Loan Think

ANGELO'S ASHES: On Friday, Bank of America's stock slid by 7%. It was also the very same day that former Countrywide Financial Corp. chief Angelo Mozilo inked a deal with the Securities and Exchange Commission, settling the massive insider trading case against him and his lieutenants, David Sambol and Eric Sieracki. B of A, of course, bailed Countrywide out more than two years ago, just as the firm bordered on near collapse.

It often seems as though men and women are from different planets, but every day millions of couples navigate through day-to-day and even life-altering decisions. Because a home is the biggest purchase most people will make in their lifetime, we surveyed 1,000 individuals to discover how much men and women differ in the home-buying process.

The Foreclosure-gate scandal appears to be having a real effect on loan closings — at least for some mortgage bankers. John Walsh, CEO of Total Mortgage Services in Milford, Conn., told us the other day that Connecticut's 60-day moratorium on foreclosure sales has caused his firm to scuttle closings scheduled for last week and this week.

Some recent developments will more than likely put reverse mortgages in a favorable light once again. The announcement of the extension of the lending limit of $625,500 for Federal Housing Administration Home Equity Conversion Mortgages will allow seniors with higher home values to continue to benefit the reverse mortgage programs is the first.

Foreclosure-gate has caught the national media's attention, but not only that, apparently a documentary filmmaker based in the New York area is working on a film about the foreclosure mess, starring Litton Loan Servicing of Texas. I talked to the director the other day and he seemed a little confused about the difference between 'servicing' and 'subservicing' but I think I straightened him out.

To say that the image of the mortgage originator has taken a beating over the last few years is an understatement. There have been a number of attempts to combat that perception from the inside of the industry.

On Sept. 29, Lawrence William Dunning, 78 of Highland Beach, Fla., was sentenced to 24 months in federal prison and ordered to pay restitution of $2,889,492 followed by three years of supervised release for mail fraud. Additionally, three individuals have been sentenced for their roles in the multi-million-dollar Ponzi scheme or other related offenses, and two more individuals await sentencing.

THE BIG PICTURE: As the annual convention of the Mortgage Bankers Association approaches the industry, once again finds itself at a crossroad. Just when it appeared that housing/mortgages had turned the corner, the “foreclosure-gate” scandal erupted, putting lenders and servicers back in the public eye.

The Friday before a three-day holiday weekend is supposed to be quiet when it comes to major news, especially with Congress back home, trying to show its worth to voters. But not so this Friday: about an hour ago Bank of America declared a foreclosure 'sale' moratorium in all 50 states and new reports are suggesting that the Mortgage Electronic Registration System (know to most of the mortgage industry as MERS) is right in the thick of this crisis.

Everyone always asks, “When will this change?”But it is the wrong question to ask. The correct question is: “When will I change?”The good news: You’re in control. To me, this is very good news. At least it’s up to me and I won’t be waiting around for somebody else to find the time to help me.