A Litmus Test for Pols: The MI Deduction.(Letter to the Editor)

Any time I take a stab at political commentary in this column it's usually greeted by e-mails from readers who suggest - sometimes not so kindly - they really don't want to read about politics in their favorite mortgage publication.

Perhaps, I should heed the advice of my father who once quipped, "There's two things I don't discuss with relatives: religion and politics." Of course, in our Long Island enclave of Nassau County everyone in the family was both Catholic and Republican so not too many punches got thrown around the Sunday dinner table at Grandma Muolo's.

Truthfully speaking, I don't crave writing about politicians and where they stand on issues because it's like trying to nail Jell-O to the wall. One day they stand for this, the next day they don't. Politicians care mostly about the people who donate money to them and whether they'll keep donating enough to support their re-election bid.

The beauty of writing about finance (mortgage finance) is that it's all about dollars, cents and numbers. There's a bottom line to be met and if the numbers don't add up there'd better be a good reason for it. If you don't make your numbers you're gone. In other words, there are certain rules in the mortgage jungle, which must be obeyed to assure survival.

Success in mortgage banking is more about "sound management" than the "cult of personality" and politics. A few years back, our company held a seminar with one senior editor saying how important it was to recognize the "cult of personality" in writing about finance. I beg to differ. There are plenty of personalities in mortgage banking, but if their companies are sucking wind their personality won't save their hides at the end of the day.

Mortgage banking is about making money, cash flow and margins. Mortgage banking is about who's up, who's down, who's gaining market share, which firms have great products and execution, and which firms don't. Mortgage banking is about selling. Mortgage banking is about survival. And yes, to some degree, it's about politics. Just ask Fannie Mae and Freddie Mac. Just ask the National Association of Home Builders.

No, I don't enjoy writing about politics much, but here's my once-a-year piece of political advice to industry executives: any elected official who comes out in favor of reducing the mortgage interest deduction (to ...