|
|
|
|
|
Mortgage Industry News Headlines
|
powered by
|
 |
|
Last Updated Friday, January 06, 2006 03:57 PM CST
|
|
Lender Plans 100 New MN Jobs
Charter West Mortgage Co. has proposed building a $2.1 million mortgage servicing center in Cohasset, Minn., that would employ up to nearly 100 people by 2007, according to city documents. Charter West's founder Cohasset city officials that the company wants to build a center where workers would handle financing for customers of factory built housing dealers, according to minutes of the Cohasset City Council.
Subprime Mortgage Company Robbed
Police say a man who was carrying either a rifle or shotgun and what he said was a pipe bomb robbed First Franklin Co.'s branch office of an undetermined amount of cash. He even took the money and cell phones of the employees working that day, Clemson's police chief and a captain told MortgageDaily.com.
Mortgage Employment Ends Record Streak
The number of people working in real estate finance jobs during November was 533,700, down from the previous month's revised figures, according the Bureau of Labor Statistics. The latest figures from the government mark the first month since 2004 that there was a decline in mortgage employment.
ARM Originations Plunge
Adjustable rate mortgages accounted for less than 29% of overall applications, according to the Mortgage Bankers Associations' Weekly Mortgage Applications Survey for the week ending December 30. The share was down sharply from nearly 33% reported the prior week.
Mortgage Company Loses Lawsuit
A Colorado mortgage company, which touted itself in its ads as providing financially distressed homeowners with a second chance, engaged in deceptive trade practices, a court found in a class action against the company. In a strongly worded 35-page opinion, the court said the company used "bait and switch" techniques, gave out "false and misleading" information and provided a disclosure of the program's practices so "voluminous and complex" that it acted more as an inducement for consumers under time and financial pressures to participate in the program rather than to clarify any questions about itself.
Free Fraud Prevention
Verification Bureau Inc. announced that qualified mortgage companies will be given free fraud prevention tools and services on a trial basis. Those services reportedly include tools to spot fake tax returns, identify identity theft and detect fraudulent mortgage applications, verifications of employment or appraisals.
ARM Share Maintains Despite Disappointing Discounts
The yield spread between the 10-year Treasury and the 1-year Treasury shrunk to nothing in 2005, according to Freddie Mac's annual ARM survey. The phenomenon, known as a flattening yield curve, squeezed the spread between fixed rate loans and ARMs -- making adjustable rate loans less appealing. But the ARM share through November 2005 was 32% -- near a ten-year high.
Bank Warns of Impending Charge
FNB Financial Services Corp. announced that its management is conducting a special investigation into loans made in the company's Harrisonburg, Va. region. "Management of the bank anticipates that a significant additional provision to the bank's allowance for credit losses will be recorded in the financial results for the year ending December 31, 2005," the statement said.
Luminent Shakes Up RMBS Portfolio
During the first quarter of this year, Luminent Mortgage Capital will begin repositioning "its spread portfolio assets in order to improve profitability and dividend paying capacity." The lender expects the move to accelerate its diversification into high-yielding residential-mortgage credit-investment strategies.
ABN AMRO Settles FHA Fraud Charges
ABN AMRO Mortgage Group will pay the U.S. Government $16.85 million this week and will not submit hundreds of defaulted loans to the Department of Housing and Urban Development for FHA claims, according to a joint announcement from various government agencies. The settlement stems from charges ABN AMRO falsified "documents in tens of thousands of loans insured by the Federal Housing Administration," the statement said.
NovaStar Names New CEO
David A. Pazgan has been named president and Chief Executive Officer of NovaStar Mortgage Inc., according to an announcement from the companies parent Wednesday. The executive reportedly replaces Lance Anderson, who will become chairman.
Subsidiary of Wall Street Giant Faces FTC Inquiry
Bear Stearns Cos. disclosed in a regulatory filing with the Securities and Exchange Commission that the FTC wants to know if subsidiary EMC Mortgage Corp. broke any consumer protection or lending laws. The FTC has confirmed the investigation but has not commented on it or released any statements. Other than disclosing the investigation in the filing , neither Bear Stearns nor EMC is commenting.
