Loan Think

Decades before the rise of the Internet, when an individual wanted to gain insight and understanding, they would go to the library, search through countless shelves of books and newspapers to find information on the topic. The Information Age was ushered in with the power of the Internet. Personal computers, laptops, mobile devices, cell phones and the ease at which the internet is accessible have brought massive amounts of information to the fingertips of people. Is this massive amount of information too overwhelming?

It makes sense that any newly originated residential servicing rights (especially on loans carrying rates of 5% or less) will stick around for a long time and won't be subject to prepayments. This is especially true of FHA/VA servicing. We're told that prices are now heating up. Meanwhile, Interactive Mortgage Advisors of Denver is working on a few servicing-related deals and may have some announcements this week…

Have all yield spread premium (YSPs) payments been banned under the just passed 'Mortgage Reform and Anti-Predatory Lending Bill of 2009' (H.R. 1728)? It all depends on who you ask. Legislation can be a funny thing but brokers aren't happy with the language because it means that going forward they could have a tough time getting paid -- unless they can work out some other type of arrangement with their wholesalers that doesn't violate RESPA. If anything, brokers probably don't have much to worry about. The Senate is notorious for tying up bills forever and never passing them -- unless (of course) there's an impending "must act" crisis like the meltdown of our nation's entire financial system or a war…

Over the years, I have been very fortunate to have a number of different mentors that have helped me overcome roadblocks that I have faced. I have also had a few consultants. They thought their primary job was to continue to have me pay them while hoping that they would eventually give me an answer. Of course, they never did.

THIS JUST IN: The Government National Mortgage Association is apparently on board with a warehouse lending solution for funders of FHA and VA loans. Now it must approach the Treasury Department. See Brian Collins' story on the National Mortgage News website at http://www.nationalmortgagenews.com...

It's been almost a week since the 'Home Valuation Code of Conduct' (HVCC) became the law of the land for GSE loans. And just how are loan brokers reacting? Let's just say they're not happy -- and that's putting it nicely. This comes from a Connecticut-based mortgage broker: "We are not operating on a level playing field. Processors at mortgage banking firms are allowed to interact with appraisers. It is only brokers who are cut off entirely. There are mortgage banking firms out there who are actively and aggressively now recruiting LOs from brokers, saying they do not have to comply with HVCC. What a mess!" In case you're wondering, the brokerage community won't be sending any campaign donations to New York AG Andrew Cuomo when he runs for governor. You might say Mr. Cuomo is persona-non-grata in the industry. Then again, I'm sure the AG isn't losing any sleep over the matter…

I know you won't do this but I'm going to at least try, ok? Turn off your TV and radio. Stop reading all the negative talk in the newspapers. I'm here to tell you that there is still business to be had. Yes, the market is tougher. Yes, deals are harder to come by. But, people are still buying and selling homes. People are still relocating, dying, moving into nursing homes. People are still in need of you and your services, so go out there and make them find you.

The biggest driver of residential mortgage delinquencies is the unemployment rate and this Friday is 'E-Day' -- when the Bureau of Labor Statistics issues the job cut figures for April. It's pretty much a lock that U.S. businesses shed jobs during the month, the big question being how many. Barclays Capital estimates the national unemployment rate will rise to 8.9% (for April) compared to 8.5% the previous month. The increase means less income for consumers and less income means less money to pay the mortgage. However, because there are foreclosure moratoriums in place in many states we may not see the loan delinquency numbers rise much, at least not immediately. In other news, there's an unconfirmed report that there could be a new large entrant in the warehouse lending sector. Again, we stress that it's unconfirmed. If we learn more the story will appear in National Mortgage News and on its website…

FTC DELAYS IMPLEMENTATION OF THE RED FLAGS RULE UNTIL AUGUST

In our last piece we touched on some of the ways that you cannot only market effectively but really become a part of the senior experience. Let's take that a couple of steps further and look at some high impact, low (or no) cost alternatives for outreach and expert positioning.