|
|
|
|
|
|
Complete list of specialty news sections
Get the full and complete versions of these stories at MortgageDaily.com
Reach mortgage executives, loan originators and other people tied to mortgage
industry.
Free mortgage news for prospective borrowers.
Free e-mail newsletter with the latest headlines from MortgageDaily.com.
Condensed MortgageDaily.com stories free on your Web site or for your
RSS reader.
Archive of MortgageChronicle.com stories by month.
Data and statistics for real estate finance.
Directories of lenders, branch operators and mortgage service providers.
Directories of lenders, branch operators and mortgage service providers. |
|
|
|
|
MortgageChronicle.com Archives
August, 2011
|
M.I. Activity Up 3 Consecutive Months
Mortgage insurance written by members of the Mortgage Insurance Companies of America was higher for the third consecutive month.
The volume of policies in July was up around $100 million from June.
The number of policies written climbed by more than 3,000 policies.
Weak Performance at Fannie
July's new business acquisitions were off from June at Fannie Mae.
The company's book of business continued contracting.
After 16 months of improvement, residential delinquency was unchanged from June.
Servicer Portfolios Up, Earnings Down
The Mortgage Bankers Association reported that the average mortgage servicing portfolio was $6.2 billion in the second quarter.
The average increased from $5.6 billion three months earlier.
But average servicer earnings per loan were of 2 percent during the same period.
AAA S&P Subprime Ratings Draw Sharp Criticism
A decision by Standard & Poor's Ratings Service to hand out a higher rating on a new issue of subprime residential mortgage-backed securities than it recently gave the U.S. Government is turning heads.
The New York-based ratings agency gave an AAA rating to Springleaf Mortgage Loan Trust 2011-1.
The deal is backed by $0.5 billion in subprime mortgages.
Per-Loan Earnings Better at Big Firms
Lenders earned an average net of 33 basis points on production during the second quarter, the Mortgage Banker Association reported.
At smaller lenders, net production income was 25 BPS.
But earnings shot up to 35 BPS at bigger lenders.
Alt-A Jumbo Offering
Kinecta Federal Credit Union announced its new "asset utilization loan program."
The product enables jumbo borrowers to count a share of their assets as income in order to qualify.
The program is reminiscent of Alt-A programs offered before such features were expanded to subprime borrowers.
$0.5 Billion in Agency Servicing Portfolios on Market
Two mortgage servicing portfolios with agency loans totaling more than $0.5 billion are on the market.
The first portfolio includes $485 million in Fannie Mae mortgages.
The second is a $45 million Ginnie Mae portfolio.
Problems Ahead for Reverse Mortgage MBS
Moody's Investors Service announced that it downgraded mortgage-backed securities filled with reverse mortgages.
The securities have a concentration of loans backed by California properties that have plummeted in value.
Expected liquidations at a time when home values have deteriorated are behind the downgrades.
BofA's Correspondent Exit Leaves Chase as No. 2
Bank of America Corp. has decided to exit the correspondent lending business, according to the Wall Street Journal.
Nearly half of the company's originations are generated through correspondent clients.
The move will likely leave JPMorgan Chase & Co. as the second biggest residential lender.
Resistance on BofA Settlement
Borrowers and regulators have filed objections to the proposed $8.5 billion settlement with Bank of America Corp.
The objections came this week in U.S. District Court for the Southern District of New York.
Regulators made their filings as they seek more time to study the settlement.
Chase On a Hiring Binge
Chase is recruiting 700 people for mortgage servicing jobs in Texas.
Including production positions, the company has disclosed more than 1,600 hirings planned for the Lone Star state over the past 14 months.
Chase said earlier this year that it expected to add as many as 3,000 mortgage servicing jobs.
Fannie Limits ARM Offerings
Over time, Fannie Mae has expanded adjustable-rate mortgage programs to mirror ARMs available through the issuance of mortgage-backed securities.
But many of the ARM products have had little or no whole loan delivery volume.
So Fannie said it is streamlining the number of ARM products available for whole-loan committing.
IN Firm Expanding, Hiring
Royal United Mortgage LLC is expanding operations in Indianapolis.
The move is part of a deal struck with the state of Indiana.
As many as 140 mortgage jobs are expected to be created within two years.
CA Firm Launches Wholesale, Hiring Hundreds
Online retail lender loanDepot has launched a wholesale division.
The unit has already hired more than 50 people. Including the retail operation.
loanDepot expects to hire more than 300 people by the end of this year.
Wells Negotiating Settlement With Memphis
As attorneys for Wells Fargo & Co. and the city of Memphis, Tenn., begin the discovery phase in a two-year-old lawsuit, the two parties have begun discussing a possible settlement.
The lawsuit, filed by Memphis and Shelby County, alleges "unlawful, irresponsible, unfair, deceptive and discriminatory" lending practices by Wells.
The plaintiffs claim that while mortgages made to blacks represent a small share of overall originations in the area, they account for a disproportionately high percentage of local foreclosures.
CoreLogic Exploring Strategic Options
CoreLogic said that its board of directors is exploring several options to enhance shareholder value.
Among the options on the table is "the potential disposition of business lines" and "the potential sale or business combination of the company."
An investment banker has retained as a financial advisor to help it determine which strategy to pursue.
5 Reverse Firms Ordered to Halt Lending in Mass.
Cease activity directives were issued to five firms by the Massachusetts Division of Banks.
The firms marketed reverse mortgages online.
But none of the firms were approved to sell reverse mortgages in Massachusetts.
Credit Unions Selling More of Mortgage Production
A new report indicates that nearly half of first mortgages originated by credit unions between January and June were sold off into the secondary market.
Prior to the recession, however, the share of business that was sold was only around a quarter.
Ongoing low interest rates could impact the level of secondary sales.
UCDP and UAD Solutions
Veros Real Estate Solutions announced that its new PATHWAY solution can be used for submitting reports on the Uniform Collateral Data Portal.
