Loan Think

If your pipeline isn’t full, don’t blame the market. I see many loan officers that get caught up in the "Ain't it Awful Club" and more often than not, their production reflects a (hopefully, temporary) lack of motivation and passion.

Currently there is considerable attention being given to a fair housing case the Supreme Court is set to hear in the near future. Some have said that this case could have substantial effects on fair lending litigation. While it is not impossible this is the case, in all likelihood, I believe that the case will have little effect on fair lending litigation.

Just when Redwood Trust was starting to look a bit like the Maytag repairman of the jumbo MBS market, we began to hear reports this week that two top 10 ranked banks are working on jumbo deals - for later in the year.

Let's cut to the chase. With all the shouting, flailing and verbosity on the subject of the REO problem, does anyone offer a practical, workable solution?

Even the most well-intentioned lenders sometimes fall short in terms of compliance with certain aspects of the Final Interagency Appraisal and Evaluation Guidelines, most notably when it comes to having policies and procedures in place to evaluate and monitor the ongoing performance of appraisers and having the required supporting documentation to show that the lender is evaluating and monitoring the appraisers.

By now you've read the exclusive on the National Mortgage News website - that Bank of America is halting (for now) cash-out refinancings. Maybe cash-out refis don't account for much of the bank's production. Then again, relatively speaking, there isn't much production left at B of A. In 4Q the bank funded $20 billion in home loans compared to $120 billion at the number one ranked Wells Fargo.

In today's challenged housing market, creating and preserving value in REO portfolios is critical. There are three ways servicers can protect their bottom lines.

Sorry, it doesn't exist. How arrogant of me, or anyone else, to make a definitive statement that something is the "best." Simply put, it would mean that I know every program that's available, have tried and tested them using a large sampling of attendees and then analyzed years of data and statistics.

The mortgage industry has taken one for the team in the way the payroll tax reduction extension has been funded, at least partially, by an increase in government housing agency guarantee fees. But in my view, once is more than enough.

Some AMCs are looking at the UAD as an opportunity to revisit quality control processes, updating them and streamlining them where possible. Those AMCs that are not taking advantage of this opportunity should be.