Did you know that wheat futures prices are at a 2-year low? And lumber prices continue to drop? Those numbers should help reduce inflation. During the conference in NY there was plenty of talk about external influences such as price increases on residential lending. But there are also plenty of issues within our biz that face lenders daily. For example, signing bonuses continue, albeit at a slower rate. Perhaps some of the economic bloom is off the bonus rose? Big signing bonuses come with big handcuffs. It stinks when a competitor takes your production but not your overhead, right? With the help of technology and tracking, a lender’s management can, more than ever, determine whether a given branch or LO is making money for the company, or is merely a source of concessions and extensions. Recruiters sometimes talk of the “greater fool” theory when bad LOs or branches move on to another lender. (Today’s podcast can be found here and this week’s is spon
If I tried to carry my cat Myrtle around like in this short video, there would be conflict. We all continue to hear conflicting information about home sales and prices in different parts of the nation and at different price points. One thing remains constant: there are over 50 million people aged 28-38. Millions do not own homes yet; sure, some of them don’t want to own them, but millions do. There are currently only 562,000 active listings of houses for sale in the U.S. The supply/demand imbalance that helps home prices. Zonda did a survey of why people decide to buy a home. The top reasons, which every LO should use in conversations, are: building my own equity rather than someone else’s, marriage or having kids, stability, participating in home price appreciation, and it was cheaper to own than to rent. Recent reports have New Home Sales rising 9.6 percent MOM in March but were down 3.4 percent compared to a year ago. The median new home price was $449,800 which was up
“Once you lick the frosting off of a cupcake, it becomes a muffin. And muffins are healthy. You’re welcome.” Adding another expense to a transaction is certainly not welcome, yet that’s exactly what was voted into effect by residents of Los Angeles County in November. When you sell a house, paying a 5-6 percent commission to the real estate agent is typical. In LA there’s another 5 percent tax on top of that for high-priced houses to help fund affordable housing. Apparently home sellers in Los Angeles are slashing prices and sweetening deals before a new “mansion tax” goes into effect on April 1. The effect on supply and demand and pricing will be interesting, especially how it impacts the volume of sales. Along those lines, don’t pad your volume numbers, especially if you’re about to go public, otherwise the Department of Justice may come knocking like it did with Sterling Bancorp. (And don’t discriminate. In this e
It hasn’t been a good few weeks for banks whose names begin with “Si” (Silvergate, Silicon Valley, and Signature, with Silicon Valley Bank declaring Chapter 11 bankruptcy this morning; today’s Rundown discusses how the bank crisis may impact lenders). Ah, those clever secondary marketing folks. Cornerstone’s Henry S. frets, “I can’t believe it’s bank collapse season already. I just finished taking down my train derailment decorations.” Certainly, time flies by, and I hope you’re wearing some green today. Originally a religious holiday to honor St. Patrick, who introduced Christianity to Ireland in the 5th century, St. Patrick’s Day has evolved into a celebration of all things Irish, with the first parade on March 17, 1762, in New York City, featuring Irish soldiers who served in the English military. It certainly is more fun to think about celebrating the Irish than the constant stream of headlines as people r
Hey, why wouldn’t you want to join the Mortgage Action Alliance? It doesn’t cost you a penny, and there’s strength in numbers. Signing up takes about 90 seconds. And the information you receive is much more reliable than mine! The U.S. Census Bureau produces some reliable information, unless you’re some conspiracy theory nut, and they have information that loan officers love: where most owners are free and clear of any home loan. And 30-year rates, which probably won’t be down to 2.75 percent again in our lifetimes, are less expensive than credit card debt, so there is business to be had. California has 2.4 million households free-and-clear of mortgage debt, the third-highest count among the states. There’s Texas at 2.9 million, and Florida at 2.5 million. After California comes New York at 1.7 million and Pennsylvania at 1.5 million. West Virginia has the largest share of free-and-clear owners at 53%, followed by Mississippi at 51%, North Dako