Loan Think

I'm a firm believer that the "power to buy" shapes home prices, except for when you're in the middle of a nasty housing recession. Of course, low rates don't hurt either. (And then there's underwriting standards.) Meanwhile, the new S&P home price index is out and no surprise there: values are still inching downward, albeit at what looks like a slower pace.

It is no secret that a happy employee or sales person is a motivated one. But what are the things that make your staffers happy? OfficeTeam, a Menlo Park, Calif.-based temporary staffing placement firm conducted a survey which asked outside of compensation, what aspect of your job is most tied to your satisfaction?

On Jan. 17, Raymond Foakes, a former leader of a Hells Angels chapter in Sonoma County, Calif., was sentenced to nearly 70 months in prison for his role in a $10 million mortgage fraud scheme. He was ordered to pay more than $1 million in restitution.

In this election year, there certainly is no shortage of political rhetoric and drama in every debate and speech we encounter, including the recent State of the Union address by President Obama. In the address, President Obama addressed the latest of this administration’s efforts to thwart the woes of the housing market.

Facebook is about to go public. Whoopee! Here's how an IPO works: all the private equity firms that have been funding a startup's operations get to cash out, recovering their seed money and then some. I'm not a Facebook user, but I get the model, though my doubts about the company stem from this basic belief: what's to prevent a bunch of low-cost competitors from offering the same service?

Have you ever had a situation where a friend, neighbor or family member got their mortgage from another lender? They like and respect you, but someone else asked for their business and got it. Sometimes we don't take the vital step of asking, simply because we can't think of an appropriate way to phrase the question.

The New York Times ran an editorial on Sunday, Jan. 15 on mortgage fraud. Now correct me if I am wrong, but I thought newspapers were supposed to print the news. There is nothing new about this piece, which once again points out that some banks are to blame for the current crisis.

I watched the State of the Union speech Tuesday and came away thinking no real "mortgage" surprises tonight except for two: Obama not using the word "mortgage broker" once, and the formation of the DOJ fraud task force on securitizing loans. But what about the "The State of the Mortgage Union"?

Compliance and documentation go together like education and success. And, the latter is even more determined today by finding the missing pieces in the transaction chain.

The answer to the above question is yes. But the qualifying question is: when? Indeed, there is a nascent hard money market out there run by mom and pop firms that are making loans at 8% to 12% using money given to them by wealthy investors.