Loan Think

To be a successful salesperson, one must listen to the wants and needs of the prospect so they can properly craft a pitch, many experts declare.

A mid-sized California-based nonbank has been toying with the idea of selling a 20% stake in itself to outside investors, according to industry officials close to the situation. “They were looking for a capital infusion, even though they didn’t really need the money,” said one source.

While a loan broker or loan officer is prohibited from “steering” a consumer to a lender offering less favorable terms in order to increase the broker’s or loan officer’s compensation, the loan broker or loan officer is not prohibited from “steering” a consumer to the same type of lender if the lender is offering more favorable terms! (12 CFR §226.36(e))

Avenue Capital of New York, a hedge fund which has almost $14 billion in assets under management, is supposedly sniffing around the jumbo conduit space. One source told us that Jay Lown, a former UBS executive, is involved. From March 2008 to October 2009 Lown served as an outside mortgage banking consultant to the Office of Thrift Supervision…

Stop me if you’ve read one of these types of stories: So-and-so has teamed up with Brand X and plans to form a jumbo conduit. I’ve written a half-dozen of these myself over the past six months. I write them, and then nothing happens. And why does nothing happen?

In the wild and wacky days of the savings and loan industry (pre Garn–St. Germain days and even after) the idea of “borrowing short and lending long” was considered a recipe for financial trouble. Of course, back then rates were higher and the issue of deregulation was considered a fallacy.

While the biggest real estate broker show in the U.S. is the National Association of Realtors annual convention, there are many local Realtor associations that hold their own, mini-trade show that showcases their vendors and suppliers, including mortgage companies.

Remember back in the 1950s when rock ‘n’ roll was going to corrupt the brains of America’s youth and lead to widespread communism? And now this music form is part of the American fabric. Could it be that all the fear mongering over the Consumer Financial Protection Bureau is overblown?

Have a question for the Consumer Financial Protection Bureau? Perhaps, you're a consumer who thinks some megabank quoted you a dodgy mortgage rate or is trying to steer you to an appraisal firm owned by the loan officer's brother – or maybe you're a member of the press that has a question for the young agency?

There is a lot of crossover between sales and sports, especially when it comes to the concepts of teamwork and winning. There are those who are calling the Miami Heat loss in six games to the Dallas Mavericks a failure in teamwork—not having watched too much of the series myself, I couldn't tell you.