June 25th, 2012

Super-Sized Loans, Part I: The Fall

Posted by at 12:56 pm

The Greek philosopher Aristotle is generally credited with saying, “Nature abhors a vacuum.” Well, I’ve got news for Ari: So does the mortgage industry. That horror vacui was the seed of the mortgage and housing meltdown we have been dealing with for the past five years. The precipitous decline of the mortgage market resulted in the demise of more than 400 major banks and lenders between 2007 and 2009. The fallout fouled many areas of the surviving mortgage industry, not the least of which was the appetite of retail and secondary investors for non-agency loan programs. Case in point: The jumbo loan or any mortgage loan securitized by institutions other than Fannie Mae, Freddie Mac or Ginnie Mae, because the amount of the loan exceeds the conforming loan limit set by Federal Housing Finance Agency (FHFA). Such loans are not eligible to...
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June 4th, 2012

Ask Our President: Near Term Forecast for the Industry

Posted by at 10:56 am

Over the next two years, what do you think will be the greatest opportunities in the field of mortgage origination? I think we will see continued consolidation in the industry. It’s getting tougher to operate as a mortgage business, due in large part to the regulatory environment that has been created. And while it has been tough, it has increased the professionalism of the mortgage loan originator. There aren’t many part-time originators left, as now, loan originators have to be licensed through the Nationwide Mortgage Licensing System (NMLS), obtain education credits, etc. What is left is a population of MLOs who are good at what they do and can increase their market share. There are a number of different ways to originate loans. We are focused on the purchase market. We want to be known as a dependable and reliable...
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