Blog Talk Radio Show October 3, 2011: Dire Predictions

2017-12-20T17:34:14+00:00 October 6th, 2011|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , |

Toni Moss, the President of AmeriCatalyst and EuroCatalyst, joined the Lykken on Lending radio show on Monday to provide her thoughts on the world economy.  Toni’s experience and knowledge makes her opinions worth listening to.  She has access to the finance ministers of most of the European nations, as well as in the US.  Toni’s assessment of the world economy is that major changes are ahead.  And they are not positive changes.  She believes that a global economic collapse is underway and default by Greece on its sovereign debt, which she believes is imminent, will be the first of many dominoes to fall.   Money and the power that goes with it is leaving the western nations, including the US,  and moving east.  She believes globalization has neutralized the effect sovereign entities have over monetary policy and that we are headed to the end of the fiat currency system (money backed by governments, not a physical commodity).  She expects all this to be well underway in 2012.  Wow! Toni paints a dire picture of our economic future.  Her opinions are certainly due thoughtful consideration.  I am not sure I know what you can do with the information.  If what she expects [...]

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

2017-12-20T17:34:14+00:00 September 27th, 2011|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , |

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.  [...]

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

2017-12-20T17:34:14+00:00 September 20th, 2011|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , |

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 [...]

Blog Talk Radio Show September 12, 2011: Obama Refi Plan

2017-12-20T17:34:15+00:00 September 14th, 2011|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , |

Last Thursday evening in a speech before Congress President Obama announced, among other job creating ideas, a plan to make it easier for millions of people to refinance  their loans.  He provided no details.  Since then other Administration officials have discussed the benefits of such a plan, but still with no details.  Believe me, the devil is in the details.  A massive refinance program could occur with just a few guideline changes by Fannie and Freddie.  It would apply to only those loans already owned or guaranteed by Fannie or Freddie, but that is a lot of loans.  Fannie and Freddie could eliminate LTV as a consideration.  They could ignore debt to income limits.  They could make it very easy.  But they would need to waive the originator reps and warrants.  Who would refinance a loan to earn a point or so, if they could be on the hook for a loan with a 175% LTV?  The refi plan could go in a different direction.  The Agencies could decide they will just modify their owned or guaranteed loans, leaving mortgage originators out of the process.   I expect a formal plan will be put forth soon.  It makes too much sense [...]

Blog Talk Radio Show August 29, 2011: Distress Servicing Conference

2017-12-20T17:34:15+00:00 August 30th, 2011|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , , |

This week’s Lykken on Lending show discussed developments in the servicing of delinquent/distressed mortgages.    Ed Delgado, CEO of the Five Star Institute was the guest speaker.  The Five Star Institute holds conferences around the country specializing in Servicing Distress Loans.  Their next conference will be in Dallas from September 11th through the 13th .  With so many delinquent loans currently outstanding and so many loans in foreclosure or already ready foreclosed, sharing servicer successes and failures in this area is very important.  This conference will be a great place to do this.  More than 3000 are expected to attend. 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 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: [...]

Blog Talk Radio Show Summary July 18, 2011: Future of Mortgage Banking (Part III); CFPB Update

2017-12-20T17:34:15+00:00 July 19th, 2011|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , |

The Consumer Financial Protection Bureau (CFPB) was the topic of discussion this week on Lykken on Lending.  The CFPB is set to start business on Thursday of this week.  It will do so without a Director, as President Obama has just announced his choice.  The name Richard Cordray will likely be sent to the Senate for confirmation.  His confirmation is not assured.  But in defense of Mr. Cordray, confirmation of any one is unlikely without significant efforts by Republicans in the Senate to alter certain aspects of the CFPB.  As was established in the Dodd-Frank Act, the CFPB is to be headed by a Director.  The Republicans would like to change that to a five person commission.  Also, as set forth in the Dodd-Frank Act, the CFPB receives its funding from the Federal Reserve System rather than from Congress.  Senate Republicans want to see the CFPB funded by Congress so as to make the CFPB more accountable.  The CFPB will be a very powerful regulator and as such both these Republican demands have substantial merit.  Lets hope the President does not circumvent the nomination debate by making the CFPB Director appointment during the August recess. Click PLAY to listen to [...]

