Below is a collection of articles, news, and announcements associated with our industry.

Posts Tagged ‘mortgage bankers’

Blog Talk Radio Show September 26, 2011: Legal Considerations as You Change Companies

Tuesday, September 27th, 2011

On today’s Lykken-on-Lending radio show Dave Souders, a partner at Weiner Brodsky Sidman and Kider, provided some things for a Loan Officer (LO) to keep in mind as he or she moves from one mortgage company to another.  He said most moves have unique circumstances, but that in all cases a LO should make sure they are very much aware of and are complying with the terms of their existing employment agreement.  This document could address what the company says you can and cannot take with you leave, like your customer data base, prior customer loan information, or your  roll-a-dex of contact cards.  He thought every company to which a LO moves should be aware if the restrictions contained in his or her prior company employment agreement as well.   The new company will likely be involved in any litigation which may arise.  Dave said that LOs who do not abide by the terms of their employment agreement have been pursued for damages by their prior employer and have even been pursued by the OCC.  Branch managers who are negotiating with a new company to move their team of originators need to be mindful of State laws regarding duty of care.  Managers employed who are negotiating to take originators with them to another company may be in violation of their duty to the company they are leaving.  Dave hopes to join the show again to answer more specific questions about this subject.  Please let us know if you have legal concerns about making a change from one mortgage company to another.

Click PLAY to listen to the podcast of this week’s BlogTalkRadio/Lykken on Lending with Dave Lykken and MBSQuoteline‘s Joe Farr:

Listen to internet radio with David Lykken on Blog Talk Radio

MBSQuoteline supplies the essential market information necessary for effective decision making by Originators when assisting borrowers during the loan origination process, and for secondary marketing departments while managing pipelines. For additional information or to sign up for a free 2-week trial subscription, visit www.MBSQuoteline.com or call (800) 627-1107.

Tune in every Monday at 1:00pm(et)  for up-to-the-minute information on interest rates, loan programs and “hot” industry news related to the mortgage industry. Dial: (646) 716-4972 or log in at: www.blogtalkradio.com/lykken-on-lending

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Blog Talk Radio Show September 19, 2011: Considering a Change?

Tuesday, September 20th, 2011

Jon Traver, a mortgage industry consultant, joined the Lykken-On-Lending show today to discuss the issues and considerations associated with loan originators and mortgage branches shopping themselves to interested suitors.  Jon believes an LO or a branch manager is  not doing himself justice if he doesn’t do this.  He may find that he is in a perfect place, but he owes himself the effort to find out.  Jon has created a matrix of 100 things originators and the intended suitor should consider when trying to determine if the two are a good match for each other.  Examples include the sophistication of the suitor’s marketing resources.  This varies considerably and to some LOs it is vitally important.  To others not so.  The size of the suitor and its degree of oversight over the LO’s functions can vary significantly and can be a great thing for one LO but not so for another.  Jon’s bottom line is get to know the person to whom you are talking.  Consider far more than the surface stuff like product and pricing.  These can be important, but there is so much more to know.

Click PLAY to listen to the podcast of this week’s BlogTalkRadio/Lykken on Lending with Dave Lykken and MBSQuoteline‘s Joe Farr:

Listen to internet radio with David Lykken on Blog Talk Radio

MBSQuoteline supplies the essential market information necessary for effective decision making by Originators when assisting borrowers during the loan origination process, and for secondary marketing departments while managing pipelines. For additional information or to sign up for a free 2-week trial subscription, visit www.MBSQuoteline.com or call (800) 627-1107.

