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Mortgage Headlines
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Last Updated Friday, February 07, 2003 04:38 PM CST
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Rates Holding Steady
The 30-year fixed-rate mortgage averaged 5.88% for the week ending Feb. 7, according to Freddie Mac's weekly rates survey. The ARM averaged 3.89%, the same record low as last week and better than last year's 5.04%. According to the Mortgage Bankers Association of America's seasonally-adjusted survey, which runs a week behind Freddie's rate survey, applications came in at 1141.4 the week ending Jan. 31. That's a 2.5% decrease from the previous week. The mortgage experts on Bankrate.com's weekly poll revealed their feelings on where rates are headed over the next 30 to 45 days: only 6% said rates will go up, 53% said rates will decrease, and 41% said rates will remain unchanged, within 2 bps.
What Unemployment?
About 413,000 people held those mortgage positions last month, according to the seasonally adjusted report by the Bureau of Labor Statistics. That's an increase from the 407,000 jobs in December and 16% jump from the number of mortgage broker and banker jobs during the same time last year. The employment figures reported are based on preliminary estimates, which the bureau doesn't consider complete until two successive revisions. The bureau doesn't report the final figures until later in the month.
Federal Charter to Keep Wells Funding Calif Mortgages After License Suspension
California's finance authority announced that it's intending to revoke the residential mortgage lending license of Wells Fargo Home Mortgage, Inc. because of repeated violations of state code, according to the Department of Corporations. The agency says Wells charges borrowers interest one day prior to closing and has not fully disclosed finance charges. Wells said it doesn't have to respond to the agency's instruction because Wells is a federally chartered bank, and federal law preempts state law. Wells also stated that it discloses all settlement fees to its customers, and it disagrees with the agency that all such fees are required by the federal Truth in Lending Act to be included in the finance charge.
GMAC Top Commercial Servicer
The Mortgage Bankers Association of America released its ranking of multifamily and commercial loan servicers for 2002, and GMAC Commercial Mortgage Corporation took the top spot with master and primary servicing of almost $133.8 billion and more than 50,000 loans. GMAC shadowed the almost 14,000 loans and $83.6 billion in servicing of Wachovia Securities, who held the No. 2 ranking.
Chase Suing Actor Wesley Snipes
Chase Manhattan Mortgage Corp. sued movie star Wesley Snipes for failing to make mortgage payments on his mansion in the posh Orlando, Fla., community of Isleworth, the Associated Press reported. Chase filed suit in late January, alleging Snipes owes almost $609,000 in payments on his mansion. This is the second time the bank sued him; the first was in February 2001 for defaulting on $640,700 in payments, the news wire reported. However, payments were made and Chase asked for the lawsuit to be dismissed a month later.
Former PinnFund CEO Sobs at Sentencing
Michael J. Fanghella -- who last year plead guilty to being a coconspirator in a $300+ million Ponzi scheme at PinnFund U.S.A. -- was sentenced to 10 years in federal prison, according to an announcement from the U.S. Attorney's office. Fanghella cried during the sentencing and stood with his head bowed as the judge imposed the penalty, the Associated Press reported. In addition to 10 years in prison, Fanghella was also ordered to pay $234.3 million in restitution.
Future of Commercial Mortgage Lending
San Diego, Calif. -- A few guys sat around drinking Monday, trying to figure out the problems of the world -- the commercial finance world, at least. From training, technology, and the next big challenge, these guys -- panelists at the Commercial Real Estate Finance/Multifamily Housing Convention & Expo (CREF) -- shared table microphones and sipped water while offering their expert opinions. The discussion headed toward customer expectations. CREF is the Mortgage Bankers Association of America's annual convention for the commercial sector and runs through Wednesday at the San Diego Convention Center.
Commercial Mortgage Bankers Meet in San Diego
In light of recent bad business practices, it is dangerous for regulatory bodies to react with vigilant, restrictive legislation that ultimately would be "harmful to local economies, harmful for the continuing creation of prosperous neighborhoods," said John A. Courson, chairman of the Mortgage Bankers Association of America, at the Commercial Real Estate Finance/Multifamily Housing Convention & Expo (CREF) on Monday. "We are keeping an eye on such backlash." At the CREF opening general session, Courson warned those in the commercial housing sector that negative public perception could be as damaging as a sticky-finger scandal like those in 2002.
COFI Heads Lower Again
The Federal Home Loan Bank of San Francisco reported the monthly weighted average cost of funds index (COFI) for 11th District Savings Institutions fell to 2.375%. The prior month, COFI was reported at 2.5737%, and the prior year it was 3.074%.
