AMP Opinion

As we continue to trudge forward in our industry, many mortgage loan originators are finding that they just do not have what it takes to make a decent enough living.

Those of you who have bigger aspirations to do more than loan origination for a living should think about opening your own branch office. This allows you the flexibility to hire other loan originators and build your own branch office. Why not get paid for hiring your friends in the loan industry? This is now the time to give that thought to your origination business. Contact us today and let us explain how we can make you more money!

Starting October 1, 2011, USDA has changed the fee structure it charges to support the Guarantee RD home loan program. The "upfront" 3.5% fee has now been reduced to 2%. However, like the FHA home loan program, USDA has decided to charge an annual fee. This new cost is 0.30 of the loan amount. This will increase the cost of this program to homeowners adding $25 per month for every $100,000 borrowed. Unlike FHA, this program still does not require a down payment and is still the most affordable loan program out there if you meet the qualifying guides.

2011 is looking like its going to be a transition year for many of us in the mortgage industry. Are you prepared for 2012? Have you considered having your own mortgage branch? Would you like to be able to recruit loan originators and get paid for managing your own office? American Mortgage Partners has opportunities for those who want to build an office and get paid for more than just originating loans. We are looking for those of you who are use to managing people.

Those of you out there originating loans and not getting any yield spread premium or overage there are some companies that have found ways to reward originators who are more profitable then others. We at American Mortgage Partners have created expense accounts where we will gladly pay our originators monthly expenses and in some cases pay them a bonus. We keep track of any loans that are up sold and then decide if certain originators should be rewarded.

With net worth requirements continuing to increase in the mortgage banker world, many current mortgage brokers or smaller mortgage bankers are being pressured to find additional capital in order to continue to operate. The cooperative idea is one where a centralized mortgage platform is shared by many individual companies with the idea of saving money by not having to duplicate infrastructure, but also not having to deal with the net worth of their individual companies.

Private Mortgage Insurance companies are getting back to the insuring of mortgage loans. Many have reduced their premium and have expanded their mortgage insurance coverage so that they will now insure 97% of the total sales price of the home. Though the credit qualifying is tough, with a minimum credit score of 720 and maximum debt to income ratio of 41%, It is still an alternative to FHA financing.  If a borrower pays a 1% charge at close of escrow their annual MI is 0.61%. This is 0.54 less expensive than FHA loans.