Tune in every Monday at 1:00pm(et)  for up-to-the-minute information on interest rates, loan programs and “hot” industry news related to the mortgage industry. Dial: (646) 716-4972 or log in at: www.blogtalkradio.com/lykken-on-lending

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Blog Talk Radio Show Summary November 29, 2010: Loan Officer Compensation

Friday, December 3rd, 2010

Loan officer compensation rules will change fairly significantly beginning April 1st of next year, a mere four months away, and very few companies have released their new originator compensation plans.  On the Lykken on Lending show today there was a round table discussion about what is known to date and what are we hearing companies are considering.  The plans being discussed range from very complicated to very simple.  One recommendation coming from the show hosts is to “keep your plans simple”.  Change is always difficult and the less complicated the change, the easier it will be for originators to understand how it will affect them.  Another recommendation is to back test the plans as though they were in place over the last quarter or so.  The benefits of this will be to ensure the plan is not too expensive for the company and will this help the company show that the consequences of the plan will not significantly impact the originators’ overall compensation.  A third recommendation is to approach the changes with the right attitude.  The changes are coming.  They do not have to be life altering changes. 

Click PLAY to listen to the podcast of this week’s BlogTalkRadio/Lykken on Lending with Dave Lykken and MBSQuoteline’s Joe Farr:

Listen to internet radio with David Lykken on Blog Talk Radio

MBSQuoteline supplies the essential market information necessary for effective decision making by Originators when assisting borrowers during the loan origination process, and for secondary marketing departments while managing pipelines. For additional information or to sign up for a free 2-week trial subscription, visit www.MBSQuoteline.com or call (800) 627-1107.

Tune in every Monday at 1:00pm(et)  for up-to-the-minute information on interest rates, loan programs and “hot” industry news related to the mortgage industry. Dial: (646) 716-4972 or log in at: www.blogtalkradio.com/lykken-on-lending

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Blog Talk Radio Show Summary September 13, 2010: Business Strategies through the New Year

Tuesday, September 28th, 2010

BlogTalkRadio SummaryHaving a strategy and a plan to implement that strategy is always important.  For the mortgage industry, it is  even more important now as the consequences from regulatory changes are likely to change the origination landscape significantly.  Implementing the regulatory changes will take considerable effort in retooling systems, training staff, and monitoring for compliance.  All this will come with a price tag.  Some companies will choose to get out before the changes are to be implemented.  Others will choose to join firms that have the resources to implement the changes.  Some firms will implement policies and controls based on the strictest, most conservative interpretation of the new regulations, and others will take a more common sense approach.  All this is said to support the argument that over the next year or so we will see considerable movement within the industry.  Firms with capital, systems and support in place will be well-positioned to benefit from the movement.

So if your strategy is to profitably grow your origination business in a compliant manner, you should have a tremendous opportunity in the coming months.  Your plan should include building capital to pay for the cost of change and to support larger volumes, employing systems and system vendors with the resources to implement required changes.  Building an origination philosophy that puts the customer first and embraces the benefits of the changes that are coming will enhance the plan.

Click PLAY to listen to the podcast of this week’s BlogTalkRadio/Lykken on Lending with Dave Lykken and MBSQuoteline’s Joe Farr:

Listen to internet radio with David Lykken on Blog Talk Radio

MBSQuoteline supplies the essential market information necessary for effective decision making by Originators when assisting borrowers during the loan origination process, and for secondary marketing departments while managing pipelines. For additional information or to sign up for a free 2-week trial subscription, visit www.MBSQuoteline.com or call (800) 627-1107.

Tune in every Monday at 1:00pm(et)  for up-to-the-minute information on interest rates, loan programs and “hot” industry news related to the mortgage industry. Dial: (646) 716-4972 or log in at: www.blogtalkradio.com/lykken-on-lending

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BlogTalkRadio Summary July 12, 2010: Q&A on Mortgage Issues in DFA (Dodd-Frank Act)

Wednesday, July 14th, 2010

Glen Corso, Executive Director of  The Community Mortgage Banking Project, joined the BlogTalkRadio/Lykken on Lending show again today and was kind enough to answer a series of questions from the hosts about the content of the Dodd-Frank Act (DFA).  Glen has lobbied on behalf of the industry as this bill progressed through the legislative process.  The DFA is expected to pass the Senate soon and will then be signed by the President.  It has several provisions which, when implemented, will have a significant impact on the mortgage industry.  Its implementation is many months down the road, but its content needs to be understood to the extent possible.  Many of the provisions in the DFA will not be fully understood until regulators have finalized the Bill’s implementation rules.

