Blog Talk Radio Show Summary August 16, 2010: Online Mortgage Industry Resource

2017-12-20T17:34:16+00:00 August 20th, 2010|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , |

Lykken-on-Lending (LoL) has partnered with HousingMatrix, an online resource of information for the housing industry.  HousingMatrix now hosts the  LoL  library of the most recent recorded program as well as all prior programs.  HousingMatrix is a site you should explore if you have not been there before.  If the information you seek has to do with housing, you will find it at HousingMatrix. Mortgage rates have continued their move lower this week, reaching a new low this morning.  Last Tuesday’s Fed announcement helped push mortgage rates lower and then the announcement on Friday that July’s inflation remains very low helped as well.  The Fed announced that they were keeping the Fed Funds rate between .25% and 0% and that they expect to keep it at this very low level for an extended period of time.  This was as expected.  What was a bit of a surprise was that they expressed a concern that the pace of the economic recovery was slowing and they announced a new policy to add a little stimulus to the economy.  The new policy deals with what they will do with the cash the Fed receives from payments on their portfolio of Treasury and mortgage-backed securities.  [...]

BlogTalkRadio Podcast, June 28, 2010

2017-12-20T17:34:16+00:00 June 30th, 2010|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , , , , , , , , , |

Mortgage companies and mortgage originators will be significantly affected by what Congress does in the final Financial Reform bill.  The bill made it through the House and Senate Conference Committee last Friday.   Glen Corso, Executive Director of the Community Mortgage Banking Project, returned to the show today to describe what the bill now looks like.  He focused on the two provision directly affecting the mortgage industry: Risk Retention and Loan Officer Compensation. The current Risk Retention provision actually improved in the conference committee.  There is still a requirement for originators to retain 5% of the risk on the loans they originate and sell.  This would be devastating for the industry, except for the fact they the bill exempts almost all of the loans being made today.  The bill says that the requirement to retain risk does not apply to government guaranteed loans (FHA, VA, and USDA) and all other loans “well underwritten.  Well underwritten loans are loans that are fully documented and have reasonable ratios, are not negative amortization loans or loans with large payment adjustments possible.  Most Fannie and Freddie qualifying loans would meet this definition.  Glen believes the bill will allow an allocation of the retained risk between [...]

BlogTalkRadio Podcast – June 21, 2010

2017-12-20T17:34:16+00:00 June 23rd, 2010|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , , , , , , , , |

Wouldn’t it be nice if Congress would extend the “close-by deadline for those trying to get the Homebuyer Tax Credit?  Sure it would. Wouldn’t it be even nicer if they did it now, June 21st,  before we all break our backs trying to get the thousands of  transactions closed by June 30th?  Any anxiety out there right now? Glen Corso, Executive Director of The Community Mortgage Banking Project and an industry advocate, brought to the BlogTalkRadio show today an up to the minute status report on HR 4213, the bill being considered by the Senate which, if passed, will extend the “close-by deadline to qualify to receive the Homebuyer Tax Credit from June 30th to September 30th.  According to Glen, there is very little controversy on whether or not to extend the deadline. Most are in favor of it.  The rest of the bill, though, includes significant controversy and because of it, might not pass any time soon.  As a result, this is not a time to relax.  Push to close all the purchase loans that you can before the existing June 30th deadline. Glen also provided a shocking update from the House and Senate Conference Committee working on the [...]

BlogTalkRadio Podcast – June 7, 2010

2017-12-20T17:34:16+00:00 June 9th, 2010|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , , , , , , , , , , |

Dave 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 [...]

BlogTalkRadio Podcast – May 24, 2010

2017-12-20T17:34:18+00:00 May 25th, 2010|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , , , , , , , , , , |

Mortgage rates made a nice move lower last week.  In fact, they have moved lower each of the last four weeks, to the lowest level of the year.  Many of us thought mortgage rates would head higher after the Fed stopped buying mortgage-backed securities (MBS) at the end of March.  Mortgage rates did move higher just prior to and just after March 31st,   but new circumstances entered the market in April.   Uncertainty has pushed investors out of riskier assets like stocks (the Dow is well off its recent highs) and into less risky assets like government insured MBS.  Several things are contributing to this uncertainty.  The European debt crisis and a tightening monetary policy in China have made investors very uncertain about future economic growth in the US.   In addition, the passage by the Senate of a financial reform bill has many investors questioning how freely banks will make capital available to US businesses to finance their expansion.  This uncertainty combined with very low inflation rates have made MBS an attractive alternative. Dave Lykken hosted today’s show from the exhibit floor of the MBAs National Secondary Market and Expo.  He reported that the conference was well attended and the [...]

