A large decline in auto sales drove the sharp decrease in overall sales. Sales excluding autos fell by 0.6 percent. Declines were widespread, with only drug stores and gasoline stations posting small gains.

From a year ago, retail sales decreased by 1.0 percent. This was the first year-over-year drop since October 2002. Since the 1990-91 recession, retail sales have posted year-over-ago drops only three times; the first instance was in September 2001.

Retail sales account for about 40 percent of consumption expenditures with spending on services accounting for the rest. Declining retail sales for the past three months suggested that inflation-adjusted consumer spending likely declined in the third quarter for the first time since the fourth quarter of 1991.

A separate report showed that wholesale prices fell in September for the second consecutive month. The Producer Price Index fell by 0.4 percent, following a 0.9 percent drop in August. Large declines in energy prices led the drop in the overall index. Over the past year, the PPI rose 8.7 percent, edging down from a 9.8 percent gain in July (the largest year-over-year since June 1981) and a 9.7 percent gain in August. 

Excluding food and energy items, the core PPI was up a strong 0.4 percent, accelerating from a 0.2 percent gain in August. From a year ago, the core PPI rose by 4.1 percent, the largest gain since February 1983. 

Also yesterday, the Federal Reserve released theBeige Book, a summary of economic activity between late August and early October from the 12 District Banks. The Beige Book indicated a broad slowdown in economic activity, including consumer spending and manufacturing activity. District banks reported reduced credit availability as households and businesses are facing tighter credit conditions. Labor market conditions deteriorated while inflation pressures eased somewhat.

In his speech to the Economic Club of New York yesterday, Fed Chairman Ben Bernanke noted that inflation has been elevated but expected inflation has held steady or eased. His comments suggested that the Fed does not consider inflation a primary concern at this point. 

Bernanke said economic growth will be below potential and it will take some time to recover. He assured that Fed officials will "use all the tools” at their disposal to increase liquidity and improve credit conditions. Federal funds futures traders expected a 70 percent probability of a quarter-point cut when the Fed meets October 28-29. 

While Bernanke did not label the subpar growth period the economy is expected to face a "recession," San Francisco Fed President Janet Yellen said in her speech to members of Financial Executives International in Palo Alto on Tuesday night that the economy “appears to be in a recession." 

(Orawin Velz is associate vice president of economic forecasting with the Mortgage Bankers Association. She can be reached at ovelz@mortgagebankers.org.)
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Lowrie brings more than 29 years of mortgage banking experience. She is currently president and CEO of Vision Mortgage Capital LLC, as well as RML Investments Inc., a consulting firm serving the financial services industry. Prior to forming Vision Mortgage Capital, Lowrie was president of Gateway Funding Diversified Mortgage Services, Horsham, Pa.

In 2005, Lowrie became the first woman to serve as MBA chairman and was instrumental in the creation of an industry “think tank”—the Council to Shape Change—which examined technology issues and helping lenders reduce cost through technology. 

Walker & Dunlop Adds Wilson as CFO
Walker & Dunlop, Bethesda, Md., and Green Park Financial, Bethesda, appointed Deborah Wilson as senior vice president and chief financial officer.
 
Wilson brings 17 years of experience in the accounting, finance, control and commercial/multifamily. She joins the companies from Fannie Mae, where she was vice president of counterparty risk. Prior to Fannie Mae, she was a partner in KPMG’s real estate consulting practice focusing on valuation, mergers & acquisitions and productivity & profitability of commercial/multifamily mortgage banking companies.

Mortgage Lender Residential Finance Corp. Appoints Egbuna
Residential Finance Corp., Columbus, Ohio, appointed Obiora Egbuna as vice president of sales. He will lead development of the mortgage lender’s production team.

Prior to joining RFC, Egbuna was senior vice president of sales and served as co-head of retail franchise for Delta Funding Corp. (dba Fidelity Mortgage). Earlier, Egbuna served as product development and marketing manager for Bell Atlantic and as sales manager for Time/Life Libraries.