Global Kinex has been integrated into the UCDP, Global DMS said.
Coester Appraisal Group announced its full compliance with the UCDP and Uniform Appraisal Dataset.
Weakening Mortgage Employment Could Strengthen
More than 2,200 mortgage jobs have been eliminated this year.
Over 7,400 hirings were more than offset by in excess of 9,700 layoffs.
But falling rates and worsening loan performance could lead to increased hirings in the second half.
AMC, Former NAMB Chief's Firm Among Fastest Growing
Inc. magazine released its latest ranking of the fastest-growing companies in America.
No. 222 on the list was US Appraisal Group.
LeaderOne, which was founded by the former president of the National Association of Mortgage Brokers, was No. 149.
Ginnie Revises Policy on Mod Repurchases
A new policy on the repurchase of modified loans was released by Ginnie Mae.
The new policy enables the repurchase of a modified loan from Ginnie pools once the borrower has successfully completed a three-month trial payment period.
The new requirement on high-risk, non-HAMP modifications is expected to reduce re-defaults since the defaults would likely happen during the required trial period.
High-Producing Wells Office Closed after Internal Review
Wells Fargo & Co. shut down a high-producing mortgage office in Oregon after an internal review revealed that company policies had been violated.
The routine review took place at a location that the company considers "important," a spokesman said.
Wells Fargo determined that the violations warranted disciplinary action, and an area manager and the branch manager are among those who are no longer employed.
Mortgage Activity Continues Decline
Mortgage inquiries for the week ended Aug. 26 were down 19 percent from last Friday.
It was the second week in a row that business declined.
The findings were outlined in the U.S. Mortgage Market Index report from Mortech Inc. and Mortgage Daily.
Expanded Rural Lending Proposed for FHA
The Department of Housing and Urban Development is proposing to enable Farm Credit System direct lenders to participate in Federal Housing Administration programs.
FHA approvals for such lenders are not allowed under current regulations.
HUD is taking the step to expand government-insured lending in rural areas.
MGIC Boosts Loan Limit on Non-Agency Jumbo
Mortgage Guaranty Insurance Corp. said it increased the maximum loan amount on non-agency loans.
MGIC issued a bulleting indicating that it will start insuring mortgages as high as $750,000.
The higher limit takes effect next week.
PNC is Biggest Servicer of Agency CRE Loans
PNC Real Estate / Midland Loan Services ranked as the second-biggest servicer of commercial mortgages.
But the company had the largest portfolio of multifamily mortgages owned or managed by Fannie Mae and Freddie Mac.
It was also the biggest servicer of commercial mortgages insured by the Federal Housing Administration or included in Ginnie Mae pools.
Inside Mortgage Rates
Mortgage rates were mostly higher this past week.
Recent Treasury market activity indicates that rates could be a little lower in the next set of reports.
Economic forecasts have the 30-year mortgage rising over the next year.
Lenders Lose FHA Endorsement Authority
A mortgagee in Washington state had its direct-endorsement approval yanked from the Federal Housing Administration, while a Texas-based wholesale lender lost approval in North Carolina.
The terminations of direct endorsement approval were disclosed in a public filing Thursday by the Department of Housing and Urban Development.
Both occurred on July 18.
Wells Recruiting Production Personnel
Wells Fargo & Co. is recruiting more than a hundred mortgage employees in Colorado, a spokesman confirmed.
The open positions include interim processors.
In addition, permanent underwriters are also being added.
Auto-Refi On the Table?
A story about a hypothetical automatic refinance program was published a week ago by Mortgage Daily.
The story suggested that borrowers in agency mortgages who have not been late during the last year be automatically approved for a refinance at today's low rates regardless of their home values, credit or income.
A subsequent article in the New York Times indicated that the Obama administration is now considering a proposal that would enable millions of borrowers to refinance at today's rates.
Buffett Bets on BofA
Shares of Bank of America Corp. shot up as word spread that Warren Buffett has invested billions of dollars in the company.
Buffett made the investment through his investment firm, Berkshire Hathaway Inc.
He paid $5 billion for preferred shares of the Charlotte, N.C.-based bank.
Freddie Purchases Plunge 22%, Delinquency Higher
Purchases and issuances at Freddie Mac fell 22 percent between June and July.
It was the lowest level of activity since October 2008.
Residential delinquency, meanwhile, was up a basis point.
2 RMBS Class Actions Certified
In a case filed against DLJ Mortgage Capital Inc. by investors of residential mortgage-backed securities, the judge certified the lawsuit as a class action.
Another case filed against Merrill Lynch & Co. Inc. was certified as a class action.
The latest opinions are "a big problem for financial institution defendants," according to one MBS attorney.
Many Mortgage Crimes Target Distressed Borrowers
More than $3 million was collected from thousands of borrowers by Home Owners Protection Economics Inc. -- leading to the arrest of the company's president and three other employees.
Another four defendants were arrested for allegedly collecting modification fees through their company Best Value Homes Inc. but not delivering promised loan modifications services.
The Nevada attorney general's office reported that Joseph Yorkus was sentenced to for charging for loan modification services through several businesses but not providing any services.
Hotel Lates Improve, Leaving Multifamily as Worst Performer
Securitized hotel loans have seen higher delinquency rates than other types of mortgages secured by commercial real estate.
But delinquency on hotel loans fell 76 BPS in July.
The improvement left securitized multifamily mortgages as the worst performing category of CRE loans.
Banks Improve Performance
The banking sector has lifted quarterly earnings by nearly 9 percent over the past year.
At the same time, the sector cut residential delinquency by more than 70 basis points.
In addition, the number of bank failures during the first six months of this year was down nearly half from the same period last year.
100 Dallas Jobs Open
FinanceMyHome.com has opened for business in Dallas.
The company said it will originate mortgages online.
FinanceMyHome plans to hire around a hundred employees before the year is over.