2002 Impac Production Doubles
Impac Mortgage Holdings, Inc. announced 2002 loan production reached almost $3.9 billion, a 162% increase from 2001's total of almost $1.5 billion. The non-conforming lender's master servicing portfolio ended the year at almost $8.7 billion.
Rising Rates Expected to Reduce
The 30-year fixed-rate mortgage also remained almost unchanged at an average 5.90% for the week ending Jan. 31, according to Freddie Mac's weekly rate survey. "Mortgage rates are currently in a kind of limbo with no impetus to drive the figures either up or down," said Frank Nothaft. While more than one-third of the mortgage experts polled in Bankrate.com's weekly survey said rates will go down over the next five weeks, a majority 67% said they will remain unchanged, within 2 bps.
Principal Mortgage to Layoff 500
Principal Financial Group announced Wednesday that it will phase out its traditional residential mortgage loan operation by Feb. 28, laying off about 500 employees in 78 branch offices. Instead of doing business through branch offices, Principal Residential Mortgage will begin solely making loans through its Mortgage Direct operation, which allows borrowers to apply for loans on the telephone or online. CEO Paul Bognanno said the company tried to time the move so that affected employees could take advantage of the robust mortgage market.
Production Up 1/3 From 2001 at First Horizon
First Horizon reported it produced $32.9 billion in loans last year, a one-third increase from 2001. Loans securitized and sold into the secondary market reached $30.8 billion last year, a 42% increase from 2001.
Share of Cashouts Fall
Freddie Mac-owned loans saw a decrease in cash-outs during the fourth quarter, with 41% of its loans obtaining cash-out -- down from 44% during the third quarter. For all of 2002, 47% of borrowers who refinanced cashed out at 5% or higher. More than half of all borrowers in the Northeast cashed out, more than in any other region in America during the year.
Record Production at Indymac
IndyMac Bank reported it originated a record $6.4 billion in loans during the fourth quarter, minus subdivision construction commitments. This is up 23% from third quarter and up almost half from fourth quarter 2001. IndyMac produced $20.9 billion in loans for the year, up almost one-quarter from 2001.
Record Purchases for Freddie as Earnings Restated
Mortgage phenomenon Freddie Mac reported record mortgage purchases for 2002. The business purchase volume of the government-sponsored housing enterprise totaled $642 billion during 2002. Business purchase volume during the fourth quarter reached $239 billion during the fourth quarter. Freddie said it expects to restate financial results for 2002, 2001 and possibly 2000, materially increasing earnings. PricewaterhouseCoopers replaced Arthur Anderson in March 2002, and Freddie said in some instances, the application of SFAS 133 and SFAS 115 were not consistent with generally accepted accounting principles.
World Savings Sees Record ARM Originations
Golden West Financial Corporation reported record loan originations, producing an all-time high of $26.7 billion last year, up 29% from 2001. Fourth quarter also saw an all-time high of new loans totaling $7.6 billion, up more than one-third from fourth quarter 2001. The company's loan balances grew by 17% in 2002, compared with a 5% increase in 2001.
Originations Up 71% From 2001 at Wells
Wells Fargo & Company reported it originated $333 billion in mortgage loans during 2002, a 71% jump from the 2001 total, spokesman Jon Ferchen said. Fourth quarter originations totaled $112 billion, up from third quarter's $89 billion. Well Fargo's year-to-date servicing portfolio totals $570 billion, Ferchen said.
Production Falls From 2001 at Chase
JPMorgan Chase & Co. produced $155.4 billion in mortgage loans during 2002, a step down from the $184.2 billion produced in 2001. Fourth quarter originations totaled $60.9 billion, almost double the $35.4 billion produced during the third quarter, according to spokeswoman Charlotte Gilbert-Biro. Loans serviced totaled $426 billion by the end of 2002, compared with $430 billion at the end of 2001, Gilbert-Biro said.
Record 2002 Production at ABN AMRO
ABN AMRO Mortgage Group, Inc. reported that it produced $119 billion in mortgages during 2002, a $36 billion increase from 2001. It produced a total of $40.95 billion in mortgages during the fourth quarter, more than a one-quarter increase from the third quarter. The company's top lending division was InterFirst Wholesale Mortgage Lending. It produced $99.5 billion during 2002. The commercial lending division of ABN AMRO Mortgage Group, Inc. reported $1.8 billion in lending for 2002, more than a one-quarter increase over 2001's production.
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