BlogTalkRadio Podcast – May 17, 2010

2017-12-20T17:34:18+00:00 May 20th, 2010|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , |

Senate Bill 3217 Restoring American Financial Stability was the focus of discussion on the show Monday, particularly two recently passed amendments which are of great interest to the mortgage banking industry.  The amendments deal with risk retention and loan officer compensation.  One is good for the industry and the other is not.  Glen Corso, Executive Director of The Community Mortgage Banking Project, joined the show to bring a first hand understanding of the amendments and their status. The amendment that is good for the mortgage industry deals with the risk retention provisions of the original  bill.  The original bill would have required mortgage originators to retain “skin in the game.  It would have required originators to retain 5% of the risk on all the loans they originated and sold to investors.  The amendment exempts from the 5% risk retention requirement certain mortgage loans which meet the definition of Qualified Mortgage Loans.  Since 90% or more of today’s loans will meet the definition of Qualified Mortgage Loan, the amendment significantly reduces the number of loans on which originators will be required to retain risk. The amendment that is not good for the mortgage industry restricts how loan originators are to be [...]

BlogTalkRadio Podcast – Apr 26, 2010

2017-12-20T17:34:18+00:00 April 28th, 2010|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , , |

Mitch Kider, Weiner Brodsky Sidman Kider PC, was back by popular demand. Last week’s topic of paying overtime to loan originators created many questions which Mitch this week tried to answer.  The majority of the questions had to do with (a) what options are available to consider loan originators exempt from overtime; and (b) if they, in fact, cannot be considered exempt, when do they need to begin paying OT and how do they do it. No one liked the answers given.  The recent reversal of opinion by the Department of Labor says that loan originator duties no longer qualify originators as exempt under the administrative exemption.  The outside sales exemption will not apply to most originators as they, too often, work from their office or home office.  Mitch made the case for originators to be considered exempt under the professional exemption.  This will become more and more applicable as the recently implemented  loan officer licensing and certification laws kick in.  Someone in the industry will need to work with the Department of Labor to determine if loan originators then should be exempt under the professional exemption.  If the DOL agrees, we may have the answer we want, loan originators [...]

BlogTalkRadio Podcast – Mar 29, 2010

2017-12-20T17:34:19+00:00 April 22nd, 2010|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , |

MBS prices were volatile last week and fell about half a point during the week.  Most of the push for MBS prices lower came from weak Treasury auctions.  On Wednesday the 5 Yr Treasury Note received lower than usual demand, especially from foreign investors, and the yield required from the bidders was higher than the previous trading range.  The weakness in the Treasury auction spilled over to the MBS market.  The economic data released during the week was mixed with Durable Orders better than expected and the housing data was a little weaker than expected. All of the focus in Congress now that Health Care has passed seems to be with the Restoring American Financial Stability Act of 2010.  This proposed law will have sweeping changes for the mortgage industry, if passed.  It includes the creation of a new regulator for consumer protection, retention of 5% of the risk on loans originated and then sold, and increased HMDA reporting requirements, among other things.  This 1300 page bill seems to be on a fast track. Discussion continued on the risks and benefits of converting a mortgage company’s operations from a best efforts delivery of loans originated to a mandatory delivery.  The [...]

Feb 22, 2010 BlogTalkRadio Podcast

2017-12-20T17:34:19+00:00 March 31st, 2010|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , , , |

Here is the summary and podcast of this week’s BlogTalkRadio/Lykken on Lending with Dave Lykken and MBSQuoteline’s Joe Farr. Mortgage rates rose a little last week due primarily to comments made by one of the Fed Bank Presidents and comments made by Fed members during the 1/27 Fed meeting as reported in the minutes released last Wednesday. These comments referred to some Fed members desire to begin to sell parts of its $1.0 trillion portfolio of mortgage backed securities (MBS) “sooner rather than later. This caught the market by surprise as just the week before Fed Chairman Bernanke provided guidance that selling MBS would not occur any time soon. Mortgage related legislation is virtually at standstill. Both the snow days in Washington and the Republican victory in Massachusetts are the cause for the slowdown. Covered bonds were discussed as a potential method of financing non-agency mortgage loans, primarily jumbo loans. Only large on-balance sheet lenders will be likely issuers of covered bonds. The rules and regulations surrounding covered bond issuance are still being developed, but when done covered bonds may become a useful funding source for US banks much as there are for Canadian and European banks today. MBSQuoteline supplies [...]