Loan Think

If you're looking for the next megabank to exit the mortgage sector the most likely candidate would be Ally Financial, the government owned bank holding company that controls No. 5 ranked servicer GMAC Mortgage/Residential Capital Corp.

So, HARP 2.0 is going to be the program that finally helps millions of current but underwater Americans refinance their GSE loans? Last week National Mortgage News first reported about some of the fat profits being earned by the nation's megabanks on the 'new and improved' program.

I occasionally get invitations to speak at mortgage industry events (in addition to chairing our own SourceMedia conferences). My reaction is always bifurcated. On the one hand I'm always flattered people think my outlook on the business is worth listening to. On the other hand I'm always worried I will say something exquisitely stupid.

It was announced this week that the Consumer Financial Protection Bureau is planning on issuing a proposed rule changing the current loan officer compensation laws in the near future.

Reputation is everything in a business such as mortgage originating, where the consumer needs to trust the person they are doing business with.

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.