Rob Chrisman, Author at STRATMOR Group

Listening to Real Estate Agents Can Pay Off for Originators

Rob Chrisman — Wed, 08 Nov 2023 21:28:21 +0000

If we’ve learned anything from 2022 and 2023, it is that they are not 2020 and 2021. Volumes and margins have dropped, as have profits. The number of lenders and originators have dropped as well. And those originators, whether they are brokers, IMB loan officers (LOs) or bank and credit union LOs, have had to […]

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Mind the Down Payment

Rob Chrisman — Fri, 06 Oct 2023 20:53:11 +0000

Yes, we’ve seen a big move higher in mortgage rates. But loan officers will tell you that the smart move is for buyers to purchase a home when they find one they’ll love to live in, with a down payment and monthly payment they can afford. Over the long term, it is generally better for […]

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Knowing CRA Developments is Critical

Rob Chrisman — Tue, 12 Sep 2023 12:37:30 +0000

There are some things that are difficult, or impossible, to put back into the bottle. Genies, toothpaste, technology, and government agencies come to mind. We can probably add the Community Reinvestment Act (CRA) to the list. In the last few years there has been a heavy focus on CRA for both depository banks and credit […]

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Improving Revenue May Be Right Under Your Nose

Rob Chrisman — Thu, 03 Aug 2023 12:51:09 +0000

Here’s some earth-shattering news for you: companies make money by earning more than they spend. To improve their bottom line, lenders can either earn more or spend less, or some combination thereof. We mention this because recently STRATMOR examined one area of expenses: appraisals. Revenue leakage from appraisal fee collection is an oft-overlooked problem, but […]

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Interest Rates are Like the Weather? Or Like the Signs of the Zodiac?

Rob Chrisman — Mon, 10 Jul 2023 20:29:22 +0000

“The only function of economic forecasting is to make astrology look respectable” (John Kenneth Galbraith).” Lenders and loan originators who listened to, and relied on, predictions, and were hoping for lower rates as 2023 moved along, have been sorely disappointed. We’re more than halfway through the year and not only have mortgage rates not gone […]

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Compensation: Ever Changing

Rob Chrisman — Mon, 12 Jun 2023 18:25:25 +0000

In the first quarter of 2023 the Mortgage Bankers Association reported that total loan production expenses (commissions, compensation, occupancy, equipment, and other production expenses and corporate allocations) hit $13,171 per loan. After cramming years’ worth of volume and income in 2020 and 2021, in 2022 and 2023 lenders (and vendors) have been reducing, cutting, slashing, […]

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Doing Business with the Agencies: The “Golden Ticket?”

Rob Chrisman — Tue, 09 May 2023 20:17:37 +0000

The “Golden Ticket,” of course, is the pass that allows the owner to get into Willy Wonka’s Chocolate Factory. Once in the factory, the visitor might see the Everlasting Gobstopper and wonder how much a candy is worth that not only changes colors and flavors when sucked on, but also never gets any smaller or […]

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The Yield Curve Is Inverted: Should Lenders Care?

Rob Chrisman — Tue, 11 Apr 2023 17:06:07 +0000

The U.S. Treasury Curve is currently “inverted.” What does that mean? Should it matter to lenders? The fact is, the yield curve (a graphical representation of yields, usually of U.S. Treasury or government-backed securities, stretching from overnight to 30 years) has been inverted for several months, and yet the sun continues to rise in the […]

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A Penny Saved is a Penny Earned

Rob Chrisman — Wed, 08 Mar 2023 15:00:47 +0000

When analyzing their business, lenders must take into account the huge increase in costs which the MBA has pegged at over $10,000 per loan. Lenders of every size must contend with the guarantee fee imposed by Freddie and Fannie (unlike jumbo or non-QM loans which have none), increasing compliance costs, servicing compliance, foreclosure, and buyback […]

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Lender Valuation

Rob Chrisman — Wed, 08 Feb 2023 18:54:37 +0000

This article is sort of a version of myth busters — and this month I tackle the myth that mortgage companies in the current environment have “no value.” The concept of no value is typically meant to mean that a mortgage origination company is only worth what’s on the balance sheet. That turns out not […]

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