Joseph Semrani is the head of a national telesales group in a mortgage division at M&T Bank and has been managing loan officers for the past decade at various mortgage companies.
If you worked at a bank and you spent $250,000 on a new marketing campaign and got no results, would you keep spending?
BETTER, BUT … Wells Fargo's mortgages are "certainly up seasonally quarter over quarter. But we might have imagined a little bit more going into the [end of the] year," CFO John Shrewsberry said.
It sounds liked a great business formula: home loans soared at several megabanks last quarter after they spent months cutting thousands of jobs to save costs. But executives remain concerned about profit potential because market shifts and new regulations are making mortgage lending more expensive.
Although the proposal to add more Home Mortgage Disclosure Act requirements was required by the Dodd-Frank Act, those in the lending industry said they were taken aback by the amount of additional information the CFPB is seeking, arguing it goes way beyond the regulatory reform law.
Using the MERS System helps stop mortgage lenders from fraudulently pledging the same loans to multiple warehouse lines. Most line providers register as interim funders. Some recent entrants may not.
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.
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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.
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