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Mortgage Broker News
Mortgage brokering & successful broker profiles. Broker lawsuits and criminal activity.
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Net Branch News
Programs, payouts and news about new and existing net branch operations.
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Mortgage Lead News
Loan originator leads. News about lead companies and lead generation techniques.
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Mortgage Industry News Headlines
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Last Updated Thursday, July 02, 2009 06:26 PM CST
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7 Banks Seized
The Illinois Department of Financial and Professional Regulation, Division of Banking seized five small financial institutions. Another Illinois institution was closed by the Office of the Comptroller of the Currency. The Texas Banking Commissioner closed down a Dallas bank. The Federal Deposit Insurance Corporation, which announced the failures, was named receiver of all the failed banks.
Millions Released for Displaced CA Mortgage Workers
In February 2008, the U.S. Department of Labor announced a $5.6 million grant for the California Employment Development Department. The funds were targeted for career counseling, skills training and other employment and training assistance. The second of two installments has been released, according to a new announcement.
GMAC Restructured, Renamed
GMAC LLC converted from a limited liability company to a corporation, according to a filing with the Securities and Exchange Commission. As part of the transition, the firm was renamed GMAC Inc. "The conversion will facilitate implementation of the registration rights that GMAC has provided to its common and certain of its preferred shareholders," the filing said.
Mass. Crackdown on Mortgage Licensees
A report from the Commonwealth of Massachusetts Division of Banks indicated 7,747 loan originator licenses were received since the state began requiring the licenses. But tougher requirements by the state led nearly 2,000 of the applicants to either give up or be denied. The state has issued 377 formal and informal enforcement actions against licensed mortgage since 2006.
Big 10-Year Improvement
Freddie Mac reported in its Primary Mortgage Market Survey for the week ended July 2 that the average 30-year fixed-rate mortgage dropped 0.10 percent from the prior week. A benchmark for fixed-mortgage rates is the yield on the 10-year Treasury bond. The 10-year saw its yield decline around 17 basis points from a week earlier.
Mortgage Broker Jobs Contract
The Bureau of Labor Statistics reported that between April and May, the number of people employed in mortgage-related positions declined by 600. Compared to a year earlier, mortgage jobs were down 48,100. The month-to-month decline was attributable to a 3,500 reduction in the number of "mortgage and nonmortgage loan brokers."
Appraisers Ask HUD to Lift AMC Fee Restrictions
A coalition of four appraiser trade groups issued a letter to the secretary of the U.S. Department of Housing and Urban Development, according to a news release. The groups claim HUD is restricting fees that can be collected by appraisal management companies. The move conflicts with a the growing use of AMCs with the recent implementation of the Home Valuation Code of Conduct.
Agency MBS Volume Roaring
During June, issuance of Fannie Mae mortgage-backed securities was up 176 percent from a year earlier, according to data reported by eMBS. Over at Freddie Mac, MBS issuance jumped 83 percent during the same period. Ginnie Mae issuance reached an all-time high in June.
Huge FHA Fraud Settlement
Beazer Homes USA Inc. has agreed to a settlement with the U.S. Department of Justice. Employees of Beazer Mortgage allegedly committed mortgage fraud on loans insured by the Federal Housing Administration. The loans were used to finance Beazer Homes purchases.
Refi LTVs Boosted
The Federal Housing Finance Agency, issued a statement indicating that the maximum loan-to-value on loans refinanced under the Home Affordable Refinance Program will increase to 125 percent. Previously, the LTV was capped at 105 percent. In addition, borrowers are being given incentives to pay their loans down in less than 30 years.
Best Mid-Sized Employers
The 2009 Best Small & Medium Companies to Work for in America considered companies that employed between 251 and 999 employees for its ranking of the best 25 medium-sized firms. The highest-ranking mortgage-related company of the list was No. 18 City Bank Texas. City Bank has 697 employees.
LoanCare Servicer Rating Upgraded
LoanCare Servicing Center Inc.'s residential servicer quality rating was raised to SQ3+, Moody's Investors Service announced. The upgrade followed a June 3 upgrade by Moody's. The latest action was prompted by improved collection and loss mitigation assessments, Moody's said.
