Thu, Mar 4 2010, 12:07 PM
Those of you who aren’t commercial bankers might ask what the heck is the loans-to-deposit ratio?. Essentially, it’s this: (1) You have $100 in depos...
Wed, Mar 3 2010, 11:15 AM
Over the last year, we’ve seen many loan officers and mortgage brokers desiring to bolt onto a strong regional mortgage bank. Many mortgage brokers a...
Mon, Mar 1 2010, 2:23 PM
We were Compass Analytics users for years back when it was called Tuttle & Co. They were a great hedging advisor then, it may be even better today. O...
Thu, Feb 25 2010, 4:46 PM
The key is to not be an average performer in the mortgage banking space. As an average performer, the risk verses reward is slanted more toward the ri...
Wed, Feb 24 2010, 2:59 PM
Will the mortgage broker ever go away? We know some smart people who’ve started up broker shops recently, and we think they’ll find good niches where...
Tue, Feb 23 2010, 2:28 PM
There’s several sources of gain on sale leakage that result in a reduction of revenues. The key is to monitor each loan to ensure there is little or ...
Mon, Feb 22 2010, 1:35 PM
It’s well into February. Do you have a 2010 budget which allows you to compare actual performance versus budget performance? We’ll flat out tell you...
Fri, Feb 19 2010, 11:46 AM
It is important to have a map or GPS when taking a trip. Without guidance, the journey may take much longer and travel costs could unexpectedly grow....
Thu, Feb 18 2010, 4:51 PM
Profiling is not a lawful practice, but certain types of profiling may be a useful tool when recruiting and hiring employees for a company. Let’s be ...
Wed, Feb 17 2010, 1:42 PM
Economic forecasting can be both art and science. Reviewing accurate data and reading/listening to legitimate commentary can be valuable in preparing...
Tue, Feb 16 2010, 1:56 PM
Out of Business Mortgage Insurers; Hedging with TBA MBS; Ideas to Help Create Job Growth; Reasons to Buy a Bank
Fri, Feb 12 2010, 12:10 PM
We have become pioneers regardless if we want to be one or not. We will have to adapt, adjust and expect the unexpected to survive and thrive. Do yo...
Thu, Feb 11 2010, 5:19 PM
Troubled Banks and Construction Loans; More on the Cose of Loan Repurchases; The Size and Scope of NYC
Wed, Feb 10 2010, 2:01 PM
If you’ve worked in the secondary market area or been around someone who manages interest rate risk for a mortgage banker, you may have heard some str...
Tue, Feb 9 2010, 1:26 PM
Cost of a Loan Repurchase; Budget Deficit; Financial Sector Peformance; MBA Headquarters; ResCap Earnings
The story about the Mortgage Bankers offi...
Mon, Feb 8 2010, 3:54 PM
In the past year, we’ve still seen a few companies allow their loan officers to lock directly with investors. Investors today allow their corresponde...
Fri, Feb 5 2010, 9:56 AM
FDIC Doing "A LOT" of Hiring; Less Loan Production in 2010; Neighborhood Watch Scorecard; California Tax Exempt Bonds; FY2011 Budget
Thu, Feb 4 2010, 11:03 AM
We find time and time again see owners of company, managers of departments and individual loan officers neglecting to measure the performance of their...
Wed, Feb 3 2010, 11:13 AM
We’ve helped many companies identify their trailing risk and develop a strategy to attend to the resulting losses. We agree with Wayne Gretzky that a...
Tue, Feb 2 2010, 12:23 PM
Lots of mortgage bankers talk about buying a bank, but aside from this writer, very few have ever done it. So a huge round of applause to Rob Hirt, ...
Mon, Feb 1 2010, 11:11 AM
Comedian George Carlin had a colorful career winning five Grammy Awards. He was known for his black humor as well as thoughts on politics, the Englis...
Fri, Jan 29 2010, 4:30 PM
If you’re highly dependent on refinances, do you have an exit strategy? What are your plans for what you’ll do when rates go up 100-200 bps and refina...
Fri, Jan 29 2010, 4:05 PM
Consumer complaints about debt-assistance companies have spawned tougher new laws designed to crack down on scam artists. In many states, these new la...
Thu, Jan 28 2010, 2:25 PM
We are seeing more and more CEOs looking for accurate and concise information about their companies to help detect positive and negative trends. Rath...
