What We're Hearing

Just when you think there may not be much of a future for nonbank lenders, the government tightens the screws (or threatens to) changing the playing field. I'm talking about, of course, the Obama Administration's plan to impose new fees on banks as a way to recoup some of the $700 billion bailout money allocated via the Emergency Economic Stabilization Act of 2008. I'm not saying this tax will force depositories to become nondepositories but it might shape some future strategies. The key determinant for any owner of a lending business is capital -- as in: "Do we have enough of it?" The FDIC is also looking at penalizing banks for what it calls "risky compensation" practices. As I recall, during the height of the lending boom, many depository lenders paid their wholesale account executives based on how many loans they brought in via loan brokers. Is the FDIC thinking of wholesale AEs in contemplating its new rules? Meanwhile, later today National Mortgage News will break yet another story about a new entrant to the warehouse lending sector...