It’s no secret that loan brokers don’t trust the Consumer Financial Protection Bureau and feel the young agency is out to destroy their way of life and turn it over to the banks. The biggest complaint I hear is that hardly anyone at the CFPB has worked in the front lines of residential finance as a mortgage loan officer, broker, underwriter, take your pick. Next week (or the week after) the agency will finally issue its LO compensation proposal—then the comment period and lobbying begins. The agency has many "point men" on LO comp, but the name we keep hearing is Paul Mondor, a former Federal Reserve official. Currently the National Mortgage News has coverage on its website about the topic. Visit
We reported Friday that at least one wholesaler, Franklin American, will only use a "lender paid" compensation model for its brokers. As one reader noted: “It’s not the loss of borrower paid, it's the fixing of one premium on "lender paid" that going to kill” brokers…
If the CFPB makes brokering impossible, how many brokerage shops can afford to convert into a mortgage banking firm? The capital requirement is currently $2.5 million, while rumors persist that it may be hiked to $3.5 million over the next few years. The net worth requirement is set by Fannie Mae, Freddie Mac and GNMA/FHA…
We understand that at least one veteran mortgage banking consultant is toying with a plan to provide financing to nonbanks, helping them with their net worth problems. Of course, the piper will want to be paid…
Last week we asked readers to tell us how fast they can obtain an appraisal in the states in which they work. The answers varied but Florida was the fastest at four days. Keep in mind this wasn’t exactly a scientific survey. (Earlier in the week we reported that in North Dakota—a state in the midst of a housing and oil boom—it can take up to six weeks.) The next question we’d like to ask is this: How long does it take to close a loan (refi and purchase) at your shop? The measurement should be from application to closing. Send your responses to
Is the nonperforming loan market heating up? It’s hard to get solid facts about this somewhat secretive market, but smaller deals (actual sales) are getting done on pools that are priced at $50 million or under. That would be BPO…
Barclays Bank has been buying jumbo loans through its trading desk…
SANDY, SANDY, SANDY: Here’s a little summer humor for you: What did Sandy Weill say after his five-day drunk? Answer: “I said what about Glass-Steagall?” Let me get this straight. Back in the late 1990s the guy and his megabank (Citibank) lobbied Congress to dismantle Glass-Steagall. They were successful. Why did they want to do this? Answer: So banks could make more money and invade Wall Street’s traditional turf of bond and stock underwriting. If Glass-Steagall hadn’t been ripped down, commercial banks could not have become underwriters of subprime MBS. One source had this to say about Weill’s about-face: “I’ll NEVER forget being pushed by management at Commercial Credit (owned by Travelers Group at the time) to call congressional members, then President Clinton.” Next week I expect Angelo Mozilo to come out and say something like, “We should never have loosened our underwriting standards so much.”
WASHINGTON NEWS: Residential funders issued $34.7 billion of GNMA-backed MBS in June, down nearly $2 billion from the month prior, but a 32% spike from a year ago, according to new figures released by the agency. The new report shows that issuers securitized $26.5 billion of single-family mortgages in Ginnie Mae II pools and $5.7 billion of Ginnie I pools. Securitizations of jumbo mortgages totaled $1.02 billion in June, making it the second consecutive month jumbo loan issuance has exceeded $1 billion. (Reporting by NMN’s Brian Collins who can be emailed at
MORTGAGE PEOPLE: JPMorgan Chase named Gordon Smith co-CEO of consumer and community banking at the megabank and come early next year he will assume responsibility for the firm’s mortgage banking operations. MGIC Investment Corp. promoted Timothy J. Mattke to senior vice President, controller and chief accounting officer.
FOR THE DATA RECORD: The fastest-growing correspondent buyer of mortgages in the first quarter was Provident Funding of Burlingame, Calif., A list of the nation’s top 30 correspondent buyers is in the Quarterly Data Report. To order drop an email to
KEY INDUSTRY MORTGAGE SHOWS: On Sept. 13 and 14 SourceMedia/National Mortgage News will hold its annual Mortgage Regulatory Reform conference in Arlington, Va. As an added bonus for attendees: I might actually be in attendance.
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FINAL WORD: Look for the U.S. women’s team to capture the gold in Olympic soccer. As for the men’s team…
