective at any time during class.

Additionally, a proactive approach to continuing education results in:

  • Better comprehension of federal and state laws
  • Better understanding of the rules and regulations still being formulated, and the compliance issues associated with specific loans
  • Better understanding of the government agencies tasked with making and implementing these rules
  • Increased chance that clients and prospects will view you has a true expert in the industry  and therefore confidently refer you to others

It’s important to note that potential customers are coming in more educated than in the past. There is an abundance of personal finance and mortgage-related information websites which allow these prospects to know more about the mortgage process and ask more informed questions.

What to look for in a continuing education program:

From the outside, schools that offer continuing education courses can look very similar. They are all approved through the National Mortgage Licensing System, after all.  But there are key factors to consider:

Are the instructors working in the industry? Look for instructors who work within the industry and are not just “book-trained” in mortgage issues. Residential Home Funding, works closely with Mortgage Finance School, of Parsippany, NJ, which became licensed as an NMLS-approved course provider in 2013. We are partial to them because of the instructors they have in place. Among their instructors is Tom Marinaro, president of Residential Home Funding, and a licensed mortgage originator, with more than 20 years experience in the industry. There’s also an attorney with more than 25 years mortgage industry experience on the instruction staff, as well as practicing mortgage industry executives and a real estate professional.

Because they work in the mortgage and real estate industries every day, these instructors are able to integrate instruction on the new rules with practical applications and examples from their real world experience. Just as importantly, they can explain how changes in rules and regulations translate into the day to day work and mortgage origination process.

Does the continuing education facility travel? Some continuing education facilities such as Mortgage Finance School, can mobilize their coursework, and travel to either a mortgage firm’s office or a nearby hotel or conference center to make it more convenient for the loan officers to attend.  Because licensing is relatively new, and getting approved to offer coursework is an arduous process, the number of approved course providers can be geographically limited. In New Jersey, for instance, there are less than 10 facilities throughout the state.

Do they offer courses in multiple states out of their facility? In many areas, such as the greater New York metropolitan area, it’s not unusual for referral business to come from another state.  It’s important for many loan officers to be licensed in multiple states – and much easier for them to keep up with continuing education if they can do so in one primary facility.

Are courses offered online, as well as live? Once frowned upon in the education field,  online and webinar-based courses are now an everyday part of many educational systems. It’s not for everyone, but it’s good to know that your provider can deliver courses in a variety of formats.

Hot Continuing Education Topics:

There is no shortage of new topics and updates to be addressed.  Some could even argue that the current mandated federal and state continuing education hours are not enough.  Here are some of the topics being addressed by the latest coursework, courtesy of Mortgage Finance School’s syllabus:

  • Federal laws including Dodd-Frank, anti-discrimination, Truth-In-Lending-Act, and Real Estate Settlement and Procedures Act.

 

  • Terms and conditions of Qualified Mortgages as determined by the Consumer Financial Protection Bureau.

 

  • Requirements of the HOEPA amendments to the Truth-In-Lending-Act that require a creditor to verify and document a borrower’s ability to repay a home mortgage loan.

 

  • RESPA and the updated foreclosure requirements of RESPA amendments.

 

  • Differentiate between loan-to-value and loan-to-cost.

 

  • State specific rules, regulations and programs (such as differentiating between civil and criminal usury in New York, and identifying the Housing Purchase and the Owner-occupied Residential Mortgage Programs in Pennsylvania).

Conclusion

To say the least, the mortgage industry has had many changes since 2008. Even if continuing education wasn’t mandatory, it would be highly recommended. It’s a no-brainer when considering the factors that separate the best MLOs from the rest. Primary factors are motivation; knowledge/expertise; and experience. It’s impossible to teach motivation or to create experience overnight. That leaves knowledge/expertise as the only factor that differentiates MLOs in the short term.  How do they improve their knowledge and expertise?

Two words: Continuing Education.

