Posted To: The Garrett Watts Report We asked you last week what your losses averaged on repurchases, and we got quite a few responses. Here is one: “A performing repurchase due to underwriting errors that can be refinanced into a new loan will cost about $10,000. A Non-performing repurchase that was originated in the last 12 months costs about 30 points to sell to a scratch and dent desk.

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Cost of a Loan Repurchase; Budget Deficit; Financial Sector Peformance; MBA Headquarters; ResCap Earnings

Posted To: The Garrett Watts Report We believe it is important to gather metrics on your business and measure the results in numbers, dollars and percentages. In the above cartoon, sales increased by 100% but in actual numbers it’s pretty dismal, increasing from 1 to 2 sales

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If You Can’t Measure Performance, You Can’t Manage Performance

Posted To: The Garrett Watts Report Lots of mortgage bankers talk about buying a bank, but aside from this writer, very few have ever done it. So a huge round of applause to Rob Hirt, owner of RPM Mortgage, for closing on his purchase of Darien Rowayton Bank in Darien, Ct

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Mortgage Bankers Buying a Bank; Fair Issac; Michigan Delinquencies; Commission Splits

Posted To: The Garrett Watts Report Securities firm Keefe, Bruyette & Woods has identified 393 banks with Texas ratios greater than 100%. If we assume that 75% of them will fail (our number, not Keefe’s), that would represent $141 billion in assets, and assuming a 25% loss ratio (our number, not theirs), this would cost the FDIC $35 billion. If you’re worried that you’ll be required to own 5% of every loan you sell, find something else to worry about

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Planning for the Slowdown; Texas Ratio Update; MGIC Honoring Claims; Putting Funds to Work