Loan Think

THIS JUST IN: A Midwestern bank plans to expand its small warehouse platform in the coming months. There's also been talk that Fannie Mae is toying with a warehouse pilot. (The latter is unconfirmed.) For full details see the Monday edition of National Mortgage News. Don't subscribe? Call: (800)221-1809...

Investors are continuing talks with PNC Financial Services regarding the future of the old National City warehouse lending group. Those talks have been ongoing for several weeks, sources told us, and there is a new optimism that a deal might actually happen. Meanwhile, the NatCity warehouse group continues to provide credit to its nonbank mortgage customers but is not expanding current lines. Up until recently, it appeared that PNC was just going to let the business wither but as one observer put it, "How can you let a business that is bringing in $30 million a year shrivel up? Try explaining that to PNC's board. I'm sure they'd be very interested." Stay tuned...

I've seen about a dozen of so e-mails from loan originators just within the last few weeks that are using mortgage/loan/financial "counselor" as their title.

It could have been worse for the Mortgage Bankers Association. Yes, it's taking a large hit on the sale of its corporate HQ in downtown Washington but at least the building's roof didn't collapse during the blizzard of 2010. An advisor close to the matter said the 'short sale' to CoStar will ensure the trade group's financial viability. "It's essential to keep MBA focused at this time," he said. "This building and the problems it caused were a distraction and an albatross around our neck." One mortgage banker said some rank-and-file members of MBA (as opposed to its board) were not happy to learn about the sale from media reports. However a trade group source said members knew what the situation was regarding the building for well over a year...

For the next few weeks, Broker Universe will feature some of our favorite Sue Haviland columns from the past year.I've received a great many calls and e-mails lately from coaching clients regarding seniors who "just won't make a decision right now about the reverse mortgage." Those readers who know me are fully aware of my typical advice in this situation: "Look in the mirror."

NEW CALIFORNIA DEPARTMENT OF REAL ESTATE EMERGENCY REGULATIONS EFFECTIVE NOW

Here's an update on Home America, the REO investing firm managed by Kyle Walker, former CEO of Fremont Investment & Loan: not only is the young company buying beaten down homes but it's actively bidding on offerings from Fannie Mae. Once it raises additional capital, it hopes to increase its portfolio of homes under management by 1,000 properties. Meanwhile, on Wednesday PHH Corp. will hold a conference call with investors to further discuss its "transformation initiative" announced late last year." PHH's largest institutional share holder is Black Rock Financial which owns roughly 12% of the company, the nation's ninth largest mortgage servicer. (Figures courtesy of the Quarterly Data Report.) Black Rock also is a big investor in PennyMac, the publicly traded REIT managed by Stan Kurland...

I held a roundtable discussion on origination issues with the following attendees at the Mortgage Bankers Association's annual conference in San Diego: Griff Straw, president, Solidifi U.S.; Steve Jacobson, chief executive, Fairway Independent Mortgage; Lisa Schreiber, chief strategy officer, NetMore America; and Jonathan Corr, chief strategy officer, Ellie Mae. Brad Finkelstein, managing editor of Origination News, also participated.

If there is any one food topic where there is endless debate, it is who makes the best pizza. This is not just in terms of the individual pizza maker, but also one of style (New York vs. Chicago, for example).

The "sand states" (that would be Arizona, California, Florida and Nevada) will take a decade to come back and all looks bleak when it comes to property values. But as I write this, I'm surrounded by 30 inches of snow with 100,000 Montgomery County, Md., residents still without power (read heat) 48-plus hours after the blizzard of 2010. Today, the federal government is officially closed. Many neighborhoods aren't plowed and the kids are starting to get a little bit sick of sledding. The thing is, I don't mind the cold and snow but plenty of mid-Atlantic residents are probably starting to wonder if maybe having a home (or second home) in one of the sand states isn't such a bad idea after all. I'm not ready to move but sometimes disasters create opportunities in real estate...