First American Hires Ehms to Lenders Advantage Sales Team
First American Title Insurance Co., Santa Ana, Calif., hired Michael Ehms to its Lenders Advantage division’s sales teams as senior vice president and strategic account director. He will be responsible for expanding existing partnerships with national lenders and new clients.

Ehms comes to First American after serving as a sales manager and senior account manager for Republic Mortgage Insurance Co. Prior to that, he directed sales for another large title insurer, both regionally and nationally. He has more than 18 years of experience in financial services and served on the board of directors for the Mortgage Bankers Association of Southwestern Pennsylvania in 2004.

Idzik New Group CEO at DTZ
DTZ Holdings plc, London, appointed Paul Idzik as group CEO. He will join the company and board of directors Nov. 3. He replaces Mark Struckett, who CEO since 1994 and who announced he would step down. Struckett will remain with DTZ in an advisory capacity.

Idzik served as chief operating officer of Barclays PLC from 2004 to 2008. Previously, he was chief operating officer role at Barclays Capital Ltd. Prior to the roles at Barclays, he was a partner at Booz, Allen & Hamilton, now Booz & Co.

Platinum Home Mortgage Taps Kuczeski as SVP
Platinum Home Mortgage Corp., Rolling Meadows, Ill., appointed John Kuczeski as senior executive vice president of the company’s Midwest Lending Division, responsible for residential origination and operations.

Prior to joining Platinum Home Mortgage, Kuczeski was with GMAC Mortgage for more than 21 years, most recently as regional vice president. He is an active member of the Michigan Mortgage Lenders Association.

Mortgage Banking Solutions Adds Marcia Starcher to Executive Sales Team
Mortgage Banking Solutions, Austin, Texas, appointed Marcia Starcher to the company’s executive sales team as national sales director.

Starcher has more than 20 years of mortgage industry background. Most recently she was vice president of Deutsche Bank Secured Products, covering high-dollar accounts. Previously, she held executive sales positions with both GMAC/RFC and American Residential, as well as a senior account executive for Fannie Mae.
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• Abu Dhabi Finance PJSC, Abu Dhabi, United Arab Emirates
• Fidelity National Information Services Canada, Toronto, Ontario, Canada
• HBOS Canada, Toronto, Ontario, Canada
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Company Description
“StreetLinks does one thing—appraisal management,” said StreetLinks President and CEO Steve Haslam. “Our leadership team consists of former lending industry and appraisal company executives with more than 100 years of experience. Everything we do is guided by this experience—to benefit our customers.”

Haslam said StreetLinks understands the relationship nature of all facets of the origination process, including:

• Sales and operations personnel love the company’s technology, service, turn-times and valuation results. 

• Underwriters and risk managers respect StreetLink’s quality, and the fact each appraisal is hand-reviewed and certified.

• Professional appraisers perform for StreetLinks and its customers “because they respect who we are and how we do it,” he said.

Haslam said StreetLinks introduced several exclusive industry innovations, including:

• Certificate of Non-Influence
• ValueVault
• Appraisal Advocate
• PipeFire Technology

Haslam added that the company’s promises to customers include accurate, certified appraisals; more efficient origination operations; and faster loan approvals and better performing loans.

Key Personnel
• Steve Haslam, president & CEO. Haslam is a 20 year mortgage industry veteran who has led all aspects of national retail and brokerage platforms. He also led one of the nation’s largest captive appraisal management companies. 

• Tony Ebeyer, COO. Ebeyer founded Superior Appraisal Services in 1995. Superior was among the first companies to offer a web-based client interface for ordering and tracking appraisal orders and rapidly grew to the largest direct appraisal provider in the Midwest. In 2003 he began developing a comprehensive software platform that led to 2005’s launch of PipeFire Lender Services, an appraisal management company that drives StreetLinks’ technology platform. 

• Tom Hurst, senior vice president of sales and operations. Hurst joined Superior Appraisal Services in 2002 as senior operating officer after leaving the aviation industry. He was instrumental in the rapid growth of Superior with his involvement in strategic planning, marketing and sales. Upon formation of PipeFire Lender Services, his focus shifted to creating operational support and infrastructure needed to implement the appraisal fulfillment services. 