Blog Talk Radio Show Summary July 11, 2011: Future of Mortgage Banking (Part II)

2017-12-20T17:34:15+00:00 July 12th, 2011|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , |

Lykken on Lending is hosting a series of blog talk radio shows about the future of mortgage banking.   This week’s show was focused on the future of the secondary mortgage market.  Will it be different?  Will the mortgage-backed security structure survive?  Will the 30 year fixed rate mortgage remain an option for borrowers?  Dr. Michael Lea, of the Center for Real Estate at San Diego State University, joined the show today to give his opinions on the US secondary mortgage market and compared the US market to what works in overseas mortgage markets.  According to Dr. Lea, among his other comments and opinions, the 30 year fixed rate mortgage is at risk (at least it will not be the predominant instrument), the industry needs a better balance of outlets (90% government guaranteed MBS is too much of one thing), the mortgage-backed security as a vehicle will survive but needs some tweaking (like skin in the game), and covered bonds have significant hurdles to overcome before they will be widely available in the US.  He also thought borrowing rates will rise as the secondary market prices in the full cost of the risk, but he thinks the increased yields on private [...]

Blog Talk Radio Show Summary January 24, 2011: Increasing Net Worth Requirements

2017-12-20T17:34:15+00:00 January 31st, 2011|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , |

You are an investor and you have money to invest.  Do you invest it in the mortgage industry?  Those of us who have been here and who have been beat up over the last few years would probably think twice about doing so.  We might think about all the rule changes and all the regulations and all the buy backs.  We might convince ourselves this is not the right place to invest our money.  But there is a lot of money out there that thinks the mortgage industry is a good place to be invested.  Let's consider some of the positives that they see.  Margins are high, competition is shrinking, good service is rewarded, loan quality has never been better, and collateral values will unlikely fall further.  Increasing net worth requirements over the coming months will drive even more competitors from the industry.  Those who are left in the industry will be worthy competitors, but they will be honest competitors.  As many independent mortgage bankers realize the need to raise new capital they will begin to talk to the investment and will consider giving away substantial percentages of their company to raise the capital.  Before they do so, they might [...]

Blog Talk Radio Show Summary January 7, 2011: Keep Your Flow Servicing

2017-12-20T17:34:15+00:00 January 11th, 2011|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , |

Michael Lau, EVP of Phoenix Capital, a specialist in evaluating and brokering mortgage servicing rights, joined the LykkenonLending blog-talk-radio show this week to provide his opinions on the status of the mortgage servicing market.  According to Michael, the market for servicer-to-servicer bulk transfers is just about non-existent.  The only portfolios changing hands are done to move servicing of delinquent or distressed loans to special servicers.  Fortunately, the market for servicing on newly originated loans is still active.  There are a number of servicers buying this servicing, but they are paying very little for it.  Michael sees the price paid for flow serving as being between two and four times the service fee.  I remember being paid six to seven times the servicing fee on 2003 and 2004 originations.  How can servicing on loans that may never pay off (4% note rates) be worth only two to four times?  Servicing on today’s loans is worth more.  Now is a good time to consider keeping servicing on new production, if you can.  Hold on to it for three or four years and then sell it.  You need to have cash reserves, experienced people, and quality systems to be a servicer.  If you [...]

Blog Talk Radio Show Summary December 13, 2010: Volatile Mortgage Rates!

2017-12-20T17:34:15+00:00 December 14th, 2010|Categories: BlogTalkRadio Podcasts|

Volatility remains in control of mortgage backed security prices and the related changes in mortgage rates.   Between the time I began preparing for the radio show Monday morning and the time the show started around noon MBS prices had gone from down -12/32nds to up 5/32nds.  This kind of movement has been common lately.  One of the large correspondent lenders issued nine mid-day price changes last week alone.  What is causing this volatility?  As usual, volatility occurs during periods of significant uncertainty.  So what is uncertain now that is causing mortgage rates to move around so much?  The list starts with inflation.  Is the economy growing to the point where inflation is a threat?  Is the high level of inflation in China going to push US inflation higher?  Is Congress going to pass the current tax compromise as agreed to by Obama and the Republicans?  If so, will that be inflationary?  Other questions include, will deficit spending continue at its current pace, resulting in a continually growing supply of Treasury debt, causing all rates to rise?  Will foreign investors continue to buy our debt?  Will the Fed cut its quantitative easing program short or will they extend it?  There is [...]

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