I’m visiting with lenders in Tennessee much of this week, and a fair amount of the talk revolves around conversations with borrowers “unlocking the equity in their homes.” We’ve shifted quickly, which reminds me… What do Howard Johnson’s, Red Barn, Burger Chef, Beefsteak Charlie’s (I could go on… Farrell’s Ice Cream Parlor, Sweet Tomatoes, Chock Full o’ Nuts, although that is trying to stage a comeback…) have in common? They were all wildly popular and profitable, but went out of business. Few companies last forever, and corporate history is littered with big names. In lending, some top lenders from previous years are long gone. In unrelated, but related, news, Better.com was in the news again yesterday for another massive, publicized round of layoffs. (I use the term “publicized” since there are many lenders doing the same thing that don’t make the national news.) The online mortgage st
I’m visiting with lenders in Tennessee much of this week, and a fair amount of the talk revolves around conversations with borrowers “unlocking the equity in their homes.” We’ve shifted quickly, which reminds me… What do Howard Johnson’s, Red Barn, Burger Chef, Beefsteak Charlie’s (I could go on… Farrell’s Ice Cream Parlor, Sweet Tomatoes, Chock Full o’ Nuts, although that is trying to stage a comeback…) have in common? They were all wildly popular and profitable, but went out of business. Few companies last forever, and corporate history is littered with big names. In lending, some top lenders from previous years are long gone. In unrelated, but related, news, Better.com was in the news again yesterday for another massive, publicized round of layoffs. (I use the term “publicized” since there are many lenders doing the same thing that don’t make the national news.) The online mortgage st
This morning I am heading to Knoxville to visit with the local chapter of the Tennessee Mortgage Bankers Association. On my way I received an email asking, “I’m trying to place a high bal loan on a manufactured house on acreage. Any suggestions?” Nope, no suggestions. This is not an ad, but you should start with Mortgage Elements: enter the state, and then the program, and see who’s doing what. And what about information on warehouse lending, and what it is telling us about the current lending environment? The Mortgage Bankers Association has its survey. The MBA’s Chart of the Week from mid-February showed that the average usage level of first-mortgage warehouse lines (the percentage of outstanding borrowings to warehouse facility limits) fell for the sixth consecutive quarter to 38% as of the end of the fourth quarter of 2021. It was the lowest usage level since the inception of the survey in the second quarter of 2018. Meanwhile, at the other end of
"Sergeant, can we go for breakfast now?" "March first!" Welcome to March, with Mardi Gras beginning today, Daylight Savings Time on the 13th, Pi Day on 3.14, the Ides on the 15th, and St. Patrick’s Day on the 17th. (Nope, no paid days off.) Meanwhile, the world is watching Russia attack Ukraine and many are doing what they can. For example, broker dealer Jefferies will donate 100% of net global trading commissions on March 2nd for all trading in equities, fixed income and foreign exchange by the firm’s clients. In addition, Jefferies as a firm will donate $1 million directly, and its more than 4,500 employees worldwide will be given the opportunity to personally donate to these efforts. Economists are watching money flows for individuals, as it appears that the biggest share of the extra outlays on new cars, home improvements, and laptops comes from America's top income tiers. Rates are dropping, but expectations of inflation
Remember how you wished that the pandemic wouldn’t be in the headlines every day? You got it! Unfortunately, it has been replaced by the Russian invasion of Ukraine, long discussed and now occurring, and we can all watch and follow along due to technology. Technology is flippin’ amazing. I believe that, at any given time, there are approximately 60,000 people in the air over the U.S., and thank you to Orion’s Jeremy S. for sending this live map of airplanes in the air anywhere in the world: look at the U.S. or scroll over and check out the void over Ukraine. The number of people who remember “Talkies” gaining in popularity in the late 1920s is dwindling. (If you’ve never contemplated the term “Movie” here’s your chance.) Unfortunately, what is also dwindling somewhat are the number of people in our business as companies reduce costs, and therefore workforce. (Anyone displaced can post their resume for free here, and employe