Loan Think

There’s a few things we know about Republicans and Democrats. Most members of the GOP would love to dismantle Fannie Mae and Freddie Mac as soon as possible even though both are now reporting operating profits. (Of course that profit applies to 4Q. First quarter 2011 earnings will be out in about five weeks.)

Nothing good ever comes out of a government shutdown, except for lower mortgage rates. Follow my logic here. The 'Tea Party' folks in Congress hold to their principles and the GOP doesn't come to terms with Democrats. The government shuts down Friday night and both sides hold their positions, refusing to compromise.

If only, if only. If it weren't for a handful of revolutions/evolutions in the Middle East and rising oil prices ($108 a barrel this morning) the U.S. economy might be humming along at a nice clip. Then again, even with oil prices rising by so much the past two months hiring has picked up. But how long can it last?

We seem to be bombarded daily with some new fangled way to generate business. We are not even talking about all of the hype most products and programs have. That’s for a whole separate article.

We got us a government shutdown. Or maybe not. The story (to say the least) is fluid, but if Uncle Sam has to pull the plug on non-essential workers and programs what will become of FHA, whose money comes directly from the U.S. budget?

The main reasons businesses look to market their services is to demonstrate what makes them stand out from the crowd, the stuff that makes them different from their competition.According to one marketing expert, small businesses are failing at this.

Here's a pop quiz for readers of National Mortgage News: name one Wall Street or mortgage executive who's doing hard time for financial fraud as it relates to the nation's housing bubble/subprime crisis. Can't do it, can you.

A lawsuit filed Monday in Hennepin County District Court in Minnesota by Attorney General Lori Swanson alleges that Meredian Financial Corp. of Costa Mesa, Calif., pretended to be homeowners' current mortgage company in order to gain their trust, then collected fees for refinancing services that were not delivered.

Sometimes, when the government goes too far, the industry finds a way to cut "the man" out of the picture. No, I'm not talking about mortgage bankers taking up arms against the government, I'm talking about finding ways around "the man." (Mortgage banking is an art, not a science.)

This morning National Mortgage News was the first news organization to report that loan brokers won a stay against the LO compensation rule – but the battle is far from over. The stay expires next week with a new hearing on the squabble scheduled for April 5. (See the NMN website for a complete update.)