|
|
|
Mortgage Industry News Headlines
|
Last Updated Friday, February 29, 2008 07:22 PM CST
|
|
COFI Down Again
The Cost of Funds Index was 3.97 percent in January, according to the Federal Home Loan Bank of San Francisco. The index fell from December and from a year earlier, the data indicated. COFI has fallen each of the past four months.
Mixed Results at PHH
PHH Mortgage closed $8.3 billion in the fourth quarter, according to an earnings announcement from its parent. Volume was down from the third quarter and a year earlier. And while the mortgage unit had a fourth quarter earnings loss, it was still a big improvement from the prior period.
Foreclosure Prevention Activity Soars
Fannie Mae said Wednesday its new HomeSaver Advance enables servicers to offer qualified borrowers unsecured loans to bring their mortgages current. HUD reported Tuesday that its FHASecure program has enabled 100,000 refinances of subprime loans since September. The Bank of America Charitable Foundation announced Thursday a $250,000 contribution to California nonprofits that specialize in foreclosure mitigation. XSell and SigniaDocs Inc. announced Monday an alliance that will enable quick loan modification for mortgage lenders.
Record Mortgage Insurance Defaults
During January, primary insurance defaults numbered 68,950, the Mortgage Insurance Companies of America reported. The activity represents the sixth straight month defaults have risen, according to the data. January defaults came in at the highest level on record based on MICA data dating back to 1989.
Countrywide Accused of Inflating Foreclosure Fees
A lawsuit has been filed against Countrywide Home Loans Inc. for allegedly inflating foreclosure expenses. Countrywide is accused of extracting improper fees, expenses and attorney fees from borrowers in foreclosure proceedings. In some cases, the Calabasas, Calif.-based company allegedly charged higher fees than it incurred -- a breach of the notes.
Bankruptcy Modification Bill Rejected
The Senate voted this week to prevent further debate on a bankruptcy modification bill, according to an announcement from the Mortgage Bankers Association. MBA has said the approval of the legislation as introduced would have raised overall mortgage rates by 1.5 percent to 2.0 percent. "Bankruptcy is not the answer for borrowers who are having a difficult time making their mortgage payments, and it is gratifying to see enough Senators recognize this fact," MBA's chairman-elect said in the statement.
First Franklin Winding Down
The parent of First Franklin Financial Corp. is planning on winding down the unit, CNBC reported. The news channel said First Franklin insiders are being told that Merrill Lynch is getting rid of the business. Merrill acquired First Franklin in 2006.
Advancements in Mortgage Technology
The release of LoanQuoter v7.02 enables mortgage lenders to automatically provide electronic disclosures to prospective borrowers as soon as they apply online for a loan. Fannie Mae's Desktop Originator and Desktop Underwriter have been integrated into PriceMyLoan's Web application. Financial Industry Computer Systems Inc. announced it will roll out the BusinessObjects Enterprise Professional and Crystal Reports XI to users of its loan servicing systems in three phases.
30-Year Yield Soars, Apps Tumble
The 30-year fixed-rate mortgage averaged 6.24% in Freddie Mac's latest weekly survey of 125 lenders. The 30-year soared 20 basis points from a week earlier. Mortgage applications, meanwhile, fell by nearly 20% during the latest week, the Mortgage Bankers Association reported.
Alt-A Liquidity Worsens
In a Securities and Exchange Commission filing, Thornburg Mortgage Inc. said it is facing margin calls on its Alt-A investments. Securities it holds that are backed by Alt-A loans have declined by more than 10 percent in the past two weeks. Thornburg said it has met margin calls of more than $300 million since Feb. 14.
200-Branch Operation Closing
First National Mortgage Sources is operating only long enough to close out existing pipelines and then is expected to shut down, according to branch managers and an e-mail sent from the company. The net branch operation is a subsidiary of First National Bank of Hays, Kan. Branch managers told MortgageDaily.com that they received an e-mail on Feb. 22 indicating no further loans would be locked and that the company had been removed as an operating subsidiary of the bank.
Fannie Earnings, Purchases Deteriorate
Fannie Mae reported a fourth quarter loss of $2.1 billion. Earnings were way worse than a year earlier. New business acquisitions were $54 billion during January, falling by more than one-quarter from the prior month.
