What We're Hearing

More and more venture capital firms (including one in Cleveland) are starting to kick the tires of well established non-bank mortgage lenders -- the key ingredient being a strong historical track record and experienced management. We keep hearing anecdotal reports that profit margins continue to be fat even for non-banks that depend on warehouse lines of credit. As long as the difference between short and long term rates remains wide, profits should continue to be robust. Of course, one concern is what will happen next year. Today, the government released new employment figures showing that employers cut a deeper-than-expected 263,000 jobs in September, lifting the unemployment rate to 9.8%. If the economy is supposed to be recovering why aren't more companies hiring -- and what will it take to spur hiring? See the NMN website later today for an update on mortgage employment...