• Chad Barker, vice president of operations. Barker joined Superior Appraisal in 1996. As a licensed appraiser and business developer, he was instrumental in the rapid expansion of Superior's client base while simultaneously building Superior's largest team of in-house appraisers.

• Paul Bradley, director of national sales. A former StreetLinks customer, Bradley has been in the mortgage & housing related field for more than 18 years; including positions as a loan officer, sales and operational manager, expanding retail and net branch operations across the country, and running large mortgage retail call centers.

• Kelly Taylor, director of national sales. Taylor has 20 years experience in the mortgage industry managing national retail branch systems, multiple location call centers and large broker platforms.

Trends
“Given the stricter lending environment and increased regulatory energy around ‘appraiser-independence,’ StreetLinks is positioning itself to be the nation’s best-of-breed appraisal management company,” Haslam said. “We believe, irrespective of the outcome of formal ‘appraisal-independence’ legislation, that lenders, investors, Wall Street, rating agencies, etc. will insist on arms-length appraisal procurement processes, and that StreetLinks will be the preferred solution.”

Traditional appraisal management companies have not met the unique service, technology, quality and cultural needs of bankers and brokers, Haslam said.

“They typically process thousands of orders ‘mechanically’ with ‘cookie-cutter’ processes that have not been well received. Many typical national AMCs are owned by title companies or captive bank retailers—relationships that are threatened by the pending HVCC agreement. StreetLinks does one thing better than anyone: appraisal management. We have structured our entire value proposition around the specific needs of our clients to provide a solution that delivers the service, quality, technology and efficiency they deserve and demand.”

Five Year Plan
"We will be the preferred and dominant appraisal management service provider in the industry," Haslam said.

Biggest Issue Facing Industry Today
“At present, many independent bankers and brokers are not embracing the necessity to adjust their internal operations to an ‘arms-length’ appraisal procurement process,” Haslam said. “Absent legislation, many are slow to grasp the importance thereof. Allowing loan officers and processors to manage appraisal processes is inefficient and potentially risky. We foresee greater pipeline fallout and loan losses for those slow to adapt as appraisals are now being scrutinized for quality and non-influence like never before.”

Haslam said he understands the reluctance to embrace an appraisal management company solution based on poor previous experience of ‘traditional’ providers. “We are focused on getting the message out, and proving that we have redefined everything about appraisal management,” he said. “We have built it—and they will come.”

Why did StreetLinks join MBA?
“MBA is the premier advocate and educator of its members,” Haslam said. “As recent industry turmoil has driven many companies out of business, we believe the remaining members are increasingly focused on doing things right. MBA is a great vehicle to help us reach that target customer.”
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Just when it's needed most, MBA's National Mortgage Servicing Conference & Expo 2009 addresses key industry issues in an evolving marketplace. Let this conference help you achieve these goals by offering the ultimate opportunity to gather with thousands of your peers in Preserving the Dream.

As current market conditions dictate changes to the way companies do business, the most successful servicing professionals are pooling knowledge, information and resources. Whether it's through conferences and events, CampusMBA, research products or in establishing best practices, MBA is here to serve you.

Pulitzer Prize-winning columnist and best-selling author/satirist Dave Barry highlights the Conference’s Opening General Session on Feb. 18. Barry’s long-running column appeared in more than 500 newspapers in the United States and abroad over the past 25 years. Winning a Pulitzer Prize for Commentary in 1988, Barry has written 30 books, two of which were used as the basis for the CBS-TV sitcom Dave’s World. Barry has also made many television appearances on CBS’s Late Show with David Letterman.

Who Should Attend:
Residential mortgage loan servicers, including senior management, servicing managers, department heads, default managers, customer service managers, service providers, attorneys and other servicing personnel.

