Define your purpose

My coach assigned homework this week of ‘what is my purpose? Well gee, I don’t know. To make money? No…besides that (he said). What is the reason you get out of bed in the morning, and what are the things that motivate you to do what you do? Is it to support family? Contribute to the world via charity? Is it to support a family member? Or all of the above? So he challenged us to come up with specific, concrete items. I have 2 weeks. Thank goodness. This will require some thought. What is your purpose? Have you defined that lately?


In the market news:

· Stocks are down 10% from their peak, and has eased mortgage bonds (interest rates) a bit. We expect more correction, so keep an eye out
· This week the Senate passed sweeping legislation on financial reform to correct the 2008 crisis. Many of these items, if passed will have negative impacts on not only mortgage companies (so look for our margins/yields to increase) but also the consumer. Increased regulation and change means (a) more paperwork (b) more cost to mortgage companies, ie, to the consumer, and (c) mass confusion – nothing new these days! As things are approved, I will educate you on the changes. Of the 326 proposals, we don’t know which ones will survive in their current form.
· As of June 1, Fannie Mae is requiring MORE screening for lenders to perform in their QC. We must repull the credit report within 24 hours of closing, to verify no new debt has been obtained, or , if credit scores are lower. If there are changes, this could DELAY the closing, while additional conditions may have to be obtained by the borrower. In addition, we have to verify additional verifications of the borrowers occupancy plans for the property, as well as the social security number directly with the SS office. Oh yes, also, the W-2 transcripts for all borrowers, employed or self employed (used to be self employed only). Oh, and business tax returns. We used to only need those on Jumbo borrowers, but now, need them on conventional too. And….get IRS transcripts on those too. Do you have a headache yet?
· All this extra compliance sums up to one thing: Cost. The consumers will end up paying some how, for the increased legislation and regulatory requirements.

Bottom line: hang in there. Patriot Bank Mortgage is here to see you through all the changes, and continue to make things streamlined for your borrowers with our in house processing, underwriting and closing- we get the job done , accurately and on time.