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1. 

   James E. Veale, CPA, MBT

   March 1, 2013 at 12:22 pm

   In looking at the written testimony of Mr. Peter Bell about NRMLA, one can quickly see how that the 10 largest lenders in the industry who are also NRMLA lenders are doing about 63% of all endorsements. That means that the other NRMLA members are doing about 27% of the originations or about 4.5 originations on average.

   The numbers for the fiscal year year-to-date totals give a slightly different picture of how the lenders are placed within the industry and how the industry is doing as to gaining more endorsements than it did the year before. On a fiscal year basis we are running about 10% behind what we did last year at 54,822. On a calendar year endorsements are running about 5.5% behind what they did last year which was about 52,400.

   So even before any loss in the fixed rate Standard, endorsements are running so significantly behind the numbers for the same periods last year, it seems as if we will again see endorsement totals for both the fiscal and calendar years 2013 below 50,000 endorsements. When will the annual loss in endorsements stop? Perhaps 2015 although that seems doubtful with the fixed rate Standard off the table.

   This is a difficult time in the industry with several significant changes in the offing. Could they drag endorsement volume still lower? No one expects endorsements to rise as a result.

   What will make endorsement levels rise? If anyone really had an answer to that one, we might have already seen some signs of an endorsement turnaround.

   The foregoing is the opinion of a CPA and fellow originator. It does not represent the official position of any lender including Security One or any of its affiliates.

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