Loan Think

There is an opportunity for mortgage originators to connect with their customers via the social media and that is because your competition is dropping the ball on this one.

The New York Post is reporting that Bank of America has a $1 billion package of nonperforming mortgages out for bid. But is the deal for real? Investors in the NPL market said some B of A traders were scratching their heads on Monday because they knew nothing about the sizeable auction.

On Dec. 3, KATHY PUCKET OF RICHMOND, IND., was sentenced to 51 months upon her guilty plea to mail fraud and obstructing justice. This followed an investigation by the Richmond Police Department, Indiana Secretary of State Todd Rokita's Prosecution Assistance Unit, and the Federal Bureau of Investigation, Muncie Office. (Notice the cooperation of multiple agencies)

THIS JUST IN: Add the name of Goldman Sachs to the list of firms eyeing the jumbo conduit space. And possibly PIMCO. We've heard the Goldman name before, but more confirmations have come in on that one. (Keep in mind that Goldman owns subservicer Litton Loan Services.)

On December 15 the board of the California Public Employees' Retirement System will hold a meeting to discuss (among other things) the future of its mortgage program. Some mortgage bankers that fund these loans told National Mortgage News that underwriting on the loans has been tightened up and a jumbo option was killed a year ago.

Even though there are signs of life in the auction market for nonperforming residential loans, we continue to hear reports that several banks and investment bankers won't sell their dirty linen in the public market for fear of taking a big hit. There are exceptions, of course, and we're working on a story about that.

What a difference a few weeks make. The yield on the 10-year Treasury was close to 3.3% today and although mortgages are not pegged to the bond, everyone knows that if the 10-year rises in yield, usually mortgage rates follow in tandem.

We promise not to lecture in this article but the headline above says it all. If you are reading this, then we commend you for having stuck it out during the past few years. Things have not been easy for sure. So take a minute and congratulate yourself. Reverse mortgages still hold a lot of promise for the future. But you know where we’re going with this.

Monday evening the U.S. Treasury sold $10.5 billion worth of Citigroup common stock, washing its hands (sort of) of the once dominant megabank. Treasury said U.S. taxpayers will earn a profit of roughly $12 billion on their initial $45 billion investment in the company.

If there has been one lesson to heed from the current crisis is that to remain a successful mortgage professional, you need to build a referral-based business. But for quite a few people, they need to know the answer to the basic question how do they start.