MortgageChronicle.com -- Free Mortgage Industry News Archives January 19, 2007

Mortgage Industry News Headlines

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Last Updated Friday, January 19, 2007 04:46 PM CST

Order Issued Against MLN
The Connecticut Department of Banking Division issued a temporary cease and desist order to Mortgage Lenders Network USA Inc. The order was coordinated by several New England states. The division's action was "not a surprise," MLN told MortgageDaily.com in an e-mail statement.
ResMAE Negotiating Sale
Credit Suisse is in discussions to purchase stock or assets of ResMAE Financial Corp., according to Credit Suisse. The negotiations reportedly include ResMAE Mortgage Corp. Another investor may have to be bought out, depending on the deal, a Credit Suisse spokesman told MortgageDaily.com.
Citi Maintains Production
Citigroup Inc. reported fourth quarter residential originations of $35.3 billion. The latest period was slightly lower than the third quarter, the data indicate. Fourth quarter fundings were also down from a year earlier.
Foreclosures Fall
In December, 109,652 properties nationwide entered some stage of foreclosure, RealtyTrac recently announced. The month's activity was an improvement over November, the data indicate. The national foreclosure rate was one new foreclosure filing for every 1,055 homes.

Freddie's Hiring
Freddie Mac announced it expects hire about 200 information technology professionals. Once on board, the employees will work at the new technology solutions unit in Schaumburg, Ill. The additional hires will push staff at the operation to more than triple its current level.

Calm Before Storm
The 30-year fixed-rate mortgage averaged 6.23%, according to Freddie Mac's latest weekly mortgage rate survey. The average was up from the prior week, Freddie said. The Federal Reserve chairman warned the U.S. Senate Thursday that even though official projections suggest that the unified budget deficit may stabilize or moderate further over the next few years, "we are experiencing what seems likely to be the calm before the storm."

FHA Approvals Terminated
The Department of Housing and Urban Development terminated five origination approval agreements, according to a Federal Register notice Wednesday. A branch of New York Mortgage Co. LLC was among those to lose their FHA approval. Affected offices may reapply for FHA origination approval after six months.

First Horizon Holds
First lien production amounted to $6.4 billion during the fourth quarter 2006, First Horizon National Corp. announced. The period was about the same as the third quarter, the report said. Annual originations, however, tumbled from the prior year.

WaMu Worse
Residential volume was $42.3 billion during the fourth quarter, Washington Mutual Inc. announced. Originations were off from the prior period, according to the earnings data. Annual fundings sank from the prior year, the report said.

Chase Fundings Up
Residential originations amounted to $43.9 billion in the fourth quarter, according to JPMorgan's latest finance supplemental data report. Production during the latest period was higher than than the third quarter, the data indicated. But annual volume fell from 2005, JPMorgan said.

Originators, Processors Wanted
Guaranteed Home Mortgage Company Inc. expects to open several branches over the next three months, a company spokeswoman told MortgageDaily.com. The openings will create about 70 job opportunities, she said. The positions include mortgage originators and loan processors.

Legislative Outlook
Congress will pick up on the "remarkable" progress toward government-sponsored enterprise reform it made last year, an executive for the Mortgage Bankers Association said at a press briefing Tuesday. Significant progress has also been made toward FHA reform, he said. RESPA reform is reportedly expected to make this year's legislative and regulatory rounds.

1000 ResCap Layoffs
Residential Capital LLC said it will elimate 1,000 active and open positions this year. Among the factors cited by the company for the layoffs was slower originations. In addition, deterioration of the subprime sector was also blamed.

Tough Mortgage Banking Outlook
The Mortgage Bankers Association estimated total residential production in 2007 will decline from 2006. The strain of excess capacity is showing up in sharply reduced profits, merger activity and workforce reduction, the group's economist predicted. Mortgage technology panelists at the press briefing didn't expect wholly online lending to storm the market any time soon.

Wells Fundings Fall
Residential real estate originations amounted to $87 billion in last year's fourth quarter, according to Wells Fargo & Co.'s earnings release Tuesday. Fundings fell from the prior quarter, Wells announced. Production was also off from the fourth quarter 2005.

Branch Operation Expanding
Superior Mortgage Corp. announced it is "aggressively" expanding its branch partner program. Between 10 to 15 branches will be added this year, a Superior executive told MortgageDaily.com. The new branches are expected to generate about $0.5 billion in volume this year, he said.

IndyMac Lowers Q4 EPS
IndyMac Bancorp, Inc.'s chairman and CEO sent a letter to shareholders warning about earnings. The executive said fourth quarter earnings would be $0.97 per share. The company had previously projected $1.35, according to the letter.

CT Fines Lenders
First Alternative Mortgage Corp. recently agreed to pay a penalty to the Connecticut Consumer Credit Division of the Department of Banking. The company allegedly omitted a lawsuit with IndyMac Bank F.S.B from its lender license applications. EPI settled over allegations it closed with an unregistered originator, in unlicensed names or with fees in excess of the state's maximum.

Wells Does 2 Deals
Wells Fargo Home Mortgage formed a retail joint venture with the Hispanic National Mortgage Association, according to a recent announcement. The new unit will reportedly offer special resources to assist Hispanic residential loan prospects. Wells Fargo & Co. announced it will buy a Northern Califonia-based bank holding company.

Biggest & Best
Forbes magazine recently released the list of publicly-traded companies to make its Platinum 400. Businesses were categorized into 26 industries and compared against their peers on five-year and 12-month sales and earnings growth and total return to shareholders. A five-year return of 39 percent landed the parent of K. Hovnanian American Mortgage LLC in the top spot of any mortgage-related company, the magazine said.

TN Predatory Law in Effect
Tennessee has enacted The Tennessee Home Loan Protection Act. The law imposes stiff requirements on originators of high-cost loans. The new legislation took effect Jan. 1.

New Century Unit Downsizes
Home 123 Corp. closed a number of its consumer direct offices between December and the beginning of this month,a spokeswoman told MortgageDaily.com. The company is a retail lending subsidiary of New Century Financial Corp. The consolidation a strategic move, and not a reaction to the mortgage market, she said.

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.

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