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Big data techniques could help mortgage lenders home in on the most qualified borrower leads, but uncertainty about the new technology has many originators clinging to existing practices with a known track record.
"It would be difficult for us to replace that portfolio with [a cash investment's] kind of yield in this environment," John Thain, CEO of CIT Group, says of the OneWest loan book.
CIT Group, which is acquiring the former IndyMac, will let the bank's $7.6 billion mortgage book run off. "It is an attractive portfolio," the CEO says.
Independent mortgage lenders are concerned that regulators will use the report as an excuse to raise minimum net worth requirements for smaller lenders.
Lower rates of return would require insurers to charge higher premiums or stop covering loans to borrowers with lower credit scores. (You know, the ones the government wants to help?)
Mentoring the newbies in the mortgage business may help them avoid boom-and-bust errors later in their careers. And it can be a personally satisfying thing to do as well.
In another reshuffling of its mortgage ranks, Bank of America has promoted D. Steve Boland, who joined the company through the 2008 acquisition of Countrywide Financial, to head residential lending.
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