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Mortgage Industry News Headlines
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Last Updated Friday, March 03, 2006 06:24 PM CST
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Car Stolen While Couple Signed Docs
According to Miami-Dade Police, a couple left their 2003 Chevy Silverado running as they went into a mortgage office in Homestead, Fla., to sign mortgage-related documents. But while they were in the office, three juveniles stole it with their little boy still inside, police said.
Mortgage Technology Suit Costs Lender Near $6 Million
IMX Inc. has been awarded $5.8 million in a patent infringement case it brought against LendingTree. "The claims in which LendingTree was found to infringe related to a system and method for operating a real-time Internet exchange where borrowers and lenders exchange information in the pursuit of a loan," explained IMX's acting CEO. "A borrower's loan request is maintained by the system and both borrowers and lenders have real-time access to this information, permitting lenders to review borrowers' loan requests and make offers on loan requests of interest, and permitting borrowers to accept or reject lenders' offers via the exchange."
Best Mortgage Companies for Shareholders
Countrywide Financial Corp. took the gold in the mortgage finance sector of Institutional Investor magazine's inaugural ranking of the most shareholder-friendly companies. The list included the friendliest companies across 62 industry sectors, reflecting the views more than a thousand portfolio managers and analysts nationwide and abroad, the magazine said.
MTA Climbs
Rising from the January, the Monthly Treasury Average was 3.8883% in February, the Federal Reserve Board reported. The latest month was way higher than February 2005.
Adjustable Rates Rise as 30-year Declines
The 30-year fixed-rate mortgage averaged 6.24%, down from a week ago but higher than a year earlier, according to Freddie Mac. Up from a week earlier, Freddie said the average for the 1-year Treasury-indexed ARM came in at 5.34%.
Land Contract Operation a Scam
The son of the founder of a formerly high-flying land-contract brokerage, as well as other witnesses, told jurors that the founder misled customers, investors and regulators in a scheme that collapsed in 2003, the case's prosecutor told MortgageDaily.com. But in the end, more than 200 home buyers were victims of a scheme that exposes the downside of land contracts.
Wells Adding Multilingual Staff
Wells Fargo announced its new mortgage fulfillment center in Northern California created 60 new jobs and has room for more growth. The new employees speak many languages commonly spoken in the community. A new mortgage store is scheduled to open in Hayward, a spokesman said in an e-mailed statement to MortgageDaily.com.
Study Suggests State's Banks Better than Brokers
A recent study by the Center for Responsible Lending and Coastal Enterprises Inc. reportedly found that conditions provide for predatory lending practices to flourish in Maine. The segment of out-of-state lenders and brokers dominate Maine's subprime mortgage market, the authors stated, noting that these originators are subject to fewer regulations than Maine banks.
5 Sales Secrets
Regarding stronger sales, it's important to remember not to take rejection personally, the prospect is rejecting the idea, not "you," according to author Michael Angelo Caruso. He says, "It's never "no," it's "no for now." View the "non-purchase" as an opportunity to uncover the objection and challenge its validity, but to be prepared for any objection that arises.
COFI Continues Uninterrupted Ascent
In January, the 11th District weighted average cost of funds index came in at 3.347%, above the prior month, the Federal Home Loan Bank of San Francisco reported. The latest upturn in the COFI represents the 19th consecutive month it has risen.
WA Brokers Face New Certification, Licensing
The Washington Association of Mortgage Brokers announced Tuesday the passage of State House Bill 2340, a legislative effort to reduce potential fraud. The new law, which will be enacted in January, involves loan officer licensing and expands the branch examination window by the Washington's Department of Financial Institutions.
Bank Earnings Strong
Net income during the fourth quarter for commercial banks and savings institutions insured by the Federal Deposit Insurance Corp. slipped from the record earnings in the third quarter, according to an FDIC press release. But earnings were better than the comparable quarter in 2004.
