[I am away from the computer on a daily basis, and I cannot respond to
e-mails until
September 11th. In my place are daily commentaries from a series of very
knowledgeable
mortgage industry people with different backgrounds, and they have been
given very
little direction about what to write about - the latest is below. Our views
may
or may not coincide, but I thank them for their time in volunteering and
helping
out.]
I often pick on Rob about his commentary, primarily because I remember when
he was
at Tuttle, where his humor was a bit more locker-room appropriate and his
opinions
were a little more... opinionated. In asking me to guest write this
commentary,
I am sure was his way of telling me to put up or shut up.
He left the door wide open and I have been struggling about what I should
pontificate
on. I received several suggestions:
. volatility in the MSR's;
. my experiences with hedging firms from Tuttle, Compass and finally
MIAC;
. the upcoming conference in Chicago and the relevance of the MBA;
. anything about new hedge fund money coming into the industry
(unfortunately
they all made me sign NDA's)
. The stubbornly high unemployment...
None of these topics did it for me, so on another idea earlier this week. It
was
a game changer. It involved clandestine meetings, fleets of limos ferrying
executives
to various operations centers for tours, senior executives being recalled
from vacations
to meet with hedge funds. It was going to be my Marvin
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1107447260300&s=8721&e=0019325KX
S2CUDpZ8QBt9YxgXk67dxEpk0ZzZh_MxiaPNxd65Xr55j8N-N0U8RjK9-zkWZuyTIWglItmD7t_p
H-kTaFXTV3OsGym0XuFB2sxhtBmL8fKQCJmKGaYVNhysTPDoRcNnZYIS8=]
Zindler - Chicken Ranch story
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1107447260300&s=8721&e=0019325KX
S2CUDpZ8QBt9YxgXk67dxEpk0ZzZh_MxiaPNxd65Xr55j8N-N0U8RjK9-zkWZuyTIWglItmD7t_p
H-kTaFXTV3OsGym0XuFB2sxhtBmL8fKQCJmKGaYVNhysTPDoRcNnZYIS8=].
Alas, the great investigative power of the Wall Street Journal and Inside
Mortgage
Finance robbed me of my 15 minutes of fame.
I am sure Bank of America didn't like being outed by the WSJ, but anyone
paying
attention knew something was up. I never expected BAC to stay in
correspondent lending
in the first place. They stepped out of the market years ago, and only
inherited
the CLD channel with the Countrywide bailout.
Many critics say a correspondent channel distances an institution from the
borrower,
and the reps & warrants are only as good as the counterparty. As a mortgage
banker
and correspondent lender I am obliged to disagree. I am hopeful that BAC
finds
a committed buyer for their platform or that at least someone like Flagstar,
MetLife,
Franklin American or Aurora will step up and try to fill the 24% market
share void
left behind.
We try and do considerable amount of forward looking planning here at
Opes... we,
like many mortgage bankers, are always trying to be ahead of the curve in
our planning.
Some in this industry might look at this as an opportunity to build out
their own
servicing portfolio. A great resource is the MBA, which recently published a
white
paper on the subject
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1107447260300&s=8721&e=0019325KX
S2CUAr3cWYk0wddI7iYI8d9cGyoPf5VwGB-DEWvKb-V-RUSzyjaLwDXqkY5VFtW-hGvN3_Er_Ft1
e_UXQ5IQl4J_ZSa-HUvGtonsN2tVo5VA25t1giMWooG1iKT1tjoZAa4NPKKmFa0Ld5d6w7m9ofL1
BzouDocPbHJdtZLbNHc99dSnKhbhuNtUkH].
Rob is currently in South America, I assume trying to unravel the mystery of
the
Mayan calendar. He often tells me I can be "retired" like him but only
after spending
another decade or two defending my pricing strategy and dealing with pull
through,
lock renegotiations and regulatory changes.
Occasionally when I speak with originators, they express concern about the
effects
of LQI and similar initiatives. On August 19th, FNMA updated their FAQ on
the
subject -- it's worth a read.
How do you take something that is inherently complex, always subjective and
surprisingly
fluid and improve the quality? According to FNMA you focus on "facilitating
a match
between the loan file data and the delivery data in both the loan
origination and
loan delivery processes." That's code for saying they want to make sure what
you
say you did is exactly what you did. This is a conversation I often have
with my
four-year-old son JP.
