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Mortgage Industry News Headlines
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Last Updated Friday, January 12, 2007 03:52 PM CST
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AZ Co. Shutting Down
Clear Choice Financial Inc. announced it is insolvent. As a result, it has officially closed the offices of a mortgage lending subsidiary. Layoffs have been phased in over the past month, a Clear Choice exectuve told MortgageDaily.com.
Executive Vs Lender
A former executive of Market Street Mortgage has won a judgment against the company. The plaintiff argued that the company wanted him to leave on his own in order to avoid its responsibilities for severance pay and other damages under an employment agreement. A Market Street Mortgage spokeswoman told MortgageDaily.com it does not agree with the court's decision and will appeal the case.
Small-Medium Acquisitions Sought
W. J. Bradley Co. is targeting small and mid-size mortgage companies for acquisition. The firm has acquired five mortgage companies since it began the acquisitions in 2004, a company associate told MortgageDaily.com. "The companies we acquire don't change their names or the way they do business and we let them operate sort of as they've been operating before we took over," he explained.
Countrywide Business Better
Countrywide Financial Corp. announced fourth quarter residential volume of $121.5 billion. The latest period was higher the the third quarter, Countrywide said. But business was worse than the last quarter of 2005.
Mini Bulk Program Launched
American Home Mortgage Investment Corp. launched "two new acquisition strategies," according to an announcement Friday. One of the programs enables sellers with minimum portfolios of $3 million to unload loan portfolios including Alt-A, American Home said. The other program targets agency paper.
Mixed Rate Outlook
The 30-year fixed-rate mortgage averaged 6.2%, Freddie Mac reported in its latest weekly survey. For the year, Freddie expects rates on 30-year fixed-rate mortgages to remain below 6.5 percent this year. But the mortgage giant expects adjustable rates to be less attractive.
Jumbo Hybrid IO
Luxmac has launched a new option ARM loan with an interest-only option on jumbo loans. The term of the loan can go up to 40 years, a Luxmac secondary marketing executive told MortgageDaily.com. Yield spreads on some of its jumbo programs reportedly go as high as 1.25 percent.
Ameriquest Trademark Lawsuit
AMC Mortgage Corp. has filed a lawsuit against Ameriquest Capital. Ameriquest has been accused of infringing on AMC's trademark, according to the 21-page complaint. An Ameriquest spokesman told MortgageDaily.com the company had not yet been formally served.
Broker Named to Fed Council
The Federal Reserve Board appointed Joseph Falk to its Consumer Advisory Council, according to an announcement Wednesday. Falk is a mortgage broker. He is also the legislative chair of the National Association of Mortgage Brokers.
Reverse Certification Proposed
The Department of Housing and Urban Development has proposed a rule to amend its Home Equity Conversion Mortgage regulations. The agency wants to establish testing standards and qualify individuals as HECM counselors. The proposed rule would help ensure third-party information sources are properly trained and qualified, HUD reported.
Subprime Wholesaler Out
Popular Financial Holdings will exit subprime wholesale lending in the U.S., according to an announcement from the unit's parent company. The move is part of the parent's restructuring and integration plan. Popular expects to be out of the subprime wholesale business early in the first quarter.
Hard Money Correspondent Lender
Allied Mortgage and Financial Corp. announced Wednesday it opened a new correspondent lending division. The collateral-based lender said it specializes in hard equity. Allied has reportedly experienced rapid residential and commercial lending growth.
Funding For MLN Loans
Closed but unfunded loans at Mortgage Lenders Network may finally receive funding. The company sent a notice to its wholesale brokers which was reviewed by MortgageDaily.com. Fundings will only occur after going through a multi-step process that places a series of requirements on its wholesale brokers, their settlement agents and on borrowers themselves.
Credit Unions Can't Use AVMs
The National Credit Union Administration issued a letter that called into question the use of automated valuation models. The administration's appraisal rule requires "an appraisal by a state-certified or licensed appraiser for all real estate-related financial transactions," the letter said. "There is a lot of confusion in the marketplace right now thanks to this letter," said the chairman of the Real Estate Information Professionals Association's Collateral Assessment Technologies Committee in an announcement.
HEL Delinquency Decreases
Delinquency on home equity loans was 1.79 percent in the third quarter, the American Bankers Association announced. The latest figure was down from the second quarter, the data indicate. Meanwhile, late payments on home equity lines-of-credit increased from the second quarter.
Best Mortgage Employers
FORTUNE magazine released its latest annual list of the 100 Best Companies to Work For. The ranking was based on an evaluation of the policies and culture of each company, and the opinions of the company's employees, according to an announcement. The gold medal for the best mortgage company to work for was thereby Quicken Loans, which took spot No. 17 out of the 100 companies.