$1 Billion Lawsuit Against Former Parent of Failed Bank
The liquidating agent for bankrupt Guaranty Financial Group Inc. has filed a lawsuit against Temple Inland.
The bank-holding company was spun off from Temple Inland in 2007.
The defendant is accused of taking nearly $0.2 billion in dividends, transferring more than $0.3 billion in real estate assets from Guaranty for little or no consideration and saddling the bank with more than $0.3 billion in debt to pay off other preferred securities holders.
American Home Sues over Robo-Signing
American Home Mortgage Servicing Inc. announced a lawusit filed against Lender Processing Services Inc. and affiliate DocX LLC.
American Home says that assignments of mortgage were completed using "surrogate signers."
The servicer claims that it has lost millions of dollars because of the actions.
More Jumbo Product Hits Market
TMS Funding announced the launch of a jumbo wholesale program.
New Penn Financial LLC recently unveiled loans up to $2 million for borrowers who don't qualify for agency loans.
Fairway Independent Mortgage Corp. previously said it planned to roll out a non-conforming product in the third quarter.
FHA Adopts UAD
The Department of Housing and Urban Development issued a bulletin indicating that appraisals on Federal Housing Administration loans will be subject to Uniform Appraisal Dataset requirements.
FHA appraisals will need to be submitted on UAD-compliant appraisal forms.
The new requirements are mandatory on all loans with cases assigned beginning next year.
Wells Fargo Dominates Mortgage Layoffs
The home-equity group at Wells Fargo & Co. disclosed in a state filing that nearly 60 Virginia employees are being laid off this month.
More than a hundred mortgage employees in Irvine, Calif., were recently laid off by Wells Fargo.
The state of Iowa was notified by Wells Fargo & Co. that 142 employees would be laid off in Des Moines.
Bright Spot for Shadow Inventory
During the second quarter, the estimated number of months to clear out the U.S. shadow inventory was five less than in the first quarter.
It was the first improvement in two years.
The amount of distressed inventory worked out to $28 billion less than in the first quarter.
Record FHA Multifamily Originations
Since starting its fiscal year, the Federal Housing Administration has endorsed more multifamily mortgages than in any other year.
Based on the number of loans, volume is more than seven times the level of production three years ago.
"While we're seeing record volume, we also recognize we have to accelerate the time it takes us to process these applications so we continue to meet this demand at the very time the market needs us the most," FHA's acting commissioner said in the report.
Purchase Forecast Slashed as Refis Boosted
In its latest economic forecast, Fannie Mae more than doubled its outlook for third-quarter refinance production from what it predicted last month.
But the projection for purchase originations was slashed by $52 billion in the third quarter.
Fannie cut its fourth-quarter projection of purchase production by nearly $30 billion.
Early-Stage Delinquency Deteriorates as Foreclosures Fall
Without adjusting for seasonality and excluding foreclosures, the 30-day delinquency rate climbed 32 basis points from the first quarter, the Mortgage Bankers Association reported.
"It is clear that the downward trend we saw through most of 2010 has stopped," the trade group's chief economist said in the report.
But foreclosures retreated 9 BPS from the first quarter.
FHA Outstandings Top a Trillion Dollars
Data from the Federal Housing Administration indicate that mortgage insurance was in force on 7.2 million FHA loans in July.
That amounted to a little more than $1.0 trillion.
FHA originations and delinquency, however, deteriorated from June.
$1.7 Billion Bank Fails
Lydian Private Bank was closed by the Office of the Comptroller of the currency.
"The OCC acted after finding that the institution had experienced substantial dissipation of assets and earnings due to unsafe and unsound practices," the regulator said.
Lydian had $1.7 billion in assets as of June 30.
PMI to Stop Writing Business
In a letter to its customers, PMI Mortgage Insurance Co. said regulators have ordered it to stop writing new policies.
Any commitments already in place must be written by Sept. 16.
"Since the mortgage crisis began, it is unfortunate for the mortgage industry to now witness the third mortgage insurance company to cease writing new business," the customer message stated.
Little Impact Expected from Lower FHA Limits
A mortgagee letter indicated that fewer than 700 U.S. counties out of more than 3,200 total Federal Housing Administration jurisdictions will be impacted by the upcoming expiration of high-cost loan limits.
"FHA estimates that only a fraction of borrowers living in the nation's highest cost areas will be impacted by the new loan limits announced today," HUD said in a statement.
"For example, last year only three percent of FHA-insured borrowers lived in these high-cost areas."
2nd Half Refi Outlook Upped Almost $100 Bil
The projection for second-half home-loan production was strengthened.
The improvement came from a brighter outlook for refinance production.
Compared to the forecast last month, this month's outlook for second-half refinance production is nearly $100 billion higher.
R.I. Foreclosure Cases Put on Hold
A U.S. District Court judge has put more than 60 cases challenging foreclosure proceedings across Rhode Island on hold.
The judge issued an order staying the proceedings in those cases until further notice.
He ordered the banks and borrowers to engage in "directed and serious" settlement talks.
HAMP Suit filed against Saxon
A federal lawsuit was filed in New York by a couple who claims Saxon Mortgage Services bungled the application process for federal loan modifications. Attorneys in the case seek class-action certification.
The complaint was filed last week in U.S. District Court for the Eastern District of New York.
Saxon allegedly misled borrowers about the likelihood of a permanent modification.
Thousands of Layoffs Include Mortgage Jobs
Bank of America Corp. confirmed in a statement that 3,500 positions are being eliminated.
The layoffs will occur during the third quarter.
More than a thousand mortgage jobs have been cut this year at the company.
Purchases Lead Drop in Mortgage Activity
Overall new mortgage inquiries for the week ended Aug. 19 were down neary a fifth from the previous week.
Mortgage pricing inquiries for purchase transactions were down nearly a quarter.
Compared to a year earlier, purchase inquiries were 12 percent lower.
MBS Ratings Haunting S&P
On the heels of its U.S. debt downgrade, Standard & Poor's is being investigated for its ratings on mortgage-backed securities.
