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Mortgage Headlines
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Last Updated Friday, May 07, 2004 12:38 PM CST
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Mortgage Jobs Increase
The Bureau of Labor Statistics said mortgage jobs totaled 444,300
in March, increasing from the previous month's revised figure of 436,700.
The Bureau reported overall employment, or nonfarm payroll jobs, rose
by 288,000 in April, and the unemployment rate was little changed
over the month at 5.6%.
Best Mortgage Companies to be Associated With
Filling in the No. 1 spot in the annual 100 Best Corporate Citizens
in 2004 list compiled by Business Ethics magazine was
Fannie Mae. The ranking of firms in the Russell 1000 was
based on quantitative measures of corporate service to seven stakeholder
groups: shareholders, community, minorities and women, employees,
environment, non-U.S. stakeholders and customers. Also making the
top 100 were First Horizon National Corp. and Golden West Financial
Corp.
Lehman to Sell Financial Freedom
IndyMac Bank, FSB signed an agreement to buy reverse mortgage lender
Financial Freedom Holdings Inc. for about $80 million from Lehman
Brothers Bank, FSB and its affiliates. Financial Freedom, which is
reportedly recognized as the top reverse mortgage lender in the nation,
will operate as a subsidiary of IndyMac, according to the announcement.
CTX Mortgage Employee Stole From Company
A former employee has plead guilty to a felony charge of embezzling
more than $30,000 from CTX. He faces up to 10 years in prison and
is scheduled to be sentenced June 14. The Michigan defendant was writing
second mortgages and then depositing funds from those transactions
into his own bank account. In addition to entertaining clients at
restaurants and rewarding employees, the defendant used some of the
money he stole on personal items including a boat, car parts, and
even a trip to a Grand Rapids strip club, according to court records
Rate Outlook Volatile
The 30-year fixed-rate mortgage averaged 6.12% this week, representing
an increase of 11 BPS from last week. "A steady drip of good
economic news coupled with the Federal Reserve's change of language
in their statement this week reinforced market expectations that the
Fed may raise rates sooner than expected" and influenced the
rise in mortgage rates, Freddie Mac's economist said in a statement.
Bankrate.com said if April's employment numbers come in better
than expected, mortgage rates could soar whereas worse numbers could
push them down.
Sale of Loan Lands Lenders in Litigation
A Boston man facing foreclosure has filed a lawsuit against Option
One Mortgage and a Wells Fargo unit claiming he didn't know where
to send payments for a six month period because he had not been notified
the loan had been sold. Unaware that the loan had been transferred,
the plaintiff's attorney claims he continued to make payments to the
original lender even after Option One, in October, started returning
the checks. Wells Fargo, Option One and the outside counsel representing
the companies could not be reached by press time.
MILA to Add 800 Jobs Within 3 Years
Mortgage Investment Lending Associates announced that it estimates
it will hire 800 new employees over the next three years. The hirings
will cover a variety of positions, a MILA spokeswoman told MortgageDaily.com,
however, she could not confirm what specific positions will be involved.
Principal Fundings Just Keep Falling
According to its latest earnings announcement, Principal Financial
Group Inc.'s first quarter mortgage volume fell to $6.8 billion from
the previous quarter's total of $7.9 billion. The servicing portfolio
was reported at $118.4 billion, and the 30+ day delinquency rate on
its portfolio fell to 2.7%.
Former Christian Coalition Organizer Jailed for Fraud
A former field director and organizer for The Christian Coalition
-- who also once worked as a Denver-area radio talk show host -- is
facing charges in two Colorado counties that he stole more than $15,000
and cost an investor more than $1 million through a phony mortgage
scam. He is suspected of fabricating up to 15 mortgage transactions,
police said in a statement. A 50-page court affidavit reportedly outlines
a complex scheme involving fraudulent loans with money being misappropriated
directly to defendant by using bogus paperwork. He is being held on
a $1 million bond and is scheduled to go to trial in early June.
Cashouts Expected to Rise
In its first quarter Refinance Review, Freddie Mac said that
43% of company-owned refinance loans included cashout. The figure
is slightly off the fourth quarter's revised figure of 44%. The secondary
lender indicated that slightly higher rates during the second quarter
will foster cashout activity because "the share of cashout refis
tends to rise when overall refinancing activity slows down."
