Loan Think

Should Fannie Mae and Freddie Mac loans be exempt from soon-to-be-released risk retention rules tied to the qualified residential mortgage test? So went the debate in Washington last week.

On March 9, 2011 a 14-count mortgage fraud indictment was unsealed accusing JOAN C. TEETERS AND JONATHAN MARC NATTIER, RESIDENTS OF FOLEY, ALA., with conspiracy to commit wire fraud, mail fraud and bank fraud, and they both face a maximum sentence of 20 years as to that count. Teeters was charged in all 14 counts of the indictment.

Depending on who you talk to, the 'current' nonperforming loan market is either a bust or a great opportunity – or perhaps something in between. That covers all the scenarios, really, but I know of at least two firms that have exited the business over the past six months, with one more on the way.

It's no secret that the Treasury would like to unload all, or most, of its stake in Ally Financial this year and until recently it looked as though its chances of a successful IPO were about 50-50. (It's one thing to sell a company, it's another to unload it at a fire sale price.)

To jump start a plan or to get unstuck, you must accept that no matter how good the plan (to increase your sales), you will need to build into it The Law of Continuous Process Improvement for the plan to work over the long haul. Every plan requires continuous analysis and adjustment to find the way forward. Even basic tasks require a plan and a process of continuous improvement. This is important.

It may sound crazy, but some mortgage executives I know are starting to talk about a coming shortage in homes to buy.

Every successful loan officer has a "to do" list. But, consider what your life and your income would be like if you write down the things you will stop doing, the stuff that wastes your time and costs you money.

On Monday the Federal Reserve's point man on loan officer compensation, Paul Mondor, was a no show at a legislative conference sponsored by the National Association of Mortgage Brokers. From what I understand, the week prior he had accepted an invitation to speak at the meeting — but that was before NAMB sued the Fed over the very same loan officer comp rule.

Our industry is going thru some major changes. Just when you thought you had seen it all we are now faced with some additional changes related to loan officer compensation. To me it feels as if we have been kicked, beaten up and are now being spit on while we are lying on the ground.

Mortgage originators that have been quietly trimming heads the past two months may want to call back some of their laid off workforce. Tuesday morning, the yield on the benchmark 10-year Treasury was down in the low 3.2% range compared to almost 3.8% a few weeks back.