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Mortgage Headlines
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Last Updated Monday, January 13, 2003 10:23 AM CST
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MortgageDaily.com Users Top 10,000
The number of registered MortgageDaily.com users has passed the ten grand mark, according to a user registration system implemented in August. Of the more than 10,000 registered users of the online industry news publication, about 63% of them said they work in loan origination. Users who work in loan production, including loan processors, sales managers, underwriters, and closers, total more than 6% of the registered readership, down a bit from the 7% who claimed this field in October.
Rates Rise From Record Lows
The 30-year fixed-rate mortgage averaged 5.95% during the week ending Jan. 10, up a bit from last week's 5.85%, according to Freddie Mac. One-year Treasury-indexed adjustable-rate mortgages averaged 4.03% this week. The Mortgage Bankers Association of America reported an increase in mortgage applications for the week ending Jan. 3, which came in at 1182.3. That number is a 24.3% increase from the previous week's index of 950.9. This week's panel of mortgage experts on Bankrate.com's weekly survey said they think mortgage rates are headed south again.
Scratch & Dent RMBS Issuance Up
Moody's Investors Services reported that the market for non-standard residential mortgage-backed securities deals backed by scratch-and-dent, reperforming, sub-performing, and non-performing loans is gaining ground. However, some analysts say this characterization is skewed because issuance in general has multiplied. The four major categories of non-compliance that lead to a scratch-and-dent label are misassigned credit grade, poor appraisal quality, consumer law compliance issues, and missing loan documentation.Reperforming loans have suffered a serious 90-day or more delinquency in the past, but are back in shape and have demonstrated payment ability once again. Non-performing loans are seriously delinquent, and the expected outcome for them is liquidation.
New Century Production Soars
New Century Financial Corporation reported almost $4.5 billion in volume during the fourth quarter, an 18.4% increase from the third quarter's $3.8 billion.December hit record volume with a reported $1.7 billion, compared with almost $1.3 billion in November and $750 million in December 2001. New Century's fiscal year 2002 finished up with almost $14.2 billion in loan volume.
Economy to Escalate CMBS Delinquencies
The credit performance of commercial mortgage-backed securities (CMBS) has been exceptionally strong over the past 10 years, according to a report by Standard & Poor's Ratings Services (S&P). However, the report also said the slow economic recovery will produce escalating delinquencies. The report, "Credit Performance of U.S. Commercial Mortgage-Backed Securities," revealed the results of a study that began in September examining cumulative principal losses and the potential future losses of 237 pools of multi-borrower CMBS issued in the United States that were rated by one or more of the three U.S. rating agencies between 1994 and mid-2002, S&P said.
30-day Q3 Delinquency Down 14 bps, 90's rise
Mortgage delinquency slowed during the third quarter and foreclosures remained flat, according to the National Delinquency Survey released Tuesday by the Mortgage Bankers Association of America (MBA). For one-to-four unit residential properties, the delinquency rate was 4.66% during the third quarter, the MBA found. That seasonally adjusted rate is an 11 basis points (bps) decrease from second quarter, and a drop of 17 bps from third quarter 2001.
Cendant's High Default Rate in KC & St. Louis Spur HUD Audit
After completing an audit of Cendant Mortgage Corp. because of its high default rate in St. Louis, Mo., and Kansas City, Kan., the U.S. Department of Housing and Urban Development (HUD) has asked the lender to indemnify more than 1,000 loans that were improperly endorsed for federal insurance coverage. HUD also recommended that the federal Mortgage Review Board require Cendant and the Office of Housing to begin protecting the insurance fund against future losses.
Quicken Settles Charges it Failed to Provide Adverse Action Notices
Quicken Loans, Inc. has agreed to settle charges from the Federal Trade Commission (FTC) that the mortgage lender violated the Fair Credit Reporting Act, the FTC announced Dec. 30. The federal regulator said Quicken failed to provide "adverse action" notices, which notifies consumers when their credit report is wholly or partly the reason for denial of credit. Quicken told its customers who didn't preapprove for an online loan that they had "unique borrowing needs." Quicken then instructed them to click through to provide contact information. Consumers who received the "unique borrowing needs" advisory but did not submit the contact information online received no further contact from the Lavonia, Mich.-based company, the FTC said.
