-
THIS JUST IN: The Government National Mortgage Association might be open to providing (in some manner) warehouse financing to non-depository mortgage banking firms, helping alleviate the credit crisis in that sector. GNMA isn't ready to talk about it but there are rumblings out there. Meanwhile, some regional banks are warming up to the idea of becoming warehouse providers, one investment banker told us. These banks understand that the profit opportunities in warehouse could be quite good. "I know one Illinois bank that's looking at it but they only want to lend in their state," said a source. "They're telling me: 'If it's not in my backyard I don't want to do it.'" For the full story see the Monday edition of National Mortgage News. To subscribe to the paper and website call 800-221-1809...
March 6
-
Over my career I have had many struggles, and maybe right now you are having the same ones I did. When I started out rates were in the mid teens and the country was in a recession.So I am going to share a thought I heard from a good friend of mine named Lee Milteer who is a motivational and productivity guru. She always says, "You can choose whether you want to be a victim or not." I'm not here to tell you everything is always rosy and great. I am here to let you know that HOPE is not a strategy.
March 6 -
The National Association of Realtors took out a full-page ad in Politico today, imploring Congress not to put a "tax" on homeowners. That tax, of course, would be a cap on the mortgage interest deduction for high income earners. The strange thing about the ad is that it portrays the U.S. housing market as a house of cards. Really. To see the ad turn to page 11 of the newspaper. In the same issue homebuilder Toll Brothers -- whose stock (to the surprise of few) is near its 52-week low -- is advertising brand new Maryland homes for up to $1 million. Hopefully, if members of Congress and their staffers apply for a mortgage they won't get socked with any GSE "adder" fees. Politico publishes on every day that Congress is in sessionâ¦
March 5 -
So, how's the residential servicing sector holding up? In normal times -- and we're living in anything but normal times -- servicing would be a counter-cyclical play to originations. But the ugly delinquency numbers are making servicing rights less valuable. Don't get me wrong, some companies are living off their servicing revenue provided their portfolios include GSE, FHA and VA product. But one investment banker pointed out to me that escrow earnings are way down, collection costs are eating into profits, and prepayment speeds could rise. He added that, "No one wants to sell servicing right now because the bid price is so bad. It's better to just hold it"â¦
March 4 -
-
Each year Mortgage Technology magazine publishes a list of the top 50 service providers in the mortgage technology space. And this year will be no different. In fact, lenders struggling to find every efficiency may find the list even more helpful this year. So, do you belong on our list?
March 4 -
Republicans in Tennessee are none-too-thrilled with the idea of using taxpayer money to bailout delinquent (deadbeat) mortgage customers. The state's GOP is peddling 'Honk If you're paying my mortgage" bumper stickers for $5 a pop or $12 for three. Its website boasts: "Show Your Opposition to the Out-Of-Control Bailout Congress." The Obama White House wants to use $75 billion in taxpayer money to help certain homeowners avoid foreclosure, which doesn't sit well with Tennessee's GOP which is showing how the south, Sir, can still be fiscally conservative. Of course, during the George W. Bush era Republicans in Congress basically rolled over and said, "Thank you Sir. May I have another?" when approving the gargantuan budget deficits of the Bush years, including the current (estimated) $1.75 trillion hole the nation is in for this fiscal year which ends September 30â¦
March 3 -
In today’s ever-changing mortgage market opportunity identification is critical for short-term survival and long term success. The first step in opportunity identification is having the proper perspective of the market, understanding that there will always be opportunity for those that proactively seek it. Irrespective of how difficult the current economy is consumers still purchase products and services. There are specific needs that need to be filled even in the most challenging times.
March 3 -
How much in housing wealth (as in equity) has been wiped out over the past two years? One-trillion? Two-trillion? Hard to say but it's still probably less than the stock market losses facing those who went long. At press time the Dow Jones Industrial Average was nearing 6800 which means the market is down 50% from its peak of 14,000. At least an empty house can be rented out (okay, maybe not in all markets) but a $1 stock may never recover. Even the great Warren Buffett of Berkshire Hathaway is feeling his oats. The net worth of Berkshire's Class A and B stock lost $11.5 billion last year. In his new annual letter to shareholders Mr. Buffett -- who smartly dumped his holdings in Fannie Mae, Freddie Mac and Countrywide years ago -- offers investors a ray of hope: "Amid this bad news, however, never forget that our country has faced far worse travails in the past"â¦
March 2 -
Regardless of the recent bailouts. Regardless of the fact that January saw another significant drop in home sales and values Regardless of the loss of nearly all of the warehouse lenders remaining that fund non-depository lending operations.
March 2