| Broker to Banker:
If you are a mortgage broker considering becoming a mortgage banker or just starting your first mortgage company, we need to talk! You have nothing to lose as the first couple of calls are free and informative. A successful "broker-to-banker" transition or start-up involves getting connected with the right correspondent lenders and warehouse lines that best fit your business model. This is critical! Not all warehouse lenders and correspondent investors are 'created equal'. All of them are good at what they do, but not all of them are good fit for you. Even after determining which lenders and investors are right for you, there is still a tedious application process with each lender/investor you will have to go through. You get one shot at this process and it needs to be done right. As the saying goes, "There is never a second chance to make a good first impression."
MBS brings over 33 years of experience in mortgage banking operations to the table to assist our clients in making that transition. Each Senior Consultant has owned and operated his/her own mortgage company and in some cases a number of them. As consultants, we have helped hundreds of companies to make this move and have developed close relationships with many lenders and investors along the way. MBS, LLC not only brings our extensive knowledge base to the table but our countless industry contacts as well to help our clients along the process. Our services range from merely advising you through the process (we call this our "Advisory Service" approach), to rolling up our sleeves and taking on some of the tasks involved with the process (we call this our "Collaborative Service" approach), and then there is our "Bank-in-a-Box" approach which involves us building you an entire mortgage banking operation and teaching you how to run it.
The following are a brief overview of the steps we will assist you with along the way:
· Analyzing how your company has been run, then listening to what your vision for the future is (and offering advice if you request it) and then helping you map out and implement a plan of action.
· Securing state licenses in the states you wish to do business.
· Securing the required insurance coverage (E&O, Fidelity, Etc...)
· Securing Warehouse Lines and Correspondent Investor relationships.
· Teaching our clients how to maximize profits and avoid costly pitfalls that can happen when starting out in mortgage banking.
The process of moving from broker to banker become overwhelming to those whose day is already jammed with just keeping up with the business at hand. Gathering the information is hard enough, but then following through with all of the agencies, HUD, and regulatory licenses is more than overwhelming. Let’s us share with you an example of the steps included in this process.
Services Tab:
Mortgage Banking Consulting MBS has great skill and experience in mortgage banking to back our commitment as we help grow and develop your business as if our business depends on it…because it does! Each consultant has more than 25 years in the industry and can bring many networking possibilities to your business. The vision and execution strategies propel your company to achieving the realistic goals and objectives you set. We will come along beside you and help develop the organization you need in preparation of the new generation of mortgage bankers.
Due Diligence Reviews
In addition to our many other services, MBS also offers Due Diligence Review services for bulk loan purchase transactions and provides an unsurpassed combination of experience, technology, and flexibility. Our Due Diligence reviews are done by seasoned professional Underwriters who will provide the full scope of loan file review, including a comprehensive credit, compliance, collateral and legal documentation analysis. We perform a thorough re-underwriting of each loan selected in line with client’s request to determine the accuracy of the information provided to the client by the seller of the portfolio and the validity of the pricing. MBS provides our clients with a complete and comprehensive understanding of the files that are being reviewed and what the exceptions noted in our reports may mean to the pricing or performance of the portfolio. Our reporting allows clients to review to a portfolio- or loan-level detail, enabling a purchaser to review all attributes of each loan, as well as the comments, notes and conclusions of the Underwriter, when making an eligibility or pricing decision.
Loan Trading Even the most well-run companies will be presented with serious investor related issues. Investors have been known to reneg on forward commitments or change the terms of a forward commitment. Mortgage companies, even the best of them, have been known to make mistakes that can jeopardize their investor relationships. MBS can help. After 30 years of experience, there are few investors MBS doesn't know or hasn't interacted with extensively. Beyond problem areas, MBS specializes in the area of secondary marketing as it relates to trading whole loans or pools/bulks. This includes all residential loan products-"A" paper Agency, "D" credit, sub-prime, scratch and dent, and non-performing-in the first, second, and third lien positions. A common frustration of many CEOs is not knowing if their loan trades are being executed at the highest possible levels. A common frustration of many secondary marketing executives is CEOs beating them up even when they know they have executed the best possible levels. MBS can assist the CEO and the secondary executive by working constructively with both to ensure that the best is being accomplished for the company. What's "best" for a company is where MBS can bring value to almost any organization. The key is to gain maximum execution without sacrificing the company's long-term well-being. MBS can assist in gaining maximum execution by improving a company's gain on sale through introducing new investors, working with existing investors to negotiate better forward commitments, or expanding/growing the company's secondary marketing operation to new levels, which could go as far as moving the company towards securitizations. Secondary Marketing Services MBS’s Secondary Marketing Services can range depending on a client’s size, needs and business model. Larger clients can rely on MBS’s consulting expertise in helping them resolve the issues that are facing their existing secondary marketing operations, and take advantage of the relationships that MBS and its staff have built over the years to ensure they are selling their loans to the best possible investors. Smaller clients can outsource all of their Secondary Marketing needs to full service Secondary Marketing operation to ensure a maximum return on a reduced investment. Either way, MBS can help you establish relationships with the correct investors for your business model that might not otherwise available. MBS’s Secondary Marketing services include: Custom Rate Sheet Generation and Pricing Models – MBS can help you create and customize rate sheets based on the loan products you offer.