Click on the attachment to read through an extensive Q & A on these topics.

Click PLAY to listen to the podcast of this week’s BlogTalkRadio/Lykken on Lending with Dave Lykken and MBSQuoteline’s Joe Farr:

Listen to internet radio with David Lykken on Blog Talk Radio

MBSQuoteline supplies the essential market information necessary for effective decision making by Originators when assisting borrowers during the loan origination process, and for secondary marketing departments while managing pipelines. For additional information or to sign up for a free 2-week trial subscription, visit www.MBSQuoteline.com or call (800) 627-1107.

Tune in every Monday at 1:00pm(et)  for up-to-the-minute information on interest rates, loan programs and “hot” industry news related to the mortgage industry. Dial: (646) 716-4972 or log in at: www.blogtalkradio.com/lykken-on-lending

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BlogTalkRadio Podcast – June 7, 2010

Wednesday, June 9th, 2010

Lykken on LendingDave Lykken, host of the BlogTalkRadio show Lykken-on-Lending, and President of Mortgage Banking Solutions, has published an article in National Mortgage Professional Magazine titled A View From the C-Suite: Branch development … Four “C” tips from the “C” Suite.  In it he discusses four things to consider when adding branches to your production organization or when seeking a new production organization for your branch.  These four tips were the topic of discussion on the radio show today.  Here is a summary the four tips, but I recommend you read the full article for yourself.

Both the producing group looking to join a new organization and the funding group looking to add more production need to carefully consider any potential marriage.  Both sides should follow the 4 “C”s:  seek  counsel, consider the culture, consider capital constraints, and consider character.

1.  Counsel here doesn’t necessarily reference legal counsel, but legal counsel may help minimize confusion should things ever unwind.  The counsel you should seek is industry counsel.  Talk to those in the industry who know you and the other party.  Ask if they think the two of you will be a good match.  Some personalities just don’t mix.

2.  Find out if the culture of your organization matches that of the other.  Are you a jumbo specialist considering joining with an FHA specialist?  Is  the funding group experienced at  adding production groups?  Are they good at effectively communicating policies and procedures?  Are they skilled at accommodating regional differences?

3.  Investigate whether  the funding company’s capital is sufficient to support additional production.  Does it have warehouse capacity for more production?  Are you the only production group being consider to join the funding group?  Does the funding group have the financial capital and the human capital to manage expansion?

4.  And the last and maybe the most important thing to consider is the character of the individuals involved.  It takes a long time to establish a good reputation, but only a few bad experiences to lose it.

Click PLAY to listen to the podcast of this week’s BlogTalkRadio/Lykken on Lending with Dave Lykken and MBSQuoteline’s Joe Farr :

Listen to internet radio with David Lykken on Blog Talk Radio

MBSQuoteline supplies the essential market information necessary for effective decision making by Originators when assisting borrowers during the loan origination process, and for secondary marketing departments while managing pipelines. For additional information or to sign up for a free 2-week trial subscription, visit www.MBSQuoteline.com or call (800) 627-1107.

Tune in every Monday at 1:00pm(et)  for up-to-the-minute information on interest rates, loan programs and “hot” industry news related to the mortgage industry. Dial: (646) 716-4972 or log in at: www.blogtalkradio.com/lykken-on-lending

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BlogTalkRadio Podcast – May 3, 2010

Wednesday, May 5th, 2010

“Skin in the game.”  Most mortgage bankers, especially those who have experienced a loan buyback, feel like they have some.  If Senate bill S3217, Restoring American Financial Stability Act, is passed in its current form mortgage bankers will learn what “skin in the game” means to the current Administration.  This bill calls for mortgage bankers to retain the risk on 5% of the loans they originate.  The language in the bill is not clear, but some have suggested that retaining risk means funding a reserve with cash.  Lets do some math.  If a mortgage company is really efficient, it might earn 1% on the loans it originates and sells.  If they are required to hold 5% as a risk reserve, it will not take long for mortgage bankers to originate themselves into bankruptcy.  Who would participate in this business?

