March 19, 2008

I am out of the office most, if not all day and will stay continue to stay engage in the areas mentioned yesterday.

1. warehouse line amounts : you should be on Roy's daily notice. Please insure you are. In comes out every morning around 9:30. Jessica and I met briefly to discuss some aspects of warehouse usage. This is now critical that we "balance" the Tx Banks accurately. In addition, Roy reminded me that we now have a 10 percent haircut on GMAC loans that go to NattyMac. We will need to remember to NOT use NattyMac for GMAC loans. And this brings up another conversation we will need to have in relationship with NattyMac and how to use it in general.

2. Loan Officers:
Resignations and Terminations due to file quality: we are continuing to put pressure in the area of performance. Termination vs. Hiring Levels: I sent a seperate email out last night to some of you along these lines; if you did not get and would like it, please ask Paul.
Increasing Loan Quality - how do we bring LOs' abilitity to submit a good file up . See the attached email for details of direction.
This continues to be a battle and I believe it is severly tied to our ability to work with people.
Mark is in training Wednesday and Thursday at Profiles; knowing how to work with Loan Officers is paramount to the results we will achieve and the The People Process continues to be an area we struggle with improving; Profiles training is a resource we continue to not use very well.
Training: Sunne, Mark, and I are discussing
Chas and Paul are now discussing file submissions quality specifically with all loan officers deemed necessary by underwriting

3. Exceptions : we need to continue to refocus on this problem everyday. I will send a seperate email along this subject, but these six items are my focus with the appropriate people.
clearing the two loans that will cause a cash call on Thursday
Bell loan: get update from Chas on status of refinance
report from Bryon on 30 day or more aged loans
determine specific strategy to clear each aged exceptions
Note: by the 28th of this month, all loans on GMAC's warehouse line will be at 30 days or more. Every loan at that point will require a minimum 10% cash-call.
GOAL: clear GMAC's warehouse line by Friday, 3/28/2008 at 5pm.

4. File Submission to Funding Process : we made some changes on the front end of this area yesterday, In summary,
all conditions will now be reviewed by the underwriter on screen and then only those she/he need will be printed. The premliminary write up of this new procedure is in place and this procedure will start today. This is a dramatic change from where we have been and will save a minimum of 3-4 man hours per day printing conditions.
In addition, we are continuing to ask; What are we missing? Do we have the right people in the right seats


5 . Thinking about the direction we take for moving forward
types of business: new business models?
warehouse lines
processing
sales
Loan Officers
Processors
7. ProLender training starts today
Is everyone paying attention?
Is everyone REALLY preparing to learn this software?
What are we missing?
Off-Site personnel?
Reminder: DataTrac is gone in 12 days.

8. Performance
Pick back up evaluations and corrections
What are we doing right?
What are we doing wrong?
What problems do I have today?
What could I have done 6 months ago to not have today's problems?
What problems am I going to have tomorrow and next month and this time next year?
What can I change today?
What questions to I need to ask?
There is a lot of work going on in other areas. This is just what I'm Purposefully Engaged in. The LTS Online field test is in process with Watersedge and possibly All Homes. This software has been one year in development and implementation; the LTS Team have been testing the system and processes for almost 9 months. Our development company (Eureka) has issued a press release and we will get that out to everyone in the next few days.

People Process

After reflecting on the problems of the past few weeks, even months, 90% of our troubles have been along the lines of People. Not necessarily problem people, but problems with people working together, struggling with each other, engaging in constructive conflict, conflict resolution, knowing what to engage in, what is a priority, how well he/she is doing, how something works, and a host of other areas you are thinking about right now.

It all comes back to the people...to you and I and the people around us.

I believe God put us here for a reason: a calling. Are you engaged in your calling? Are you responding to the Caller correctly? What does that mean?

Look back over this email. Read it a few times. I challenge you to show me anything that can be done without people. How well are you equipped to work with people? How well are you preparing yourself for next month, and next year, to work with people. Please don't think you will be able to just roll with the punches. At Alethes, you have to Purposefully grow.


Thanks eveyone. I realize I don't say Thank You often enough...I am trying.

Thank you.

Danny