Loan Think

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.'

THIS JUST IN: John Nichols has left his job at BlackRock Financial, a firm which obviously has a future, and joined Fannie Mae as its chief risk officer for the capital markets division. Note: Nichols is not the chief risk officer for the company as a whole. That job belongs to Ken Phalen. We're told that Nichols had already been "on assignment" to Fannie, but now he's a full-time staffer.

It's not easy buying jumbo mortgages in the secondary market these days. Just ask Redwood Trust. The company, a REIT, has delayed its second jumbo MBS deal but is still optimistic about the market. (See the National Mortgage News website for the full story.)

We have all heard this statement: If I just knew then what I know now, I would be doing that; well are you? Have you made the change?How about this updated version: Everything you know now that you wish you had known then you need to take action immediately to adjust yourself to the new and current level of knowledge. Now!