Loan Think

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…

The news that insurance company MetLife is giving up on mortgage banking is not something the industry likes to hear. What makes it so odd is that MetLife has only been in the business for three years and has no “legacy” issues to speak of.

The mortgage division of MetLife has been going great guns in residential finance for two years now. Not only is the bank/insurance company the 12th largest residential funder in the U.S., it has a strong presence in correspondent, warehouse finance, and reverses. So why is the parent company now peddling the mortgage division?

Do you have customers complete surveys? Do you solicit (or get unsolicited) testimonials? Do real estate agents tell you what a good job you've done? (Well, maybe I'm stretching this one a little bit.) The most powerful people on your marketing team are your past clients and real estate agents!