Production at Impac Increases
Impac Funding Corp. reported it acquired and originated $3.5 billion
in mortgages during the first quarter, up from $3.1 billion the previous
quarter. Impac's correspondent channel was responsible for 85% of
the total, and ARMs reportedly accounted for 78% of the volume.
FHA Connection
Effective on all new loan applications, FHA requires that when a credit
bureau score is obtained, lenders must input the figure into the FHA
Connection data system, according to a mortgagee letter by HUD. A
HUD spokesman said the new data input requirement is relevant information
that will help FHA improve the risk management of its loans. HUD reminded
lenders that borrowers without credit bureau scores are not disqualified
or ineligible to receive FHA insurance on a mortgage as policies regarding
nontraditional credit remain intact.
COFI Teetering Near Record Low
The 11th District weighted average Cost of Funds Index was 1.815% in March, according to the Federal Home Loan Bank of San Francisco, down slightly from the previous month. The index is near the record low 1.811% reached in January.
Record Production Expected to Continue at Accredited
Accredited Home Lenders announced it originated a record $2.4 billion in mortgage loans during the first quarter, up slightly from the previous quarter. Asked whether the company forecasts greater loan origination volumes through the remaining quarter's of the year, Accredited's CEO told MortgageDaily.com that the first quarter has traditionally been the slowest quarter for the industry and for Accredited, and unless "totally unforeseen circumstances in the marketplace" arise, "we certainly believe that will be the case this year as well."
Misleading Radio Ads Leave Lender's License in Jeopardy
The Florida state Office of Financial Regulation announced it filed a complaint against a Florida lender to seek revocation of the company's mortgage lending license and other penalties. The state said it began examining the company and its owner after receiving more than 50 complaints from consumers, who alleged, in part, that the lender engaged in misleading advertisements. The company used frequent radio ads that led potential borrowers to believe that the very low interest-rates mentioned were for fixed-rate mortgages although they were for negatively amortizing adjustable-rate mortgages, according to the examiners.
California Company Booted Out of Arkansas
The Arkansas Securities Commissioner recently issued a cease and desist order to a California reverse lender for conducting mortgage business in the state without being licensed. After receiving an inquiry regarding the company's status, the state determined that neither the company's California home office nor its Ark. branch were registered with Arkansas, a spokesman for the state division said.
Rates, Purchase Apps Up
The average for the 30-year fixed rate mortgage came in at 6.01%, up 7 basis points from last week, Freddie Mac said in its weekly survey. Purchase application activity jumped 6.8% from the prior week, according to the Mortgage Bankers Association of America, nudging overall applications up slightly from the prior week. More than half Bankrate.com's survey participants see no changes in rates soon.
IndyMac Activity Up
IndyMac Bancorp Inc. reported that first quarter mortgage production totaled $6.9 billion, up from the previous quarter's $6.3 billion. The total servicing portfolio of $38.9 billion increased 6% from the fourth quarter, according to the report.
Jail Predicted for Psychic Accused of Mortgage Fraud
A one time radio psychic in Lexington, Ky. has been indicted on five felony counts of stealing more than $700,000 from an escrow account at a now closed mortgage company she and her husband operated. She has pleaded not guilty, according to court papers. A police seargent said that between 1997 and the end of 2002, she is alleged to have spent more than $700,000 in escrow money on salaries, taxes and business and personal expenses.
Mortgage Firm Ordered to Cease and Desist Deceptive Ad
An Irvine, Calif. mortgage company has been issued a cease and desist order and told by California officials to stop mailing a deceptive ad, a spokesman for the state's Controller's Office said in a phone interview. "We were concerned that the advertising they were sending out clearly gave an appearance that it was a check issued from the state controller's office here in California," the spokesman said. "That's a violation of a few different laws (regarding) ...false advertising." The company has complied and said it will no longer use the ad, he said.
Fundings Off at Cendant
According to company financial statements, the mortgage operating arm of Cendant Corp. closed $11.3 billion in loans during the first quarter, representing a 24% downturn from the first quarter. The average servicing loan portfolio ended the quarter at $113.2 billion.
SunTrust Fundings Up
First quarter production at SunTrust Banks Inc. totaled nearly $6.5 billion, increasing slightly from the previous quarter, according to a company spokesman. The servicing portfolio reportedly had a balance of $70.0 billion at the quarter's end.
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