By Brian Sacks

When I first started originating many years ago, I was told to go visit real estate offices and meet and greet agents.

Of course, this is much easier said than done these days.

But back then you could walk into a real-estate office and there would be agents there.

Our first basic instinct is to plaster the offices with flyers and hope for a phone call. This is a huge mistake that took me many years to figure out.

[caption id="attachment_7900" align="alignleft" width="332"] Sacks: Target agents that do 15 to 20 transactions a year.[/caption]

Stuffing rate sheets or informational flyers will not get you new business. Sending e-mails or social posts is today’s version of the same mistake. You must meet agents and get to know them as people. They must come to know, like and trust you before they will give you new business.

Remember they are trusting you with their income and reputation. This is a critical piece of information to keep in mind and it’s worthwhile for you to go back and re-read this headline and write it down. Agents are literally trusting you with their commission checks and reputation when they refer you.

But not all of them are your target market.

I have identified three different levels of agents. Two of which I stay away from, and one that I suggest you target like a laser beam.

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Level No. 1 Agents

These are the realtors that are either very part- time or are really just selling real-estate to get out of the home and be active. Many are financially well off and are simply out there to keep themselves busy.

These agents are generally very friendly and will always be happy to have lunch with you or speak with you. That’s because they are simply trying to kill some time. The part timers are always looking to gain knowledge but eight out of 10 will not succeed long term in this business.

Level No. 2 Agents

These agents are the top producer agents with large teams and large volumes. Most will not give you the time of day. But if you somehow are successful in getting to them and something goes wrong with a transaction, they will dispose of you like an old and used razorblade.

They generally are not loyal and work with whoever is willing to spend the most co-marketing with them. Of course, there are exceptions, but I would suggest staying away from these agents.

Level No. 3 Agents
These are the agents I love working with and spend my time focusing on. They may be full time or part time, though the part timers are working toward transitioning to full time. Level 3 agents will generally do 15-20 transactions per year.
So they are not the top producer, but they are also not at the bottom either. They are right smack in the middle. They will generally be reachable and loyal and will truly appreciate working with a great lender who can assist them with getting to the next level.

How Do I Identify These Agents Quickly
You can first simply go to websites like HomeSnap and Homelight or even Realtor.com and others like them that list each agent’s activity levels. There are two quicker, and maybe even, more powerful ways to do this as well.

1.  Contact a local title company and ask. They are after all marketing to the same group of realtors you are. But they may have a better idea of each agent’s production levels. More importantly, they may be able to do some joint marketing with you and even make the introduction to those agents for you.
2.  Ask the agents you do business with if they can help you identify other potential agents you should be getting to know and working with. Most agents are happy to help you with this.

Getting referred to an agent either thru a title rep or another agent is very powerful since this will no longer be a cold call but a warm one!

The bottom line is this: Don’t simply go out with the goal of meeting agents. Identify the Level No. 3 agents in your market and use the tools and tactics you have at your disposal to make them long-term referral sources.

Remember that this all about first getting them to know, like, and trust you because they will be trusting you with their reputation and income. Also, keep in mind that you must be able to assist them with more than just good service or good rates since both of those are the basic minimums for starting a conversation.

About the Author: Brian Sacks is a national mortgage expert with Homebridge Financial Services Inc. in Owings Mills, Md. In his 34 years in the mortgage business he has closed 8,497 loans in excess of $1 billion. Brian is also a respected coach, and speaker and the founder of the Top Originator Mastermind. You can get more information on his latest book “48 Proven Ways to Immediately Grow Your Production” at https://48waysbook.com/special

 

 

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Veterans Affairs has established new policies regarding guaranteed cash-out refinancing loans, including refinancing of construction loans.

The policies determine when Veterans Affairs can guarantee a refinancing, as required under The Economic Growth, Regulatory Relief, and Consumer Protection Act. The new policies take effect Feb. 15.

For loans being refinanced within one year from the date of closing, lenders are required to obtain a payment history, or ledger, documenting payments, unless a credit bureau supplement identifies the payments made in that timeframe. If Veterans Affairs selects the loan for a regulatory audit, the lender will have to include the payment history, or provide a credit bureau supplement of the loan being refinanced in the loan file for review.

Starting on Feb.15, applications that don’t meet the following requirements may be subject to indemnification or the removal of the guaranty:

Loan-to-Value. Veterans Affairs won’t guaranty refinancing loans when the loan-to-value exceeds 100 percent. Inclusion of any funding fee that is financed, in part or whole, cannot cause the loan to exceed the reasonable value of the property.

LTV Calculation. Divide the total loan amount, including the Veterans Affairs funding fee, by the value of the property determined by the appraiser.

Net Tangible Benefit standard applies to all Veterans Affairs cash-out refinancing loans, and is satisfied when one of the following is met:

• The new loan eliminates monthly mortgage insurance.
• The loan term of the new loan is less than the loan term of the loan being refinanced.
• The interest rate of the new loan is less than the interest rate of the loan being refinanced
• The monthly (principal and interest) payment of the new loan is less than the monthly (principal and interest) payment of the loan being refinanced.
• The monthly residual income is higher as a result of the new loan.
• The new loan is used to pay-off the veteran’s interim construction loan.
• The new loan LTV is equal to or less than 90 percent of the reasonable value of the home.

Loan Comparison Disclosure: The lender is required to provide the veteran a comparison of the new loan to the existing loan being refinanced. Veterans Affairs requires lenders to generate two loan comparison disclosures, one within three business days from the initial date of the loan  application and at the closing.

The borrower must certify receipt of both disclosures--signature, e-signature, email from borrower certifying receipt, email read receipts, system time/date stamp where a borrow certified receipt. A failure to provide initial disclosures to the veteran within three business days from the initial application date and at closing could result in indemnification of the loan up to five years.

 

 

 

 

 

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Ellie Mae reported revenues for the fourth quarter of 2018 of $116.0 million, compared to $112.9 million for the fourth quarter of 2017. Net income for the fourth quarter of 2018 was $0.1 million, or $0.00 per share, compared to $9.9 million, or $0.28 per diluted share, for the fourth quarter of 2017.

Net income for that time period includes the amortization of cost from the Velocify acquisition, and one-time costs related to a reorganization of the technology group.

On a non-GAAP basis, adjusted net income for the fourth quarter of 2018 was $9.5 million, or $0.27 per share, compared to $11.8 million, or $0.33 per share, for the fourth quarter of 2017.

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Total revenue for 2018 was $480.3 million, compared to $417.0 million for 2017. Net income for 2018 was $22.6 million, or $0.63 per share, compared to $52.9 million, or $1.48 per share, for 2017. Full year 2018 net income includes the amortization of acquisition-related intangibles related to the Velocify acquisition.

On a non-GAAP basis, adjusted net income for 2018 was $63.4 million, or $1.77 per share, compared to $58.9 million, or $1.64 per share, for 2017. Adjusted EBITDA for 2018 was $122.5 million, compared to $123.9 million for 2017.

Ellie Mae has agreed to be acquired by Thoma Bravo LLC in an all-cash transaction for around $3.7 billion. Stockholders will receive $99.00 a share in cash once the transaction closes. The deal is subject to approval by stockholders and regulatory authorities and is slated to close in the second or third quarter of 2019.

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