Wells Unloads Subprime Loans
Wells Fargo & Co. has sold a $600 million portfolio, a spokeswoman confirmed to MortgageDaily.com. The portfolio consisted of subprime mortgages. The spokeswoman declined to identify the buyer in the secondary transaction.
COFI Skyrockets
The Cost of Funds Index jumped 45 basis points in May, the Federal Home Loan Bank of San Francisco reported. The prior month, COFI had been at its all-time lowest level, according to 11th District data. Still, the index remains more than 100 BPS below May 2008.
Mortgage Jobs Open in Several States
A press release indicated that Shore Mortgage has 100 immediate openings in Michigan. Everbank Financial Corp. recently reported to MortgageDaily.com that it seeks to fill 60 open mortgage positions, including 38 in the Jacksonville area. A report from Spherion Corp. indicated that the mortgage and real estate sectors are among industries that are seeing employment activity in Texas.
Chase Hires 1,000s as Mod Activity Leaps
JPMorgan Chase & Co.'s banking unit has increased its counseling staff stands to 3,500, a news release said. In addition, hundreds of additions are planned during the coming weeks. From April 6 through June 30, the New York-based institution approved 138,000 trial mortgage modifications.
U.S. Modification Analysis
Modifications were completed on 185,156 loans during the first quarter, according to the OCC and OTS Mortgage Metrics Report, First Quarter 2009. The number of modifications jumped from the previous quarter and nearly tripled the number completed in the first-quarter 2008. More than half of first-quarter modifications resulted in a lower payment.
Residential Delinquency Mixed at Banks
First-quarter delinquency of between 30 and 59 days improved 70 basis points from the fourth quarter, according to the OCC and OTS Mortgage Metrics Report, First Quarter 2009. But serious delinquency of at least 60 days, excluding foreclosures, increased 40 BPS from the fourth quarter. Serious delinquency was 230 BPS worse than a year earlier.
M.I. Defaults Rise, New Business Declines
The number of mortgage insurance policies written in May declined 73 percent from April, the Mortgage Insurance Companies of America reported. Compared to a year earlier, volume tumbled 53 percent. Meanwhile, primary insurance defaults increased 8 percent from April.
Serious Delinquency Soars at Fannie
Residential delinquency of at lest 90 days at Fannie Mae had already reached a record in March. But the company's latest report indicated delinquency shot up 27 basis points in April, according to a monthly operational summary. Compared to April 2008, delinquency was 220 BPS higher.
Study Finds Misleading HECM Marketing
The General Accountability Office conducted a study on the costs, risks and benefits of home-equity conversion mortgages. The review was prompted by concerns over consumer protections. The agency analyzed consumer complaint data and examined misleading HECM marketing and ads. It found that some claims by originators were potentially misleading because of inaccurate or incomplete claims.
Supreme Court Rules on Pre-emption
The U.S. Supreme Court ruled against banks in a lawsuit filed against New York's attorney general. The financial institutions were trying to stop the state from investigating their lending practices. The banks claimed that their regulator, the Office of the Comprtroller of the Currency, had exclusive regualatory authority over them.
Forms 1003, 1008 Revised
The Uniform Residential Loan Application, known as Form 1003, was revised by Fannie Mae, according to a seller-servicer announcement. The revised form will be required on applications taken on or after Jan. 1, 2010. Changes were also made to the Uniform Underwriting and Transmittal Summary -- also known as Form 1008.
Friday's 5 Failures to Cost Over Quarter Billion
The California Department of Financial Institutions seized Mirae Bankon Friday, June 26, an announcement from the state said. The Federal Deposit Insurance Corporation expects the failure to cost its Deposit Insurance Fund $50 million. Including four other bank failures Friday, the FDIC expects to lose around $264 million.
4 Failed Financial Institutions
Community Bank of West Georgia was closed by the Georgia Department of Banking and Finance. Neighborhood Community Bank was also seized by the Georgia regulator. Horizon Bank was closed by the Minnesota Department of Commerce. Over in California, the Department of Financial Institutions announced the closing of MetroPacific Bank.