Fake Broker Steals Equity
A 72-year-old woman and her wheelchair-bound husband turned to a man who claimed to be mortgage broker and said he could refinance their home. In turn, the couple could use the money to pay for much-needed repairs. But rather than being a mortgage broker, police say he was a con man who used phony documents, fake credentials and a smooth pitch to literally sell the couple's home from under them.
Ameriquest Settlement Yields Lending Lessons
A recent teleseminar that included presentations from Ameriquest Mortgage's general counsel gave some insight into the subprime behemoth's recent $325 million settlement. "The presentations were so good that the teleseminar participants felt as though they had a seat at the negotiating table," one participant said in the report.
Digital Signatures
DocuSign, an on-demand electronic signature service, said in a recent announcement that more lenders are opting to use their service to "quickly, easily and safely obtain electronic signatures on documents leading to better customer service, faster loan completion and lower costs." The company's CEO told MortgageDaily.com, "DocuSign has been deemed superior to a pen and paper transaction in a courtroom setting."
Fannie's January Off
January business volume of $51.1 billion came in below December's level, according to Fannie Mae's latest monthly summary report. A year ago, monthly volume was reported at less.
Broker Baffled Over Overtime Lawsuit
The Department of Labor has filed a lawsuit against two Ohio companies doing business as Jericho Mortgage. The government said that from May 2003 the companies failed to pay the minimum wage rate, failed to pay overtime compensation for hours worked in excess of 40 a week and failed to maintain accurate records of the hours worked for 54 employees who worked as loan officers or sales managers.
ECC Cuts Dividends
ECC Capital Corp. announced Monday the decision to cancel first quarter dividend payments to holders of the company's common stock. "Given current conditions in the whole loan market and the operating losses in our mortgage banking segment, we plan to retain capital and liquidity," said ECC's president.
BoA Restatement Tops Corporate Mortgage Activity
Bank of America said it will restate -- upward -- earnings going back to 2002 by a cumulative $345 million. The FAS 133-related restatement leaves the bank vulnerable to litigation on behalf of investors who traded shares during the period restated on the basis of the lower earnings.
Option One Consolidating
Option One Mortgage Corp. and subsidiary H&R Block Mortgage are consolidating a number of operations "to better compete in the aggressive operating environment," according to an announcement. "Consistent with company values, we're doing everything possible to assist those affected by layoffs," including severance pay and outplacement assistance, a spokeswoman told MortgageDaily.com.
Lawsuit Suggests Ameriquest Shouldn't Have Made Loan
An elderly woman alleged in court documents that, after she contacted Ameriquest Mortgage Co. in March 2005 about getting a loan for $4,000, two representatives convinced her that she would save money by getting a loan through the company. She claims company representatives cajoled her into obtaining a loan at double the interest rate she could have gotten from her credit union.
Freddie's Total Portfolio Nearing $2 Trillion
Freddie Mac's total mortgage portfolio surpassed $1.7 trillion, according to January's monthly volume summary report. The secondary lender reported new business purchases of more than $40.0 billion.
Option One Production Plunges
Option One originated $8.6 billion in the quarter ended January 31, falling from record second-quarter volume, H&R Block Inc. announced Thursday. "Loan origination levels have been at the lower end of our expectations as competitive pressures in the industry continue," said H&R Block's chairman and chief executive officer in the announcement.
Hybrids Fuel Jumbo RMBS Volume
Prime jumbo issuance of $51 billion in fourth quarter 2005 fell from the third quarter, according to a Standard & Poor's report for the jumbo sector. The decline is due to rising interest rates and general uncertainty in the economy.
Rates Ease, Apps Edge Up
The 30-year fixed-rate mortgage average slipped last week to 6.26%, according to Freddie Mac's latest Primary Mortgage Market Survey. Overall, originators completed just 1% percent more mortgage applications than they did in the previous week, the Mortgage Bankers Association reported.
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