Mortgage Broker News Archives January 2, 2009 from MortgageChronicle.com

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Last Updated Friday, January 02, 2009 05:45 PM CST

Deal Reached on IndyMac Sale
IndyMac Federal Bank FSB will be sold to IMB HoldCo LLC, an announcement from the Federal Deposit Insurance Corporation today said. IMB is owned by a consortium of private-equity investors. The sales price has been negotiated at almost $14 billion.
Gov Biz Pushes Agency Issuance Higher
Issuances of agency mortgage-backed securities were $1.06 trillion last year, data from eMBS indicated. Activity increased from $0.98 trillion in 2007. Securitization volume was down at Fannie Mae and Freddie Mac but higher at Ginnie Mae.
W&W Deal Done
Wells Fargo & Co. completed the acquisition of Wachovia Corp., an announcement confirmed. The deal closed on Dec. 31, 2008. The deal was originally announced in October.
Rise in COFI Eases
The cost of funds index increased around 3 basis points in November 2008 from October, an announcement from the Federal Home Loan Bank of San Francisco said. The increase in the index was lower than the 36 BPS jump the prior month. COFI, however, was around 102 BPS better than November 2007.
PNC Acquisition of National City Done
An announcement The PNC Financial Services Group Inc. said the company completed its acquisition of National City Corp. The deal closed on the last day of 2008. The transaction was expected to cost PNC more than $5 billion in stock.
M.I. Business Bad
Mortgage insurance policies written during November were down nearly 13,000 from October, the Mortgage Insurance Companies of America announced. The dollar volume of business was down by more than one-quarter. Primary insurance defaults increased by nearly 3,000 from October.
Rates Could Fall Another 50-100 BPS
The average 30-year fixed-rate mortgage fell 4 basis points from the prior week, Freddie Mac reported in its weekly rate survey. The 30-year sits at a 37-year low. The director of the Federal Housing Finance Agency said yesterday in a television interview that it is likely mortgage rates will fall another 50 to 100 BPS.
Revised Appraisal Code Irks Brokers, Appraisers
The revised Home Valuation Code of Conduct fails to address appraiser fraud, an announcement from the National Association of Mortgage Brokers said. "This agreement amounts to a de facto regulatory action which avoids the appropriate process," NAMB's president said in the statement. The American Society of Appraisers is also unhappy with aspects of the revised code, especially the increasing reliance on unregulated appraisal management companies.
Fannie Activity Deteriorates
Fannie Mae's secondary purchases in November fell $5.6 billion from October, a monthly operational report said. Fannie's book of business ended last month $0.5 billion lower than October. Residential delinquency of at least 90 days as of Oct. 31 increased 17 basis points.
Michigan Firm Hiring
Shore Mortgage is recruiting 100 new employees, a press release said. The hirings are planned over the next three months. The expansion is the result of substantial activity this year and anticipated 2009 activity.
Class Action Madness
National City Corp. was sued on behalf of an individual who invested in its 4 percent convertible senior notes, the plaintiffs' law firm announced. The lawsuit accuses the National City and other defendants of misrepresenting the quality of residential mortgages. NovaStar Financial Inc. has agreed to settle a pending investor class action, a Securities and Exchange Commission filing said. Goldman Sachs & Co. is among several defendants in a lawsuit filed on behalf of investors in some GS Mortgage Securities Corp. securitizations issued last year, an announcement said.
National City Settles Class Action
A West Virginia class-action lawsuit has been settled by National City Mortgage Inc. The company was accused of charging multiple late fees on rolling 30-day delinquencies. In addition, National City allegedly returned partial payments in violation of state law.
Firm Hiring Thousands
Adecco USA is in the midst of a campaign to recruit mortgage production employees, a spokeswoman told MortgageDaily.com in a statement. Among the positions being filled are processors, underwriters and closers. While the exact number of positions being filled was not available, Adecco estimated it is currently filling "thousands" of mortgage positions nationally.
Lifeline Extended to GMAC