Reverse Market Update
The Comptroller of the Currency issued a warning that reverse mortgages pose significant compliance risks, and more regulatory standards need to be adopted to provide consumer protections. The National Reverse Mortgage Lenders Association announced two new ethics advisories. One deals with ancillary financial products, while the other covers lead generation. As of Sept. 1, Fannie Mae said it will no longer purchase adjustable-rate HECM's that use the weekly average yield on one-year Treasury securities as the index.
Record Delinquency at Freddie as Business Drops
May purchases and issuances at Freddie Mac fell by nearly $8 billion, according to a monthly volume summary. Compared to a year earlier, monthly volume was down nearly $15 billion. Residential delinquency of at least 90 days has increased each month since May 2007 and stands at an all-time high.
Regulators Seize Hard-Money Lender
An Arizona court appointed the Superintendent of Financial Institutions as receiver for Landmarc Capital and Investment Co., an announcement said. Consumer complaints initially prompted the state to launch an investigation. "As the case progressed, we discovered an insolvent company misrepresenting its condition to investors and potential borrowers," the statement said.
Bill Proposes HVCC Moratorium
Two U.S. representatives introduced new legislation in the House tied to the Home Valuation Code of Conduct, the National Association of Mortgage Brokers announced. The bill would require a moratorium on the HVCC. NAMB called the new legislation a victory.
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This mortgage news summary reprinted with permission of
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For the entire text of any of these stories please visit
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Copyright © 2008 MortgageDaily.com
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Mortgage Broker Jobs Contract
The number of people employed by mortgage bankers and servicers increased in the latest monthly employment report from the government. But the increase was not enough to offset mortgage broker job losses
The Bureau of Labor Statistics reported today that 266,600 people were employed in mortgage positions during May.
The bureau, a division of the U.S. Department of Labor, usually reports employment statistics on the first Friday of each month but reported the data early due to the fourth of July holiday.
MortgageDaily.com subscribers read full story
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Bill Proposes HVCC Moratorium
Lawmakers have introduced federal legislation that would suspend the Home Valuation Code of Conduct.
Rep. Travis W. Childers (D-Miss.) and Rep. George Miller (D-Calif.) introduced H.R. 3044 on Wednesday, the National Association of Mortgage Brokers announced Thursday.
The bill would require an 18-month moratorium on the HVCC.
MortgageDaily.com subscribers read full story
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Mortgage Compliance Wire
The implementation of the new appraisal code has destroyed appraisal quality and increased loan expenses, according to mortgage brokers. In other mortgage compliance activity, a new study found that banks are more closely monitoring compliance by their business partners.
The Office of the Comptroller of the Currency announced this month the approval of final rules and guidelines which implement section 312 of the Fair and Accurate Credit Transactions Act of 2003 -- or FACT Act.
A group of federal regulators -- including the OCC, the National Credit Union Administration and the Federal Trade Commission -- will soon be publishing final rules and guidelines in the Federal Register.
MortgageDaily.com subscribers read full story
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FHA Hearings Address Broker Net Worth
In testimony before Congress today, mortgage bankers warned that the Federal Housing Administration and the Government National Mortgage Association need more resources to keep up with rapidly increasing government originations. The group also called on lawmakers to increase minimum FHA net worth requirements -- though mortgage brokers argue that an increase won't make a difference.
At a House Financial Services Subcommittee on Oversight and Investigations hearing today, Mortgage Bankers Association Chairman David G. Kittle testified that FHA market share has risen from 3 percent to 30 percent "virtually overnight," according to a prepared transcript of his statement. But the agency is operating with outdated technology and a thin staff.
"The result is a diminished ability to detect and root out fraud, remove bad actors from the program, approve new lenders, and process mortgages," Kittle stated.
MortgageDaily.com subscribers read full story
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Mortgage Insurance Bulletin
Several mortgage insurers have tightened their credit score and debt ratio requirements. One mortgage insurance company is requiring that loans originated by mortgage brokers have credit scores 40 points higher than retail-originated mortgages.
Loans with credit scores below 680 will no longer qualify for mortgage insurance at United Guaranty Corp., according to bulletin No. CA 2009-27 Friday.
On third-party originations, the minimum score has been increased to 720, United said.
MortgageDaily.com subscribers read full story
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