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Brokers Scramble to Banks - 06.30.10
Today's Poll: Is $1,100 for a 2 year home warranty a good deal for Freddie Mac?
A. Yes. It's pretty much standard.
B. Not sure.
C. NO! Especially considering their tax payer bailout $$.
D. Don't know, don't care, got work to do.
Rate this Program
cgappraisals: (June 30, 2010 7:26pm)
5pence, just wanted to say, I saw it as well. One step closer. Good job on getting some feed back from the Sen. aide.
5pence: (June 30, 2010 3:55pm)
House just passed the FINREG without re-opening it. Now it's up to the Senate
CMOFFETT: (June 30, 2010 3:39pm)
Sorry thought i was still signing up.Cromer, i think Wells Fargo will go 600.
CMOFFETT: (June 30, 2010 3:37pm)
REALTOR GATEWAY GMAC
5pence: (June 30, 2010 2:03pm)
They're talking FINREG in the House on CSPAN. There's plenty wrong with the bill, putting a huge new and very expensive bureaucracy in the Fed sounds crazy to me, nothing is done about the GSE's, nothing is done to really audit the Fed and allow for transparency, the Volker rule got weakened, the $19 billion fund they propose to wind down failing institutions is not nearly enough - trillions would be more like it, and nothing is done about Too big to fail. I wouldn't blame them for not passing it, although from my own business perspective I wish they would. Still, it doesn't deal with any of the real issues. The only ways to rein in the banks without a huge new very expensive FINREG agency who's regulators will be eventually captured by those they're regulating, is to bring back Glass-Steagal and break up the TBTF's into manageable pieces & increase competition. It's taken over 2 years to come up with this crap? They should have been able to do much better and do it much quicker. JMHO
YourLoanPro.net: (June 30, 2010 1:25pm)
I use the banks non-lic as an advantage when competing against them by reminding customers I am required to have several hours of yearly education, a state and national lic exam while the banker is not required to have any experience, no education or training required and they are not tested by state or federal to ensure they are qualified to provide the finaicial information to assist a borrower.
Owl Tree: (June 30, 2010 1:03pm)
Crappy service is the lifeblood of the big banks. If everyone sucks, then the consumer has zero incentive to look elsewhere. "Yeah, the rate blows, the fees blow, but if I go across the street, I get the same crappy terms...without this new toaster!"
Owl Tree: (June 30, 2010 1:01pm)
Loan officer everywhere should be all in favor of the strictest personal regulation possible. Why?....because, if the banks had their druthers, they'd offshore our jobs to some call center in Bangladesh. Don't think for a second that isn't their End Game.
Daggone: (June 30, 2010 11:54am)
Frank, LO's at banks only need to have a NMLS identifer. That's it, a number. Broker L O's must be licensed, take a national test and a test for every state they do business. If they do not get credit for previous education, then they need to take 24 hrs pre licensure. Not to mention, credit reports, fingerprinting, and increased fees to renew. Brokers get registered, banks and other lending institutions such as cr unions, etc. get registered, but their L O's are just registered with an identifer vs testing, etc. That is why partly the website is so difficult to use, duplicity of terms used for broker and banks. Anyway, someone had it right a few days ago. Brokers need to have an extra designation because we do so much compared to the L O at the bank. We are REAL SAFE to work with.
iam 2520: (June 30, 2010 11:48am)
Well...200,000 buyers are waiting...and 200,000 sellers...and 400,000 Realtors and three banks and a broker want to know if the $8,000 Tax Credit is going to be extended?? Have the glasss clinked ? will they retro-extend after the 1st ? Will 90% of those deals FAIL?
