Given the confusion over compliance issues, I received notes yesterday from a few third party vendors. One producer wrote, “Encompass appears to be one of the best originating software tools that I have seen to give alerts to avoid falling out of compliance.” A few others wrote to tell me that PCLender created a resource document as a matrix that lists 20 known compliance issues, forms affected, and solutions. One picture is worth a thousand words. And I am sure that there are many others. .
AmTrust Mortgage Banking didn’t take long in working with New York Community Bank in cranking up their production machine.Starting today “AmTrust Mortgage Banking will resume accepting new loan registrations and rate-lock commitments, operating as a service provided by New York Community Bank.” Apparently NYCB is entering the single family finance business.
Is your company making more or less than $902 on each loan? The MBAA reports that independent mortgage bankers made about 50 basis points, or $902, on average, during the third quarter. This is down from the $1,358 profit during the second quarter. The lenders which make up the MBAA’s study also report that their volumes dropped 33%, so not only did they make less money per loan, but they were doing fewer of them. Of special note to secondary marketing staff was the average pull-through: 72% (basically unchanged from the second quarter’s 73%). The net cost to originate (which includes all production operating expenses and commissions minus all fee income, but excludes secondary marketing gains, capitalized servicing, servicing released premiums and warehouse interest spread) rose to $1,950 per loan in the third quarter 2009, from $1,295 per loan in the second quarter. For more tidbits to throw at your staff, go tohttp://www.mbaa.org/NewsandMedia/PressCenter/71371.htm