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About the Author: Barbara Scalera is the Licensing and Compliance Officer for Residential Home Funding, a licensed mortgage banker in the mid-Atlantic Region.  Residential Home Funding is headquartered in White Plains, N.Y., with corporate offices in Parsippany, N.J.  Scalera can be reached at bscalera@rhfunding.com or at 973-577-7008, ext 245.

Vincent Lozano- Mortgage Loan Originator

Posted & filed under Blog, Tips From Residential Home Funding's Experts.

vince lozano mfc

 

When consulting with a loan officer for a preapproval on a new home purchase, a great question to ask the loan officer is “What are my current credit scores and are there any ways to improve my score?” It is important to do a complete review of the credit report with my clients from the first page to the last page and go over all of the items, both positive and negative, so we can find ways to increase the score. Within the review, you are working as a team, loan officer and client, to put together the best financial game plan. The results of a better credit score can increase purchase power, lower payments, and help you qualify for low down payment programs with mortgage insurance.

 

This is not a commitment to lend. All rates, fees and loan terms are subject to a formal loan application, credit risk, appraisal evaluation and other lending criteria. Programs, rates, terms and conditions are subject to change without notice. Other restrictions may apply. The views and opinions expressed on this web site are solely those of the original authors and other contributors.

After Housing Shakeout, Mortgage Industry Looking to Replenish Ranks of Mortgage Loan Officers

Posted & filed under Blog, News.

By Laurie Sutton, Mortgage Finance School

The bursting of the real estate bubble, the mortgage fraud crisis and the downturn of the economy in 2008 had one small silver lining. It helped rid the mortgage industry of many unqualified and even unscrupulous mortgage loan officers.

There have been several changes within the industry since then, and as a result, anecdotal evidence as well as statistics from the Department of Labor indicates a dramatic drop in the number of loan officers since 2008.

Residential Home Funding president Tom Marinaro, a mortgage industry veteran who has worked as a mortgage loan officer and executive within the industry for more than two decades, has seen the substantial fall-off in the number of mortgage professionals in the New Jersey market. Marinaro says that mortgage professionals will be in high demand over the next several years as the real estate market rebounds, and that his firm is in hiring mode, actively recruiting new professionals to the industry. New hires include recent college graduates as well as career-changers.

To support recruiting efforts, Residential Home Funding, one of the largest mortgage lenders in New Jersey and in the top 100 nationally, recently created a “Mortgage 101” introductory course. “The goal of our Mortgage 101 course is to educate as many people as possible about the opportunities for a career as a mortgage loan originator, and what it takes to succeed,” said Marinaro. “Through our course, we hope to encourage the best and brightest to pursue a career within the lucrative and stimulating mortgage industry, and to provide a solid foundation for anyone who goes on to attend the preliminary classes as part of the mortgage licensing requirements.”

Preliminary mortgage courses are now required, as part of the Secure And Fair Enforcement (S.A.F.E.) Mortgage Licensing Act, which was passed by Congress in the wake of the mortgage crisis.  The SAFE Act established national and state licensing qualifications for those offering mortgage loan services, including preliminary education classes and a licensing test. Mortgage license candidates are required to complete both federal and state specific preliminary education.

To this end, Mortgage Finance School was founded earlier this year, and recently approved by the National Mortgage Licensing System to teach the required preliminary education.

To understand the need for coursework, as well as the mortgage career opportunities available and the type of person needed, it’s important to explain where the industry came from over the last five years. Pre-2008, just about anyone could hang a shingle and claim they were a mortgage loan officer. This made it difficult for those doing the job the right way — the experienced mortgage loan officers who actually had expertise and training, knew the ins and outs, and could expertly guide a new home buyer through the maze of the mortgage process. Many of these mortgage loan officers – called originators or MLOs – wrote questionable loans, and were part of the problem when the real estate market fizzled.

