Posted To: Pipeline Press“Rob, I think we’re going to make it.” Thus began a note I received yesterday from the owner of a small retail lender in the mid-Atlantic region. “We’ve moved from 90% refi to 70% purchase, have deep roots in the community, and 80% of our business is high margin govie production that is profitable. Yes, we’ve trimmed some staff, and yes, we’ve had to sell some servicing, but the income from the remaining servicing helps us make ends meet.” That was a good note. I wasn’t going to bring up the “servicing income supporting production” issue, but I did reply that it was a good thing the company has roots in the community because one can bet Wells, Chase, and other banks are continually looking at cranking up FHA origination (risk…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Michael Ayoub, Author NMLS ID 6631