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Mortgage Headlines
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Last Updated Friday, February 11, 2005 11:49 AM CST
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Predatory Accusations Drive Lender into Bankruptcy
A Westminster, Colo., company that buys homes of distressed borrwers has filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court, according to a filing with the court. A Denver lawyer representing the company in the bankruptcy said a class-action lawsuit filed in October of 2003 was "one of several reasons for the bankruptcy" but not the sole reason. Lawyers for more than 200 Colorado residents in the class action claim the company is a predator that stalks distressed homeowners, getting their property and their equity in the process.
Mortgage Web Sites Among Recent Mergers
The Federal Reserve Board announced it approved the proposal by Webster Financial Corp. to acquire Eastern Wisconsin Bancshares. E-commerce site operator CarsDirect recently announced its acquisition of several mortgage Web sites from Myers Internet Inc.
Accredited Shatters All Records
Accredited Home Lenders announced it originated a milestone $3.5 billion in subprime loans during the fourth quarter. Record full-year 2004 fundings were way up from the prior year.
Falling Rates Stimulate Refi Activity
The 30-year fixed-rate mortgage averaged 5.57% -- down 6 basis points within the past week, according to Freddie Mac's latest survey. More mortgage hunters were interested in refinancing their loan, the Mortgage Bankers Association reported.
WMC Forecloses on Nirvana Widow
Judgment of foreclosure was found January 31 in favor of WMC Mortgage Corporation against Courtney Love. The mortgage is on a mansion reportedly purchased for the family of Love's late husband, Nirvana frontman Kurt Cobain.
Bankrupt Firm Names New President
Milton Riseman was named American Business Financial Services Inc.'s president and chief operating officer, the company announced. American Business filed for Chapter 11 bankruptcy protection in a Delaware court late January.
Quarter, Year Off at ABN AMRO
ABN AMRO Mortgage Group Inc. reported fourth quarter fundings of $10.6 billion, off from the third quarter. In all of 2004, ABN AMRO reported it originated $56.5 billion -- a sharp downturn from the previous year.
Fannie, Freddie Sued Over G-Fees
Homeowners in two states -- Connecticut and Wisconsin -- have filed class action lawsuits that accuse Fannie Mae and Freddie Mac of violating antitrust laws by conspiring to charge excessive guarantee fees. The so-called "g-fees" earned the Government Sponsored Enterprises more than $4 billion last year but are drawing scrutiny through lawsuits, Congressional inquiries and the media.
January Fundings Off at Countrywide
Countrywide Financial Corp. announced January volume of $28 billion was off from the previous month. The total, however, is higher than a year ago.
More Loan Originations Through Better Listening
The genius of selling today may be the ability to listen, according to the sales training book, Stop Telling, Start Selling. Top performers interviewed for the book consistently said they are good listeners and that it is through listening that the best questions are born and dialogue is created. Good listening takes practice, and there are techniques one can use to become a good listener.
Increased 2005 Production Expected by Community Bankers
Nearly half of community banks expect their single-family mortgage volume to increase from 2004, according to the 12th Annual Real Estate Lending Survey of America's Community Bankers. The survey reportedly compiled the responses of 553 small-and medium-sized banks nationwide.
New ABN AMRO Chief
Thomas Goldstein has been appointed ABN AMRO's chairman, president and CEO, parent company LaSalle Bank Corp. announced Wednesday. He assumes responsibility for the company's mortgage and home equity lines of business.
Record 2004, but 4th Quarter Off at NovaStar
NovaStar Financial announced fourth quarter production of $2.2 billion in nonconforming loans slipped from the previous quarter. However, loan volume during all of 2004 amounted to a milestone $8.4 billion.
Cendant Quarter, Year Off
In its latest earning release, Cendant said nearly $11.0 billion in loans were closed during the fourth quarter -- off from the third quarter. Full-year 2004 volume reportedly fell from the prior year.
New Century Outlook Stuns Subprime Investors
In a financial activity analysis of major subprime lenders, FindProfit reported shares of subprime lenders fell Thursday after New Century Financial Corp. lowered its earnings outlook for 2005. The company blamed the lowered forecast on intensifying competition and margin pressures.
ARM Portfolios Sustaining Bankers' Growth
About 75% of the 55 domestic banks surveyed by the Federal Reserve in January believe the share of industry assets accounted for by residential real estate loans has noticeably risen over the past three years because of a growing share of ARMs -- which are better suited to holding in banks' portfolios.
Subprime Lending Fueling CA Home Appreciation
Today the lines between prime and subprime are blurring as more lenders take aim at borrowers who don't fit the rigid mold of prime mortgages. That allows more people to buy their first house or spend more than they otherwise could, helping to explain how California's housing market could be so hot when home prices are soaring but jobs and incomes are not.
Mortgage Broker Hires Hit Man
The owner of a Seattle area mortgage company is facing charges that include trying to have someone killed. Prosecutors say she used the identity of a customer at her mortgage business to lease a $57,775 Mercedes Benz, then tried to hire someone to kill and beat witnesses in the resulting criminal case.
Chase Partners with Prudential for 103% IO ARM
Prudential CA/NV/TX Realty announced it is now offering a 103% Loan-To-Value loan product designed to meet the needs of Hispanic homebuyers in Northern California. The loan was developed by The Home Loan Group, a joint venture with Chase.
Document Destruction Rule Effective in June
The FTC recently announced the Disposal Rule, addressing the proper disposal of consumer reports or any record derived from a consumer report. The rule applies to any person who, for business purposes, possesses or maintains consumer report information. "Any person" includes mortgage brokers, employers, insurers or any other business regardless of industry or size that performs such activity, according to text of the Federal Register notice where the final rule was published.
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