Sometimes, when the government goes too far, the industry finds a way to cut "the man" out of the picture. No, I'm not talking about mortgage bankers taking up arms against the governmen, I'm talking about finding ways around "the man." (Mortgage banking is an art, not a science.) From what I understand some lenders are now using what's called "contracts for deed" when selling troubled properties to consumers who don't want the hassle of going through the traditional mortgage process. One specialty servicer I know says the lender keeps the deed and the buyer enters into a "contract" for that deed. Lenders like this option because if the borrower defaults they don't have to foreclose. "It's a simple eviction," he said. (If you have any further intelligence on this matter drop me a line at
BIG STORY No. 1: And while we're on the subject of telling the government to drop dead, let's talk about the so-called servicing settlement with the 50 state attorneys general. Bankers and mortgage bankers alike think some of the government's demands in this matter are outrageous—especially the “consent order” that regulators are trying to stuff down the throats of servicers. (See our Friday story at
BIG STORY No. 2, OR: LENDERS TO THEIR RETAIL LOs: DROP DEAD: Our affiliate, American Banker, had a neat little story late this week on Wells Fargo and Bank of America restructuring their contracts with their retail LOs. Here's a taste: Various bonuses and incentives will be eliminated. Will this spur LOs working for the mean old megabanks to find employment with some of the "nice guys" in the nonbank sector? Stay tuned…
BIG STORY No. 3: Late Friday NAMB's Mike D'Alonzo and NAIHP's Marc Savitt were toasting champagne over their victory against the Federal Reserve's LO compensation rule. Of course, these two broker trade groups have only won a mere battle, after losing in court the previous day. The war continues to loom. Savitt told us that when NAIHP/NAMB lost the fight for a preliminary injunction, phone calls and donations began to pour into the organization. "People were telling us to keep fighting, to take it as far as we could." The “stay” granted to NAMB/NAIHP came late Thursday/early Friday. The trade groups will be back in court April 5…
DATA STUFF: If you're trying to navigate through the vicissitudes of this crazy business you need data. To survive and thrive you need to know who's on top in originations, servicing and more. You may want to check out NMN's Quarterly Data Report, an Excel spreadsheet and database product that tracks the top 100 every quarter without fail. To order the QDR send an e-mail to
MORTGAGE PEOPLE: Tom Wind departed as CEO of J.I. Kislak Mortgage this past week. We understand that he's accepted a position up the Eastern Seaboard.
WASHINGTON NEWS: The Federal Housing Finance Agency finally admitted that it is considering allowing the GSEs to unload their nonperforming and modified loans in the secondary market—but not before the Washington Nationals win the pennant. (Jeff Freud, start your engine but keep it park for now.) FHFA chief Edward DeMarco told a Congressional panel this past week that modified loans are difficult to sell and the agency would probably use a risk-sharing structure to move the loans off the GSEs' books. DeMarco also noted such sales could be coordinated with Congress' effort to reduce the GSEs' giant mortgage portfolios. (Reporting by NMN's Brian Collins.)
A MUST ATTEND MORTGAGE SHOW: The annual servicing conference of SourceMedia, the publisher of NMN and American Banker will be held April 5-7 in Dallas. (Yes you can drop in, register and attend.) Many top servicing and subservicing executives will be there, vendors, too. For more information e-mail
KEY DATA POINT: One of the fastest growing lenders among the top 20 is EverBank Mortgage of Jacksonville, Fla. We understand a well-known mortgage industry veteran will be joining that firm very soon. To obtain a ranking of the nation's top 100 plus retail, wholesale and correspondent breakdowns, drop a line to
CALLING ALL LOAN OFFICERS: We want to know how you did in 2010 and your outlook for this year. NMN's new LO survey can be found at http://originationnews.com/losurvey.
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THE LAST WORD: Kentucky all the way. Wilco.
