Home » October 29th, 2009
Entries posted on “October, 2009”
October 1, 2009 is the day that will live in infamy—as far as the mortgage industry is concerned! For some reason, most of the gianormous changes in the rules and regs are happening on that date. FHA Condo approvals go away! And all FHA appraisers must be “state” certified—or you buy back the loan.
Freddie’s updated underwriting guidelines kick in on October 1 and their 125% Refi Relief goes into effect!
Oh, and don’t forget Reg Z: High-Priced Mortgages (HOPEA) and the new Truth In Lending “Advertising Rules”. Are your eyes glazing over yet?
RESPA Rules FAQ’s – They Keep Changing!
October 29th, 2009 | Posted in Articles | Read More »
I have been writing this column for just over two years. I was perusing through some of the first articles I wrote as I reminisced over the anxiety I felt as I painfully and passionately typed each word wondering if the audience would enjoy this idea. I wanted each word to be meaningful and each sentence to explode with brilliance and each paragraph to conjure thought provoking stimulation….
Ok, a bit over the top, I know. But, I really wanted to stress that there are different ways to work. There are a variety of actions that, in various combinations, can build and grow your business. I wanted this column, “Tip of the Month,” to be the first page a subscriber would turn to see what new ideas I had to be implemented to make this month’s sales or closings a bit better than last month for you. You are the subscriber. You are my target audience. And since I am still here writing to you and you are still here reading, two years later, we are both doing something right.
October 29th, 2009 | Posted in Articles | Read More »
Liberal Billionaire George Soros… Major Shareholder in IndyMac/One West Bank
When it comes to being inflexible and unresponsive to homeowners in need of a loan modification, IndyMac Bank, which has just been renamed “One West Bank,” is legendary.
This is the bank that failed spectacularly in July 2008, was taken over by the FDIC, and ended up costing taxpayers something like $11 billion… give or take… I can’t keep track of billions anymore… I’ve moved on to tracking trillions. And the new buyers of this fire sale financial institution that’s deservedly become the poster child for stupid lending tricks, includes billionaire George Soros.
Soros, along with billionaire Michael Dell and others, agreed to purchase the bank for $20.7 billion. As of Jan. 31, 2009, IndyMac’s assets totaled $23.5 billion and deposits were $6.4 billion, roughly half the cash and assets the bank had at the time of its failure. The new buyers also got a handy-dandy “loss sharing agreement” from the FDIC, whereby after shouldering the first 20% of any future losses, the FDIC gets stuck with most of the rest. So, I guess you could say they got a deal. A sweetheart of a deal… not to put too fine a point on it.
October 29th, 2009 | Posted in Archive,Articles,Bringing Up the Rear | Read More »
A talk about eClosings with Brian Boike,
First Vice President, Lending Support
Flagstar Bank
Over the last two years The Niche Report has highlighted many companies in the industry to help you better serve your clients and enhance the success of your business. Flagstar Bank is one of the nation’s largest wholesale mortgage lenders and an established leader in innovative mortgage technology, including its award-winning eClosings. Brian Boike, first vice president, Lending Support at Flagstar Bank, talks about eClosings and how originators can leverage this important technology.
What is the current status of eClosings and its acceptance among your brokers and correspondents?
The adoption is moving along at a steady pace and increasing monthly, although we feel it could and should be spreading even more quickly. We’re getting good feedback from customers and feeling good about how it’s taken off. The current marketplace and downturn of the industry as a whole have somewhat slowed the adoption of new technologies such as eClosings. Currently, people are not as focused on it — they’re thinking about regulation change and where the next loan is coming from — but eClosings will be the number one initiative when the market normalizes.
October 29th, 2009 | Posted in Archive,Articles,Center Stage | Read More »
The jury is in. We need judges to modify the way banks behave.
Okay, first of all… you’re not buying any of this “the recession has ended” nonsense, are you? Because if you’re one of “them,” then I’m really not sure there’s a whole lot I can say to you except maybe… well, no… actually there’s nothing I can say to you that you’ll find interesting. Just go back to trading your stock portfolio, buying REOs, and loading up on Citigroup, or whatever it is that you guys do these days.
To everyone else… I have a question: At this stage of the foreclosure crisis, is there any doubt that we need some sort of lender and mortgage servicer reform? I’m only asking because it’s hard for me to imagine that there’s anyone, at this stage of what’s definitely not a game, that wouldn’t readily agree, the American Bankers and Mortgage Bankers Associations, Financial Services Roundtable, and American Securitization Forum, et al, notwithstanding.
