Loan Think

The most charitable thing a mortgage company did this year happened when MetLife, a bank holding company, paid for its residential loan officers to receive training and education in preparation for passing their state licensing tests.

Lenders are increasingly providing borrowers with online tools to complete loan applications. As this innovation takes off, lenders are adapting their businesses to evolve the role of the loan officer, while POS and LOS vendors are engaged in a showdown for the online channel.

The National Association of Realtors reports that sales prices are continuing to fall, from an average of nearly $200,000 five years ago to around $172,000 today. A decline in average sales prices translates into a decline in average loan amounts - and since most mortgage loan originators are paid a basis points commission on the loan amount - that means less money for you.

No single solution will repair the damage done by the lingering housing crisis. And “one-off” loan-by-loan solutions can’t happen fast enough to make an impact on the fragile housing stock that balances at a tipping point in cities across the country.

The headline of today's daily 'What We're Hearing' blast sounds like junk mail that you might see in your email inbox. But rest assured, certain mortgage REITs are paying hefty dividends these days. At the top of the list is Annaly Capital Management, which has a 13.5% dividend/yield rate.

I recently received a business card from a loan officer who called himself a "Personal Liability Manager" with the tag line "providing mortgage and liability management on an ethical and objective basis." It's unique. It's different. And it begs the all-important question—so how do you do that?

As an outsource provider of increasingly commoditized loss mitigation tools and asset preservation services, having the right customer service philosophy may be the only deciding factor to our clients versus the competition.

It appears the Consumer Financial Protection Bureau will revisit the issue of loan officer compensation - and maybe even in a way that benefits nonbank LOs. The whole issue is too early to predict, and we suggest you visit the main National Mortgage News website for a just breaking update.

For smaller companies, social media is a marketing equalizer versus larger competition. The question has been are they taking advantage of it and the follow up is if they are, are they doing it effectively?

Who says a consumer with a low FICO score can't get a mortgage? A recent survey conducted by National Mortgage News found five lenders that are willing to extend credit to borrowers with FICOs of 600 or less. The three lenders with the lowest FICO scores include TD Banknorth Mortgage, Embrace Home Loans, and Compass Bank.