Loan Think

Mortgage marketers can learn a lesson from the most watched online video.

How much in cash will the new changes made by FHA this morning raise for the government insurance fund? FHA chief David Stevens isn't saying, at least not yet. Perhaps, then, the reserve fund isn't so bad off, after all -- or maybe it's so bad that he doesn't want to talk about it. One thing we know for certain is that FHA delinquencies are still lower than subprime late payments, which are north of 35% at some shops that still hold the loans/ABS. Meanwhile, the political playing field shifted somewhat last night with the win by Republican candidate Scott Brown over Martha Coakley. Congress likely will pass some type of healthcare reform but Republicans will finally have a true say in the bill. But what about reform of Fannie Mae and Freddie Mac? The GOP has never liked the two -- especially now with major taxpayer money keeping their net worths above zero. Nothing will happen legislatively in regard to the GSEs this year but after the 2010 mid-term elections? It could get interesting...

For the next few weeks, Broker Universe will feature some of our favorite Sue Haviland columns from the past year.Seems like more often than not, the stories you see in the media about reverse mortgages are, well, less than complimentary. Let's face it they are down right ugly. Seniors are cautioned to be extra careful and our segment of the industry is labeled as the next subprime crisis. Gimme a break.

HOW NOT TO USE THE NEW GFE LEGALLY

We continue to hear more talk that some large holders of troubled mortgages may finally begin selling their "dogs" but public announcements are few and far between. PennyMac recently confirmed that it had bought a $100 million portfolio of loans but declined to identify the seller. One positive sign could be strong earnings. If large banks and Wall Street firms -- which also are the largest holders of nonperforming residential loans and securities -- post strong earnings they finally can "afford" to unload their NPL holdings. Meanwhile, the U.S. Chamber of Commerce is running an advertisement on the New York Daily News website, lobbying against the creation of a consumer financial protection agency, saying a CFPA will make it more difficult for small businesses to get credit. We assume these small businesses could include mortgage banking and brokerage firms...

People are becoming more and more comfortable with the idea that participating in the social media should be part of their key marketing strategy. But be careful - these same forums are also an outlet for someone who might be a disgruntled client.

JPMorgan Chase chief Jamie Dimon took another (minor) swipe at loan brokers in today's earnings conference call (see the NMN website for details) but he also said something interesting -- that JPM soon will be "over capitalized," as will the banking industry. As for the wholesale/broker channel, there's at least one new entrant we can tell you about -- Total Mortgage Services of Connecticut. TMS is about to launch a multi-state initiative. And in case you missed it: the Real Estate Settlement Procedures Act now requires mortgage lenders/brokers and settlement agents to use the new Good Faith Estimate and HUD-1 Settlement Statement forms. Not sure what to do? Better lawyer up...

The level of preparation and action of the past six months is the only "asset" you have. If you want your "asset" to produce more income six months from now, you must adjust yourself right now to develop yourself into the person/business that is ready to, can, earn more income in six months. Nothing else will change your circumstances than you changing you.

The strangest story of the past week is the huge disparity on the 2010 residential forecasts from Freddie Mac and the Mortgage Bankers Association. Freddie looks downright bullish at $1.75 trillion while MBA looks like a skunk at the garden party with $1.3 trillion. It's the widest disparity in forecasts I've seen in years. There are days when I think $2 trillion is a good number but that's only if unemployment falls to 9%. (I'll get to the employment crisis in a moment.) Anyway, we try to sort it all out in the Monday edition of National Mortgage News - as well as what it could mean for loan brokers. As we reported on our website Friday, a former wholesale lender owned by Richard Branson could have a new lease on life. And believe it or not there could be some stirrings of life in warehouse lending. Don't subscribe? Call: 800-221-1809...

The federal 'Crisis Commission' turned its attention to Attorney General Eric Holder today. Headed by Phil Angelides, the commission's job is to explore our nation's financial meltdown and write a "definitive" report on it. (Of course, they could read and republish 'Chain of Blame, How Wall Street Caused the Mortgage and Credit Crisis' -- and save the taxpayers a lot of money, but don't get me started.) Anyway, Commissioner Angelides today raised the issue that the FBI's focus on national security concerns after the Sept. 11 attacks sucked resources away from financial fraud investigations. (I'm paraphrasing.) The only thing I can say is this: Duh! And: Duh! Of course, terrorism siphoned off resources from other areas of criminal inquiries. Both DOJ and FBI have already said as much -- many times. You want to fund more investigations? That means more tax dollars will be needed. And to get more tax dollars our elected leaders will need to, gulp, raise taxes. (Or cut entitlements.) I will admit that I haven't listened to the hearings too much but from what I've heard (and read) so far we're not learning anything new. Goldman Sachs betting against CDOs that another part of the company was selling? Do tell. Deutsche Bank was doing the same by shorting the ABX Index while its trading desk was buying and issuing subprime ABS. (That's in 'Chain of Blame' too.) There's gambling going on on Wall Street? Shocking. Round up the usual suspects...