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Big Banks Losing Out to Smaller Banks

January 17, 2014 Big Banks, CFPB 31 Comments

Small to mid-sized lenders seem to be doing better than the big banks as the market continues to swing to purchase business.

According to the US Finance Post, big lenders are losing some market share to smaller lenders.  The reason?  Smaller lenders are better at marketing.  Many small to mid-sized lenders allow their originators to market via their social media sites and other on-line mediums.  By doing this, the originators can form a more personal relationship with past and prospective clients.  This seems to be putting a bit of a sting on the bigger institutions.

bigvssmallWith bigger banks “the brand” is the primary focus, and for good reason, they have share holders to worry about.  But the small to mid-sized companies out there are in a position to let their salespeople spread their marketing wings much more.  By doing so, it would appear that the person attached to the brand is more effective when it comes to getting new business.

In other news the CFPB is at it again handing out fines.  A mortgage company has been fined for handing out kickbacks.  The thing about it is that the mortgage company in question was doing something that we believe is very prevalent across the country.  Basically, they were “leasing” a space in an office that could provide them leads at an inflated cost.  This certainly is happening everywhere, maybe even within your own company.  So bottom line – if you’re involved in anything like this, you’ll want to quit quick.  Ol’ Captain Dicky is hunting this stuff down and he my just find you.  If he does, you won’t like it.

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With that have a great weekend!

Frank and Brian

CFPB Knocking Them Down Like Flies

November 17, 2013 Big Banks, CFPB, Litigation 10 Comments

It is amazing what we see in real estate and mortgage lending.  Our clients swing from one end to the other on the social pendulum.  Well there’s a story in here today about an interesting battle that used real estate as a weapon.  We just wonder what those clients mush have been like to work with!

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And in other news, the CFPB continues to bust lenders and other companies for kickbacks.  We’d really like to know what the CFPB does view a legal or Illegal with respect to these types of arrangements.  I mean, IS there a legal way for companies to work together via joint ventures or similar arrangements?  Does the CFPB have a way they can accept or is it all bad, no way, no how with them completely?  If you all have any insights your comments are appreciated below.

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And finally Chase pays through the nose to a bunch of super rich Wall Street investors to the tune of almost $5 Billion.  I don’t know but, I’m thinking these guys were all up in on it and knew exactly what they were getting into.  We’re not so sure this is entirely fair to Chase.  But again, your opinions are what really matter around here, not ours.

So have a terrific day!

Frank & Brain

CoreLogic Releases QM White Paper

CoreLogic has released a white paper on QM to bring better clarity to the new upcoming requirements.

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The ability to repay is the main content of the white paper.  There are 8 things the CFPB is requiring a lender to consider when evaluating the buyers ability to repay.  These 8 things are nothing new guys.  They are the same 8 things we’ve always looked at as an industry when doing full doc loans.  And when you verify these 8 things meet guidelines, you’ve got yourself a pretty good deal on your hands.  Duh.  If someone has good credit, a reasonable DTI, some reserves, good job stability, bla bla bla, there’s pretty good chance that you’ve got a buyer on your hands that got a good chance of repaying the loan.  So why CoreLogic felt the need to do a white paper on the matter is kind of odd to us.

What they should do a white paper on is how a 30% down or participate in risk retention is going to impact the industry along with minorities and low to moderate income families.  Now there’s a dirty little white paper to start writing.  At the end of the day lenders will do whatever has the least amount of risk to them and that would be the new QM/QM-Plus/Safe Harbor Whatchamacallit loan, and that my friends is going to have a huge impact on people who don’t have 20% – 30% down, and that’s a lot of people.

Oh and good news!  They’ve figured out just who’s really responsible for the Countrywide debacle.  It wasn’t $120 Million a year earner Angelo Mozilo who was fined $67 Million and admitted to no wrong-doing.  Nope.  In fact it was an office manager in charge of one of Countrywides streamlined underwriting programs.  Whew, glad they got to the bottom of that one.  That’s like having a ship run aground and blaming the cook.

At any rate you all have a wonderful day!  Please leave your comments below, forward share and subscribe.

Go 49ers!

Frank and Brian

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