THIS JUST IN: In Monday’s National Mortgage News (the paper version, that is) you’ll see a story about the National Association of Independent Housing Professionals throwing in the towel on its lawsuit against the Federal Reserve. However, NAIHP chief Marc Savitt promised that he’s not done fighting the loan officer compensation rule—though he’s not ready to reveal his exact strategy either. As for what the National Association of Mortgage Brokers will do, that’s unclear. NAMB may continue with court challenges of the rule or join forces with NAIHP. NAMB promised that it will soon reveal his strategy…
So, how is the new LO comp rule affecting rank and file nondepository mortgage bankers that employ retail LOs? For the answer to that question we asked Leif Thomson, founder and CEO of Mortgage Master, one of the largest retail home lenders in all of New England. Mortgage Master currently employs about 250 LOs. These salesmen and women now earn between 75 and 80 basis points per mortgage. How were they previously paid? Before the rule went into effect they earned 50% of what the company made on each deal. One executive at the firm told us, “We don’t want our loan officers losing money because of this.” Thomson told us that he wishes the rule had never been born. He’s not the only one…
Care to share how your firm’s LO comp plan has changed? Drop me a line at
Of course, it might be said that mortgage workers of all stripes are under fire these days. Last week Wells Fargo trimmed 1,900 and late this week Bank of America let go 3,200—including LOs. See the full story on the NMN website at
All this news sounds gloomy, for sure, but I do know of certain lenders that are hiring (I mentioned them in last week’s column). Some of these firms are hiring former workers from, you guessed it, B of A and Wells…
Meanwhile, loan brokers shouldn’t feel like they’re the only ones in the industry that the government is picking on. Readers of the NMN and American Banker websites were treated to a plethora of stories on the consent orders filed against 14 of the nation’s largest home servicers. (Did anyone but me notice that subservicers were not targeted?) We continue to hear reports that Fannie Mae wants the minimum servicing fee to be halved to 12.5 basis points, while Freddie favors the current 25 basis point fee. Have any intelligence on this? Send information to
Oh, and Mortgage Industry Advisor Corp. thinks now is the time to buy servicing rights. Why? Answer: Because bargains abound. That story too is on the NMN website. To subscribe to the full premium content call 800-221-1809…
IN CASE YOU MISSED IT: Mortgage vendor Ellie Mae went public this week. Our technology editor Austin Kilgore was all over the story like a cheap suit…
THEY JUST CAN’T GET ANY RESPECT: The mortgage insurance industry. From what we’ve been told it was the MIs that suggested the idea of a “qualified residential mortgage” test to the regulators, believing that any definition would create safe harbors for MI coverage. Well guess what? The banking regulators threw the MIs overboard and now they’re trying to swim back to shore…
WASHINGTON NEWS: Sen. Sherrod Brown, D-Ohio, and Rep. Brad Miller, D-N.C., this week introduced a comprehensive bill that would force mortgage servicers to act in the best interests of investors while pressuring them to engage in loan modifications. The two Democratic congressmen claim that the federal consent orders signed or issued to 14 of the nation’s largest servicers are inadequate and fail to instill meaningful reforms. For the full story see the NMN website. (Reporting by NMN’s Brian Collins.)
FILE UNDER RUT-ROH (SCOOBY DOO): Examiners for the Office of the Comptroller of the Currency are worried about concentrations of municipal bonds held by national banks and have begun asking risk officers to evaluate their exposures, an OCC official said. Hmmm…
THE NATION’S BUDGET CRISIS: Haven’t you had enough bad news for one week? But here’s one positive thought: Inflation causes prices to rise. Merchandize is taxed on its sale price. When stuff goes up in value the taxes generated on that “stuff” will increase, feeding the coffers of federal and state entities. Of course, too much inflation can hammer our economic recovery.
DATA STUFF: With residential loan volumes becoming a challenge this year, you need to know which firms are on top and thriving. Get a leg up on the competition by checking out NMN’s Quarterly Data Report, an Excel spreadsheet and database product that tracks the top 100 every quarter without fail. To view a sample or order the QDR send an e-mail to
KEY CONFERENCE YOU NEED TO ATTEND: On June 16-17 SourceMedia will hold its annual Distressed Assets Conference in the Big Apple. Upcoming: SM’s Third Annual Best Practices in Loss Mitigation Conference. That show is in Dallas. SourceMedia is the publisher of NMN, Origination News, Mortgage Servicing News, Credit Union Journal, American Banker, and other assorted financial publications.
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: When Arizona and Nevada real estate values turn, the crisis will be over.