The New York-based ratings agency is reportedly under investigation by the Department of Justice and the Securities and Exchange Commission.
S&P earned as much as $135,000 to rate MBS.
Auto-Refi Could Stimulate Economy
A federal program that automatically refinances agency mortgages could inject some much needed cash into the economy by passing on the low cost of U.S. borrowing to homeowners -- leaving them with more disposable income.
The program would provide an automatic approval to refinance existing borrowers who haven't been 30 days past due during the preceding 12 months.
Borrowers would lock in at today's low market rates without any investigation into their income, credit or property value. Only rate-term transactions would be allowed.
BofA Names New Head of Distressed Loan Unit
The head of an operation that handles Bank of America Corp.'s distressed assets is moving to the position of chief risk officer.
Plans for the move were announced last month.
Taking over as head of the distressed-loan unit is Ron Sturzenegger.
Refinance Tsunami Alert
Freddie Mac reported that interest rates on 30-year mortgages fell to the lowest level on record.
At the same time, a Treasury market rally has mortgage rates falling even further.
Improving mortgage rates have recently driven the refinance share of rate shoppers to nearly 70 percent from less than half last month.
Appeals Court Rules in Favor of VantageScore
FICO filed a lawsuit in 2006 against the three credit repositories.
In July 2009, the district court dismissed FICO's antitrust, false advertising and breach of contract claims.
The 2009 decision was upheld by the Eighth Circuit Court of Appeals, Experian announced.
Wells Settles Deceptive Marketing Allegations
Wells Fargo & Co. has reached an agreement with the state of Connecticut over allegations of deceptive marketing.
The alleged acts occurred on payment-option adjustable-rate mortgages originated by World Savings and parent Wachovia Corp.
Wells Fargo inherited the loans with its 2008 acquisition of Wachovia.
Supreme Court Review Sought in MERS Case
The California Court of Appeal ruled in February that the Mortgage Electronic Registration Systems Inc. can foreclose in the state.
The borrower in the case claimed that MERS did not have authority to initiate foreclosures in the state.
Now, the attorney who represented the borrower has indicated that he has filed a petition with the U.S. Supreme Court seeking an expedited review of the case.
Mortgage Compliance Challenged in Court
A Texas borrower who claims that she thought her adjustable-rate home-equity loan was a fixed-rate mortgage has received a favorable ruling from an appeals court.
A $90,000 judgment in favor of a Pennsylvania borrower was vacated and remanded for further proceedings.
The Fourth District Court of Appeals of California reversed a lower court's decision that option-ARM disclosures used by Home Loan Center Inc. were adequate.
Bankers See No Improvement Ahead in Production
Most bank lending officers surveyed last month didn't expect any improvement in residential originations during the rest of this year, though changing market conditions could change that consensus. A few banks have eased up on requirements for home-equity lines of credit, but nobody is making commercial mortgages any easier to get.
Three-quarters of bankers don't expect any improvement in second-half 2011 home-loan production.
The reason for the lackluster outlook: demand.
SunTrust Claims Former Employees Diverted Business
The mortgage subsidiary of SunTrust Banks Inc. has sued a group of former employees over allegedly diverting SunTrust business to their new employer before leaving SunTrust.
SunTrust Mortgage Inc. filed a federal complaint in Virginia.
The defendant: George Mason Mortgage LLC.
Early Stage Delinquency Deteriorates
Including foreclosures, residential loans delinquent at least 30 days increased 18 basis points between June and July.
The deterioration came as the foreclosure rate declined by a basis point.
A separate report indicated that 90-day delinquency was lower in July.
Upgrade for Subprime Servicer
Fitch Ratings upgraded Walter Mortgage Co.'s primary servicer rating for subprime mortgages.
Recent acquisitions and related strategic opportunities were among Fitch's list of reasons that it raised the rating.
The company has closed on two mortgage servicer acquisitions during the past year.
Refis Boost Q4 Outlook
The outlook for fourth-quarter residential originations by U.S. lenders has been raised by $20 billion from the prior forecast.
The stronger outlook comes as projected third-quarter refinance share was lifted to nearly two-thirds.
The fourth-quarter projection for refinance share was increased to half.
Improving Delinquency Trend Continues
First-mortgage delinquency was down 9 basis points between June and July based on the S&P/Experian Consumer Credit Default Indices.
The improvement was 131 BPS when compared to a year earlier.
"By and large, July's data support the downward trend we have observed over the past two years," and S&P executives said in the report.
Expanded Investor Program
New Penn Financial LLC already had a nonconforming portfolio mortgage program.
Now the company has expanded its guidelines for investor properties.
New Penn originates through mortgage brokers, loan correspondents and a retail channel.
Rush of NJ Foreclosures Expected
A ruling by an Ohio judge could have an onslaught of foreclosure filings hitting the state.
Late last year, action by a New Jersey chief justice against four major lenders helped slow foreclosure filings by 80 percent this year.
But a decision by a superior court judge has uncontested foreclosures on again, and one group predicts a rush of filings.
Ohio Affidavit Litigation
In Ohio, a settlement has been reached in a class action filed over affidavits, and another affidavit case filed by Ohio's attorney general is before the state's supreme court.
Midland Funding has agreed to a settlement of more than $5 million in a case where the debt-collection agency was accused of using false affidavits.
In a mortgage servicer lawsuit by the state of Ohio, the Ohio Supreme Court is deciding on a question of state law.
Foreclosure Cost by Party
A Congressional study puts the cost of a foreclosure at nearly $80,000. Impacted parties include mortgage companies, borrowers and communities.
Most of the cost is borne by lenders for maintenance expense until the asset is sold.
But foreclosure costs are also shared by homeowners who lose equity, pay fees and take a credit score hit. Neighbors and local governments are also among the impacted.
Impac Production Gains Steam
Impac Mortgage Holdings Inc. reported that second quarter originations jumped to more than $0.2 billion from less than $0.1 billion in the prior period.