Glen Corso, Managing Director of Community Mortgage Banking Project, joined the show today to discuss his efforts to lobby the Senate to add an amendment to the “skin in the game” provision of S3217.  The amendment would exclude “well underwritten” loans from the risk retention requirement.  Think Ginnie, Fannie, or Freddie loans.  They cannot be defined that way because we may not have a Fannie or a Freddie loan much longer.  Under Glen’s amendment loans that are fully documented, supported by an appraisal, reasonable ratios, no negative amortization, limits on ARM adjustments, etc. would be excluded from this risk retention requirement.

Glen reported that a couple of studies, one by the Mortgage Bankers Association and the other by Chase, estimated that the consequences of this provision of S3217 passing in its current form would be the loss of 50,000 mortgage banking jobs and mortgage rates rising by 300 basis points.  Are either of these acceptable? To anybody?   Even Congressmen out to punish the mortgage industry cannot see these as acceptable.

Debate on S3217 will likely continue for a couple more weeks.  Now is the time for anyone interested in seeing a vibrant mortgage industry to contact their Senators to let them know that the “skin in the game” provision in S3217 needs to be amended.  Consumers need mortgage rates to stay low and they need the mortgage bankers to assist them through the home buying process.

Click PLAY to listen to the podcast of this week’s BlogTalkRadio/Lykken on Lending with Dave Lykken and MBSQuoteline’s Joe Farr :

MBSQuoteline supplies the essential market information necessary for effective decision making by Originators when assisting borrowers during the loan origination process, and for secondary marketing departments while managing pipelines. For additional information or to sign up for a free 2-week trial subscription, visit www.MBSQuoteline.com or call 800-627-1107.

Tune in every Monday at 1:00pm(et)  for up-to-the-minute information on interest rates, loan programs and “hot” industry news related to the mortgage industry. Dial: (646) 716-4972 or log in at: www.blogtalkradio.com/lykken-on-lending

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BlogTalkRadio Podcast – Apr 12, 2010

Thursday, April 22nd, 2010

MBS prices are up nicely this morning, up 9/32nds.  No economic data was released this morning.  The Dow is also up.  It is above 11,000 for the first time in 18 months.

Last week was a great week for the mortgage market.  MBS prices improved about 24/32nds during the week.  Most of the improvement followed a very strong 10 yr Treasury auction.  Strong demand and foreign participation fueled a rally in Treasury prices, which spilled over to MBS prices.  Also kind to MBS prices during the week were the minutes from the 3/16 Fed meeting.  The minutes showed that the Fed was nearly unanimous in their belief that Fed funds rates need to stay very low for an extended time and that inflation was not a concern.   Next week will be full of significant economic announcements.  On Wednesday both CPI and Retail Sales for March will be released and on Thursday Industrial Production will be released.

Glen Corso, Executive Director of the Community Mortgage Banking Project, joined the show to discuss further the need to voice concerns about the 5% risk retention provisions in the current Financial Reform bill before the Senate.  Glen described that passage of the bill with this provision in its current form will be detrimental to community mortgage bankers and their customers.  Glen proposed a revision to the bill to exempt from the retention provisions soundly underwritten loans.  The Bill is expected to be voted on by the full Senate in late April and Glen encouraged all the listeners to contact their Senators.

Andy Schell, a CPA and a CMB, joined the show to discuss the importance of quality loan level accounting systems and reports.  Too many mortgage bankers have no way of knowing which of their loans make them money and which cost them money.

Click PLAY to listen to the podcast of this week’s BlogTalkRadio/Lykken on Lending with Dave Lykken and MBSQuoteline’s Joe Farr :

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