Prospective mortgage loan originators have to take government-mandated pre-licensing courses at a facility that has been approved through the National Mortgage Licensing System. Once the coursework is completed, MLO candidates are then required to pass the mortgage originator exam. Those who pass the test(s) will be eligible to apply for a license with the respective state(s).  The state regulator will review the applications and determine if the individual meets the specific requirements. The approval is mandatory before a mortgage loan originator can write a mortgage loan for a consumer.

Mortgage Finance School, based in Parsippany, N.J., is an NMLS-approved school that scores high when considering key factors for choosing a preliminary education facility. It offers courses not only for New Jersey licensing, but for New York and Pennsylvania as well.

Its instructors work within the mortgage industry and have real-world knowledge to share. In fact, three of the four instructors are licensed mortgage originators. Because the instructors are working in the mortgage and real estate industries every day, they are able to integrate instruction on the new rules with practical applications and examples from their real-world experience.

Courses are offered online, as well as live. Once looked at as an impediment in the education process, online and webinar-based courses are now an everyday part of many educational programs. It’s not for everyone, but it’s good to know that your provider has the capability to deliver courses in a variety of formats.

“Not only do these courses fully prepare students to pass the federal and state required licensing exams,” said Marinaro. “They also are designed to give them the tools to become successful loan officers at a time when they are really indispensable.”

According to a Bloomberg News report, sales of previously owned homes jumped in July to the second-highest level in more than six years as buyers rushed to lock in mortgage rates. Purchases grew 6.5 percent last month. Sales were the strongest since a government tax credit temporarily boosted demand in November 2009, and second-highest since March 2007.

“It is much more difficult to become a mortgage loan originator since 2008 and this fact has created tremendous opportunities for employment in the mortgage industry to those who are willing to invest their time and energy,” says Marinaro.

 

#     #     #

 About the Author: Laurie Sutton is the Curriculum Coordinator for Mortgage Finance School, a leading provider of preliminary and continuing mortgage education .  Mortgage Finance School is headquartered in Parsippany, N.J.  Sutton can be reached at lsutton@mortgagefinanceschool.com or at 973-947-8350.

 

Residential Home Funding at the Annual New Jersey’s Firemen’s Convention

Posted & filed under Events.

Residential Home Funding Corp. was honored to attend the Annual New Jersey’s Firemen’s Convention in Wildwood, NJ. The convention took place on September 13th and 14th. This was the 27th year they held the convention and it is supposed to be the largest exposition of it’s kind on the Mid-Atlantic region to view and purchase equipment. We had proud Residential Home Funding representatives at a booth telling them all about our special Mortgages For Champions program, a special program for our community’s heroes.

mfc convention all guys

mfc jf

mfc convention

Residential Home Funding Corp’s Annual Charitable Golf Outing

Posted & filed under Events.

golf outing 2October is quickly approaching, and you know what that means, it’s time to get ready for our Annual Charitable Golf Outing! The event is being held at the Newton Country Club in Newton, NJ on Thursday. October 3rd, 2013.

The Residential Home Funding Foundation is very near and dear to the Owners of Residential Home Funding & the Board of Directors of the Foundation Roberto Lupi, Thomas Marinaro, Julio Salazar, and David Stein. The RHF Foundation is committed to enhancing the healing enviornment for children with acute medical issues. Our goal is to fund programs that make hospital stays less frightening and more enriching.

All proceeds will go to St. Joseph’s Hospital in Wayne, NJ & Newton Memorial Hospital in Newton, NJ. If you would like to attend or volunteer, please contact Dana Kyriakou at dkyriakou@rhfunding.com.

 

 

Keller Williams Boat Cruise

Posted & filed under Events.

Residential Home Funding was a sponsor for the Keller Williams Boat Cruise in New York. All of the RHF employees who attended said it was a great night! corporate sponsor

Thomas Marinaro, President of Residential Home Funding, Quoted In American Banker

Posted & filed under News.

Tom Marinaro

Residential Home Funding Corp.’s President, Thomas Marinaro, was interviewed by American Banker Magazine about the private label mortgage products for banks and credit unions that Residential Home Funding has to offer.

