Bill James, Jr.

by Bill James, CMC
Residential Bancorp
Canton, Ohio

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POTPOURRI by W H James, Jr., CMC, Board Chairman-Residential Bancorp, Canton, Ohio,  April 15^th, 2007.

If you were to make a guess how many mortgage brokers and loan officer licenses were renewed so far this year in comparison to last year. Would you think there would be significantly less?  Well so would I and we would all be incorrect.  Active loan officer licenses in Ohio as of 2/7/07 . . . 7729.  Last year this time there we’re 7708, were actually up!  Active Mortgage Broker licenses 2/7/07 stands at 1216 against 1299 this time last year.

Another Congressional grand stand play.  This brilliant idea comes from N.Y. (D) Congressman Charles Schumer.  Schumer says, “The Federal Government can send in an infusion of money to prevent foreclosures.”  Yep, good old Charlie wants to send money to 2.4 million sub prime borrowers to catch up on their payments.  Gosh, Mr. Schumer, do we do it again next year when they are all back in foreclosure?  Einstein was right there is no end to human stupidity. .

MGIC and Radian mortgage insurance companies are considering the purchase and operation of an existing sub prime lender (MGIC and Radial are in process of merging). Seems sort of unusual in today’s climate but I remember in the 70’s when MGIC mortgage insurance co. formed MGIC mortgage and actively purchased mortgages (we were a seller servicer of theirs).  This was a time when mortgage funds were not always plentiful so they were a welcome service.  Can’t remember why or when the company went away.

Lots of conversations about Ohio (Midwest) economic conditions.  Canton (Stark County) continued to get mercilessly pounded.  Over the last few months eight (8) of our new car dealerships have closed (one of them 100 years old and another nearly 50).  They could not find any buyers!  The heaviest hit although not unexpected, came when North Canton’s Hoover Co. announced it would shut down for good in September of this year.  This will put 800 families out of work.  This would be significant in a large city . . . North Canton is a small town.  Trying to find some positives for the Ohio economy, can anyone help!

One area of hope . . . I am still talking to Realtors who say it is business as usual and their business is “just fine thank you”.  The key according to those positive thinkers, houses must be realistically priced from the initial listing.  Generally homes are selling at prices they would have brought 2 to 3 year ago.  New homes . . . different story.  Blood in the streets.  Homes listed at $300K are still unsold after price reductions of $25K to $40K, huge overhang of units.

MI ROSRY . . . These 2 words/seven letters when unscrambled and used in a timely and sincere way can save or change careers, marriages, corporations, Presidencies, even prevent wars . . .I can’t think of a better example then the recent mess that  befell Jet Blue airlines.  During a horrendous ice and snow storm Jet Blue’s planes at NY Kennedy were stranded at gates and on taxiways. Many of their customers were stuck in the Jet Blue planes for 8 to 11 hours.  Thousands of their customers were stranded or trapped in the terminal and airplanes.  Needless to say the media immediately  crucified the airline and it’s management.  It would have been easy for Jet Blue to disclaim the disaster saying it was “an act of God” or “we can’t control the weather”.  NOPE . . UP STEPS CEO DAVID NEELEMAN AND ON NATIONAL NEWS SAID THOSE 2 WORDS, took full responsibility and promised it would never happen again.  With his sincerity and timely use of the magic words he turned a PR nightmare into a corporate triumph . . . try it sometimes “I’M SORRY works magic.

Just when you think politicians can’t possibly show a lower level of intelligence they stagger the mind.  Our Ohio Legislators in their brilliance have created a new law.  O.R.C. 2909.32.  This little beauty is designed to finally and completely put an end to terrorist threats in Ohio.  Yep our geniuses have chosen to require certain license holders (check cashers, meat cutters, aircraft owners etal) to sign an affidavit containing some of the following questions:

1.      Are you a member of any organization on the U.S. Department of State Terrorist list?

2.      Have you used your position to persuade others to support an organization on this list?

3.      Have you afforded material support or resources to any organization on this list? (I checked, OAMB is not on the list!)

The questions get more ridiculous.  You have to admit what a great deterrent this affidavit must be . . . we all know no self respecting, body bombing, vehicle exploding terrorist would ever falsify AN AFFIDAVIT!  WHO ARE THESE PEOPLE WHO CREATE SUCH LAWS?

Bill James is Board Chairman of Residential Bancorp in Canton, Ohio and can be reached @ 330-495-6041.  Want to comment on Potpourri?  Email me Bill James, Jr.

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