Loan Think

In a recent blog I talked about a vendor offering to outsource FHA processing for struggling vendors looking to tap this new opportunity. But what if the lender doesn’t want to outsource? Vendors with their finger on the pulse of the industry are responding to help these lenders out.

What technology reaches one-half of the world’s population of six billion? Some individuals even have several of them. Nearly one billion are replaced every year as new innovation and solutions are bundled into multi-functional devices rivaling personal computing power of just a few years ago. It sales outpaces laptops and desktops by over a four-to-one ratio and landlines by over three-to-one. It is the mobile handset –an indispensible consumer extension that is growing in importance and functionality. To date, it has been a minimally explored channel for an evolving financial consumer with specific demographics and behaviors. Yet can it help an ailing industry, vanishing consumer base, and potentially mitigate delinquencies and foreclosures?

What have your experiences with reverse mortgages been like? Enter your comments in the box beneath this blogand hit submit!

THIS JUST IN: Yet another major wholesale lender is pulling the plug on using loan brokers to originate home equity lines of credit. But this wholesaler, at least, will continue to table fund first liens. The full story will be in the Monday edition of National Mortgage News. Don't subscribe? Call: (800) 221-1809...

The new federal housing bill taking shape at press time early last week appeared to be a net positive for the mortgageindustry and welcome news given the tough times the business has seen recently.

Prepayment rates for mortgage-backed securities fell 9.5% overall in June from a constant prepayment rate of 13.1CPR to 11.9 CPR, according to Credit Suisse.

When we reflect on innovation, especially technological innovation, we envision multi-faceted solutions, global teams, and well, lots of technology. Mention the individual within technological innovation and it appears to be an oxymoron – a necessary evil but hardly innovative. After all, individuals are devious, self indulgent, and egotistical, no? Just as team builders advocate “there is no ‘I’ in team,” there is also no “team without I.”

What does it mean to be tech-savvy? And can lenders afford to invest in technology now anyway? Actually, the better question is: Can lenders afford not to invest in technology? In this market it’s all about efficiency and the way to be efficient is to utilize technology. So, if lenders aren’t tech savvy, they better be soon.

Mortgage bankers and brokers that specialize in FHA (or want to) start your engines. Late this past week the House passed landmark legislation that provides $300 billion in FHA mortgages to troubled (presumed) subprime borrowers who are ready to go kaput on their notes. According to the Quarterly Data Report, there is roughly $1 trillion in outstanding subprime loans in the U.S. The top servicer is Countrywide, which is now the ward of Bank of America. To get a complete listing of all subprime servicers order the QDR by e-mailing Deartra.Todd@SourceMedia.com. For complete coverage of the new bill (which the Senate is expected to approve this weekend) see the Monday edition of National Mortgage News. Don't subscribe? Call (800)221-1809...

According to a 2007 report by the Government Accounting Office (GAO), FHA’s product restrictions and lack of process improvement relative to the conventional market was largely responsible for the decline in market share, despite comparing favorably in cost to the subprime programs that largely eclipsed them. The collapse of the subprime market has led to the resurgence of interest in FHA, and recent revamping has positioned the agency to reclaim the volumes it once enjoyed. GAO expects FHA to fund 10% of home purchases in 2008 and 15% in 2009, continuing to levels not seen in over a decade. So how do lenders get their piece of the pie?