Most of the production was generated from mortgage brokers.
The growth followed investments in its production platform.
LOS Acquisition Done
The acquisition of Del Mar Datatrac Inc. by Ellie Mae has been completed, a news release indicated.
The deal called for a $17 million cash payment at closing.
More than 20,000 users could be added to the Ellie Mae Network as a result of the acquisition.
Mortgage Recruiting Insider
Foundation Financial Group announced plans to hire in the Dallas area.
California's Covenant Mortgage announced expansion plans.
Community Bank held a job fair to recruit "experienced mortgage lenders with an entrepreneurial spirit" and residential underwriters.
Repurchase Demands for Missing M.I. Coverage
Seller servicers face repurchase demands when mortgage insurance coverage isn't in place at delivery.
The warning came in an industry letter from Fredddie Mac.
A rise in mortgage insurance rescissions was cited for the stiff policy.
Fannie Mae and Freddie Mac's fire sales are crippling metro Detroit communities, leaders say
Officials in Detroit are fuming over the pace and prices of foreclosure sales by Fannie Mae and Freddie Mac.
An analysis of the area indicates that properties are being unloaded at about a third less than market value.
While the companies say they are minimizing losses and reducing the time that vacant properties are on the market, local officials call the strategy "unconscionable," "unacceptable" and a "disaster."
124-Year-Old Bank Fails
The Office of the Comptroller of the Currency closed The First National Bank of Olathe.
The OCC named the Federal Deposit Insurance Corp. as receiver.
First National was originally established in 1887.
Big Industry Changes Since Record 2003
The 2003 refinance Tsunami generated more than $3.8 billion in total residential production, including purchase transactions.
This year, home-loan fundings are projected to come in around $1.1 trillion.
The three-biggest originators in 2003 were Wells Fargo & Co., Countrywide Financial Corp. and Washington Mutual Inc.
The Inside Story at Fannie and Freddie
The Federal National Mortgage Corp., or Fannie Mae, was created in 1938, while the Federal Home Loan Mortgage Corp., or Freddie Mac, was chartered by Congress in 1970. The mission of the two government-sponsored enterprises it to provide liquidity in the mortgage market.
Both companies were taken over by the government in 2008.
By some accounts, government costs for the two GSEs could reach nearly $400 million.
Century-Old Brand Expands East
Mason-McDuffie Mortgage Corp. is establishing operations Virginia.
It's the company's first move beyond the Midwest.
The firm, whose name dates to 1887 in the California real estate industry, was re-established six years ago.
Defendant Admits Role in Bid-Rigging Case
A real estate investor pleaded guilty to federal charges of conspiring to rig bids and commit mail fraud at real estate foreclosure auctions.
The conspiracy's primary purpose was to suppress and restrain competition and to obtain selected real estate at the foreclosure auctions at noncompetitive prices.
After a designated bidder bought a property at a public auction, the conspirators would hold a private auction.
Refi Activity Through the Roof
Overall new mortgage activity climbed 31 percent, with the U.S. Mortgage Market Index.
With a 42 percent gain from the prior week, the Refinance MMI was 326 in the latest report.
Refinance share increased to 69 percent.
Fraudulent Originations Down
More than $10 billion in home loans originated during 2010 had fraudulent application data.
The Federal Bureau of Investigation outlined the findings in its mortgage fraud report for fiscal 2010.
The volume sank from $14 billion in fraudulent originations during 2009.
Ginnie Residential Issuances Rise, CMBS Fall
July guarantees by Ginnie Mae issuers were $1.6 billion more than in June.
It was the second consecutive monthly increase.
But multifamily issuances were down by around $0.2 billion.
Big Week for BofA CEO
Bank of America Corp.'s chief executive officer met with the secretary of the Department of the Treasury and a and Federal Reserve Board governor.
A bank spokesman chacterized the meeting as "a chance to exchange views on the economy."
The separate meetings were held in Washington, D.C., on the same day the CEO held a closely followed conference call with a large investor.
Detroit Defies Deteriorating U.S. Mortgage Performance
Delinquency of at least 60 days on U.S. home loans deteriorated 25 percent between 2007 and 2011, Experian reported Friday.
But four Metropolitan Statistical Areas actually recorded an improvement during the period.
Nowhere was that more evident than in Detroit, where delinquency was 17 percent lower in 2011 than in 2007.
Improved Pricing at United Guaranty
United Guaranty Corp. issued a bulletin indicating that risk-based pricing is being enhanced.
The mortgage insurer said several pricing categories might see slightly less expensive premiums on some loan programs.
Among those who could see the cost of mortgage insurance drop are borrowers on second homes.
Mortgage Rates Slammed
A strong Treasury market had the 30-year mortgage falling below 4 percent on Wednesday.
But stocks strengthened on Thursday -- sending the Dow Jones Industrial Average more than 400 points higher.
The shift to riskier investments had the 10-year Treasury yield and corresponding mortgage rates rising.
5 Worst Fraud Metros Same as Worst Foreclosure Areas
Interthinx ranked Stockton, Calif., as the Metropolitan Statistical Area with the highest risk of fraud.
Stockton was ranked by RealtyTrac as the fourth-worst metropolitan area for foreclosures during the first-half 2011.
In fact, the five-worst MSAs on Interthinx's list were the very same areas ranked by RealtyTrac as having the five-worst foreclosure rates.
Freddie's Survey Lags Other Indicators
The yield on the 10-year fell 47 basis points in the seven days ended Aug. 10.
But the average 30-year fixed-rate mortgage in Freddie Mac's survey of 125 mortgage bankers for the week ended Thursday was down only 7 BPS from a week earlier.
While Freddie has the 30-year mortgage currently at more than 4.3 percent, a pricing quote Wednesday had the 30 year sitting below 4.0 percent.
U.S. Foreclosures Improve, California Worsens
Mortgage servicers made foreclosure filings on 4 percent fewer properties during July than during June.
