Loan Think

No lender or servicer wants to keep a portfolio of REO or short sale properties. For starters, they're not in the business of managing properties. Each day an REO or short sale property isn't sold is a day of upkeep and lost interest payments.

The answer to that question is: tight credit with unemployment being the runner-up. Although some naysayers believe the job picture hasn't improved much, there are many realists who think otherwise. But one thing we can agree upon is this: employment is not booming.

Testimonials, in their most basic sense, are others selling you and your services. A third party recommendation of your work can be a powerful marketing tool. Someone had a positive experience with you and in turn, has the ability to influence potential clients. If utilized effectively, you can't get a less expensive, more persuasive marketing strategy.

FACTS: On Feb. 13, Patricia Ann King of Bakersfield, pleaded guilty to aiding and assisting the preparation of a false tax document and to three counts of mail fraud for her role in a mortgage fraud scheme.

First off, I'd like to thank the crew at Bank of America for continually giving mortgage reporters and editors something to write about. Don't get me wrong--there's plenty of good stories out there. And let's face it--and you read it here first: What happens regulatory and legislatively over the next three to four years should shape the future of this industry for the next 50 years.

One of the more confusing areas of the loan officer compensation rules involves branch managers. Neither the rule nor its guidance made any mention of branch managers.

Ah, the morning after a bitter split. Late yesterday Brian Moynihan of Bank of America walked into Fannie Mae's bedroom and told that secondary market hussy that the marriage was over. "No more loans for you," Moynihan shouted as he left the boudoir, suitcase in hand and a one-way ticket to Virginia where his new best friend, Freddie, awaited. (Okay, I made that part up but you get the drift.)

A new sales coaching student of mine asked an interesting question during our first session. "Steve, would you have difficulty selling a $5 bill for $4?" Without hesitation I replied, "No, however I'm sure to encounter several obstacles. With the proper preparation, when given the opportunity, I'm certain to succeed."

Rejected documents from the county recorder create time delays and decreased efficiencies add up to a cost of billions for the industry with the burden of this cost falling on the current holder(s) of the note. The process of preparing corrections, transporting and re-recording documents will cause double, sometimes triple, the work for employees of those firms.

The text of commitment letters is extremely important and must contain the exact terms and conditions of a loan commitment. It will contain all essential specifics. In order for one to generate an effective commitment letter, one must have a clear understanding of all the terms. To get there, it is often desirable to start with a term sheet.