Small Banks Adjust to CFPB’s New Mortgage Rules
by ANDY PETERS
AUG 19, 2013 1:52pm ET

Community bankers are scrambling to update their playbooks to comply with a litany of new mortgage rules.

The Consumer Financial Protection Bureau on Thursday issued updated examination procedures for mortgages, including regulations that govern ability-to-repay standards and qualified mortgages.

The regulatory update represents another headache for big mortgage lenders that are already coping with rising interest rates and a noticeable decline in refinance activity. Those banks are reviewing operations and pressing managers to prepare for the new rules.

The new rules are keeping Home Federal Bank of Tennessee busy, says Dale Keasling, the Knoxville bank’s chairman, president and chief executive. Residential loans make up about half of the $2.1 billion-asset mutual thrift’s $885 million loan portfolio.

“We’re going to continue to make mortgage loans and we know that we’ll be doing qualified mortgages,” Keasling says. “We don’t know how we’re going to deal with [the new rules]. We’ve got to find a way to keep doing that business.”

Many other small banks are in the same boat. The CFPB’s mortgage rules are complicated and likely will require small banks to make major changes, says Rod Alba, vice president of mortgage finance and senior regulatory counsel at the American Bankers Association.

“Most of our lenders will have to recalculate risk,” Alba says. “The ABA has many educational activities [on the new rules], and we know our materials are getting downloaded at a very high rate.”

A CFPB spokeswoman declined to comment.

Thrifts are particularly vulnerable to changes in mortgage regulations because they are required by the Qualified Thrift Lender Test to keep more than half of their total assets in investments that include multifamily residential loans.

“It will be a challenge for us and for every other thrift,” Keasling says. “It’s going to limit what’s available for [borrowers]. There’s no getting around that.”

Still, the new rules could provide opportunities for some community banks.

Orrstown Financial Services (ORRF) in Shippensburg, Pa., is looking to provide mortgage services to small banks that want limited exposure to the CFPB’s regulations, says Jeffrey Seibert, the $1.2 billion-asset company’s chief operating officer.

Residential loans make up 41% of Orrstown’s $660 million loan book, and management thinks it can shoulder some of the regulatory load for other banks. “Some community banks may [determine that mortgages are] not a line of business that’s appropriate for them,” Seibert says.

Nonbank mortgage lenders have also set their sights on small banks as partners. However, lawyers, regulators and other bankers are unclear if community banks will be legally allowed to transfer any of their liabilities to nonbanks.

Community banks want alternatives to staying in the mortgage business without the headaches of CFPB compliance, says Tom Marinaro, president of Residential Home Funding, a mortgage lender in White Plains, N.Y. “Most banks need fee income from residential home mortgages” and would prefer to stay in the mortgage business, despite the new CFPB rules, he says.

Residential Home Funding offers several alternatives for small banks, including a private-label mortgage product. The company will also buy mortgage loans originated by community banks. Under some arrangements, community banks could hold “no financial risk in the event of any default of any loan at any time, unless there was fraud,” Marinaro says.

Community banks should probably tread carefully in this area because the guidelines for liability surrounding the purchase and sale of mortgage loans are still being interpreted, Alba says.

Thrifts, compared to commercial banks, may have more difficulty forming partnerships with nonbank lenders, says Doug Faucette, a lawyer at Locke Lord. “No partnership can abdicate liability if the mortgage is originated in the thrift’s name,” he says.

Banks should thoroughly review their underwriting policies before agreeing to work with a nonbank mortgage lender, Seibert says. It is unlikely that a bank would be able to completely shift all of its liabilities by selling mortgages to third parties, he says.

A community bank would be better off working with another federally insured financial institution, Seibert adds. It is also a good idea for small banks to retain some equity in the loans they originate.

The CFPB “wants to see the bank have some skin in the game,” Seibert says.

 

http://www.americanbanker.com/issues/178_160/small-banks-adjust-to-cfpbs-new-mortgage-rules-1061437-1.html