But in California, filings were 4 percent higher.
Real-estate-owned filings also rose in the Golden State despite a decline in the national rate.
Countrywide Among Issues Addressed by BofA CEO
The chief executive officer of Bank of America Corp. talked about issues facing the company in a conference call organized by one of the bank's biggest investors.
Questions about the burden of the 2008 acquisition of Countrywide Financial Corp. were addressed.
"Obviously, there aren't many days when I get up and think positively about the Countrywide transaction in 2008," the CEO said.
MBS Court Battles Continue
In a public filing, Morgan Stanley said it filed an appeal of a lower court's decision in the case MBIA Insurance Corporation v. Morgan Stanley, et al.
Citigroup Inc. disclosed that the U.S. Attorney's Office is investigating it.
New York's attorney general is calling for a state judge to reject a proposed settlement between MBS investors and Bank of America.
30-Year Falls Below 4%
The 10-year Treasury yield fell more than 5 basis points during trading on Wednesday.
Fueled by the strong Treasury trading, mortgage rates also fell.
A pricing inquiry indicated that the 30-year fixed-rate mortgage was being quoted at 3.875 percent with no points.
Servicers Continue to Cut Delinquency
Borrowers who were two or more months past due on their mortgages accounted for 5.8 percent of all home loans as of the second quarter, TransUnion reported.
Delinquency fell 36 basis ponts from the first quarter.
It was the sixth consecutive quarter that delinquency was better.
Administration Unveils REO Rental Proposals
Public comment is sought on how to reduce the real-estate-owned inventories held by Fannie Mae, Freddie Mac and the Federal Housing Administration in the most cost-effective manner.
The Barack Obama administration opened up for comment the proposed use of repossessed homes as rental properties.
Among proposals on the table are lease-to-own and borrower-to-renter programs.
Settlement, Subpoena at PNC
PNC Financial Services Group Inc. said it agreed to a $168 million settlement.
The agreement resolves litigation filed by investors of National City Corp.
PNC additionally disclosed that it was subpoenaed by federal prosecutors who are investigating lending practices at National City.
$0.5 Billion MBS Lawsuit
The National Credit Union Administration filed a lawsuit against Goldman Sachs Group Inc.
The regulator is acting on behalf of four failed corporate credit unions.
The NCUA seeks $491 million.
30-Year Headed Below 4%?
Freddie Mac reported in its Primary Mortgage Market Survey for the week ended Aug. 4 that the 30-year fixed-rate mortgage averaged 4.39 percent.
Since then, the yield on the 10-year Treasury had has fallen 44 basis points.
The decline poises the 30 year to fall below 4 percent.
CitiMortgage Realigns Management
A disclosure of management changes came in an internal company memo from CitiMortgage Inc.'s chief executive officer.
Among the appointments was Mark Danahy, who was hired as head of origination services.
Other appointments included Vasif Imtiazi to chief of staff.
$125 Million Settlement on Option One Originations
The Massachusetts attorney general announced a settlement with Sand Canyon, formerly known as Option One.
The deal includes a nearly $10 million cash payment.
In addition, another $115 in loan modifications will be made.
Some Mortgage Originators Report Rise
It was a new set of lows for mortgage rates.
At Goodmortgage.com, call volume climbed as much as 70 percent in recent days as customers scrambled to lock in low rates.
Business at LendingTree LLC grew in July and climbed further last weekend.
Comedy of Error in Foreclosure Case
An Ohio couple told the The Daily Show that Bank of America foreclosed on their property even though they owned the property free-and-clear.
So the couple sued and won a judgment against the bank.
When BofA reportedly didn't pay the judgment, their attorney brought the sheriff and two moving men to foreclose on a local branch's assets.
Top HECM Wholesaler Title Changes
Urban Financial Group snagged the top reverse-mortgage wholesaler spot from MetLife Bank in June.
Overall endorsements for wholesale home-equity conversion mortgages increased by more than 200 durng the month.
But the channel fell just short of volume a year earlier.
Keystone Carcass Laid to Rest
First National Bank of Keystone was declared insolvent in 1999.
The failure followed the death of the company's chief executive and an investigation that uncoverd buried documents.
Grant Thornton agreed to settle with the Federal Deposit Insurance Corp. the last outstanding civil complaint.
GSE Bailouts Reach $170 Billion
Second-quarter losses at Freddie Mac had it's regulator requesting another $1.5 billion draw from the Department of the Treasury.
Freddie has requested a total of $66.2 billion in government assistance.
At Fannie Mae, bailout costs so far total $103.8 billion.
AIG v. BofA Sinks BofA Shares
American International Group Inc. filed a lawsuit against Bank of America Corp.
AIG alleges that the bank and its subsidiaries sold it faulty mortgages during the housing boom.
BofA's shares fell to their lowest levels since late March 2009.
MBS Spreads Widen as GSEs Downgraded
On Friday, Standard & Poor's Ratings Service downgraded the country's long-term sovereign credit ratings.
That was followed Monday by a downgrade to the senior issue ratings on Fannie May and Freddie Mac.
The negative ratings activity pushed the spread between Fannie's current-coupon 30-year fixed-rate mortgage-backed securities and the 10-year Treasury yield 3 basis points wider.
Refi Activity Nearly Doubles
The U.S. Mortgage Market Index from Mortech Inc. rose 56 percent during the week ended Aug. 5.
Behind last week's strong performance were refinances -- which rose 91 percent from the previous week.
Refinances were 14 percent better than a year earlier.
Home Lending Tumbles
An analysis of second-quarter data by MortgageDaily.com indicates that industry-wide volume declined around 19 percent from the first quarter.
Compared to the second-quarter 2010, volume was down 20 percent.
Wells Fargo & Co. ranked as the biggest mortgage lender.
Several Players Raise Originations
PlainsCapital Corp. reported that second-quarter originations improved 28 percent from the first quarter.