October 29th, 2009 | Posted in Articles | Read More »
The Good, the Bad and the Ugly
In these stressful economic times, many private money lenders and their investors are looking at acquiring existing loans, or are considering selling loans they currently own.
There are many reasons loans are bought and sold. Often times the reason has more to do with the individual situation of the seller than of the note itself, or the condition of the borrower. The most common reasons loans are sold are: for liquidity, dissolution of a partnership, change of financial circumstance, deterioration of the underlying collateral, or the default of a borrower.
There are many opportunities for buyers and brokers to acquire loans at a discount to the principal balance which may result in substantially better yields than originating a new loan. Buyers and their brokers should consider several factors when purchasing a note, including the strength and payment history of the borrower, the quality of the underlying collateral securing the loan, and the strength of the guarantors, if any.
October 29th, 2009 | Posted in Articles | Read More »
Marketing can leave a bad taste in your mouth
Over 20 years ago, as I was starting out in the mortgage business, the advice I received from senior brokers was to “stop into realtor’s offices with a box of donuts.” Last year I was participating in an industry roundtable and the powerful head of a major mortgage company related that he provides an allowance for his agents to take donuts to realtor’s offices. I had to smile; some things just never change. Bribing realtors with sugary confections has been and remains a bad idea on so many levels.
First, the sugar and empty calories are horrible for our realtor friends. Second, you immediately present yourself as a gofer. You are no longer an equal professional, but the lackey who will do the mortgage paperwork after the professionals have done the real work of selling the property and maybe pick up a latte for the busy agents while you’re at it. Third, and most important, the realtors should be bringing you donuts! Mortgage brokers have been unfairly programmed to “beg” realtors for deals and perform silly services to be in their good graces so they will throw you a bone every now and again. Bottom line: The agent who controls the client deserves the donuts.
October 29th, 2009 | Posted in Articles | Read More »
Wait Three Days First
It will probably be another month or so before we get the FAQs and clarifications from the powers that be, regarding MDIA.
However, we have read the mis-interpretations by compliance attorneys, major lenders, in-house ops managers, blogs and emails, and we wanted to not only point out some of the errors, but also print the exact wording from the Federal Register for you to refer.
With that being said, even though they may have misinterpreted it, you know the golden rule of lending don’t you? “Those who have the GOLD make the RULES” and you may have to go along with them, even if they are incorrect.
Re-Disclosure Waiting Period – There could be a waiting period of up to six days, depending upon HOW the documents are delivered. This applies to RE-DISCLOSURE ONLY because of APR or changes in loan terms, and does not apply to the FIRST disclosure. This is where WE got it wrong—there are three different ways you can deliver but the bottom line is that you need to track the receipt date and give the consumer three days to review.
October 29th, 2009 | Posted in Articles | Read More »
So What Happens Next?
The FHA critics I suspect are thinking I told you so with Friday’s announcement (HUD No. 09-177) that the FHA “reserves” have fallen below 2%. But they would be wise to consider the following episode.
The story is legend among the HUD career staff: many, many years ago, an unnamed HUD Secretary upon learning the FHA “reserve” fund had surpassed $20 billion instructed the staff to print a rather large check, imprint it with the dollar amount and make it payable to the White House (whose budget office was looking for revenue). With the check and the photographer in tow, the group proceeded to the White House. With much fanfare, the Secretary presented the check to the White House budget office who was rather surprised at the Secretary’s gesture. Why? What he didn’t know, was that the FHA reserves (technically it is called a “Capital Reserve”) only existed in the ethereal and arcane world of actuarial accounting.
October 29th, 2009 | Posted in Articles | Read More »
I have come to the conclusion that politics is too serious a matter to be left to the politicians. ~Charles de Gaulle, 1890 – 1970, French president, general and statesman
Want to have a great year as chairperson of your government affair committee? Here are some suggestions to create a great year. The author was the former Government Affairs Chairman of the Florida Association of Mortgage Brokers.
PRESS RELEASES – Provide press releases with appropriate information on a timely and consistent basis to the general public and the association. Set a goal to release two press releases a month. Write press releases on behalf of your public officials to publicize their accomplishments. This will establish a greater relationship with elected officials at a very cost effective price. You can send press releases to highlight:
October 29th, 2009 | Posted in Articles | Read More »
A lot of people don’t...
