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 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 November 29, 2010: Loan Officer Compensation

2017-12-20T17:34:15+00:00 December 3rd, 2010|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , |

Loan officer compensation rules will change fairly significantly beginning April 1st of next year, a mere four months away, and very few companies have released their new originator compensation plans.  On the Lykken on Lending show today there was a round table discussion about what is known to date and what are we hearing companies are considering.  The plans being discussed range from very complicated to very simple.  One recommendation coming from the show hosts is to “keep your plans simple.  Change is always difficult and the less complicated the change, the easier it will be for originators to understand how it will affect them.  Another recommendation is to back test the plans as though they were in place over the last quarter or so.  The benefits of this will be to ensure the plan is not too expensive for the company and will this help the company show that the consequences of the plan will not significantly impact the originators’ overall compensation.  A third recommendation is to approach the changes with the right attitude.  The changes are coming.  They do not have to be life altering changes. Click PLAY to listen to the podcast of this week’s BlogTalkRadio/Lykken on Lendingwith [...]

Blog Talk Radio Show Summary September 27, 2010: Loan Officer Compensation

2017-12-20T17:34:15+00:00 September 28th, 2010|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , |

The new rules which beginning April 1, 2011 will govern how loan originators (LO or LOs) are to be paid have been the topic of much discussion lately.  There seems to be as many opinions as there are people and there are as many unanswered questions as there are answers.  To try to help bring clarity to the situation and to try to address what is known, Tony Musgrave, mortgage industry veteran and practicing lawyer, joined the show today.  Tony’s general advice on this issue is to accept that change is coming and to begin to prepare for it.  He said that when considering the new rules, first consider where they came from.  The new rules are a result of political and public perception that the old compensation rules incented LOs to take advantage of borrowers and to put them in loan products and at loan rates which were advantageous for the originator, but not necessarily for the borrower.  Tony’s advice is to interpret the new rules with this perception as the basis for your new policies. What is known is that a loan originator cannot be paid an amount that differs based on the terms of the loans he [...]

Blog Talk Radio Show Summary August 23, 2010: Winning Strategies for Mortgage/Real Estate Teams

2017-12-20T17:34:15+00:00 August 30th, 2010|Categories: BlogTalkRadio Podcasts, Uncategorized|Tags: , , , , , , , , , , , |

Tom Ninness, VP at Cherry Creek Mortgage, joined the show today to discuss Cherry Creek’s success in the Denver area at dominating the mortgage market.  He did not know their percentage market share, but he did know that Cherry Creek was by far the biggest mortgage lender in the area.  He explained that their success stems from a focus on the real estate agent.  They do not chase the refinance opportunity.  They focus on repeat business from Realtors and past home buyers.  The Realtor focus includes providing brown bag lunches where the Realtors can learn about the latest changes in underwriting guidelines or where they can get CPE credit.  They created websites where the Realtors can advertise their open houses.  In fact, over the National Open House weekend, Tom and his team advertised over 100 open houses in the Denver area for their Realtor contacts.  This seems simple and basic, but it works.  Try it. 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 [...]

BlogTalkRadio Summary July 16, 2020: Loan Officer Compensation (Dodd-Frank Act)

2017-12-20T17:34:16+00:00 July 21st, 2010|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , , |

Loan officer compensation has received much attention during the last few months as Congress found it necessary to limit how Loan Officers earn commissions. As part of the Dodd-Frank Act loan officer commissions will be limited to a percentage of the loan amount, with the potential for a bonus based on the number of loans closed.  Commissions can no longer vary based on the terms of the loan.  The provisions of the Dodd-Frank Act will not become effective for 18 to 24 months, until various regulatory agencies have produced further guidance. Overtime for Loan Originators is also a hot topic and is an issue right now.  Early this year the Department of Labor reversed a prior ruling which allowed Loan Officers to be exempt from overtime pay.  The new ruling makes it  much more likely that Companies will need to pay Loan Originators overtime.  Outside sales people are exempt from overtime.  Inside sales people are not.  A Company must establish policies to support whether their LOs are inside or outside sales people and must maintain records to support the designation.  Time worked must also be measured so hours greater than 40 will be known and overtime paid to those not [...]

BlogTalkRadio Summary July 12, 2010: Q&A on Mortgage Issues in DFA (Dodd-Frank Act)

2017-12-20T17:34:16+00:00 July 14th, 2010|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , , , , , , , , , , |

Glen Corso, Executive Director of  The Community Mortgage Banking Project, joined the BlogTalkRadio/Lykken on Lending show again today and was kind enough to answer a series of questions from the hosts about the content of the Dodd-Frank Act (DFA).  Glen has lobbied on behalf of the industry as this bill progressed through the legislative process.  The DFA is expected to pass the Senate soon and will then be signed by the President.  It has several provisions which, when implemented, will have a significant impact on the mortgage industry.  Its implementation is many months down the road, but its content needs to be understood to the extent possible.  Many of the provisions in the DFA will not be fully understood until regulators have finalized the Bill’s implementation rules. Click on the attachment to read through an extensive Q & A on these topics. 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 [...]

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 [...]

Load More Posts