I will leave you with one last thought. This month we saw:
. the ^TNX drop below 2%.
. unprecedented declaration from the Fed about rates.
. S&P downgrade of US debt
. And the swelling pipelines and bulging bellies of mortgage bankers.
All this news gave many of us a gift of production. Yet I look forward and
I know
"winter is coming." I hope that we all have enough deliberate practice,
dedication
and mentorship to make it through.
I asked Rob to take a look at this before I was complete. He said; "A little
more
about who you are. You have a very good perspective on the business, and the
audience
needs to know it."
I never like talking about myself. I thought maybe I could share something
of myself
by writing about a few of the mentors and coaches who have helped me along
the way.
Lennart Wahlquist. When I went to work for this guy in 1994, I didn't know
what
a "1003" was. He made me read every seller's guide starting with Saxon,
Impac, then
ALS. My first retail loan was for my sister. (We were a wholesale shop.) He
made
me come up with the difference when I was floating her price and in one day
the
market sold off. Two weeks later the price was back to where I wanted it. He
made
me eat the lock. This taught me two things: 1) Never promise a borrower and
not
deliver. 2) Never blow a lock at a lender for a better price.
Nancy Corlett (Carter). Nancy ran me into the ground at Aurora Loan
Services (Lehman)
- I never worked so hard in my life. (That said, we were in San Diego, where
mandatory
office attire included board shorts and flip flops.) No matter how late we
were
out the night before with clients, Nancy was in the office by 6:00 the
following
morning. I learned the value of hard work and dedication; her drive to grow
the
business is the strongest I know.
Susan McHan. A little over six years ago she invited me into her company
(Opes
Advisors) to run secondary and eventually capital markets. At this small
business
headquartered in Northern California, never a day goes by where I don't
learn something
new. She has grown Opes from about 15 to over 300, and she cares for each
one of
us. She reminds me of that when I start to complain about giving free lock
extensions
or price concessions. Here I learned the most important lesson about
operating
with care and concern for everyone.
John Boyles
Opes Advisors
Rob
If you're interested, visit my twice-a-month blog at the STRATMOR Group web
site
located at www.stratmorgroup.com
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&et=1106435366068&s=4179&e=001SVt-lj
bp53436QjxD9vbwURtIPPjV05jEcEKyBN3SjS2forXe0C_foO8RjEV-Uye0N7Z_Sh1il0SRXPx6P
jQauayNXQjni-Hc9Sseu-hhZcR1ujeZyAEpw==]
. The current blog takes a look at the recent news sweeping the MBS investor
market
regarding a new mass refi plan by the government. If you have both the time
and
inclination, make a comment on what I have written, or on other comments so
that
folks can learn what's going on out there from the other
readers.http://www.mortgagenewsdaily.com/channels/pipelinepress/default.aspx
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&t=mejaqmhab.0.epg7qedab.zy6u9cdab.8
721&ts=S0672&p=http%3A%2F%2Fwww.mortgagenewsdaily.com%2Fchannels%2Fpipelinep
ress%2Fdefault.aspx]
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&t=mejaqmhab.0.v7uif6dab.zy6u9cdab.8
721&ts=S0672&p=http%3A%2F%2Fwww.thebasispoint.com%2Fcategory%2Fdaily-basis].
For archived commentaries, go to www.robchrisman.com
[http://r20.rs6.net/tn.jsp?llr=zy6u9cdab&t=mejaqmhab.0.fpg7qedab.zy6u9cdab.8
721&ts=S0672&p=http%3A%2F%2Fwww.robchrisman.com%2F].
Copyright 2011 Rob Chrisman. All rights reserved. Occasional paid notices
do appear.
This report or any portion hereof may not be reprinted, sold or
redistributed without
the written consent of Rob Chrisman.)
(Check out
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~
Join My Mailing List
[http://visitor.r20.constantcontact.com/email.jsp?m=1102827910937]
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
~~~~
Forward email
Instant removal with SafeUnsubscribe(TM)
TmggCt&t=001mygVPlJzjH_dgEvYsq2MXQ%3D%3D&llr=zy6u9cdab
Privacy Policy:
Online Marketing by
Constant Contact(R)
Chrisman Inc. | 24-G West Main Street #386 | Clinton | CT | 06413
No comments:
Post a Comment