Quarterly volume was up by nearly half at Fairway Independent Mortgage Corp.
In the commercial mortgage sector, HFF Inc. said production surged 84 percent.
2 Banks Fall as Lawsuits Filed, Criminal Actions Lose Steam
Two banks failed this week, including one in Illinois and another in Florida.
The Federal Deposit Insurance Corp. reported that as it has authorized lawsuits in connection with 30 failed institutions against 266 individuals for director and officer liability.
The Department of Justice said that it has closed a criminal investigation into the failure of Washington Mutual Bank.
Wells Agrees to $0.6 Billion Settlement With Bondholders
Wells Fargo & Co. has agreed to pay $590 million to settle lawsuits filed by bondholders.
The plaintiffs alleged that subsidiary Wachovia Corp. misrepresented the quality of its residential mortgages from 2006 to 2008.
The litigation was originally filed against Wachovia before Wells acquired the bank.
BofA Unit Sued by State of Washington
A lawsuit has been filed in King County Superior Court against ReconTrust.
The defendant is a subsidiary of Bank of America Corp.
The state alleges that the unit failed to act as a neutral third party in every foreclosure it has conducted since June 2008 at the latest.
Bank Exec Denies Charges of $45 Million in Mortgage Fraud
A former senior vice president for Pierce Commercial Bank pleaded not guilty to allegations mortgage fraud.
He is the lead defendant among four former employees indicted in the loan scheme that left the failed bank in financial ruin.
The four allegedly conspired to submit false documents about borrowers' qualifications and property values to induce the bank to fund loans amounting to more than $45 million.
HAMP Volume Down by Half from 2010
Mortgage servicers completed fewer than 24,000 permanent loan modifications during June under the Home Affordable Modification Program, according to data from the Obama administration.
Volume was less than half of the modifications completed in June 2010.
Since the program was launched, more than 650,000 HAMP modifications have been made permanent.
Despite PMI Fallout, United Guaranty Thriving
The PMI Group Inc. reported in its second-quarter earnings report that the primary regulator of its main operating subsidiary could shut down the mortgage insurer at any time.
But the parent of United Guaranty Corp. is singing praises about the unit.
"They have a model now that works very effectively on new business," a senior executive said in an investor conference call.
CMBS Delinquency at Record High
Delinquency during July of at least 60 days on securitized commercial real estate loans climbed 37 basis points from June.
Last month's rate exceeded the record set in May.
Delinquency on loans backed by industrial properties led the increase.
Fannie Bailout Surpasses $100 Billion
Fannie Mae reported a $2.9 billion second-quarter loss.
The latest results have the company's regulator requesting another $5 billion in bailout funds from the Department of the Treasury.
Including the latest request, the total tab stands at $104 billion.
Mortgage Employment Resumes Contraction
Previous data from the Department of Labor indicated that mortgage employment expanded in May by 2,600 jobs.
The improvement followed three consecutive months of contraction.
The latest government report said mortgage jobs resumed the contraction in June, falling by 2,400 positions.
Source: Citi Subpoenaed Over MBS
California's attorney general has subpoenaed Citigroup Inc., a person familiar with the investigation said.
Also subpoenaed was the New York-based company's bank subsidiary.
At issue is the selling and marketing of mortgage-backed securities.
Health Care, CMBS Lead Surge in CRE Originations
Second-quarter commercial real estate loan originations jumped 52 percent from the first quarter, the Mortgage Bankers Association reported.
By lender type, conduits saw the biggest quarter-over-quarter improvement: 208 percent.
Health-care financing rose 160 percent from the first quarter -- the biggest rise of any property type.
Ellie Cuts Losses, Grows Client Base
Ellie Mae reported $0.4 million in second quarter losses.
That was about half what it lost in the first quarter.
The number active lender users utilizing the firm's flagship Encompass platform has grown 20 percent over the past year.
Dire Warning from PMI
The PMI Group Inc. reported that its operating unit's policyholders' position fell below the minimum required by law in Arizona.
The location of its primary regulator, the Arizona Department of Insurance, is in the Grand Canyon State.
The company acknowledged that the regulator could force it to stop writing new business.
LOs Admit to Reverse Mortgage Fraud
Three loan originators have pled guilty to using loan modifications to cover up mortgage fraud on more than $2.5 million in home-equity conversion mortgages.
A fourth defendant is scheduled to go to court.
The defendants allegedly defrauded Genworth Financial Home Equity Access Inc.
Senate Bill Would Extend Super-Conforming Limits
Two senators have introduced a bill that would extend temporarily higher loan limits.
The super-conforming limit is set to expire at the end of September.
If passed, the Senate legislation would extend the higher limits through 2013.
Record Low 30-Year Ahead
Freddie Mac reported that the 30-year fell to 4.39 percent this week.
In an up-to-the-minute pricing inquiry, the 30-year fixed-rate mortgage was priced at 4.13 percent.
Treasury market activity indicate that the 30-year mortgage could shatter the 4.17 percent record-low for the 30 year in next week's report.
Correspondent Volume Exploding at PennyMac
PennyMac Mortgage Investment Trust reported that correspondent volume doubled between the first and second quarter.
Third-quarter volume is expected to jump another 200 percent.
By the fourth quarter, PennyMac expects to be on pace to purchase around $2.4 billion annually.
Foreclosure Litigation Journal
Deutsche Bank National Trust Co. lost an appeal in a Florida foreclosure case.
A summary judgment in favor of Kondaur Capital Corp. against a Maine borrower was vacated by that state's supreme court.
A foreclosure judgment in favor of M&I Bank was overturned by the District Court of Appeal of Florida, First District.
BofA Pursing Separate Settlement
Bank of America Corp. is negotiating a settlement outside of the ongoing discussions with five major lenders, a person familiar with the matter said.
The negotiations are primarily with five big states.
The potential deal would reduce loan balances for distressed borrowers in exchange for a release from legal claims.
