Loan Think

If mortgage companies in North Carolina – in particular mortgage insurers headquartered there – thought the state was "pro-business" they may want to rethink that. (I believe Genworth's MI unit is headquartered there.) Some servicers are up in arms because the state is imposing new foreclosure-related fees.

The concept/law of continuous process improvement begins with the concept that a plan—a process—is needed in most areas of your business and your life. Process simply is defined as the way-the best way-to accomplish a business plan and even a basic task.

It's no secret that loan officers (including both the mortgage banker LO and broker of the species) are none too thrilled with upcoming Federal Reserve rules that crimp how much a broker can make. (Details to follow in a story appearing in Monday's National Mortgage News.)

There is a writing movement out there called “Six-Word Stories." (Example: Coin swallowed. Mom froze. Grandma whacks.) Twitter is your 140-character story version, that forces you to convey your thoughts in short, meaningful words.

In case you missed it, BlackRock — as in Larry Fink, he of the MBS pioneer club — is toying with the idea of entering the jumbo space by creating a $1 billion fund with an eye toward securitization. (For more details see the National Mortgage News website later today.) Of course, there hasn't been a jumbo MBS issued since the spring, and the way things stand now, there won't be one until early next year when Redwood Trust readies its second nonconforming bond.

Which would you rather have? We know that may sound like a strange title but please stay with us and you will learn a great marketing lesson. We are always asked why we choose the reverse mortgage program as our specialty. Many years ago we learned a valuable lesson which we will share with you in this article.

As gold prices go onward and upward home prices tank, or, at best, just stay the same. During the housing boom, while home prices in some once red-hot markets tripled within five years, gold went nowhere. But when home prices cracked and crashed, gold took off like a rocket.

Many sales experts I have spoken with, read about or observed over the years all list the most important skill as the ability to listen. And that starts with asking the right questions.

The government is proceeding with a vengeance in this attorney's opinion to prosecute fraud and to recover money where failed banks still had loans in their portfolio at the time of the failure. The FDIC “letters of inquiry,” subpoenas and lawsuits are just starting and I believe will escalate. The reason for this belief? The government is using private law firms for the most part in chasing the problems. You will note the letters indicate the delegation of authority if you have received one.

In the mid-2000s Orange County, California, was subprime Mecca. Just about every major subprime firm (and wannabe) was headquartered there or nearby, including Ameriquest, Option One, First Franklin and the like. And thanks to the collapse of those firms, there's plenty of cheap office space available in 'the OC.'