Scotsman Guide - December 2009 Residential Edition

i received a lot of apologies at the mortgage bankers association (mba)
annual conference in october.

And no, no one stepped or spilled on me. I don’t believe anyone was even late for a meeting.

The “sorries” and “I really hate to do this, buts” instead prefaced attendees’ thoughts on mortgage brokers and the wholesale channel. Example: “No offense, but third-party originators? They’re certainly not in a good spot right now.”

Don’t get me wrong — I’m all for sensitivity. But at times, this tiptoe around hurting a broker’s feelings felt a little unnecessary. For one, I’m a magazine editor — which I guess does warrant its own pity party, for other reasons. And on a larger level, gloom-and-doom forecasts for third-party originators are less than a surprise. They’re almost expected.

I get these folks’ caution, though. I’ve felt it myself — most notably, upon my first read of David Olson’s article on Page 20 of this month’s Scotsman Guide. Was the Access Research president too negative in his analysis of the wholesale channel? Would it really take 10 years for brokers to recover their industry position? And who really stays in one job for 10 years anymore?

I shopped the article around the office for feedback. I got shrugs. The general sentiment:

“Seems like it’s accurately summarizing the situation. Shouldn’t alarm anyone.”

I don’t think we were being cynical. We’re certainly neither cheering on a broker apocalypse nor adopting a passive resistance to it. We’re stating the facts. Because the fact is, there’s more to the story.

I’m thinking back to one MBA conversation in particular. Early in the evening, at a table generally shielded from the hotel-bar cabal that only trade shows can spawn, I heard the requisite broker-related apology, followed by references to dry wells, horizon expansion and toolkit makeovers.

But then one of my tablemates turned to another and asked: Who closed your family’s last home loan?

“My broker.”

Who would you call to refi?

“Well, my broker.”

And where would you go for a quick, straight answer and the most-attractive rates?

“Well, my mortgage broker has never let me down before.”

Likely, that broker will have that chance again.

tonys@scotsmanguide.com

NEXT;MONTH

… in January’s Scotsman Guide

• Our call for Top Originators 2009 submissions ( scotsmanguide.com/ TOlist)

• Short sales vs. loan mods: Which are more lucrative?

• Q& A with FHA’s David H. Stevens

• Spotlight switches to a statewide view

• New ways to market yourself in 2010

… and much more.

Online? Check out current and past editions of Scotsman Guide at scotsmanguide.com.

TIP;OF;THE;MONTH

Envision a divine process

You should regard the loans you

facilitate or originate not just as

money loaned for the purchase

of bricks and mortar. Rather, con-

sider them seeds planted in a

divine, co-creative process that al-

lows buyers to take one more leap

toward manifesting the lives they

hold in mind.

—;VALLERI;CRABTREE,

UNIVERSE;RESPONDING;RESOURCES;INC.

In the Past Month

NEWS;FROM;THE;INDUSTRY;AND;ABROAD

The recession is over — at least
according to economic-growth report

WASHINGTON, D.C. — The U.S. Department of Commerce said the economy grew 3. 5 percent in the third quarter of this year, the first gain since the second quarter of 2008.

Forecasters had predicted growth of about 3.2 percent in the quarter ending Sept. 30, driven largely by federal stimulus spending and increased business investment. The Los Angeles Times reported that the economy had contracted for four consecutive quarters. But growth in the most recent quarter suggests the worst recession since the Great Depression has passed, economists said.

Forecasters expect weak growth in the next t wo quarters and no substantial improvement in hiring until mid-2010, the Times reported.

next release:

Gross domestic product: dec. 22

Pending, existing-home sales continue
rise while new-home sales drop

WASHINGTON, D.C. — In September, pending home sales increased for the eighth-straight month, and existing-home sales jumped for the fifth time in six months, according to the National Association of Realtors. Meanwhile, new-home sales dropped 3. 6 percent in September, heading in the opposite direction of expectations, the U. S. Commerce Department said.

Pending home sales, representing contracts signed for home purchases, increased 6.1 percent in September, with the index reaching 110.1 — its strongest reading since December 2006.

The existing-home-sales figures were the highest since July 2007.

But new-home sales went the other way, dropping to 402,000 — 7. 8 percent less than in September 2008. These sales had increased 9. 6 percent in July and fell flat in August.

next release:

Pending home sales: dec. 1

Existing-home sales: dec. 22

New-home sales: dec. 23

Fannie and Freddie refi volume
falls between August and September

The Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac loan refinances dropped from 358,689 in August to 262,037 this past September.

Refi volume has been decreasing each month since this past June, according to the FHFA.

Refinances through the Making Home Affordable Refinance Program also decreased from 32,142 to 23,503 month to month.

Between January and September, Fannie and Freddie’s refinance volume is 3.52 million loans.

next release:

Fannie Mae and Freddie Mac Refinance Volumes: dec. 2

Congressional panel seeks records
from larger lenders in investigation

WASHING TON, D.C. — A Congressional panel has opened an investigation into U.S. mortgage lenders to explore their roles in the financial crisis and possible influence-peddling.

The House Oversight and Government Reform Committee is seeking information from a variety of lenders, including Country wide. One point of focus is Country wide’s VIP program, The Hill newspaper reported on Oct. 23. The panel plans to subpoena records on the program, which has written mortgages for members of Congress, including Rep. Edolphus Towns (D-N. Y.), committee chairman.