FHA Limits Announced
The maximum single-family loan amount the Federal Housing Administration will insure this year was released in a mortgagee letter. The new limit is $362,790, the letter said. The FHA limit remained the same level as 2006.
New Century Off
New Century Financial Corp. funded $14.3 billion in mortgages during the fourth quarter, according to an announcement Monday. Business was down from the third quarter, the statement said. For just December, originations were up from the prior month.
Wholesaler Closes
Secured Funding Corp. has shut down its wholesale operations, according to a spokesperson in its wholesale division. Secured is now focusing entirely on its retail operations. Funds for loans whose documents were submitted by January 5 will be issued by this Friday, January 12, the spokesperson said.
Southwest Leads Foreclosures
In 2006, foreclosure filings amounted to 970,948, ForeclosureS.com announced Monday. The regional foreclosure leader of the nation last year was the Southwest, according to the data. One out of nearly every 2.2 foreclosures in the nation reportedly occurred in the Southwest.
Branch Operation Doubling
VIP Mortgage Corp. is "hoping to get between $600 million and $700 million" in new originations during 2007, the company's president told MortgageDaily.com. The lender reportedly funded about half that much last year. VIP also seeks to double the number of offices it operates.
e-Mortgages Delayed
Advectis Inc. announced it's third annual Path to Paperless survey. The report examined trends in electronic mortgage processing based on the responses of mortgage industry executives. Fewer executives this year than in the prior survey said they were early adopters of e-mortgage capabilities.
New Owners for 2 Mortgage Units
New Century Mortgage Corp. completed the purchase of certain assets of Irwin Mortgage Corp. The deal is related to Irwin's mortgage servicing operation. Meanwhile, Deutsche Bank said it completed the acquisition of MortgageIT Holdings Inc.
ING Adding Mortgage Jobs
ING DIRECT plans to nearly triple its mortgage staff this year, the company told MortgageDaily.com in an e-mail statement. About 400 jobs are up for grabs. The new positions will mostly encompass underwriting, quality assurance, training and sales.
RMBS Investors Win N.C. Case
A North Carolina couple was charged $5,226 in closing costs on a $45,000 second mortgage in 1997. They filed a class action lawsuit claiming they were charged excessive loan origination fees and a usurious interest rate. But the state's supreme court affirmed a lower court decision not to hear the case against an out-of-state trust.
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Copyright © 2005 MortgageDaily.com
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Broker Named to Fed Council
A mortgage broker is one of 10 new members of a Federal Reserve Board council.
The Fed appointed Joseph Falk, the legislative chair of the National Association of Mortgage Brokers, to its Consumer Advisory Council, according to an announcement today.
Falk will reportedly serve a three-year term on the council, which meets three times a year in Washington, D.C., and advises the board on important policy issues related to consumer financial services under the Consumer Credit Protection Act.
MortgageDaily.com subscribers read full story
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CA Broker Busy Growing
A mortgage broker is looking to double its staff of high producers and support personnel in California next year.
Business is booming at Twin Capital Mortgage and the employee base must expand to keep the momentum rolling, company Chief Executive Officer Darius Mirshahzadeh told MortgageDaily.com.
In the past seven months alone, the San Francisco brokerage originated $220 million of the year's expected total of $300 million -- surpassing the total of $150 million in all of all of 2005, according to the executive.
MortgageDaily.com subscribers read full story
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Litigation Fest
A Virginia Beach borrower has filed a lawsuit against a mortgage broker, claiming he was deceived about refinancing his delinquent loan. Meanwhile, the broker has filed a lawsuit against a television station that aired the borrower's allegations -- claiming the station's defaming coverage has severely cut into his business. And one attorney involved in the matter suggests more lawsuits are on the way.
Michael Robinson, the co-owner of D and D Home Loans, Inc. along with his wife, Valeria, filed suit last month in Virginia state court against television station WAVY-TV.
The Robinsons claim the television station defamed them and the mortgage company when it ran several promotions in advance of a news story about Darrell Salley's attempt to refinance his home loan with Robinson's company while facing foreclosure.
MortgageDaily.com subscribers read full story
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Mortgage Database Stolen
A mortgage broker has been jailed for stealing the customer database of a now bankrupt company.
Sales for Denver-based Mile High Capital Group hit $120 million in 2005 and grew to $175 million a year later, the company touted in a press release issued last year.
"I was drawn to Mile High because there was such a fantastic business plan in place," Jeffrey Dietz said in a July 2005 press release announcing his promotion to company president. "We supply good affordable housing in areas that need housing. We serve the client; we serve the tenant. It's a win-win situation."
MortgageDaily.com subscribers read full story
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