Loan Think

Do you live in fear? Stop and think about it for a moment. Are you afraid your business will fail in the next few days, weeks, months? Has fear gripped you and you seem unable to shake it, this time? If that is the case, it is time to do something about it.

THE MAIN EVENT: Traditional M&A activity-where one buyer actually pays cash for a lender-could be returning to the mortgage market. Then again, this "fragile" recovery in mergers and acquisition could blow apart at any time, it seems. The recent hike in rates seems to have abated the past few days but there's no doubt that loan volumes are not where many lenders would like them to be. As we reported on our website Friday, several medium-sized nonbanks are exploring the possibility of buying depository institutions using cash from stellar residential profits enjoyed over the past 18 months. We're not ready to name names yet, but stay tuned. Of course, any recovery in M&A is dependent on housing values. If the housing market gets whacked by a "double-dip" in prices, all bets are off...

Some call it a Foreclosure Bus Tour. Some call it a Real Estate Investment Bus. Others say that it's the real estate version of "speed dating."

I've been on assignment in Spain the past 10 days. If you think America has problems with delinquencies, visit the Costa del Sol region in the South of Spain. In certain quarters almost 30 percent of renters are behind on their payments. In the north, the ratio is about 25 percent. Over the past few years many citizens of Great Britain have flocked here, purchasing beach properties as investments. When Europe´s economy cracked up, renters couldn't pay and you can figure out the rest. Something else to think about: AIG is the lead sponsor of Britain's beloved futbol (soccer team), Manchester United. AIG, of course, also owns a U.S. subprime lender and a mortgage insurance company, United Guaranty. Still, there appears to be hope. The beach 'high season' starts in a few weeks and bargains abound -- if you have the cash...

Today's piece will be something of a follow up to last's week's entry. As we continue to deal with pricing changes at a rapid pace, let's not lose focus and start marketing based only on price. It's important to remember that we all have marketing strategies in place and long after these pricing shifts are behind us, our seniors will still look to us as a source of information and advice. Stay on pace with your current plan- do not deviate. You are in this for the long term and the commitment to your well thought out marketing plan is crucial. That being said, remember these tips to reach out to your prospects who may have been on the fence, or simply did not qualify-

AS OF MARCH 29, 2010 ALL HUD/FHA APPLICATION AND RENEWAL FEES ARE TO BE PAID ONLINE

In the mortgage business, risk management is a common term. After all, the mortgage originator has to manage several kinds of risks, including pipeline risk, property valuation risk and fraud risk.

WASHINGTON-The biggest Ginnie Mae mortgage-backed securities issuers cleaned house in the fourth quarter by buying a boatload of delinquent loans out of Ginnie pools, but its new president says that will not be repeated in upcoming quarters.

Recently I chaired a roundtable on industry issues at the Regional Conference of Mortgage Bankers Associations in Atlantic City, NJ. It was a pretty lively discussion of the challenges and issues facing the business these days.

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