Wholesaler Closes While Another Opens
Saxon Mortgage Inc. has posted a message on its wholesale lending Web site indicating it is done with broker business. "We are suspending all third-party originations effective immediately," the message said. Meanwhile, Navidec Financial Services Inc. and Jaguar Group LLC have each contributed $4 million to for a 50 percent investment in a new wholesale lender, the two companies said.
Subprime Investors Misled by Ratings
Investors of collateralized-debt obligations backed by subprime residential mortgage-backed securities were banking on the AAA ratings of the securities, the comptroller of the currency said in a presentation, according to a press release. The high ratings indicated the securities were among the lowest risk investments. But CDO investors instead suffered the brunt of losses from the subprime meltdown.
Fannie Updates Prices
Fannie Mae outlined updated pricing in a new Loan-Level Price Adjustment Matrix and Adverse Market Delivery Charge schedule effective on loans purchased beginning March 1. The LLPAs are deducted from the purchase proceeds. Fannie has imposed an adverse market delivery charge of 0.25 percent on all loans.
Layoffs Continue in California
California has seen 992 mortgage layoffs so far this year, according to Worker Adjustment and Retraining Notification data filed with the state. Option One Mortgage Corp. reported to the state that 317 layoffs were planned for earlier this month in Irvine. ResMAE Mortgage Corp. indicated it laid off 182 Brea employees in January. Home Loan Center Inc.-LendingTree LLC advised the state 119 Irvine employees would be terminated.
Subprime, 2nd Lien & Commercial MBS Downgraded
Ratings on $8.1 billion in classes from 10 transactions issued by Ameriquest Mortgage Securities and Argent Securities in 2006 were downgraded by Fitch Ratings. Moody's Investors Service took negative ratings actions on a number of transactions backed by second liens as pool losses have eroded credit enhancement available to the mezzanine and senior certificates. One class for $1.1 billion of Credit Suisse First Boston Mortgage Securities Corp., Series 1998-C2, was downgraded by Moody's.
Bush Opposes Bankruptcy Modifications
Mortgage bankers warn that the passage of the Foreclosure Prevention Act of 2008 would raise overall mortgage rates by 1.5 percent to 2 percent. The Mortgage Bankers Association praised President Bush's threat to veto such legislation. "The provisions in the bill to amend the bankruptcy code and allow judges to rewrite mortgage contracts will only add to the existing market uncertainty and increase costs on all consumers at a time when exactly the opposite is needed," MBA said in a statement.
Servicer Ordered to Halt Mass. Foreclosures
Massachusetts' attorney general announced the state obtained a preliminary injunction against Fremont Investment and Loan. The order reportedly prohibits the company from proceeding with foreclosures on mortgages that Massachusetts considers "presumptively unfair." The order calls for Fremont to submit a notice to the attorney general's office at least 30 days before it intends to foreclose on a loan, the announcement said.
Bank Earnings Sink, Delinquency Soars
The Federal Deposit Insurance Corporation reported that commercial banks and savings institutions earned $5.8 billion in the fourth quarter. The latest activity was the lowest since 1991. Loan delinquency of at least 90 days was 1.39 percent, the highest level in five years.
Foreclosures Resume Rise
Foreclosure filings, including default notices, auction sales notices and bank repossessions, were 233,001 nationally during January, RealtyTrac reported. Last month's activity was an 8 percent increase from December. The U.S. foreclosure rate was 0.028 percent in January, the announcement indicated.
Banks Face Orders, Contraction & Expansion
The Federal Deposit Insurance Corporation announced cease and desist orders were issued against three banks while removal and prohibition orders were issued against one bank and one individual. The wholesale division of Resource Bank ended operations last month. An acquisition completed by RBC Centura Banks Inc. brings to 430 the number of banking locations and 5,000 the number of employees at the company.
140 Florida Layoffs
Saxon Mortgage filed a Worker Adjustment and Retraining Notification Notice with the State of Florida. The filing indicated the company plans to lay off 140 employees. The layoffs are expected to be completed this week.
Florida Lender Cuts 75 Jobs
Preferred Home Mortgage Co. will lay off 75 people, a spokesman told MortgageDaily.com. The affected employees operate out of the Tampa headquarters. The layoffs are expected to be completed by July.