Transition to Bulk Loan Sales – MBS can help you make the transition from whole loan trading to bulk loan sales, mandatory delivery and forward commitments.
Secondary Marketing Policies and Procedures – MBS can create custom procedures tailored to your way of doing business.
Fully Functional Lock Desk – Outsource your entire secondary operation to our highly trained staff.
Complete Array of Pipeline Reporting – MBS can help you develop the necessary reports to properly track and manage your business. Those clients using our fully functional lock desk will receive these reports on a regular basis.
Staffing and Training Assistance – MBS can help you hire and train the necessary staff if you want to handle your secondary marketing efforts internally.
Systems Automation and Technology – MBS can help you automate your secondary marketing functions and recommend the necessary technology pieces to help in that effort. Accounting Services/Financial Modeling “Bank in the Box” Warehouse Lines of Credit:
When a company's warehouse lines of credit are maxed out, that company can't grow. This problem has one of two origins: either the company is experiencing poor warehouse utilization (that is, not turning the line a sufficient number of times in a month) or the company's leverage ratio has exceeded the credit provider's limits. MBS is frequently called upon by mortgage lenders to overcome the origins of inefficient warehouse utilization and warehouse lenders to assist their customers in improving loan sale processes in order to improve warehouse utilization. MBS first reviews internal issues that may be inhibiting increased funding capacity before pursuing additional warehouse lines. If it is determined that additional lines are necessary, MBS knows the major warehouse lenders and can help negotiate favorable terms, usually better than if the company were to do so directly. For more mature companies, gestation and/or repo lines may be a solution. MBS can assist in finding and establishing these types of lines of credit. New
The proposed HUD ruling will require mortgage brokers to fund loans on a warehouse line in order to earn yield-spread premiums. MBS can assist qualified mortgage brokers in obtaining warehouse lines. MBS realizes, however, that such warehouse lines of credit are like loaded guns: without the proper systems and procedures for timely sale of loans, the company could easily shoot itself in the foot. MBS will work with the company to ensure implementation of systems and procedures that ensure efficient utilization of the line and maximal profit margins.
Secondary Marketing/Loan Trading Even the most well-run companies will be presented with serious investor related issues. Investors have been known to reneg on forward commitments or change the terms of a forward commitment. Mortgage companies, even the best of them, have been known to make mistakes that can jeopardize their investor relationships. MBS can help. After 30 years of experience, there are few investors MBS doesn't know or hasn't interacted with extensively. Beyond problem areas, MBS specializes in the area of secondary marketing as it relates to trading whole loans or pools/bulks. This includes all residential loan products-"A" paper Agency, "D" credit, sub-prime, scratch and dent, and non-performing-in the first, second, and third lien positions. A common frustration of many CEOs is not knowing if their loan trades are being executed at the highest possible levels. A common frustration of many secondary marketing executives is CEOs beating them up even when they know they have executed the best possible levels. MBS can assist the CEO and the secondary executive by working constructively with both to ensure that the best is being accomplished for the company. What's "best" for a company is where MBS can bring value to almost any organization. The key is to gain maximum execution without sacrificing the company's long-term well-being. MBS can assist in gaining maximum execution by improving a company's gain on sale through introducing new investors, working with existing investors to negotiate better forward commitments, or expanding/growing the company's secondary marketing operation to new levels, which could go as far as moving the company towards securitizations. Mergers and Acquisition There are many reasons why companies are bought and sold. Each transaction is as unique as the companies and the parties involved. No matter what your reason for wanting to buy or sell, you would do well to get the advice of someone who has first hand experience. Our consultants have been involved both as a buyer and seller. They contain a wealth of knowledge and experience that can be brought to either side of any transaction. MBS recognizes the importance of developing a corporate vision when entertaining a merger or and acquisition. We believe that a merger without a clear and realistic vision may lead to not having a “good fit” for both the buying and selling companies. Identifying strengths and weakness of each is a critical factor in pre-merger analysis and a task that is not underemphasized by MBS. Integrating cultures requires paying close attention to potential cultural misalignments and develop a strategy that represents an amalgamation of the best of both cultures. A merger describes the highest form of strategic partnership in which two or more legally independent organizations merge together to one organization. MBS understands, through our many years of experience, the compatibility, the complex ability, the transfer of knowledge, power, and vision that will propel the new strategic objectives to the new merged organization. Our focus on the people, or commonly known as the “soft side” of the merger, is to prevent chaos and confusion and use change as a catalyst for success. Bio Pages: David Lykken – President and Founder It’s impossible to miss how much David