MortgageChronicle.com -- Free Mortgage Industry News Archives January 7, 2005

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Last Updated Friday, January 07, 2005 11:20 AM CST

How to Make the Perfect Marketing Plan
Developing a solid marketing plan and implementing it consistently over the long run is the task for those who desire success in any sales profession. There are literally thousands of questions to ask regarding implementation of a professional plan to develop the seven key components, which include goals, actions and evaluation.

Mortgage Job Sector Strengthens
The number of people working in mortgage-related positions totaled 468,800 during November, an increase from October's revised figure, the Bureau of Labor Statistics reported. The unemployment rate in December was unchanged at 5.4%, or 8.0 million people, the bureau said.

30-Year to Stay Below 6% for Q1
The 30-year fixed-rate mortgage averaged 5.77%, edging down during the past week, according to Freddie Mac's latest survey. "Although we expect mortgage rates will start to trend gently upward over the year, 30-year fixed mortgage rates should stay under six percent, at least through the first quarter," said Freddie's deputy chief economist in an announcement.

First Franklin Launches Retail Brand
First Franklin announced Thursday that it renamed its retail unit NationPoint. The division had annual production of $1.6 billion during 2004, according to the announcement.

From Riches to Rags
The chief executive of the former DreamLife Financial and his wife have been arrested and face 41 counts of felony grand theft. Investigators believe the couple used the money to pay for a lavish lifestyle that included expensive jewelry, watches and luxury cars. News of the arrest comes just about a month after the couple put up $1 million under a five-year agreement to buy naming rights at a sports complex being developed by California State University.

Best Mortgage CEOs
Morningstar Inc. named Golden West Financial's chief executives its 2004 CEOs of the Year. Morningstar said it chose the nominees based on a number of qualities including exemplary corporate stewardship; a proven track record of allocating capital efficiently and generating shareholder value; consistent, above-average financial performance; and ability to "focus on long-term value creation despite the market's many incentives to focus on short-term issues."

ARMs Gain in Popularity, Despite Lower Benefit
Even with bigger initial rate discounts on ARMs, the spread between ARMs and fixed-rate mortgages was lower this year, Freddie Mac found in its Adjustable-Rate Mortgage Survey. Through November, ARMs accounted for 34% of conventional purchase originations -- marking the highest annual share since 1994.

Mortgage Employee Shoots Children, X-Wife, Self
The office manager at a mortgage brokerage, apparently distraught and enraged over the breakup with his wife, shot her in the head and his son in the face. His daughter ran down the street, screaming. He chased her down and shot her before turning the gun on himself.

CA Mortgage Co. Reaches Out to Needy
Helping others all year round has become second nature to the people working at Nationwide Lending. So it wasn't news when it was announced again this holiday season money would be raised for those who were in need, including U. S. troops abroad in Iraq. The company reportedly raised $8,500.

Broker Prevails Over Regulator With License
The State Corporation Commission of Virginia recently granted a mortgage broker and banker license to a Virginia-based mortgage company after almost three years since the company first petitioned for a permit. The company, which has been attempting to gain approval to operate within the state since December 2001, was previously denied a license in April 2003 and again in January 2004 because its principals had violated numerous federal consumer protection laws while operating other companies, according to the bureau.

FHA Credit Watch Terminations to Hit Wholesalers
HUD has made an interim rule, in effect Jan. 18, to include FHA-approved underwriters in the Credit Watch Termination Initiative. The action puts weight to the accountability of wholesale lenders who underwrite the originated FHA loans they purchase from correspondents and mortgage brokers, or correspondents who do not originate their loans and only underwrite them, or mortgagees who originate and underwrite their own loans, according to a Federal Register notice.

Pritzkers to See Some of Superior Settlement
On Christmas Eve, auditor Ernst & Young, which was Superior Bank's outside auditing firm, agreed to a $125 million settlement with federal regulators. But what has at least one banking analyst steamed is that a big chunk of the settlement -- as much as $30 million -- will go to one of the failed lenders former owners -- the Pritzker family.

Acquire Or Be Acquired
The latest mergers and acquisitions include Park National Corp.'s closure on the acquisition of First Clermont Bank; United Financial Mortgage Corp.'s acqusition of Plus Funding; and Market Street Mortgage's execution of an agreement to acquire 14 residential production officers from Guaranty Residential Lending Inc.

Web, CD-ROM Offer Origination Training
A mortgage broker and loan officer training consultant recently announced the development of a new line of training products and loan officer courses inspired by a previously-authored mortgage manual. The educational material is available online, on a PowerPoint presentation, and on an interactive CD-ROM to technologically enhance the student's learning experience by allowing flexibility in scheduling.

Mortgage Magnate Lives Childhood Dream With Cavs' Deal
Detroit mortgage magnate Dan Gilbert in a press release today confirmed he is leading an investor group that has agreed to buy the Cleveland Cavaliers for $375 million. "When you are a little kid and you realize you're not going to play sports at a big-league level, the only other way in would be some kind of ownership," Gilbert reportedly told the Detroit Free Press after being outbid to acquire the Milwaukee Brewers last year.

COFI Break Over
The Cost of Funds Index jumped to 2.025% in November, the Federal Home Loan Bank of San Francisco reported. The average total funds used for November's calculation of the COFI was reportedly 464.3 billion.

Hammer the Spammers
America Online released its second annual list of the Top 10 Spam E-mail Subject Lines and found that mortgage-related headers were once again among the most widely sent junk e-mails this year. Within the top most widely recognized subject lines in unsolicited e-mails was "F R E E* 30 Second Pre-Qualification MORTGAGE Application."

From Broker to Banker
American Residential Funding Inc. announced it has gone public and will soon offer a wholesale program to outside brokers. AMRES has over 300 loan programs, but its competitive edge is in the Alt-A/Subprime arena, a company representative said.

CitiFinancial Servicer Rating Upgraded
Fitch Ratings announced it raised CitiFinancial Mortgage Co.'s primary residential servicer rating on subprime products to 'RPS2+'. CitiFinancial's raised servicer rating was based on its experienced management team, among other things, Fitch said.

Apps, Rates Quiet
The 30-year fixed-rate mortgage averaged 5.81%, up six basis points from last week, according to Freddie Mac's latest Primary Mortgage Market Survey. During the shortened Christmas week, the Mortgage Bankers Association said mortgage activity decreased about 2%, bringing the Market Composite Index to 677.4.

FHA Limit Bumped
The U.S. Department of Housing and Urban Development announced it will increase the loan limit on Federal Housing Administration-insured single-family mortgages to $312,895, up about 8% from a year ago. In low cost areas, the limit will be raised to $172,632.

Fugitive Chronicles Mortgage Crimes in 'Fiction' Book
According to evidence uncovered by federal agents, the 317-page, unpublished manuscript was apparently a blueprint for a multimillion-dollar series of white-collar crimes that so far has spread across two states. The fictional protagonist in the book leaves a $26,000-a-year insurance sales job to make it big in the mortgage business, finds himself in hot water with the FBI and executes an elaborate plan to defraud lenders of millions before making his getaway. The author, himself a former art student, started his own mortgage company, was charged with fraud in Tampa, then, according to court records, masterminded a scheme to use phony identities and falsified records to make a fortune with fraudulent loans on dilapidated properties in Tampa Heights. He is now a fugitive.

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