Loan Think

If you're looking for the missing piece to the mortgage "deconsolidation" equation, its name is Wells Fargo. Never before in the annals of residential finance has one company amassed such an enormous market share in lending (27%) and servicing (20%).

In case you missed the story on the National Mortgage News website, here's a headline for you: Some firms have the ability to make $10,000 per loan on HARP 2.0 loans. A nice chunk of that profit estimate is tied to secondary market pricing.

Feeling hungry for news about the servicing market? Then join me for a free breakfast at the Mortgage Servicing Conference!

One of the most misunderstood and misapplied areas concerning LO compensation involves the application of varying compensation related to the source of the business. In its simplest form, the concept is that a company should be able to pay a loan officer more for a self-originated deal than it pays a loan officer for developing a loan through a lead purchased by the company.

I am not ashamed to say it; I still read Blondie every day in my local newspaper. And a little over a week ago I came across a strip which drives home the point that empty phrases do not motivate people.

In my opinion there is a significant disconnect in the jumbo mortgage between the primary market and the secondary market. What is fascinating is very little discussion or attention is being focused on this issue, at least from the perspective of what consumers want.

Wells Fargo/Wells Fargo Funding isn't saying much about its 'exclusionary list' of mortgage firms that it will not buy loans from in the secondary market. (National Mortgage News has been reporting on the issue since Monday.) And of course, correspondent lenders want to know one thing and one thing only: Am I on the list?

If you are like me and regularly post on Facebook, Twitter, blog pages, etc., there are some days that I have "brain farts," days where I simply can't think of anything to post.

We still haven't heard from Wells Fargo & Co./Wells Fargo Funding about its exclusionary list of mortgage banking firms - lenders that it will not buy loans from in the secondary market. As you might imagine the story we published Tuesday about the topic caused quite a stir in the industry plus a ton of traffic to the National Mortgage News website.

Sales consultants and trainers are not utilized enough - some not at all. There are many reasons why this occurs, oddly, the least of which is the cost factor. Most sales consultants and trainers can offer valuable, cost effective results through their input. In fact, it's one of the few outside resources a company or sales person can engage that will yield tangible results.