|
|
|
|
|
Mortgage Industry News Headlines
|
powered by
|
 |
|
Last Updated Monday, February 20, 2006 11:57 AM CST
|
|
10 Calls Cost Broker $100,000
An Englewood, Fla., mortgage broker is facing fines of up to $100,000 for allegedly making 10 calls to residents who paid to be put on the state's "do-not-call" list, according the state. The company, which allegedly made the calls between June and November of last year, also used recorded messages, which is a separate violation of Florida law, the department said in a statement.
Man Faces Life Sentence for Running Down Originator
A mortgage loan officer shouted at the driver of a silver BMW to slow down as it sped through the parking lot of the restaurant he had just finished eating at. But then the driver swerved and then turned the car on the originator. If convicted of all charges, the driver could be sent to state prison for life.
Thrift Fundings Fall
Fourth quarter residential mortgage originations at thrifts totaled $164.0 billion, the Office of Thrift Supervision reported. Production dropped from the third quarter but was higher than the comparable period a year earlier.
Loans Backing RMBS Drawing Concern
Some attendees at an asset-backed securities conference last week expressed strong feelings that the mortgage market has been too eager to extend credit to home owners, according to an announcement by conference provider Information Management Network. "We are beginning to see prudent home mortgage deal terms and conditions being replaced by more liberal structures," a speaker reportedly said at the conference's opening session.
Subprime Entrepreneur At It Again
The founder of EquiFirst Inc. has launched another subprime mortgage wholesaler. So far he has hired about 30 people -- including four key executives -- and eventually plans to have more than 200 employees, he told MortgageDaily.com. "Our whole goal is to make transactions paperless ... with an online portal so mortgage brokers can get pre-approvals and full approvals and underwriting quickly and seamlessly online."
Yield Curve Inversions & Mortgages
The 30-year fixed-rate mortgage averaged 6.28%, up from a week ago and a year ago, according to Freddie Mac's latest rate survey. The 10-year Treasury-note yield was lower than the yield on the two-year Treasury. Some analysts believe the phenomenon, known as an inverted yield curve, signals an upcoming recession.
Mortgage Banker Tycoon
Prism Business Ware Games Inc. announced it recently upgraded the user-interface of its business simulation designed for mortgage bankers to develop mid- to senior-management's strategic, financial, and general business acumen. The business-training software package "models the operations of a working, growing loan center and allows course attendees to run their simulated company as 'CEO for the Day'."
WaMu Laying Off Thousands
Washington Mutual Inc. said Wednesday it will consolidate its processing offices providing administrative support to its home loan businesses. Downsizing the network of mortgage support offices will result in approximately 2,500 job cuts, WaMu said.
Freddie Ponders Subprime Expansion
A Freddie Mac executive shared with investors at a recent Credit Suisse Financial conference the successful stride Freddie has continued to achieve over the recent years and how it might be a good time to expand their market share into the subprime arena. "The idea of touching more loans is to increase our penetration of the overall conventional conforming market," she explained.
Virtues of Prepayment Penalties
In a working paper, a professor of finance from Cal State Fullerton said his research "strongly support[s] the view that this contract feature has significant economic value to both borrowers and lenders and that, hence, the trend toward greater legal restrictions is misguided, potentially harming those it is intended to help." The professor said the incremental value of prepayment penalties is far greater for subprime mortgages.
Year Starts Down at Downey
Mortgage fundings in January were $933.4 million, falling from December, Downey Financial Corp. reported. Production is also lower than a year earlier.
HELOCs, Nontraditional Loans Fuel Rising Bank Risk
Outstanding home-equity lines-of-credit surged in 2004 to nearly a half trillion dollars at banks insured by the FDIC, A.M. Best Co. said in an article about statistical studies and trends in banking. The expansion in outstanding balances and the popularity of nontraditional mortgages assisted in real estate exposures increasing to nearly 50% of total bank assets as of Sept. 30, 2005, according to the article.
