Loan Think

Whether making a live presentation, having a meeting with a client or referral source and/or using the social media or e-mail, it is, to use the cliché, not what you say, but how you say it.

WHAT SERVICES MAY A NON FHA-APPROVED MORTGAGE BROKER PERFORM AND HOW DOES THIS PERSON GET PAID?

Taking aim at Microsoft in its most dominant market, Google announced that it is developing its own computer operating system based on its Chrome Web browser. Google Chrome OS is an open source, lightweight operating system that will initially be targeted at netbooks, which are small, compact, low cost and extremely popular sub-notebooks. This announcement from the official Google blog post is a clear departure from years of denying any interest in challenging Microsoft or Apple in the computer operating systems market. Both Microsoft and Apple have announced plans to release new operating systems in 2009.

We’re picking up more intelligence on Wells Fargo’s recent auction of $600 million worth of non- and sub-performing subprime loans. (This is the portfolio that Arch Bay Capital of Irvine bought.) The bank asked bidders to post good faith money of $75,000. Wells supposedly had valued the loans (on its books) at 12 cents on the dollar. The sale price to Arch Bay was reportedly 35 cents on the dollar. Arch Bay, meanwhile, does not have a large staff and is known to outsource some of its underwriting and servicing functions. Meanwhile, there is talk in the market that a large holder of subprime and alt-A loans is contemplating some of these assets to get them off its books – as opposed to trying for a sale in the distressed loan market...

Mortgage bankers and brokers are continuing to complain about the Fannie Mae/Freddie Mac ‘Home Valuation Code of Conduct’ or HVCC. This from Mark Allen Mortgage’s Rich Tachine: “What a crock. Lenders having to create appraisal ordering departments they didn't want, to deal with strangers whose values they don't trust. The end result for the consumer? Terrible turn times and a 40% increase in price. That's right -- did you notice the old $350 to $375 appraisal is now $475 to $500? Why?” Meanwhile, as the weekend approaches more consumers are once again contemplating the housing market. Home prices are continuing to fall along with 30-year fixed-rate mortgage rates...

This week, BrokerUniverse is rerunning one of Joel Pate’s more popular columns. We think you will enjoy it again.

By now you've seen the exclusive on the National Mortgage News website about Arch Bay Capital of Irvine being the winning bidder on the $600 million Wells Fargo non-performing subprime loan portfolio. The full details - including the price paid - will be in the Monday morning edition of NMN. Don't subscribe? Call: (800)221-1809. A subscription includes both the newspaper and full access to all the exclusives on our website. Meanwhile, many players in the non-performing loan market say that Arch Bay - a vulture fund originally grubstaked by once high-flying alt-A giant Impac Mortgage - likes to stay under the radar and out of the newspapers. Oh well...

It looks as though reverse mortgage pitchman Robert Wagner (of “It Takes a Thief” TV fame) is out on the streets after his employer, Reverse Mortgage Network, pulled the plug on its HECM origination program. A source familiar with the matter tells us that RMN’s owner thought it had a deal to sell the company but the buyer recently backed out. The full story will be on the National Mortgage News website later today...

We’re hearing that PennyMac may not be the only mortgage vulture fund that would like to go public. (Of course, it’s still unclear whether PennyMac’s IPO is going to actually happen.) There’s at least one other established vulture firm that’s contemplating such a move. Stay tuned to the National Mortgage News website and weekly print edition for updates. Meanwhile, we still haven’t heard confirmation on which investor wound up with Wells Fargo’s $600 million portfolio of non- and sub-performing subprime loans. Publicly traded Wall Street firms and depositories begin reporting second quarter earnings shortly and it will be interesting to see what disclosures are made in regard to writedowns on MBS, ABS, CDOs and the like. Plenty of executives have told us stories about how recent changes in Financial Accounting Standards Board accounting rules have taken the pressure off banks to sell their troubled mortgage assets. As for the FDIC’s “Legacy Loan Program,” don’t hold your breath...

Are you an originator who is constantly searching for a way to keep in touch with past clients and prospects in a way that will produce real results? You know how important it is and the chances that a prospect will do business with you decreases exponentially if you lose touch. Try this - I have been using this one method for years and it works: The newsletter.