LCromer: (June 30, 2010 11:25am)
jenny ... not my buyer per se as I don't go FHA, the buyer is the son of a Realtor I know and I'm trying to refer him to a lender that can do FHA with under 620 score ... no $ in it for me
TampaKaren: (June 30, 2010 11:06am)
Anyone who thinks the home warranty offered by Freddie Mac is a good thing should look at the complaints reported by unhappy customers on BBB.com. And why BBB rates them AAA+ is beyond comprehension.
jenny: (June 30, 2010 10:46am)
I am a Realtor in the South Florida area, i can help your buyer,
5pence: (June 30, 2010 10:44am)
To the brokers: I'm sorry if it seemed like I disparaged your beloved institutions but if they get it wrong someone needs to speak up and stand up despite allegiances. Anyway, have a great day!! and thanks again Brian and Frank for a great show! Remember, call your reps to support and vote yes for FINREG - it's very close to being a done deal and crappy as it is, it does appear to restore about 90% of our independence. The GSE's are next - Call 866-544-7573. Thanks
LCromer: (June 30, 2010 10:27am)
Off subject, but ... I remember seeing posts about FHA lenders that accept below 620 score, I don't do FHA but want to refer a Realtor here in south FL to someone who can assit their son with a purchase ... any direction will be appreciated.
5pence: (June 30, 2010 10:11am)
MSNBC - They just said the House will be voting on FINREG this afternoon. Sen Brown, Ma. is being a problem and the Senate will slow this down. I hope Frank sticks 100% to his statement that the FINREG bill is unamendable - let them find some other pork projects to feed the swine. I want my independence.
5pence: (June 30, 2010 10:01am)
Great points about the home warranty costs. Fannie priced itself out of the market - can you say crony capitalism is why.
CVBroker: (June 30, 2010 9:59am)
I am not making this up! Yesterday, I had to go into a Chase Bank branch to get corrections made on a mortgage I have with them. When I went in, there were no less that ten employees (personal bankers) congregated just off the main aisle watching people coming in. I commented to the one who broke off from the pack, "Did the Ford Store stop hiring?" I felt like I walked onto a car lot - the banker said that it was "a new management style decision". They remained there, in the pack, the entire thirty minutes I was there and, by the way, the mortgage issue I had was unable to be handled by the branch. They had to call customer service and got such rude service that they called back and complained while I watched. I am a mortgage broker and all of the pack looked like the ones who couldn't make it in our business. This will be interesting.
5pence: (June 30, 2010 9:53am)
I kind of hate to say it Frank, but I think that was an huge assumption on REAA's part - and you know what they say when you "assume" something.
charity: (June 30, 2010 9:49am)
I miss Mabel. When will she be coming back?
5pence: (June 30, 2010 9:47am)
Call your Senators and House reps to support the FINREG bill as-is. Call (866) 544-7573 to be connected to your Senators. It's toll-free and only takes a second! When you call that number you can ask to be transferred to any of your Senators and/or House members and they will hook you up. Very nice people. **It's a crap bill in that it doesn't deal with the GSE's at all, but it's the best we have going forward to restore independence in our field. The GSE's will be the next topic of debate there. I say nationalize them, at least temporarily, so that the taxpayer can make a profit. They're sucking up trillions and returning nothing to the taxpayer.
sincityreality: (June 30, 2010 9:41am)
Anyone know who owns Cross Country Home Services? We don't have them in Vegas. At least that I know of, operating under that name.
5pence: (June 30, 2010 9:32am)
Frank (or is this Brian) any help would be calling your representatives to pass this thing before the whining an wrangling get too deep.
5pence: (June 30, 2010 9:30am)
Frank (or is this Brian) any help would be calling your representatives to pass this thing before the whining an wrangling get too deep.
jcollins: (June 30, 2010 9:27am)
frankgaray::: I guess I nevered really cared just kept my head down and worked. But, LOs that work for a Bank do not need to be NMLS lic.??
joan of arc: (June 30, 2010 9:23am)
I've watched this happening for years now and congress is working away for it's owner's, the big banks. If the big banks had their way, they would be the only place to get a mortgage. Get involved, work on campaigns and help elect officials who are not wholly owned subsidiaries of the monsters who are eating our economy, whole, the big banks.
frankgaray: (June 30, 2010 9:20am)
5pence - there is confusion on this for sure. The most recent copy of the bill REAA has says the section allowing brokers to order is "stricken" from the bill. But I see an article in Housing Wire as of yesterday says it allows brokers to order the appraisal. Any help is appreciated.
