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 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 November 15, 2010: What has Gone Wrong?

2017-12-20T17:34:15+00:00 November 18th, 2010|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , , , , , , |

Mortgage rates have moved higher (mortgage security prices have moved lower) and strangely enough QE2 deserves much of the blame.  The Fed intended for the opposite to happen.  As they purchase their $600 billion in long-term Treasury securities, the Fed expected the added demand would drive prices higher and rates lower, not only for Treasury securities, but for mortgage backed securities as well.  Things have not happened as planned.  The Fed began their Treasury purchases on Friday and  MBS prices fell 27/32nds.  The Fed continued their Treasury purchases today and MBS prices are down another 16/32nds.  So what has gone wrong? Some of the issue is that MBS prices rose considerably in the weeks preceding the Fed’s announcement that they were going to buy $600 billion of Treasury securities.  The much anticipated announcement had already accomplished much of the expected end result before it even started.  After the announcement, sentiment toward the benefits from the plan shifted.  Investors worldwide began to doubt the Fed’s ability to control rising inflation when it begins.  Foreign investors recalculated their required returns after seeing the value of the dollar fall to recent lows.  Political power in the US shifted from the Democrats to the [...]

Blog Talk Radio Show Summary September 13, 2010: Business Strategies through the New Year

2017-12-20T19:52:06+00:00 September 28th, 2010|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , , , , , , |

Having a strategy and a plan to implement that strategy is always important.  For the mortgage industry, it is  even more important now as the consequences from regulatory changes are likely to change the origination landscape significantly.  Implementing the regulatory changes will take considerable effort in retooling systems, training staff, and monitoring for compliance.  All this will come with a price tag.  Some companies will choose to get out before the changes are to be implemented.  Others will choose to join firms that have the resources to implement the changes.  Some firms will implement policies and controls based on the strictest, most conservative interpretation of the new regulations, and others will take a more common sense approach.  All this is said to support the argument that over the next year or so we will see considerable movement within the industry.  Firms with capital, systems and support in place will be well-positioned to benefit from the movement. So if your strategy is to profitably grow your origination business in a compliant manner, you should have a tremendous opportunity in the coming months.  Your plan should include building capital to pay for the cost of change and to support larger volumes, employing systems [...]

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 [...]