This year's Eastern Secondary Marketing Conference, which starts Sunday in Raleigh, N.C., promises a taste of controversy along with the usual networking and expert presentations.
Alex J. Pollock, president of the Federal Home Loan Bank of Chicago, is scheduled to talk about the its move this year to start buying mortgages.
Buying the loans puts the bank in competition with Fannie Mae and Freddie Mac, and some thrift executives say the bank is thereby overstepping its authority.
Generally, mortgage bankers said they attend the annual conference sponsored by the North Carolina Community Bankers Association in order to strengthen ties with secondary market agencies and other loan buyers.
"You get so much out of walking the hallways and meeting people," said Clark Ballard, senior vice president of mortgage lending at BB&T Corp., Winston-Salem, N.C.
But organizers want also want to present a strong roster, showing the various developments in the mortgage business-including the Chicago Home Loan bank effort.
"Times change and we want lenders to be prepared," said Thad Woodard, president of the association.
The 16th annual conference will draw about 400 industry representatives from 35 states, organizers say.
Organizers expect slightly fewer lenders than last year, reflecting consolidation in the banking and mortgage industries, especially among larger companies that have traditionally been big buyers of mortgage loans.
Indeed, Barnett Banks Inc., always a strong presence at the conference, is now slated to be absorbed by NationsBank. And North American Mortgage, one of the last holdouts among large, independent lenders, is being bought by Dime Bancorp.
Mr. Woodard agreed that many lenders come to the conference to create connections, and he's comfortable with the arrangement. "We like to be known as an event where deals get done," he said.
But he also said that the conference has a strong roster this year, because lenders need to know about new programs and technologies.
Executives from Fannie Mae and Freddie Mac will talk about independent efforts to make lending and follow-up sales easier. A panel session will explore the future of mortgage banking, including possible opportunities in lending to lower-income borrowers and the growing immigrant population.
Representatives from Wall Street will discuss how to work with investment banks in the securitization process. Other strategies, like subservicing and diversifying product lines, are also set to be addressed.
