Loan Think

It never ceases to amaze me how arrogant and backwards some lenders are. Some think they’re business is so different, so complex as compared to other industries. At it’s core, it’s not. It’s all about buying and selling. So why can’t lenders embrace e-signatures, after all most other industries have?

THIS JUST IN: Bank of America is continuing to trim its broker rolls. For the full story see the Monday edition of National Mortgage News. Don't subscribe? Call: (800)221-1809...

There was plenty of chatter in the hallways at the annual servicing conference sponsored by National Mortgage News and its parent SourceMedia. Here's one interesting tidbit that I picked up: former vice president Dan Quayle played a behind-the-scenes role in GMAC getting its TARP money. (When George H. Bush was president, a friend of Quayle's from Indiana ran the Federal Housing Finance Board.) At the show there was also talk that several large banks are having undue influence on the government's loan modification program. In other words: who do you think put the idea in Treasury's head to give servicers $1,000 for participating in loan mods? Stay tuned…

HUD SENDING OUT "SWAT TEAMS" TO AUDIT FHA MORTGAGE BROKERS

If you have been in the reverse mortgage business for the last few years, you have certainly noticed a multitude of changes. If you are new to reverse, you have made a wise decision in choosing to serve the senior population. The reverse mortgage is projected to grow in volume for perhaps the next 20 years. As this product continues to evolve, it is imperative that you keep up to date in order to do the best job possible for our seniors.

When it comes to loan modification decisions some servicers take a few hours and some take a few weeks. According to Mark Pearce, deputy banking commissioner for North Carolina, firms that are in the "several week" category are taking too long. Last month North Carolina spent its own money trying to contact 8,000 delinquent mortgage customers. State representatives met or counseled about 2,000. "It was at a significant cost to the state," he said. Mr. Pearce spoke at SourceMedia's servicing conference in Dallas. Speaking at the same show, Tom Deutsch of the American Securitization Forum said there has been "some talk" that private label mortgages might eventually become eligible for the government's Fannie Mae/Freddie Mac refi program, but he later admitted that "there isn't a groundswell for it"...

Back in November, SourceMedia held its Mortgage Fraud Conference at the Rio Hotel in Las Vegas. In the area adjoining our space was several booths and conference rooms for another meeting from an organization I had never heard of before and whose name I found intriguing.

As the mortgage landscape continues to rapidly change and redefine itself, usability and seamless integration remain critical components to effectively navigate these waters. Lenders and vendors are constantly looking for ways to streamline their offerings and engage users to produce viable and sustainable revenue model in today’s mortgage market. This includes new innovation which delivers usability and seamless integration of software and service solutions to address the ever changing needs and demands of the mortgage industry. Can the mortgage industry take a page out of Apple’s iPhone playbook to respond to these challenges?

One large bank recently marked down a payment option ARM portfolio to just 10 cents on the dollar, according to some participants at SourceMedia's servicing show. The story about the POA portfolio could not be confirmed but it illustrates how worried some banks are about the quality of their POA holdings. “This was a stated income POA product,” said one loan auctioneer…

For every full percentage point increase in the nation's unemployment number, another 500,000 worth of home mortgages (first and second liens) will go into default. Who says so? I do. But it's just an estimate. In case you missed it, the March employment figures were released Friday morning and it wasn't pretty. The nation's unemployment rate jumped to 8.5%, the highest since late 1983. Some 663,000 jobs were thrown into the scrap heap. Keep this one thought in mind: every employee is a potential mortgage customer. Some 68% of Americans own their own homes...