Yield Curve Sharpens
The yield on the two-year closed down 0.08% from the prior trading day. At the same time, the 10-year Treasury yield was down just two BPS.
Dead Fraud
Two previously convicted mortgage brokers were indicted for allegedly using phony information to secure more than $1 million in mortgages from InterFirst Mortgage Lenders. "Through their criminal activity they obtained dozens of fraudulent loans," an Ohio county prosecutor said in a statement. "Twelve of these loans were on behalf of people who were actually dead at the time of the transactions."
Big Texas Producer
Phebe Ellis of PrimeWest Mortgage Corp. was recently named the Top Producer of the Texas Mortgage Bankers Association. "I just couldn't believe it," Ellis told MortgageDaily.com, adding she felt "very excited to beat out some of the bigger cities."
Countrywide Targeted in La. Investigation
Louisiana's attorney general has launched an investigation into why Countrywide Mortgage is allegedly delaying its endorsement on checks for insurance repair proceeds, according to an announcement Thursday. Other lenders may join the list of companies being investigated.
COFI at Highest Level Since 2001
The cost of funds index averaged 3.190% during November, climbing from October, the Federal Home Loan Bank of San Francisco reported Friday. The average hasn't been this high since November 2001.
Best Mortgage Franchise
Entrepreneur magazine released its annual Franchise 500 -- a ranking of franchise companies based on financial strength and stability, growth rate and size of the system. The only mortgage-related company to make the list was privately-held Avalar Real Estate & Mortgage Network.
PHH Servicer Ratings Improved
PHH Mortgage Corp.'s residential primary servicer rating for home equity and home equity line-of-credit products was raised by Fitch Ratings. The action reflects a "tenured and experienced management team, impressive technology platform, and extensive risk management practices," as well as the solid financial condition of parent PHH Corp., according to Fitch's announcement Thursday.
Revised Appraisal Forms Performing Well
The 11 revised appraisal report forms Fannie Mae announced in March became a requirement on appraisals requested Nov. 1 and thereafter for loans delivered to Fannie. The new forms have direct questions requiring the appraiser to report analysis and conclusions on key areas in a "clear and succinct yes/no format." So far, the new forms have been "getting very positive feedback," a Fannie executive told MortgageDaily.com.
Schemes Borrowers Should Avoid
With homeownership at a record, some scam artists are out to deplete the equity consumers have built up in their homes over the years, the National Association of Mortgage Brokers said in a recent announcement. Consumers should sway from giving in to high-pressure salesmen, as no "reputable broker or lender will try to pressure" to take out a loan, NAMB warned.
Rates Ease, So Do Apps
The average 30-year fixed rate mortgage fell from last week to 6.22%, according to Freddie Mac's rate survey for the week ending December 29. Mortgage shoppers completed 7% fewer 1003 applications during the latest week, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.
New Mortgage Spam Phrase Makes AOL Top 10
In its third annual Top 10 Spam List, AOL identified the biggest global spam subject lines. "(IMPORTANT) Your Mortgage Application is Ready," was No. 8 on AOL's list.
Woman Wins Nearly $5 Million Verdict Against Ameriquest
An Oklahoma borrower sued Ameriquest Mortgage Co., claiming the company ruined her credit because it didn't pay off a mortgages in refinance transactions. While Ameriquest told MortgageDaily.com it did nothing wrong, a jury awarded the woman $4,940,000.
Nonprime Servicer's Rating Improved
Specialized Loan Servicing LLC's residential primary servicer ratings for Alt-A and subprime loans was raised to 'RPS3' from 'RPS3-', according to an announcement from Fitch Ratings today. The improvement was based on Specialized's "experienced management team, robust technology platform, and established loan administration controls," the statement said.
|
|
This mortgage news summary reprinted with permission of
|
|
|
For the entire text of any of these stories please visit
|
|
Copyright © 2005 MortgageDaily.com
|
|
|
