Loan Think

I recently overheard a business associate make the statement: “Goals suck!” Why, I had to ask do goals suck? My visibly upset friend said, I missed my numbers again. I didn’t bring in or close as much business as I had planned. My goals never come true he exclaimed.

What does the future hold for Fannie Mae and Freddie Mac? Most mortgage bankers I've talked to over the past month think that eventually the two will be replaced by some type of private system of guarantors who will be back-stopped by Uncle Sam and regulated by the Federal Housing Finance Agency.

One of my most long-lasting and profitable niches was working with an Asian community. No, I’m not Asian. No, I do not speak the language. But I did understand their culture, their family structures, their mindset about money and their religious beliefs.

Not only has the hard money sector revived (ever so slightly, but a revival is a revival) but it has a new trade group. Its name is The American Association of Private Lenders — and the group has even drafted a code of conduct for its members.

A few days ago Ocwen Financial officially closed on its $1.3 billion purchase of HomEq Servicing, North Highlands, Calif. The purchase adds $26 billion of servicing rights to Ocwen's base of subprime receivables. (Figures courtesy of National Mortgage News and the Quarterly Data Report.)

In the current issue of Origination News, I wrote an article that warned business owners about the damage an employee like former flight attendant Steve Slater can do to one's business.

THE BIG PICTURE: In the eyes of most of the business community President Obama can do no right. At least that's the way I view it. Perhaps I should stop talking to mortgage professionals and watching CNBC. The new unemployment numbers came out Friday and depending on which spinmeister you speak to, it was better than expected or a disappointment.

We continue to hear reports that a large Wall Street firm is laying the ground work to reenter the warehouse lending arena. Supposedly, the firm (whose identity I know but I'm trying to confirm for sure) is also planning the launch of a mortgage conduit as well. Meanwhile, H&R Block's stock price was up almost 8% in trading Friday morning to $13.40.

Believe me, spending time preparing and planning is never easy. But they’re critical. As residents of the Gulf Coast we know this all too well. Why? Because this is hurricane season and we’re constantly making sure we have plenty of flashlights, batteries, water, plywood, duct tape, easy-to-fix foods and plenty of wine (no sense in not being comfortable)!

Recently, National Mortgage News reported that although jumbo loan production is on the rise (refinancings mostly), the lenders funding these products aren't selling them into the secondary market.