Registration:
To download the registration form, go to http://www.mortgagebankers.org/files/conferences/pdf/M2902054_registrationform.pdf. You can also register online at http://store.mortgagebankers.org/ProductDetail.aspx?product_code=M2902054/REGIS. You can also register by phone at 1-800-793-6222 Monday-Friday between 9:00 a.m.-5:00 p.m. ET (select option 3). Early registration cutoff: Jan. 16.

Continuing Education, Industry Designation Opportunities:
Earn up to 14 CPE credits by attending this conference. You can also earn 3 points toward your Certified Mortgage Banker (CMB) designation.

Accommodations:
The discount hotel cutoff date is Jan. 19. Conference hotels are available at the conference web site, http://events.mortgagebankers.org/servicing2009/default.html.

Expand Your Reach:
To apply for sponsorship of MBA's National Mortgage Servicing Conference & Expo 2009, download the Sponsorship Brochure at http://www.mortgagebankers.org/files/conferences/pdf/M2902054_sponsorbrochure.pdf or contact Mark Brady at mbrady@mortgagebankers.org or (202) 557-2790 to request details on customized sponsorship packages, production deadlines or logo/signage specifications.

Explore MBA's exhibitor opportunities by contacting Kim Newell at knewell@mortgagebankers.org or (202) 557-2791 or Patty Miller at pmiller@mortgagebankers.org or (202) 557-2792.
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Taylor said present and future markets will take advantage of virtual office models, for which SaaS can provide flexibility. Furthermore, he said SaaS allows for easier reporting—by taking different data from different parts of the organization and generating customized reports.

To help lenders who have seen significant declines in volumes, LendingSpace, South Plainfield, N.J., has developed a partnership pricing loan origination system.

“It’s strictly based on funded loans only,” said Ravi Varma, CEO of LendingSpace. “Times are challenging right now and to help lenders who cannot make a long-term investment, the service only charges if the loan goes through. There are no charges for leads or loans that lenders only process. It’s on a funded loan basis only.”

Varma said the LOS offering is similar to the SaaS model, although many SaaS providers charge for processes regardless of revenues generated. “It is sustainable into the future as well,” Varma said. “There is no real ROI to justify. And we already know the cyclical nature of the business.”

LendingSpace also developed an LOS specifically for reverse mortgages. “There are millions of people added each year to the 62 and older group—the age to qualify for a reverse mortgage,” Varma said. "There is tremendous opportunity to reach out to these potential borrowers."

Senior Lending Network, Melville, N.Y., a program of World Alliance Financial Corp., estimates that 30 percent more seniors can qualify for or borrow more through a reverse mortgage due to a rise in the nationwide lending limit. HUD announced that the home equity conversion mortgage nationwide loan limit will become $417,000 by November 1 . Currently, the size of a HECM depends on the maximum lending limit in a particular county and ranges from $200,160 to $362,790.

“For many seniors, current economic pressures and rise in cost of living is part of their day-to-day lives," said David Peskin, CEO of Senior Lending Network. "Their retirement funds are worth less, they are living longer and declining home values continue to take their toll. A reverse mortgage shifts the focus to the senior’s greatest asset and lets them remain in their home while they access their equity. The new limit permits existing reverse mortgage holders to reevaluate whether they can put their equity to even greater use. It is one way for seniors to buffer the impact of a worsening economy and declining home values.”

Linda Simmons, senior vice president of business development at Overture Technologies Inc., Bethesda, Md., said she has seen growth in re-decisioning, where decisions occur throughout the mortgage value chain. “The transformation has been rapid,” she said. “While the industry got comfy using Desktop Underwriter and automated underwriting, they didn’t use automation past underwriting.”

William Kelvie, CEO of Overture Technologies, said automated decision help loss mitigation work as well. “What it enables is looking at the loan, refreshing the data and making a series of recommendations," he said. "It shows the outcome of the loan. The predictability helps stop the bleeding of rising foreclosures.”

“Suitability is of concern on the origination side, but it’s just as appropriate on the servicing side,’ Simmons said. “Automated decisioning addresses both suitability and sustainability, yielding the best possible options. This shows the importance of adaptability."
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