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Mortgage Industry News Headlines
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Last Updated Friday, January 27, 2006 04:16 PM CST
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Texas Fund for Broker Victims
The Mortgage Broker Recovery Fund contains nearly $2 million for what a top state regulator calls consumers who have been "aggrieved" by mortgage loan officers or brokers and have not been able to collect through legal or other remedies. "The fund is a last resort, if you will, after all else has been exhausted and there remains no remedy," the commissioner of the Texas Department of Savings and Mortgage Lending told Mortgage Daily.com.
Company Closes Correspondent Channel
Aegis Mortgage Corp. announced it exited the correspondent business as of last month. "Senior management decided it was not a business they wanted to be in at this time," a spokeswoman told MortgageDaily.com.
Best Online Home Equity Lenders
Change Sciences Group's recent ranking of 42 home equity Web sites from the perspective of people looking for a loan indicates much work is needed to make the experience easier, according to a recent announcement. Change Sciences recognized Capital One as providing the best home equity site.
IndyMac Shines
Fourth quarter mortgage production of $18.0 billion was higher than the prior quarter, according to IndyMac Bancorp's earnings announcement Thursday. Full-year 2005 fundings were better than 2004. Both the quarter and the year were a record.
Rates, Apps Up
The average 30-year fixed-rate mortgage rose 2 basis points from last week to 6.12%, according to Freddie Mac's Primary Mortgage Market Survey. Overall application volume improved from the prior week, as has been the case for three consecutive weeks now, according to the Mortgage Bankers Association.
American Home Originations Contracting
American Home Mortgage Investment Corp. announced today it originated $13.6 billion in the fourth quarter, almost unchanged from the third quarter. But with an application pipeline that is $2.4 billion lower than the previous period, another volume decrease appears on the horizon.
Cost Cutting Prompts WaMu Layoffs
Approximately 64 post-funding employees at a mortgage lending operation in Florence, S.C., received layoff notices Monday, a Washington Mutual spokeswoman told MortgageDaily.com in e-mailed statements. WaMu said it informed the employees it had reached an agreement with a vendor in India to perform their functions.
VA Volume Plummets
The Department of Veterans Affairs guaranteed $24.9 billion in single-family volume in fiscal 2005, down from a year earlier, a VA spokesman told MortgageDaily.com. The reason guaranteed loans are almost half the amount insured in fiscal 2004 and 2003 is because in those years, there were "lower interest rates and more veterans doing refis," the spokesman said.
Mortgage Bankers Look Forward
The Mortgage Bankers Association's hairman, said that with the "tremendous increase" in mortgage fraud, fighting such fraud will be a key priority in 2006. Subprime lending -- the largest growth area in the mortgage industry -- presently 12 percent of total outstanding mortgages and 25 percent of six month production is expected to remain unchanged.
Pregnant Originator Survives Brutal Attack
A south Florida man was arrested and charged with attempted first degree murder of a 27-year-old pregnant originator, according to an arrest affidavit filed by the sheriff's office. "I just slit my girlfriend's throat," he says on a 911 recording, his voice frantic as he begs for help. " I tried to kill her."
Irwin May Shed Conforming Ops
Irwin Financial Corp. said Wednesday it may sell its conforming mortgage business. "We have had a very good run with our colleagues at Irwin Mortgage, but need to make changes in our strategies in reaction to changes in the environment," Irwin Financial's chairman said in the announcement.
Fraud Among Top Mortgage Banking Issues
The Mortgage Bankers Association is pushing for an additional $6.25 million to be budgeted for combating mortgage fraud, according to an announcement today from the Washington, D.C.-based group. The funds would be used to add 30 new FBI field investigators and two new dedicated prosecutors at the Department of Justice to coordinate with the U.S. Attorney's offices.
Successful Sales Profile
People buy from people they like and trust. Identifying with the customer -- for instance graduating from the same school, living in the same neighborhood or having mutual friends -- is a good way to build a trusting rapport. But an alternative level of connection could be made if the salesperson adapts his or her personality to one that the buyer can identify with as a family member. This technique appears to be working for the number one salesperson at a Chevrolet car dealership in Chicago. Her success is due in part to her motherly approach.
New First Horizon CEO
Pete Makowiecki has assumed the role of mortgage banking president of and chief executive officer of First Horizon Home Loan Corp., according to an announcement by the company's parent. "My primary goal is to oversee the successful execution of our key strategic initiatives, while maintaining the culture and core values of the organization," Makowiecki said in the announcement.
RMBS Volume Soars in 2005
Standard & Poor's reported Tuesday that issuance of private-label RMBS in 2005 jumped nearly 38% above 2004. S&P noted the amount included securities backed by Alternative-A loans that were 109% over the record in 2004. The agency also said it rated a record number of new transactions with an unprecedented number of credit classes.
Record Year at Golden West
Fourth quarter originations totaled $13.1 billion, off from the prior three-month period, according to Golden West Financial Corp.'s earnings announcement. Production was unchanged from the same period in 2004.
Freddie Business Declines
Fourth quarter purchases of $157.1 billion dropped from the previous three-month period, Freddie Mac reported. New business purchases during just December was 11% higher than the prior month.
Mortgage Mergers, Etc.
New Southern Bank recently changed its name to Atlantic Southern Bank. Wauwatosa Savings Bank has signed a definitive agreement to acquire Waterstone Mortgage Corp., according to an announcement today. Security Bank Corp. recently announced it completed its acquisition of Rivoli BanCorp.
Foreclosure Activity Heating Up
During the fourth quarter, the number of homes nationwide entering some stage of foreclosure increased about 5% from the prior quarter, according to RealtyTrac. "With interest rates rising and an apparent slowing of property valuations in most markets, we'll be watching closely to see if there's a material effect on the number of foreclosures in 2006," the statement said.
Ameriquest Finalizes Settlement
Ameriquest Mortgage Co. has agreed to a $325 million settlement with 49 states to resolve charges of alleged predatory lending, parent ACC Capital Holdings Corp. said Monday. The announcement follows one year of settlement negotiations and two years of investigation by Attorneys General, state lending regulators and local prosecutors.
Poker Broker
A Maryland mortgage broker told MortgageDaily.com he took the chance of a lifetime. With a $10,000 entry fee and his amateur poker skills, he headed to the 2005 World Series of Poker -- and was able to walk away with a cool $4.25 million in prize money.
Broker Loses License for Lying to Lenders
Citi Group Financial Mortgage Corp. "violated provisions of the Georgia residential Mortgage Act" and was cited by the Georgia Department of Banking and Finance "for making numerous misrepresentations in loan files submitted to mortgage lenders and for withholding information ... from examiners," according to a statement issued by the state. Regulators made note that Citi Group Financial Mortgage is not affiliated in any way with Citigroup -- parent to mortgage giants CitiMortgage and CitiFinancial.
BoA Business Buckles
Fourth quarter volume of $20.7 billion slumped from the prior three-month period, according to Bank of America Corp.'s latest financial supplemental report. The latest total, however, is better than the last quarter of 2004.
Nonprime Delinquency Spikes in Some Areas
Friedman, Billings, Ramsey & Co. recently said it identified 56 "chronically weak" metropolitan statistical areas across 16 states with higher nonprime default rates. Subprime loans in those areas have a weighted-average default rate of 13.82% -- more than double the national rate.
$200k Judgment Against Lead Company
A $200,000 copyright infringement judgment against NexTag was announced by LowerMyBills.com. In addition to copyright infringement, NexTag was also accused of false designation of origin and unfair competition.
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