06
APR
2017
Insult-to-injury-cat-sitting-on-dog-whistle-blower

Talk About Adding Insult to Injury

Did you hear the one about the Bank who had to pay big bucks to the employee who blew the whistle on suspected illegal behavior? Wells Fargo has been ordered to rehire and pay a former employee $5.4 million dollars in back pay, legal fees, and compensatory damages after firing...
05
APR
2017
Sleep-well-lenders-beach-tent-bed

What Keeps Lenders Up at Night?

With a shift in the mortgage market from refinances to purchase loans, what are the main concerns of most mortgage lenders? The main area over the past few years, when rates were low, was the increasing regulations that hampered lending and definitely increased costs. Not so...
04
APR
2017
low-down-payments-mortgage

What’s The Low Down on Low Down Loans?

    In today’s housing market, with its shortage of homes for sale, will sellers look poorly at a buyer making an offer tied to obtaining a mortgage requiring a low down payment? Not so, according to a recent survey done by Redfin of more than 800 of its real estate...
03
APR
2017
game-has-changed-play-different-robot-man-hand-crystal

The Game Has Changed. Are You Prepared to Play Different?

I just returned from speaking at the ABA Real Estate Lending Conference in Orlando. It was a great conference and the Hyatt Regency was a great venue. I only regret I couldn’t spend more time in Orlando. The conference offered a myriad of information, products, and services...
31
MAR
2017
Hispanic-housing-Market

Where Will You Get New Business?

According to recent MBA forecasts, loan originations will drop in 2017 by about 15%. This shouldn’t be a big surprise. This decline is mainly due to a drastic decrease in refinances, resulting from the gradual rise in rates, and a potential for a rate spike, if the Fed...
30
MAR
2017
what-is-your-plan-profit-production-mortgage-paper

What’s Your Plan to Offset the Production and Profit Drop?

We knew it would come sooner or later. It looks like it may have started. For the 4th quarter 2016 Independent Mortgage Bankers reported a decline in production and with it a drop in profits. On average, the net gain on loans originated in the 4th quarter was about $575, a big...
29
MAR
2017
consumers-rejected-mortgage-hand-stamp

Are More Consumers Being Rejected for Mortgages?

Consumers who are discouraged to apply for a mortgage because of fear of rejection increased to 7.1% from 5.7% in October of 2016, according to the Federal Reserve Bank of New York’s February 2017 survey. That means that more consumers are not looking for homes, or applying for...
28
MAR
2017
future-of-loan-originators-mortgage-clouds

The Future of the Loan Originator

I’ve heard it said over and over that the mortgage banking business may be in jeopardy as the average age of a loan originator is somewhere north of 55. The industry just ain’t attracting any new talent these days. This was one of the main topics of discussion that I participated...
27
MAR
2017
defect-rates-up-4-percentage-points

It’s Not Just Interest Rates That Are On The Rise

According to First American Financial Corporation’s latest Loan Application Defect Report, the frequency of defects, fraud, and misrepresentations jumped to 4% on loan applications submitted in February. That’s a 1.3% increase above just one year ago. A 4% increase may not seem...
24
MAR
2017

Time To Look at Alt-A Products…Again

By now, I think that mortgage lenders realize the refinance market has run its course. Although some limited refinance opportunities may still exist, for the most part with rates rising and many having already refinanced. Lenders now need to look to the purchase market for their...