Lykken genuinely loves working with his clients in the mortgage banking industry. It’s not just the energy he brings to each project, but rather the way he simultaneously supports and challenges his clients, building on their organizations’ strengths and pinpointing areas for improvement. After thirty years in the industry, David has garnered a national reputation, becoming a sought-after seminar speaker and radio program guest, renowned for his unique blend of technology and business operations experience and success at developing early-stage startups into thriving public companies. However, David’s most recent venture is his most rewarding: since 2000, his Austin-based consultancy, MBS, has helped a growing number of mortgage bankers nationwide dramatically transform their businesses – and in the process, help shape the next generation of mortgage banker. Business is in David's blood: he grew up in an entrepreneurial family that owned and operated a large privately held company. As a young man, he absorbed the Midwest work ethic and commitment to quality found everywhere in his native Minnesota. After some early experience in the mortgage industry, David went on to found two Southern California mortgage banking companies and became a partner in a national mortgage banking company headquartered in Irvine, California. However, seizing on an entrepreneurial opportunity outside the mortgage arena, Dave started a computerized loan origination system (CLO) software company in his garage – which eventually grew into a large national publicly traded company, capturing a 23% market share. David founded MBS to share some of the vast amount of knowledge he has acquired, leading the next generation of mortgage bankers embracing a new, higher level of integrity and commitment (and ultimately giving many worthy people the ability to purchase a home.) Clients have been coming to MBS because the company offers a superior platform that works for their objectives and David’s expertise in the areas of warehouse lines of credit, the transition from mortgage broker to mortgage banker, investor relations, mortgage broker licensing, bulk loan sales and secondary marketing. However, many clients also appreciate that - due to his personal integrity, character and ethical business practices - David has forged trusted relationships with key industry leaders. As a result, MBS is flourishing with word of mouth publicity, and is consistently delivering value to clients and their business. David lives in Austin, Texas with his wife and two daughters. He is actively involved in his church and enjoys regular exercise, reading, motivational speaking, skiing and working on improving his golf handicap. David received a BA in Music in 1973 from Pacific Lutheran University in Tacoma, Washington.
Kenney Hayes - Chief Operations Officer Ms. Hayes has 35 years of mortgage industry experience, with great depth in all areas of the field. Serving in an executive leadership capacity for 20+ years, she has been on the edge of both industry and regulatory environment changes – and has translated this into new and exciting ways to create business opportunities. However, her knowledge goes beyond mere operations and business: Ms. Hayes has always focused on teamwork and developing programs, methods and organizational structures supporting better communication. This people-centered approach makes her an invaluable asset to MBS as the company creates the next generation of mortgage banking. Early in her career, Ms. Hayes was a pioneer in partnering with large real estate companies: she was instrumental in developing a one-stop center for real estate and mortgage lending, and creating lifelong customer relationships in the process. Later, during the savings and loan debacle, Kenney helped lead a successful takeover transition with the federal government’s Resolution Trust Corporation (RTC). Overseeing an institution that was the only one allowed to continue lending throughout this time, she quickly translated her efforts into a successful buyout by Bank Of America, delivering the most profitable purchase on record during this period – a feat that has been written about in textbooks. During her first years in the Pacific Northwest, Kenney implemented one of the first incentive commission plans for mortgage lending, yielding incredible gains in annual production and profitability. More recently, as a consultant, she has consulted to successful startups, coached mortgage originators and net branches on increasing efficiency, and worked with small mortgage companies positioning themselves for sale. Her focus remains on improving customer service and financial returns by aligning organizations’ strategy, technology, and people – something that dovetails perfectly with MBS’s mission. Much of Ms. Hayes’ success can be attributed to her philosophy, summed up in her motto, “what gets measured gets done.” While she appreciates goals and objectives, she believes that these goals must be measurable – something she feels many organizations miss out on. In an industry where it can sometimes be difficult to quantify results, Ms. Hayes consistently strives to do so. Today, at MBS, clients feel that this commitment is crucial to their success. Besides her work at MBS, Ms. Hayes continues to give her time to several nonprofit groups. She teaches budgeting, goal setting and other courses at her local community rescue mission, enabling people to take the first steps in finding shelter, or work. She is a published author, writing several well-received books encouraging women to live out their dreams by developing plans and an execution strategy. Remaining true to her first passion, she continues to write and record contemporary Christian music. She has been married 37 years and has two adult daughters; she and her husband reside near Seattle.
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