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The Handbook of Mortgage Banking.

With our industry changing so rapidly, books such as The Handbook of Mortgage Banking are welcomed with open arms. We all spend most of our time keeping up with our own jobs, which typically have a narrow focus. Jess Lederman's new book is beneficial as it can help us keep current on other areas within our industry.

You should be aware that the title of the text may be somewhat misleading. The book is a compilation of articles by knowledgeable industry participants writing about their areas of expertise. Each chapter is written by a different author, and the subject of each chapter ranges from underwriting, to hedging a pipeline, to warehouse lending. The book is not a basic textbook with well-organized chapters taking the new mortgage banker through the basics of our industry. Because each chapter is written by a different author, there is some inconsistency in the level of sophistication of each chapter, and there is some overlap of subject matter. Therefore, the book should be geared toward mortgage banking professionals who have spent some time in the business and are looking to expand their knowledge. The book would also be beneficial to the student of mortgage banking who uses the book in conjunction with some other type of education (such as the MBA's School of Mortgage Banking) where questions can be answered.

While most of the chapters in The Handbook of Mortgage Banking are informative, several of the chapters are especially worthy of note. The ABC's of both Fannie Mae and Freddie Mac are covered in short, concise, basic chapters. The reader of these chapters comes away with a general understanding of why the agencies were formed, how each agency works and the benefits in dealing with each institution. The chapters also serve as an excellent resource guide for future use.

The chapter on pipeline fallout is an excellent article and is geared toward the more seasoned mortgage banker who has not previously worked in a secondary marketing department. The chapter discusses the different reasons for fallout and some basic hedging strategies.

The basics of mortgage loan underwriting are also covered in the book. This chapter is suitable for the uninitiated (as well as the more seasoned mortgage banker) and gives the reader a very common-sense approach to underwriting instead of the traditional technical approach. The author starts with some general concepts and definitions and then goes through the underwriting process in a very reader-friendly manner.

Finally, the inclusion of a chapter on loss-management techniques caught me by surprise. We have all read how important underwriting and quality control are, and we have discussed how property values and employment information can help us predict future losses. However, few textbooks have pointed out the importance of the mitigation of losses once a problem presents itself. This chapter discusses how a mortgage banker can work toward minimizing losses and, while basic, is a concept worthy of focus.

Readers should understand that The Handbook of Mortgage Banking is not a start-to-finish textbook on the basics of mortgage banking, but is instead an excellent compilation of well-written, timely articles discussing many of the issues that we face as an industry.

Reviewer Jeffrey L Rosen is a marketing representative for Capital Holding Corporation in Louisville.

The Handbook of Mortgage Banking is available from MBA at $75 for members and $85 for nonmembers. Call 1-800-793-MBAA to order.
COPYRIGHT 1993 Mortgage Bankers Association of America
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

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Author:Rosen, Jeffrey L.
Publication:Mortgage Banking
Article Type:Book Review
Date:Oct 1, 1993
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