Loan Think

On Nov 5, ARTHUR GONZALES DIAZ, an Anaheim resident was arraigned on seven felony counts of grand theft and one misdemeanor count of engaging in business as a real estate broker without a license. He is accused of targeting and defrauding Hispanic victims of more than $87,000 in bogus real estate deals. Diaz faces a maximum sentence of eight years in state prison.

THIS JUST IN: The National Association of Mortgage Brokers is mad as hell and isn't going to take it anymore. In particular, NAMB and its 5,000 members are ticked off at loan officer compensation rules that came about as a result of the Dodd-Frank bill. The trade group has launched an Internet petition and according to NAMB member Mike Anderson "this thing has gone viral." I will be upfront and honest with readers of this column: I have covered the issue a bit, but I'm by no means an expert on what's coming down the pike regarding LO compensation.

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.