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» VISIT US ONLINE @ DSNEWS.COM FIVE MINUTES WITH GET TO KNOW INDUSTRY EXECUTIVES BEYOND THE BOARDROOM Jim McMahan PRESIDENT OF BENCHMARK MORTGAGE Sector experts have found the formula for fixing the industry. By having honest conversations about where it stands and where it needs to go, the housing industry has made major strides. Now, new and fresh leadership is emerging to steer the industry forward into a brighter period. Meet Jim McMahan, the president of Benchmark Mortgage. For the past 25 years, McMahan has been worked extensively in the industry as a dedicated mortgage specialist. The latest housing numbers show slow growth in the market, but is incremental growth sustainable for a housing recovery, or will a market boom have to occur for the effects of recovery to be felt across the nation? The incremental growth will get us there, but it's still going to take time. Look at the '06 and '07 years of housing. We had such amazing growth, but no one estimated the power of the speculator during that period. Many people speculated about the housing industry by buying and flipping property at a much larger scale than people realized, and that had to be run out of the market. I think this incremental growth is healthy. You've seen steady improvement over the last two years, and we're seeing it in many markets across the country. I don't want to see a fast run-up. This steady pace is also good for rates. At some point rates will rise and hopefully, the economy will improve in conjunction with the rates. What can homeowners do to help themselves during this period of housing recovery? I think the key word is to prepare, and then to seek great advice. First thing a homeowner can do is assess their situation with their servicer, and see what you can do now to lower your overall cost. If you're making your payments on time, there's normally a program out there for you to help keep home costs down. You do have to do your homework. At the end of 2012, the number of completed foreclosures took a dip as a result of short sales becoming a more common tool to prevent the foreclosure process. What other loss mitigation tools do you anticipate gaining popularity in 2013? The REO definitely became king or queen in 2010. This year, I see REOs keeping pace and gaining momentum, as it's almost become the norm now. REOs have taken two years off of what this mess could have been, but it took awhile to get going. We've seen shadow inventory numbers come down, which to me shows that the REO is working and is going to be the loss mitigation tool that moves the industry forward. What's the single most important piece of advice you'd give to agents and other professionals working with REOs in today's marketplace? Take the time to give great advice. There are so many smart realtors and because they're busy, they assume that consumers know things that they may not, and really miss opportunities to gain customers for life. Professionals should spend 80 percent of their time being in their business—doing the things that keep the train moving—and 20 percent on their business, taking the time to get educated on how to really get qualified borrowers purchasing properties. It's important those working with REOs don't miss the opportunity cost differential that today's low interest rates provide. 27