5pence: (June 30, 2010 9:12am)
MSNBC - Frank says FINREG bill is not amendable. That's the good news. Bad news is that Reid says Senate vote will occur after July 4th recess. They're screwing it up again, Obama wanted to sign it on the 4th. Corporations then politics then people. They all suck
5pence: (June 30, 2010 8:43am)
NAIHP has it wrong. Broker ordered is in there. Do not call your representatives, like they wanted, to veto the bill. It needs to pass with as little wrangling as possible. Call your representatives and tell them to vote YES on the bill as it stands. Call twice if you've already called to say NO to the bill. Anything that changes it will only take away from it and with it our independence. Thanks.
Daggone: (June 30, 2010 8:36am)
Happy to see someone else comment about how convoluted the NMLS system is. The difficulty of maneuvering thru this system adds insult to the fact brokers have to be tested, registered, liscensed while bank LO's just need to be registered. Meanwhile the fees for renewal are increased substantially and paid once for "transition" and once for renewal in the same year. Very difficult system to use, almost designed to make us miss something so we don't get renewed! Way too complicated and more so than it needs to be. With all of us HAVING to use it, keep it simple stupid, would have been better. Also, as to HVCC, I'm surprised at the appraisers who have adapted to the system, are willing to work for less because they can just click buttons and get business. Every appraisal I get still sucks out loud. If HVCC does not go away, eventually lenders will set up their own inhouse system that works better. Then I will abandon the ones who have abandonded the fight.
5pence: (June 30, 2010 8:32am)
Another post disappeared guys. You've got a glitch.
5pence: (June 30, 2010 8:30am)
Frank and Brian - just had a post disappear. It said it was posting it but nothing showed. Owl Tree - it's a done deal. What you posted appears to be the final with a few corrections (inserts). Nothing new is being proposed to take to the Senate floor. The vote is what's coming up and if the votes aren't there the whiners will have to be greased. I'm glad Cuomo isn't one of the whiners that matter.
Owl Tree: (June 30, 2010 8:18am)
5pence....I signed the letter. Question: has something happened since last week? You mentioned they are taking the House language to the Senate floor? I have to wonder if that has any chance of getting past Dodd & Company.
5pence: (June 30, 2010 8:13am)
And, I just got this from Todd Harper, an aide to Sen Kanjorski, in response to an e-mail I sent this morning: Nothing in the bill prohibits mortgage brokers from ordering appraisals. We were very specific in writing the appraisal independence standards. Please read section 1472 of the bill, and you will see that we incorporate mortgage brokers on an equal basis with all other participants in the mortgage market place. The discussion has been over whether to go one step further and put an explicit provision in the bill saying that lenders must accept the appraisals ordered by brokers. The Senate would not agree to this provision. So, some lenders in the future may allow for broker-ordered appraisals and some may not.
EK: (June 30, 2010 8:10am)
Hi, Guys - thanks for sharing the awesome info & insights every day - always great stuff! I am the elusive script writer and appreciate you selecting & sharing our script. You can reach me at [email protected] or through our website at www.eksells.com which also contains some great reference info for realtors and consumers alike. All the Best, EK
loaner55: (June 30, 2010 8:10am)
Well whats to wonder about the Freddie home warranty deal? Someone at Freddie got some grease and the rest is history...as we are used to. Until someone cleans up the right part of our industry, we will see crap like this go on. Hey, shouldn't Congress regulate the company that makes the pens we use to do these bad loans, I mean after all, they had a part in it too!
mdeery: (June 30, 2010 8:09am)
Here is a good script...hey mr borrower I wanted to see if you were smarter than an 8 year old? rates are at 4.375% and even an 8 year would want to refinance right now hahahah On another note, seriously if brokers are running to banks then they obviously have a lead generation problem, why else would you want to go work at a bank right now and take a huge paycut and deal with some snotty nosed young manager telling you to make your dials? this is the greatest time in history to be a mortgage broker and to position yourself awith your website, realtor partners, facebook fanpage, videos and newsletters etc and become the expert. Listen brokers are not going anywhere, you just have to position yourself with the wholesalers who are very pro broker, and believe me there are plenty of them. Barney Frank and all his gerbil loving finance reform friends can kiss my Irish arse, you have tried to kill us with regulation and disgraceful new rules now for 3 years but we keep coming back stronger
5pence: (June 30, 2010 8:04am)
Well, it appears that I'm not the only one that thinks broker ordered appraisals are coming back with this FINREG bill. "But the “appraisal independence standards” will be written and announced 60 days after the bill is passed. The bill, unlike HVCC, allows Fannie Mae or Freddie Mac to accept any appraisal report completed by an appraiser selected or paid by a mortgage loan originator."
