Loan Think

When the White House first entertained the thought of a massive GSE refi plan it had high hopes that eventually $1 trillion of Fannie Mae/Freddie Mac underwater loans might be restructured, resulting in annual savings north of $20 billion a year for consumers - money that could immediately be injected into the U.S. economy.

Not too long ago a top residential producer at Bank of America named Kevin Budde left the lender because he got a better offer from Plains Capital. Budde left not just because of financial reasons, but he was getting frustrated by how long it takes to close a loan at B of A. He had kind words for the people he worked with, but it was time to move on.

Not only are lenders 'dinging' consumers with all sorts of 'loan level price adjustments' but it appears a somewhat quiet problem is affecting the nation's megabanks: their inability to close loans quickly. A retail loan officer for a top five lender told me this week that he has one refinancing deal that has been in the works since May.

As I write this the Senate Banking Committee is holding a hearing on the pros and cons of Uncle Sam subsidizing 30-year fixed rate mortgages, which is right up there with Mom, apple pies and Chevrolets in terms of sacredness. But to read Sen. Richard Shelby's opening remarks regarding the hearing you might gather that this Republican from Alabama is not a big fan of the product.

Not too long ago I was talking with one mortgage industry veteran who confessed to me that he was renting a home in Florida and absolutely loved it. The rent was quite reasonable and if something went wrong with the mechanics he just called the landlord.

Are loan brokers being recruited by some of their wholesalers to become retail loan officers? The answer to that question is yes. We all know someone (or quite a few someones) who have thrown in the broker towel because it's easier to work for a bank with money.

There is a tool available from the federal government that anyone in the mortgage sales process, from company owner down to the individual sales person can use to help formulate their marketing plans for both the near and distant futures.

Essent, the privately held 'new' player in the mortgage insurance space, has yet to give out any volume numbers on its new policies written, but from what we're hearing the firm is making its presence known.

On Oct. 3, Mark Alan Helsing, a broker for "hard-money lenders," pleaded guilty to multiple felony counts for stealing $6.9 million from investors in a Ponzi and real estate fraud scheme, authorities said. He faces a potential term of 15 years in prison at his sentencing Dec. 5 by Superior Court Judge Craig E. Robison.

This past Thursday we got to spend some time on the phone with Bank of America’s top consumer sales executive for mortgages, Matthew J. Vernon, who has a message for the industry: B of A is committed to retail lending—and retaining its top LOs. Vernon said the bank also is actively recruiting LOs from other shops. (And as well all know, B of A has lost a few top producers itself). For the full story see the Monday edition of National Mortgage News. Don’t subscribe? Call 800-221-1809…