They say this ever time in the press: "The Mortgage Bankers Association released a report on mortgage origination channels. The report was done to provide some clarification regarding terminology surrounding the different origination mediums. While brokers currently generate more loans than any other origination channel, a decline in overall production and consolidation within the industry could change that."

I have seen almost this exact word for word news piece every single time (at this point in the cycle), from the industry news people. It's merely wishful thinking on the part of many; you all must know by now the consumer residential real estate mortgage industry here in America generally does not like LO's or Brokers. 'They' (brokers & LO's which are the entry level jobs in the overall industry) are looked down upon by 'real loan people' - the Lenders - because they're often uppity. Too many brokers and LO's cut every corner they can to earn Big Commissions - and the fact that many do earn big incomes (during the easy times) offends lots of lenders, so they are gleeful when they see evidence Brokers and LO's may be on their way out!

This is my FOURTH cycle, this attitude has been like that all along. LO's & Brokers are not about to be extinct - IF you stay on your toes, learn your trade, pay attention, never stop learning, work hard and ... above all ... be sure YOU'RE FULL OF INTEGRITY & ETHICS! CLICK HERE to tell us your views on our Discussion Board




















Two out of 5 Use Brokers
Borrowers are going the exotic loan route to qualify for more house, according to a report which indicated one particular age group favors mortgage brokers more than others.

Such is a conclusion of the annual online personal-finance poll by the Wall Street Journal and Harris Interactive, which surveyed 2,790 people between Aug. 290 to 31 who purchased a home in the past three years.

Out of four nontraditional products, the popularity of payment option mortgages grew the most -- to 9 percent from 4 percent in last year's survey, according to WSJ. The share of borrowers using piggyback mortgages, which consist of a first mortgage combined with a home-equity loan or line of credit, reportedly edged up to 12 percent from 10 percent over the year. CLICK HERE and give us your two cents on our Discussion Board





Brokers Oppose Regulation of Exotics
The president-elect of the National Association of Mortgage Brokers last week testified to the Senate's Subcommittee on Housing and Transportation and Subcommittee on Economic Policy. He told lawmakers that his group believes it is the borrower's responsibility to determine whether or not a nontraditional mortgage is an appropriate choice. "No law or regulation should ever require any mortgage originator to supplant the consumer's ability to decide for him or herself what is or is not an appropriate loan product," he said. "As the decision-maker, the role of the consumer is to acquire the financial acumen necessary and take advantage of the competitive marketplace, shop, compare, ask questions and expect answers." Also testifying at the hearings on nontraditional mortgages were Robert Broeksmit of the Mortgage Bankers Association, the Federal Reserve's Sandra F. Braunstein and Orice Williams testified on behalf of the Government Accountability Office. CLICK HERE and Tell us what You Think on our Discussion Board



















This is the Best Time ...
Yes, this is the ideal time to be in the Mortgage Business. In 1988 when I began, the rates were in the teens, and business was brisk.

Buyers didn't care about the rate, they just wanted ( and ALWAYS will ) to own a home for their families. I had clients calling and saying " Did I get approved ? " I would say," Yes you did "....then they would say "By the way, what rate did I get ? "

The rate and term re-fi market is over.....good. Now the order takers will go back to their jobs in retail and we Mortgage Professionals will have plenty of loans. Over 60% of the American public own their own home, this will tell you that the Mortgage Business, when conducted properly, will always be prosperous.

Rates are up, so what ?....we aren't selling rates, we are selling service, we are helping people become homeowners. It is time to 'hit the pavement', get out there and get those loans, the sources are everywhere. Everyone you do business with is a potential client, the grocer, the mechanic, the waiter, everyone wants to own a home. The simple secret....." Talk to more people about borrowing money. "

Something we have been screaming about for quite sometime, happy 'they' finally get it. Article by Dave Patti, Teacher/Mentor Secret! U CLICK HERE and give us your two cents on our Discussion Board

We provide mortgage broker banker training, education, information and solutions at Secret! University. You'll find many solutions at our learning center. We have services and materials available for everyone, regardless of your degree of skill or know-how, take a look at our website simply by Clicking Here!

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You licensed in dozens of States? We'll show you how to find a steady stream of qualifiable applicants regularly in those far-away States, in our next class is Sunday Dec 10th; (make it a two day session with us, come to our 'chat' day before plus this class). Even if you have a website now, we'll show you how to dump it and enable the website you get with this class, to make your job more productive. Click Here and register for our live Website & Internet Originations class now.

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Our E-Mail Answers Program might be just what you need. If you can't call our Hotline, and you don't need all the horsepower of one of our Mentors right now, but still need some help off and on - then this program is for you. Click Here and check it out; all our answers are warranted to be right! See how to get a one free!