joecolorado: (June 30, 2010 8:02am)
Everyone, 5Pence is correct,get your signature in to AFI's thank you letter.It helps to have political insiders that are willing to at least listen to some of our issues and signing that letter helps us all and additionally there is no cost to do so....its FREEEEEEE I have not had anything for free for some time,particularly anything associated with appraisal work or appraising so git to gitting and sign the letter everything helps.
REOHO: (June 30, 2010 8:02am)
Anyone think to check if the home warranty comapny is Licensed in California to sell home warranties? I believe they need to be Licensed by the Department of Insurance.
5pence: (June 30, 2010 7:50am)
Appraisers & brokers: Please sign the thank you letter at this web address. http://www.appraisersforindependence.com/index.php?option=com_petitions&view=petition&id=37&Itemid=68 . The Letter is to Sen Casey & Sen Kanjorski for their help on getting legislation from the House onto the Senate floor. These politicians have worked hard for us & listened to us. Please help us in Thanking them so that we may continue to have the ear of politicians that actually have done, and will continue to, do things for us. Please send this to everyone you know to sign they don't need to be Pennsylvanians. Background, Bryan & I went to see the Sen's in their DC offices, we berated them & their staff with the problems in the appraisal & lending industries & the lack of consumer protections. They & their staff allowed Bryan & I to write & edit some of the legislation that is now a part of FINREG that will be signed next week by the President. We will be delivering the signed letter to the Congressmen within the next few days so time is of the essence. Thank you, Marion
Sparkyman: (June 30, 2010 7:47am)
Man switching from a broker to a corespondant lender was the best move i have ever made! I get a ton more deals from real estate agents because they "trust" a bank more. Compensation is about the same and i can handle 4x the volume with better processes. And an expense account and all the marketing support!
Gay : (June 30, 2010 7:46am)
You may be a bit harsh on Freddie w regards to the warranties. I am just guessing that a regular home warranty company like I use everyday for my customers (Realtor) is very limited in their coverage. With REO's I would suspect that in order to get someone to cover you would have to pay a premium. I agree with you all most of time but I think you took a bit too simplistic approach to this one. I would expect FM to pay higher than a standard home warranty. I am just saying. Maybe not that high, there is an incentive built in for sure for ea one they sell. So that number in itself will offset some of your estimated losses. Does govt need to go back to economics 101 class, you think? This one issue on HWarranties is debate-able I suggest.
jcollins: (June 30, 2010 7:44am)
F&B, Are you saying that LOs for Banks do not have to get a new NMLS lic???
GODLIKE: (June 30, 2010 7:28am)
Freddie is probably MAKING money on the warranty. The reason for the price differential is probably Freddie's cut on the price. Or maybe it's just one of those Brother-In-Law deals where the B-I-N law is making the excess money.
Owl Tree: (June 30, 2010 7:26am)
I've been in the business since 1985. Started in ops, and shifted over to production (which I think is the best way to do it). Worked for a broker, a banker, and a few 2Bigs. Now I own my own shop. Bottom line is this: I'm a mortgage professional first, a loan originator second, and third, a representative of my company. Meaning, if banks crush out brokers, I'll become a loan originator at a bank. But I know many loan originators at banks that are extremely upset with being treated like loan officer #5674. Customers will go to the mortgage professional that they trust. Originators will work for the companies that deliver the most support to deliver the dependability that customers want. These two themes are more lasting that any horse(blank) that Jamie Dimon and Chris Dodd might try to jam through. Still waiting to hear how my "C" loan approval in 2006 became a "AAA" investment grade security ... maybe if the geniuses on the Hill could explain that to the public.
GODLIKE: (June 30, 2010 7:24am)
SRP - YSP - a rose by any other name . . .