Wed, Jan 27 2010, 2:14 PM
Eliminating Fannie Mae and Freddie Mac; Overaggressive Bank Examiners; Rewriting California's Constitution
Tue, Jan 26 2010, 11:19 AM
Our last post discussed the options mortgage banking operators face with increasing capital requirements. Options three and four looked at partnering...
Mon, Jan 25 2010, 10:59 AM
Garrett Watts Report Newsletter: January 25, 2010: Sloppy Loan Origination; Warehouse Lending Update; TBW Timing; Failed TARP Repayment; Economic Free...
Fri, Jan 22 2010, 12:50 PM
The foreclosure timeline can take anywhere from 6 months to 1 year depending on the bank and the county. A few steps must take place throughout the f...
Fri, Jan 22 2010, 11:03 AM
The changes in net worth requirements of FNMA and the 3-year staged increase in net worth of HUD are creating a dilemma for many small mortgage banker...
Fri, Jan 22 2010, 1:04 PM
Our analysis shows that there are still a substantial number of mortgages at risk of distress or foreclosure. One particularly troubling area concern...
Wed, Jan 20 2010, 5:22 PM
Warehouse lenders are critical for mortgage bankers. It’s hard to function as a mortgage bank without one. Having a relationship with more than one ...
Tue, Jan 19 2010, 2:06 PM
As I’ve watched the news on Haiti, I was trying to bring some perspective into the recent economic damage we all experienced from the mortgage meltdow...
Tue, Jan 19 2010, 1:54 PM
Originator Commission Splits and Salaries; Subprime Loan Delinquencies; Acquiring a Bank; Revenue Leakage
Fri, Jan 15 2010, 4:11 PM
If you are mortgage banker or broker that survived the last several years, you’re probably feeling pretty good after 2009. Last year will stand out a...
Thu, Jan 14 2010, 3:20 PM
As a top producing loan officer, I would want to work for a company that had this type of reward system in place that would help me generate higher co...
Wed, Jan 13 2010, 3:24 PM
Most mortgage bankers don’t want to talk about or deal with investor loan repurchase requests, but they are not going to miraculously disappear throug...
Tue, Jan 12 2010, 2:00 PM
Many mortgage banking CEOs are past production people that believe a company’s success is based on growing production. Production is part of the equa...
Tue, Jan 12 2010, 1:59 PM
Top Mortgage Servicers; Should Lenders Be Worried; Failed Bank Update; The Dornbusch Law; Keeping GMAC Alive
Mon, Jan 11 2010, 3:33 PM
Gain on Sale revenue leakage and wine leakage from barrels is not good for either business. Any leakage is a waste and reduces the opportunity to mak...
Mon, Jan 11 2010, 1:44 PM
Banks currently have a low cost of funds, but only a handful of low risk/high return investment options (borrow short and lend long) with which to put...
Mon, Jan 11 2010, 1:33 PM
We’ve come a long way, but it still takes up to 30 days to get a loan funded after the loan application is taken by the loan officer. It’s interestin...
Mon, Jan 11 2010, 1:33 PM
We’ve seen state regulators impose six figure fines on companies for violation of state regulations. And the repurchase of one loan and corresponding...
Mon, Jan 11 2010, 1:33 PM
One of the major job responsibilities of a branch manager is to locate and hire loan officers. Recruiting is not easy and it takes time to find, recr...
Mon, Jan 11 2010, 1:33 PM
I had a meeting last week with another mortgage banker that is wrestling with the decision to stick it out on his own, partner with a stronger better ...
Mon, Jan 11 2010, 1:32 PM
Barriers of entry are increasing and will push out many players. Capital and a solid balance sheet are going to be paramount to compete as a mortgage...
Mon, Jan 11 2010, 1:32 PM
In short, CDS are a type of insurance policy that protects bond holders in the event of a default. Let’s look at a simple example of the use of a CDS...
Mon, Jan 11 2010, 1:32 PM
Several years ago, at the beginning of the subprime meltdown, I had the opportunity to audit a large national subprime company. I was hired by their ...
Mon, Jan 11 2010, 1:32 PM
Early this year I attended a loan production seminar in Lake Tahoe sponsored by C.O.R.E. Both loan officers and production managers were present at t...
Mon, Jan 11 2010, 1:31 PM
Our focus on Loss Mitigation is the process mortgage bankers have developed to manage issues such as early payment defaults (EPDs), repurchase request...
Mon, Jan 11 2010, 1:31 PM
The quality of senior management drives the entire performance of a firm. A typical mid-sized mortgage company will be organized with a CEO and a CFO...