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Link to the permanent version of our newsletters by Clicking Here and save our online Newsletter Library in your computer's 'favorites' - it's sorta like a journal of the industry and what's happening, check out past issues too!

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The industry is at a crossroads... where some older business models lean hard to the right with "gross product sales" being the mentality, rather than "custom financial services." These tend to be call-center banking shops. This model emphasizes that no agency is established and fiduciary relationships are explicitly avoided... "what we have is what we offer" product pushing mentality... and every man is for himself, with a short-term transaction focus of grinding out fresh closings without any concern for yesterday's business.

A small (but growing) alternative is a "cradle to grave" fiduciary management business model that cares much less about gross volume of new transactions and far more of custom-fitting a consumer's overall financial balance sheet with the most prudent mortgage leverage programs. The overwhelming majority are brokerages, as opposed to banking operations, (although some major mortgage banks like Countrywide and Wells private banking are trying to bring their 'suits' into the game) as they focus on a customer-centric model (taking the qualified consumer 'no matter what,' and finding whatever programs are the best fit from wherever the lending resources.) These models seek to provide "financial planning" such that intentional periodic mortgage restructuring and refitting is planned IN ADVANCE to fit the client's age, risk, family and career profiles.

The 2nd model is a higher sophistication model, and also yields higher per-client revenues (especially when measured over time.) The financial planning needs of the swelling ranks of financially-clueless baby boomers is revealing a HUGE pent-up demand for these advisory-type planning services.

The 2nd model is also a slap-in-the-face challenge to the call-center high-pressure sales type bankers. Presenting the spin of "Professionalism" to this level is likely to turn off many who just aren't interested in being that serious. (although losing those types back to the car sales lots, and aluminum siding sales industries may be a side benefit ...) Article by David Donhoff, Teacher/Mentor Secret! U CLICK IT to discuss this item on our Board



Mortgage Fraud Cases Outpacing '05
Mortgage fraud resulted in losses of $545.9 million during the first half, and the losses are on track to outpace last year's total, according to newly released government figures. According to the Federal Bureau of Investigation, mortgage fraud losses totaled $1 billion in fiscal 2005, more than double that of the year before. Financial institutions engaged in mortgage activity filed close to 17,000 suspicious activity reports with the FBI during the first half. In 2005, 21,994 SARs were filed. CLICK HERE and talk about this on our discussion board




More ... in the News
ForeclosureS.com: Party's Over in Florida
Foreclosure activity in Florida is skyrocketing and "the party's over" for real estate speculators, according to ForeclosureS.com, a Fair Oaks, Calif.-based investment advisory firm. The publisher of foreclosure information said nearly 23,000 properties were in some stage of foreclosure in Florida as of mid-September. "We've known for some time that, especially in South Florida, the market was seriously overbuilt," said Alexis McGee, president of ForeclosureS.com. "For example, there were about 25,000 condo units under construction at the end of the second quarter of 2006. That is more than have been sold in that market in the last nine years." As for speculators who "flip" properties for profit, Ms. McGee said she believes that "they have been selling to each other in Florida, rather than to end-users. Now, like elsewhere in the country, the party's over." CLICK IT and tell us what this means to you



Feds: Neg-Am Must Be Considered
Interest-only and payment-option ARM lenders will have to qualify borrowers at the fully indexed rate with potential negative amortization added to the loan amount under final federal regulatory guidance issued Friday. Banking regulators rejected industry complaints that the new underwriting guidelines will be too restrictive. Under the mandate, payment-option adjustable-rate mortgage servicers must include in the monthly mortgage statement an "explanation" that if borrowers chooses the minimum monthly payment -- which many do -- it would increase their loan balance. "The regulators stuck to their guns," said Howard Glaser, a former Department of Housing and Urban Development attorney who runs a consulting practice. ".... It is rare for federal regulators to step in and regulate a specific product. They are doing so here out of concern that they need to protect both the borrower and the bank." According to the Alternative Products Quarterly Data Report, the largest option ARM lenders include Countrywide Home Loans, Washington Mutual, and Golden West, among others. The regulators also issued model consumer disclosures for IO and option ARM products for public comment. CLICK IT and tell us what this means to you




HIGHLIGHT: "Certified Mortgage Professional"
We're happy to report we have launched our all new Certified Mortgage Professional program a couple of weeks ago! It consists of a broad far reaching training lesson on several important segments of our industry; a timed/graded complex examination and a CMP designation for all who complete the program and pass the exam.

It's significantly worthwhile, as it provides a solid foundation of understanding on a range of issues, transforming the candidate into a Certified Mortgage Professional. We feel today's well informed customers search for a true industry professional to help them in financing (or refinancing) one of the largest investments in their lifetime. Do to this, they will be more inclined to select a CMP who has taken these additional steps to increase his or her mortgage industry knowledge to better serve customers. For more on our CMP program CLICK HERE and check it out.