Weakest Mortgage Insurers
Fitch Ratings has taken negative actions on the debt of some U.S. mortgage insurers, according to an announcement. The actions were a result of weakness in the mortgage markets. Among mortgage insurance companies to see the negative actions were Mortgage Guaranty Insurance Corp., PMI Mortgage Insurance Co. and Radian Guaranty Inc.
Sales Steps
MortgageDaily.com reviewed the book Mastering The Essentials of Sales. The author tackled the personality traits, mind set and habits salespeople require to become successful. Following a map for success, he said, dream big, develop a realistic plan, test several possibilities and invest the energy necessary to make sales soar.
$6 Billion in Subprime Downgrades
Five IndyMac deals from 2006 saw $2.6 billion in classes downgraded as a result of changes to Fitch's Ratings' subprime loss forecasting assumptions. Four Asset Backed Funding Corp. mortgage pass-through certificate deals from 2006 had $2.6 billion in classes downgraded by Fitch. Fitch's changes to led to downgrades on $0.4 billion in classes from an Option One deal from 2006.
|
|
This mortgage news summary reprinted with permission of
|
 |
|
For the entire text of any of these stories please visit
|
|
Copyright © 2007 MortgageDaily.com
|
|
|
|
|
Bank Regulator Praises Brokers
Most mortgage brokers have acted responsibly in originating loans, a banking regulator said today. And while many parties -- including borrowers, Realtors, investment bankers and originators -- are responsible for the current chaos, inaccurate reports of failing companies have only made things worse.
Brokers accounted for $1.7 trillion of 2006 originations, John M. Reich, director of the Office of Thrift Supervision, said today. He said broker share of originations that year was 58 percent.
He made his comments at the National Association of Mortgage Brokers' Legislative & Regulatory Conference in Washington, D.C., according to a transcript of his prepared testimony released by OTS.
MortgageDaily.com subscribers read full story
|
Net Branch Companies Tout Growth
As firms collapsed and more than 100,000 employees left the mortgage industry last year, three net branch companies are reporting growth.
Since the beginning of 2007, MortgageDaily.com has tracked the demise of more than 150 mortgage firms -- including several net branch companies.
In addition, approximately 114,600 people employed in mortgage lending exited the industry last year, according to data from the Bureau of Labor Statistics.
MortgageDaily.com subscribers read full story
|
Mass. Exodus
A new law in Massachusetts that took effect on Jan. 2, which limits fees and yield spread compensation and imposes other restrictions on mortgage broker originations, has at least 15 wholesale lenders modifying or curtailing operations and has brokers scrambling.
But the reasons why lenders, which include Wells Fargo and IndyMac, are taking these steps and the impact on mortgage originations and employment is in dispute.
"It's going to curtail the availability of credit for all mortgage lending -- subprime, prime, refinances, equity loans," Paul Richman, vice president for state government affairs at the Mortgage Bankers Association, told MortgageDaily.com.
MortgageDaily.com subscribers read full story
|
State Mortgage Licensees Tumble
Mortgage regulators in several states have reported a significant drop in the number of mortgage broker licensees.
Ohio has seen its mortgage licensees drop by more than one-third.
Licensed mortgage brokers, which numbered 2,239 on Jan. 1, 2007, have declined to 1,611 as of Tuesday, Dennis Ginty, a spokesman with the Ohio Department of Commerce, told MortgageDaily.com in an e-mail Thursday.
read full story
|
WaMu Employee Admits to Bribes
A former loan coordinator at Washington Mutual F.A.'s subprime unit was bribed with $100,000 in payments from a mortgage broker to help process fraudulent loan packages. He also was paid by in-house loan officers to fund mortgages with fraud.
John Ngo pleaded guilty Monday to lying under oath to a grand jury in September about whether he had received money from a mortgage broker while he was a senior loan coordinator at WaMu subsidiary Long Beach Mortgage, according to an announcement from U.S. Attorney McGregor W. Scott.
Ngo, who worked at Long Beach from September 2001 through May 2006, was responsible for verifying information from packages submitted by brokers and inside originators.
MortgageDaily.com subscribers read full story
|
|
|
|
|