GaryP: (June 30, 2010 7:01am)
All you have to do is follow the numbers on the future of the wholesale channel. The last statisitics I saw a few months ago showed wholesale was 12% of loan volume. That was around 50% a few years ago. What does that tell you? The Dodd/Frank bill certainly is going to do a lot to accelerate that trend. I'm sure that the big bank lobbyists are doing whatever they can to encourage the decline of wholesale. Besides Frank/Dodd, Safe Act was yet another example. Frank wants to do away with brokers and has said so in the past. Ignoring these realities is simply sticking your head in the sand.
Rollo Tomasi: (June 30, 2010 6:58am)
Also, I like the way you boys roll with the comments now! You can't hide behind complete anonymity! How about sippin' a little shine? More Jawharp.Rollo T.
DanSchweihs: (June 30, 2010 6:55am)
After LOs move to banks, banks will change compensation for LOs to a flat fee for each loan closed. This is already happening. Since it is also hard to close a loan at a bank, total annual compensation to LOs at banks will be pathetic as it always has been.
Rollo Tomasi: (June 30, 2010 6:50am)
I haven't disclosed yield spread for at least 1 year.With multiple investors I'm able to administer the Singapore Cane to just about everyone. With a smile.I've had my MLO since March and I'm crushing LO's that work for the Depository Banks.You warned me Brian and Frank and I listened. Peace,From a man invented by the best movie ever," LA Confidential". I'll be Kim Basingers Baby Dumpling anytime even though she got with Eminem.(I've got with some Grazer's myself) RT
mark: (June 30, 2010 6:41am)
Let's not give up hope yet. Having been in business as a Mtg Broker for 17 years I'm not ready to quit. If I go under, there is a lot of debt that has to be paid or bankruptcy will result. I'm probably not the only one with this issue. If I'm forced out because of regulations for false accusations that we caused this mess, then I will file a suit. As far as NMLS, they make it extremely difficult to understand and navigate their freaking site and every time I turn around there is yet another fee. I have to pay for them to receive my State Certifications and my State test scores. If the Banks had to pay this, this whole mess would be gone and they are greedy and monopolistic. I hate freaking Banks an their wholly owned AMC's
barbara: (June 30, 2010 6:23am)
Also, Chase had to hire a bunch of loan officers in San Antonio because all the good ones they had. . .quit. Their systems were so slow that they couldn't get their deals closed. They weren't allowed to solicit Realtors, but did have to ask every bank client who walked in whether or not they wanted a new mortgage. What MBA came up with that business plan? Oh, and their compensation plan sucked.
barbara: (June 30, 2010 6:10am)
I suggest we pass this gem along to our local newspapers. Also, don't you wonder who owns this warranty company? Follow the $$. . .
tampahomes: (June 30, 2010 5:52am)
I agree the banks have already started squeezing out brokers, those that say no are in denial. I honestly have to say I never wanted to work for a bank, but I would have considered working with Chase. They are a great bank and I was crushed to see their wholesale side go down. That was the writing all over the wall! this is expensive for a home warranty and FHLMC should not be entering this business too with OUR money!
Bigg in CO: (June 30, 2010 5:39am)
COMPETITION?????????? You capitalists! That's not very PC these days. Wrong wrong wrong. Where do I join the union of Loan Originators? Hmmm.
Opt1: (June 30, 2010 5:29am)
I disagree with brokers disappearing. We may dwindle and have a rough time but the reason we grew so dramatically is still basically there-consumers need what we offer and banks do not give it. I have seen over 30 years in the industry and not ready to throw in the towel yet.
TD Hawk: (June 30, 2010 5:10am)
I'm afraid the days of brokers are numbered. In the past lenders seemed to favor wholesale distribution because there weren't any employee costs. However, employees are easier to control. Brokers are independent business people who pose various forms of risk to the lender. A few years ago, I believed the opposite, that retail loan officers were going the way of the dinosaur but I think the credit crisis has obviously changed everything.
Clulessdad: (June 30, 2010 4:55am)
From yesterday's news-Only the House passed the Tax Credit extension. The Senate hasn't passed it and they don't know how Harry Reid can accomplish that in 1 day. Don't clank your glasses just yet!