Chase Hiring in Ohio
JPMorgan Chase & Co. is holding a job fair in Cleveland.
Around 50 new mortgage employees are expected to be recruited.
The hirings will fill open positions and new jobs.
VA Releases Loan Limit Update
Qualified mortgages to veterans can be guaranteed up to 25 percent by the Department of Veterans Affairs.
While the guaranty applies to loans up to $417,000, temporarily higher limits were established as a result of legislation passed in 2008.
VA announced the the temporary limits will continue from the beginning of fiscal 2012 through the end of 2011.
Texas Lender Barred from FHA Lending
Texas-based Alacrity Mortgage Co. has been barred from making Federal Housing Administration-insured loans for three years as part of a settlement with the Department of Housing and Urban Development.
In addition, the mortgagee has agreed to pay a $237,500 penalty.
The action resulted from the poor performance of the lender's mortgages.
Mortgage Interest Deduction Big Target for Deficit Hawks
The deduction for mortgage interest reduces the country's tax revenues by about $130 billion a year.
While the average value of the deduction is just $91 for those who make less than $40,000 a year, it increases to $5,459 for those who earn more than $250,000.
With the onset of the Great Recession and the debt deal struck this week, lawmakers have become less resistant to the notion of cutting the deduction.
Ally Originations Increase
Ally Financial Inc. reported that it originated around $0.4 billion more in the second quarter than in the first quarter.
Of the major lenders tracked by Mortgage Daily so far, only three have reported an increase from the first quarter.
The improvement for Ally followed a plunge in first-quarter production.
Positive Bankruptcy Trend Developing
U.S. consumers filed 18 percent fewer bankruptcies in July than during the same month last year.
It was the seventh consecutive month of year-over-year improvement.
Last month's filings were down 5 percent from June.
Hotel Delinquency Leads CMBS Deterioration
Delinquency on securitized lodging mortgages was up 117 basis points in July.
The increase erased much of the improvement made during June.
The rate on all loans included in commercial mortgage-backed securities was 51 BPS higher than in June.
Correspondent Lender Expands Offerings
First Guaranty Mortgage Corp. announced an enhanced correspondent lending product line.
The company said the new offering is a niche lending program.
The new product line includes manufactured housing loans and rehabilitation loans.
Acquisition Creates New Wholesaler
Carrington Mortgage Services LLC announced the acquisition of certain assets of American Home Equity Corp.
American Home originates agency, government and non-conforming residential mortgages.
A Carrington executive noted in the announcement that the acquisition will enable Carrington to immediately offer wholesale lending programs on a national basis.
Lender Doubles HECM Originations Despite Industry Decline
The Federal Housing Administration endorsed 9 percent fewer home-equity conversion mortgages in July than in June, Reverse Market Insight reported.
But that wasn't the case at Generation Mortgage Co.
The Atlanta-based HECM lender increased volume by 123 percent from June.
BB&T is Best Servicer
Branch Banking and Trust Co. has been ranked by borrowers as the best of the biggest mortgage servicers, according to J.D. Power and Associates.
It was the second consecutive year that the bank topped the list.
Among BB&T biggest strengths are its billing process, payment process and escrow account administration.
Quicken Among Few Lenders to Turn Up Production
Second-quarter residential production at Quicken Loans Inc. was up 4 percent from the first quarter.
Quicken was among only two lenders so far to report an increase in originations from the prior quarter.
Business was 8 percent better than the second-quarter 2010.
Chicago Ordinance Disrupts Lending
The Chicago City Council passed an ordinance that makes mortgage lenders responsible for vacant properties backing mortgages that have not yet completed foreclosure.
Moody's Investors Service said in a client newsletter that lenders must now determine vacancy, ensure safety and provide maintenance and upkeep during the foreclosure process.
The ratings agency projects that issuers will avoid properties in areas subject to such lender liability laws.
Record MTA Despite Rise in 1-Year Treasury
The daily yield on the one-year Treasury averaged fell 1 basis point less in July than in June.
But that wasn't enough to offset the other 11 months used in calculating July's Monthly Treasury Average.
The MTA fell to its lowest recorded level based on data back to 1953.
10-Year Falls to Lowest Level Since Last Year
During midday trading, the yield on the 10-year Treasury note was down 7 basis points from Friday -- when the yield was already down 16 BPS from Thursday.
Bad econmic reports fueled the Treasury rally.
The last time the yield on the 10 year was this low was in November 2010.
Wave of CRE Defaults Ahead
In the next four years, $1.7 trillion in commercial real estate debt will mature, according to a managing director at Moss Adams Capital.
Right now, more than $5 billion in CRE loans are defaulting each month.
What little capital is being invested in CRE debt is primarily going to the best projects.
Agency Issuance Eases
Securitizations of fixed-rate mortgage-backed securities by issuers of Ginnie Mae, Fannie Mae and Freddie Mac fell 9 percent between June and July.
Compared to a year earlier, issuance was down by a third.
An increase in volume by Ginnie issuers wasn't enough to offset a decline at Fannie and Freddie.
|
|
|
|
|
More Jumbo Product Hits Market
Aug. 23, 2011
With next month being the last month that temporarily higher agency limits will be in effect, a relatively new wholesale lender is helping to expand jumbo options.
The maximum conforming loan limit will fall to $625,500 on Oct. 1 from the temporary limit of $729,750.
The same goes for mortgages insured by the Federal Housing Administration..
<MortgageDaily.com subscribers read full story>
|
Impac Production Gains Steam
August 15, 2011
After making investments in its production platform, Impac Mortgage Holdings Inc. saw its quarterly originations take off. The next chapter in the playbook calls for the company to establish an agency servicing portfolio.
In 2007, Impac announced that it closed its warehouse, commercial mortgage and all other mortgage lending operations including retail lender Pinnacle Financial Corp.
The Alt-A lender had $2 billion in annual losses that year.
<MortgageDaily.com subscribers read full story>
|
|
|
|
|
|
|
|
|