Max FHA Loan Now $280,749
The U.S. Department of Housing and Urban Development announced last week that the loan limit on Federal Housing Administration (FHA) insured single-family mortgages will increase to a maximum of $280,749 in high cost areas. In low cost areas, the new limit is $154,896. The annual FHA increase follows Freddie Mac and Fannie Mae's conforming loan limit increase, announced in November.
How Low Can They Go?
Freddie Mac reported that the average 30-year fixed rate mortgage was 5.85% -- its lowest point since Freddie began tracking it in 1971. The average 15-year fell eight basis points from last week to a record low 5.24%, Freddie said. The average one-year adjustable rate mortgage rose five BPS from last week record low to 4.06%, according to Freddie's survey. The Mortgage Bankers Association of America said overall applications rose 4.7% from last week, with the application index reaching 950.9.
Bankers, Appraiser Accused in Builder Fraud Case
According to a copy of an FBI affidavit completed in May, A. William Erpenbeck, Jr., who was president of homebuilder The Erpenbeck Company, directed his employees to deposit checks made out to construction lenders to the company's own account at Peoples Bank of Northern Kentucky. The FBI estimates that Erpenbeck diverted approximately $25 million in construction payoff proceeds to the company account. The affidavit accuses two bank executives of falsely listing down payments in order to secure loans on properties they purchased from Erpenbeck. A Kentucky appraiser is also being investigated for her role in determining values on properties that were financed for more than the loan amount.
COFI Tumbles to Lowest Level in Decades
According to the Federal Home Loan Bank of San Francisco, the monthly weighted average cost of funds index (COFI) for savings institutions in the 11th District fell to 2.537% in November, down from 2.708% in October. With this latest drop, the COFI stands at its lowest level in decades.
Mortgage Rates Hit New Record Lows
Freddie Mac found the average 30-year fixed-rate mortgage to be 5.93% for the week ending Dec. 27 -- down a bit from last week's 6.03%, and way down from last year's 7.16%. The annual average for the 30-year for 2002 was about 6.5%, the lowest annual average in more than 31 years, said Frank Nothaft, chief economist at Freddie. The Mortgage Bankers Association of America's index of mortgage loan applications came in at 908.3 for the week ending Dec. 20, a 7.8% decrease from the prior week's 985.5.
Apartment Lending Rises at ABN AMRO
ABN AMRO Apartment Lending reported an increase in lending for the month of November. It produced $123 million in loans during November, an almost 3.4% increase from October's $119 million in production. The information required for disclosure includes applications for loans, originations, and purchases, as well as type, purpose, and amount of the loans.
HMDA Exemption Stays at $32 Million Asset Size
The reporting threshold for the Home Mortgage Disclosure Act (HMDA) will remain unchanged for 2003, the Federal Reserve Board announced Tuesday. The asset-size exemption for banks will stay at $32 million, the board said.
ABN AMRO November Production Falls
ABN AMRO Mortgage Group, Inc. announced originating almost $12.7 billion in loans for the month, bringing its YTD to a record $106.7 billion. The November total is an almost 18.6% dip from October's nearly $15.6 billion in lending, but a 25% increase from last year at this time.
NHEMA Sues OTS
The National Home Equity Mortgage Association (NHEMA) sued the U.S. Office of Thrift Supervision (OTS) Friday over new regulations affecting prepayment and late fee rules on mortgage loans. NHEMA's goal is for the court to rule that the OTS acted beyond its authority in adopting the regulations. NHEMA is hoping to have the new rules eliminated all together.
$35.4 Million Production at Cambridge
Cambridge Realty Capital Companies reported originating a total of $75.4 million in senior and healthcare loans from January to October. That's a $35.4 million increase from the $40 million in closings Cambridge reported for the first six months.
HEL Delinquency Falls
The latest Consumer Delinquency Bulletin by the American Bankers Association revealed that late mobile home loans dropped to 5.38% during the third quarter ending Sept. 30, compared with 5.81% during the second quarter. Late payments on home equity lines dropped to 0.58% during the third quarter, compared with 0.64% in the second quarter.
Wells Leads Originations in Fairfax County
A batch of sample maps reveal the top mortgage lenders in specific geographical regions, and are being marketed by CBMI as a new way to keep check on the competition. The sample map for Fairfax County, Va., shows the top lenders for January through September 2002. According to the map, Wells Fargo Mortgage Inc., based in Des Moines, Iowa, is No. 1 lender for the area with $127.9 million. The sample maps do not include government-insured loans, although lenders can obtain reports that do map such loans, he said.
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