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 [...]

Blog Talk Radio Show Summary August 30, 2010: The Changing Face of Real Estate

2017-12-20T17:34:15+00:00 September 9th, 2010|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , |

This week’s guest on Lykken on Lending was John Tuccillo, noted economist and former Chief Economist for the National Association of Realtors.  John provided his opinions on the state of the economy and housing.  According to John, the chance of not having a double dip recession is greater than the chance of having one, but the difference in the likelihood has diminished over the last couple of months.  John expects economic growth to remain slow though 2011, growing at an annual rate of 1.5% to 2.5%.   Regarding housing, John looks to job creation as the driver to improve the housing market.  Without it, nothing the government or the Fed does will create sustained improvement.  This year’s home buyers tax credit was certainly helpful to stimulate activity at a time when we needed the activity, but we are seeing that it merely brought forward activity which most likely would have occurred naturally.  The housing market will come back, but will come back on a regional basis.  John said the real estate market should be viewed on a regional basis, not a national basis.  Some markets like San Francisco, which rose to unaffordable levels, will likely take a good bit longer to [...]

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 [...]

In The News: New vs Existing Home Sales in May

2017-12-20T19:02:43+00:00 June 24th, 2010|Categories: In The News|Tags: , , , , , , |

While yesterday's May Existing Home Sales report showed a small 2% decline from April, it was nothing like the shocking 33% drop in the May New Home Sales report released today. There's an important difference in how the two reports are measured, though, which was a major factor due to the end of the home buyer tax credit on April 30. Also worth noting is that New Home Sales represent about 10% of total sales versus 90% for Existing Home Sales, so the New Home Sales data is typically more volatile simply because it is a smaller data pool. Existing Home Sales are reported by the National Association of Realtors (NAR) and represent transaction closings. New Home Sales are a government report issued by the U.S. Department of Commerce and are based on contract signings. Usually this is not a significant distinction, but the qualifications for the home buyer tax credit affected each report to a very different degree in May. To qualify for the tax credit, a home buyer had to sign a contract by April 30 and close by June 30 (although the "close-by" deadline may be extended by Congress). The tax credit pulled forward sales that otherwise [...]

In the News: March Pending Home Sales

2017-12-20T17:34:18+00:00 May 7th, 2010|Categories: In The News|Tags: , , , , , , |

March Pending Home Sales increased 5.3% from February, and were 21% higher than one year ago at this time. The Pending Home Sales index, which measure sales of existing homes based on contracts which have been signed but not yet closed, is a leading indicator for the housing sector. The index provides guidance for future Existing Home Sales reports. The chief economist of the National Association of Realtors (NAR) suggested that the home buyer tax credit has helped "stabilize the market". Contracts had to be signed by the end of April to qualify for the tax credit, so many buyers rushed to take advantage before the deadline. As a result, the NAR chief economist expects "measurably lower sales" in May. The growth in housing sector activity will then depend largely on the performance of the economy and the labor market. The housing sector may also benefit from increased availability of jumbo mortgages and other forms of credit from non-governmental sources.

BlogTalkRadio Podcast – Apr 5, 2010

2017-12-20T17:34:19+00:00 April 22nd, 2010|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , , , , , , , , , , , , |

MBS prices are lower this morning after a stronger than expected ISM Services Index was announced at 8:30 a.m. et and then at 10:00 a.m. et a much better than expected Pending Home Sales number was released.  This followed a week last week that saw MBS prices fall by about 1%.  Last week included the end of the Fed’s MBS purchase program, but the end of the program cannot be the sole blame for the drop in MBS prices.  Treasury prices fell as well and stocks improved.  Generally, the economic announcements during the week, including the Nonfarm Payrolls, were better than expected increasing the need to build in yield to cover longer term inflation.  The spread in yields for 10 yr Treasuries versus mortgage-backed securities did widen but only by 15 to 20 basis points. The focus of the mortgage industry regarding pending legislative and regulatory issues is now placed squarely on the Senate Finance Committee’s passage of the Restoring American Financial Stability Act.  This Act contains many provisions which if passed will impact mortgage companies, but possibly none as significantly as a provision which will require mortgage originators and/or security issuers to retain 5% of the risk of the [...]