Loan Think

Will depositories 'roll up' their mortgage banking subsidiaries into the bank parent because of upcoming regulatory changes? As National Mortgage News and American Banker reported last week, federally insured depositories have a choice to make: they can keep their mortgage subs as such, which would subject them to a patchwork of state consumer-protection laws.

THIS JUST IN: He's back! That would be Jonathan Kempner, former president of the Mortgage Bankers Association, who left the trade group a little more than two years ago, just as the mortgage industry was crumbling. But let me clarify: Jon is back, but not in mortgages.

Just when you thought conditions might be looking up in the jumbo market stock prices tank and "rich folks" (jumbo and super jumbo borrowers) are facing the prospect of taking home less money next year when the Bush tax cuts expire.

Too many businesses, too many loan originators, are trying to move a lot of dirt these days with a spoon instead of investing in a bulldozer.

Rep. Barney Frank might leave Congress rather than take a demotion to ranking member status on the House Financial Services Committee should the Democrats lose control of Congress this fall.

New home construction is one of those concepts where real estate agents (and the general public for that matter) have trouble wrapping their heads around.

To elaborate further on recent HUD withdrawals of mortgagee approvals: Approval of a mortgagee by HUD/FHA to participate in FHA mortgage insurance programs includes an Origination Approval Agreement between HUD and the mortgagee. Under the Agreement the mortgagee is authorized to originate single-family mortgage loans and submit them to FHA for insurance endorsement.

After two ugly reports on home sales (existing and new) I wouldn't be surprised to see lobbyists from the National Association of Home Builders and the Mortgage Bankers Association on Capitol Hill in a few weeks, pitching a revival of the $8,000 home buyer tax credit. But perhaps, they should aim a little lower: $4,000 and make it a credit that applies to everyone.

How is the sovereign debt crisis like the mortgage crisis? Answer: consumers borrowed more than they could afford with the thought that their home values and their salaries would continue on an upward path.

Some of my friends who work for public relations firms probably won't like this column too much. But in an era where small businesses need to look after every dime they spend, including the dimes they spend on marketing, being able to do some of your own PR work is important.