Judgment on $31,000 Mortgage Costs Servicer $1.8 Million
A judgment against Ocwen Loan Servicing entered last week is based on a $5,000 actual damage award, but includes over $1 million for attorneys' fees as well as statutory and other damages, Ocwen's parent announced Monday. The case involves a $31,000 home improvement loan the borrower was unable to keep current.
Company, Employees Vanish Amid $100 Million Scandal
A recently-disbanded mortgage brokerage firm helped borrowers secure home equity loans from numerous lenders on the same property, according to the FBI. A borrower with, say, $300,000 of equity in a home was able to borrow up to $2.2 million.
Originator Moonlights as Pro Lacrosse Player
Jamie Hanford said he began playing lacrosse in his sophomore year in high school. At 30 years old, he continues to play on the National Lacrosse League and also on the Major Lacrosse League in his hometown. But he told MortgageDaily.com he puts in a full week as a mortgage loan originator at a 37-employee company.
Accredited Ascends to Unseen Altitude
Fourth quarter mortgage production was a milestone $4.7 billion, climbing from the previous period, according to Accredited Home Lenders' earnings announcement. Full-year fundings were also a record, the San Diego-based company reported.
Ohio Becoming Fraud Capital
CoreLogic announced the largest 100 metropolitan statistical areas "most likely to experience the economic consequences of increased levels of fraudulent activity over the next 12 to 18 months." CoreLogic reported that Ohio cities placed prominently among the top-five markets at risk.
2nd Mortgage Fee Waiver Lands Lender in Litigation
In a lawsuit filing, a Maryland borrower said Provident Bank agreed to waive $681 in what it termed "closing costs" on a $17,000 second mortgage provided that he kept the loan for three years. But he claims the bank did not tell him that prepayment penalties on secondary loans are illegal in the state.
Net Branch Deals Going Down
The Loan Source LLC recently merged with Consolidated American Industries Corp., according to a press release. The Loan Source will be a mortgage branch network company. Summit Mortgage LLC acquired Gateway Mortgage Bankers of Miami. Paragon Financial Corp. recently announced it agreed to acquire Las Vegas, Nev.-based "consolidator of independent mortgage brokerages."
Merger Related Layoffs at MBNA
Bank of America recently decided to integrate MBNA Home Finance into its operations, a BoA spokeswoman told MortgageDaily.com. She said it is anticipated there will be mortgage employee layoffs, but she could not quantify how many.
Lost in Translation
Five Florida-based mortgage companies have been ordered to modify their business practices and pay a fine because of deceptive ads allegedly placed in a Spanish-language newspaper, according to documents provided by the Florida Attorney General's office. One of the companies told MortgageDaily.com that advertising content is always sent to the newspaper written in English, but the newspaper's advertising department failed to fully translate the disclosures.
Senate Confirms Arnall as Ambassador to Amsterdam
The U.S. Senate confirmed the nomination of Ameriquest Mortgage's founder for U.S. ambassador to the Netherlands, according to a Congressional Record Daily Digest. "We take great pride in knowing that our company's founder will be representing our country abroad and know he will serve with honor and distinction," Ameriquest's vice chairman, in a written statement.
New Mexicans Complain
New Mexico's Attorney General released the top-ten list of businesses categories with the most complaints filed during 2005. Placing fourth on the list was "small loans and mortgage lending," according to the announcement.
NovaStar Delays Financial Announcement
NovaStar Financial Inc. issued an announcement that it will delay an announcement about earnings results and an investor conference call. "The company has decided to obtain legal opinions to further support certain tax positions," NovaStar said in the announcement Thursday.
Enjoy the Job, Sell More
One sales book reviewed by MortgageDaily.com takes an in-depth look at the psychological factors involved in selling and how to overcome the emotional obstacles that most salespeople find detrimental to their career. Finding pleasure in selling is one key to mastering the sales process, according to the book. Of the many ways to accomplish this, the book says, making the realization that "selling makes the world go round" is step one. Step two is to act like the successful salesperson one hopes to become until it becomes reality.
|
|
This mortgage news summary reprinted with permission of
|
|
|
For the entire text of any of these stories please visit
|
|
Copyright © 2005 MortgageDaily.com
|
|
|
