The NMP Blog

News From NAMB: September 8, 2017

Submitted by John Councilman on September 08, 2017Top Story: It Wasn’t Subprime Mortgages After All The more we research, the more we realize that, while subprime played a part, it was not the primary cause of the mortgage crisis. A new study by the National Bureau of Economic Research says it was real estate speculators and flippers who created the problem. The authors used a huge panel of credit file data to examine the evolution of defaults... Read More

News From NAMB: August 31, 2017

Submitted by John Councilman on August 31, 2017Top Story: First-Time Buyers Highest In 18 Years First-time buyers came out in droves in the 2nd quarter of 2017. More first-time buyers bought homes than in any quarter since 1999 according to Genworth’s latest Market Report. Q2 2017 zoomed past Q1 with 570,000 first-time purchasers compared to only 426,000 the previous quarter. First-time homebuyers accounted for 36 percent of all single-family... Read More

News From NAMB: August 28, 2017

Submitted by John Councilman on August 28, 2017Top Story: The Death of the Real Estate Appraisal Profession The ball is rolling quickly to eliminate field appraisers from many loans.  Freddie Mac announced this week that home buyers, not just those refinancing, may be eligible for an automated appraisal alternative.  The advantages are huge.  Appraisal management companies added a major layer of cost, driving appraisals from $300 to $500 in... Read More

News From NAMB: August 18, 2017

Submitted by John Councilman on August 18, 2017Top Story: Federal Reserve is Stumped The minutes from Wednesday’s Federal Reserve meeting revealed one of the largest divisions of opinion we have seen.  Clearly, the current economy makes no sense to the group.  We have full employment but wage pressure seems contained, neither producers not retailers are raising prices, home sales are red hot, and yet we have no inflation and possibly... Read More

News From NAMB: August 11, 2017

Submitted by John Councilman on August 11, 2017Top Story: Zillow May Have to Change Ad Model Zillow turned in pretty respectable results for the 2nd quarter but still managed to lose money.  That is one of the weird things about stocks.  It isn’t your profits; it’s your growth potential.  Zillow said the CFPB is finished its investigation into possible RESPA kickback violations and they are talking settlement.  Experts say it isn’t the fine... Read More

News From NAMB: August 4, 2017

Submitted by John Councilman on August 04, 2017Top Story: Freddie Kills 1% Down Program Without giving a reason, Freddie Mac suddenly announced it was discontinuing its Home Possible Advantage program that allowed borrowers to have as little as a 1% down payment.  Lenders were allowed to fund up to 2% of the borrowers down payment by slightly increasing the interest rate.  The lone exception was UWM who did not require a rate increase for... Read More

Every Leader Needs a Process

Submitted by David Lykken on August 02, 2017In my consulting business, I spend the majority of my team working with mortgage industry leaders and their teams on refining their business processes. In my experience, there is simply no more effective way to achieve organizational success than by placing an intensive focus on business process improvement. If you can get your processes right, everything else will fall into place.   While I... Read More

News From NAMB: July 27, 2017

Submitted by John Councilman on July 27, 2017Top Story: Only 36 Comments On 3% Originator Cap It is amazing that only 36 people have commented on the Ability to Pay Rule so far. The CFPB is assessing the Ability to Repay rule, also known as the Qualified Mortgage (QM) rule. Under the rule, we have a 43% ratio that essentially only applies to private industry loans and a 3% cap that really only applies to mortgage brokers because of all of... Read More

The Power of Process Improvement in Time Management

Submitted by David Lykken on July 25, 2017You've heard it before: We all have the same 24 hours in a day; it's how we choose to use that precious time that makes all the difference. The same thing can be said of the work day. What we accomplish while we're in the office is less a function of how much time we spend there and more a function of how efficiently we use that time. And that is why there are so many books, Web sites, and... Read More

News From NAMB: July 20, 2017

Submitted by John Councilman on July 20, 2017Top Story: CFPB Loses Another RESPA Case The CFPB has taken a very expanded view of the Section 8 prohibition on kickbacks.  They sued PHH and lost.  Now, the agency has lost another RESPA case.  The CFPB brought suit against a law firm that was creating title joint venture LLCs with local real estate and mortgage companies.  The Bureau claimed that profit distributions were really disguised... Read More