GMAC LLC sold $5 billion in senior preferred equity to the U.S. Department of the Treasury under the Troubled Asset Relief Program, a Treasury announcement said. The deal included warrants equal to 5 percent of the preferred stock investment. As part of the investment agreement, GMAC must comply with executive compensation provisions of the capital purchase program.
The LOS Digest
An alliance between Wolters Kluwer Financial Services and MortgageDashboard enables MortgageDashboard users to generate standard and customized closing and initial disclosure documents, according to a press release. Avista Solutions announced the integration of its Avista Agile LOS with DocMagic. MortgageCreditLink has been integrated with OpenClose Solutions' LOS, a press release said. Version 2 of 1003POWER has been released, an announcement last month from DNT Holdings LLC said.
Fannie Increases Fees
Fannie Mae will now impose new loan-level pricing adjustments, according to a lender announcement. The adjustments apply to loans that are purchased on a flow basis with certain risk characteristics. The updated pricing applies to loans purchased on or after April 1, 2009.
Institutional Musical Chairs
William H. Rogers Jr. was named president of SunTrust Banks Inc., a filing with the Securities and Exchange Commission said. Freddie Mac reported that Raymond G. Romano was named chief credit officer. Robert E. Cauley was appointed chairman of Bimini Capital Management Inc., an announcement said.
The Loan Mod Ledger
The Federal Housing Finance Agency reported that the Streamlined Modification Program launched earlier this month "is already making progress in preventing foreclosures." The chairman of the Federal Deposit Insurance Corporation recently said that loan modifications are absolutely necessary to end the housing crisis. Foreclosure Trackers Inc. recently issued a statement indicating it is in the process of modifying former Tonight Show sidekick Ed McMahon's first and second mortgages with Countrywide Home Loans.
Bank Acquisitions Funded by TARP
Wachovia Corp. shareholders have approved the acquisition of the company by Wells Fargo & Co., an announcement said. M&T Bank Corp. will acquire Provident Bankshares Corp., a news release said. Wintrust Financial Corp. said that it acquired some of the assets of Professional Mortgage Partners. Wells, M&T and Wintrust have each announced participation in the Troubled Asset Relief Program.
The CPP Express
The U.S. Department of the Treasury announced that $1.9 billion in capital purchase program funds was invested in 43 banks this week. Another $2.8 billion was invested in 49 banks last week, the Treasury said. So far, $162 billion has been invested under the program -- which is part of the $700 billion Troubled Asset Relief Program.
GMAC Approved to Become Bank Holding Co
The Federal Reserve Board of Governors has approved for GMAC LLC to become a bank holding company, a filing with the Securities and Exchange Commission indicated. GMAC originally submitted the application last month. The company also said the Utah Department of Financial Institutions approved the conversion of GMAC Bank to a state bank.
Lender Hiring Hundreds
During the past 12 months, SurePoint Lending told MortgageDaily.com that it has hired more than 300 people. The company originates primarily government loans. Next year, the company expects to hire another 300 employees.
Mortgage Employee Terminated Over Pregnancy
An order has been issued against Fidelity Mortgage Services Inc. by the Pennsylvania Human Relations Commission, the state announced. Fidelity is accused of terminating a former employee because she disclosed that she was pregnant. The order includes an award to the former employee as well as the requirement that Fidelity end its discriminatory practices.
LIBOR Sinks, Refis Soar
The six-month London Interbank Offered Rate fell 32 basis points from a week earlier, Bankrate.com reported. Meanwhile, applications for refinances shot up 63 percent in its latest weekly Mortgage Bankers Association survey. MBA said that more than 80 percent of all applications were for refinances.
New Appraisal Guidelines Issued
A revised Home Valuation Code of Conduct becomes effective on May 1, 2009, the Federal Housing Finance Agency announced. The code applies to single-family loans acquired by Fannie Mae or Freddie Mac. Under the requirements, lenders and other related parties cannot use the promise of future business to force an appraiser to reach a particular value nor can they remove an appraiser from a list because a targeted value wasn't reached.

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