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Mortgage Headlines
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Last Updated Friday, March 04, 2005 10:20 AM CST
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More Mortgage Jobs Now than Year Ago
The number of jobs in the mortgage industry during January slipped for the second consecutive month, according to the latest employment report by the Bureau of Labor Statistics. The figure, however, is about 41,000 jobs better than a year ago.
Sales Priorities
The Sales Funnel helps manage the pipeline, as stated in The New Strategic Selling, by defining where the borrower is in the selling process and sorting them into four different categories. It helps one to track each sales objective, set priorities, allocate time, and "forecast future income based on how rapidly and smoothly your objectives are moving toward the close."
S&P to Scrutinize Outsourcing Arrangements
Standard & Poor's Ratings Services announced it will widen the scope of its review when evaluating servicers to include closer scrutiny of outsource vendor oversight and financial arrangements. It will also start comparing outsourcing vendor performance metrics to in-house servicer metrics.
Rates Soar
The 30-year fixed-rate mortgage averaged 5.79%, jumping 10 basis points within the past seven days, according to Freddie Mac. "Concern that long-term interest rates are too low and comments from Fed officials this week helped push mortgage rates higher this week," said Freddie's chief economist.
RBC Originators Host D.C. Radio Show
Three RBC Mortgage originators co-host The RBC Mortgage Show and are sharing their combined 35 years of mortgage experience with the listeners of AM1050 WFED and AM1450 WOL in the District of Columbia. "We spotlight one or two products on the program and invite listeners to call in," one of the co-hosts explained.
FTC Releases Report on TIL Violations
The FTC announced it has issued its annual report to the Federal Reserve Board regarding its enforcement activities in 2004 under the Federal Trade Commission Act, and the acts for Truth in Lending, Consumer Leasing, Equal Credit Opportunity and Electronic Funds Transfer. The data is to be of use for the Federal Reserve's annual report to Congress.
Servicing Portfolio on the Block
American Business Financial Services petitioned the court handling its bankruptcy case to approve bid rules for a planned auction of the company's right to service certain securitization trusts. While there were no bids as of the petition filing, American Business said it had notified five qualified servicing companies of the servicing sale.
Publication Calls Ditech Flat Fee "Misleading"
Claims of no broker fees or points in television commercials for Ditech are misleading, Consumer Reports Money Adviser announced, because consumers deal directly with the lender and broker fees should not apply. Plus, paying points is sometimes a desirable option for borrowers who plan on staying in the home for several years because they can lower the loan's rate.
Lenders Settle with FTC over Privacy Violations
Two mortgage companies were accused of violating the Gramm-Leach-Bliley Safeguard Rule by failing "to implement safeguards to protect its customer's names, Social Security numbers, credit histories, bank account numbers, income tax returns and other sensitive financial information," the FTC said in a written statement. One of the lenders has agreed to a consent order that mandates changes in how it handles customers' information, according to FTC documents, while the other is also attempting to settle the charges and working on a proposed consent agreement.
Do Not Call Violations May Cost Broker $770k
The FTC announced that it has proposed a forfeiture of $770,000 against an Arizona mortgage broker. The amount results from telemarketing calls the company allegedly made to 70 consumers who registered their numbers on the National Do-Not-Call Registry.
WaMu: Help Wanted
Washington Mutual announced it has begun the search for the next head of its home loan business. The current president, who has overseen the mortgage unit and the commercial lines of business, will now only focus on the commercial division.
COFI Keeps Climbing
The 11th District cost of funds index stood at 2.183% in January, up from the previous month, the Federal Home Loan Bank of San Francisco reported. The average total funds used for January's calculation of the COFI was $509.7 billion, according to the bank.
Subprime Window May be Closing
Mortgage rates for borrowers with less than perfect credit are closer than usual to rates for borrowers with good or 'conforming' credit. The reason is that many subprime lenders are operating below cost -- a short-lived phenomenon that is likely to correct itself soon.
Chicagoland Foreclosures Fueled by Fraud
Real estate flipping with inflated appraisals and "outright fraud" on mortgage lenders is a major factor fueling the persistently high level of foreclosure activity in the Chicago metro area, Foreclosures.com announced. "Property flipping through inflated appraisals and phony loan documents leads to people winding up owing much more than their homes are worth," Foreclosure.com's president said.
Nonprime Servicers Concentrate on Customer Communications
So-called predatory servicing issues during the past 24 months have lead to an increased emphasis on regulatory compliance, Standard & Poor's said in a commentary announcement following a session at the recent Mortgage Bankers Association servicing conference. Many nonprime servicers have refocused their business approach on customer relations and regulatory compliance by taking a more active role in communicating with the borrower.
Imprisoned Originator Gets More Time
A Maryland mortgage broker has been convicted in Baltimore County of defrauding 11 property owners out of $97,775, according to a statement from Maryland's Attorney General. Already serving a 10-year sentence for violating his parole from a 2001 mortgage fraud conviction, he was sentenced to an additional 10 years
NovaStar Expands Wholesale Operation
NovaStar Mortgage will accommodate 250 new hirings in a new facility based in the Salt Lake City area, which it expects to open in May or June, a spokesman told MortgageDaily.com in an e-mailed statement. The employee base will consist of wholesale operations staff, front line customer service personnel and appropriate management.
DC Firm Settles Predatory Charges
After seven years since it was first accused of predatory lending, Capital City Mortgage Corp. has finally settled the charges with the government agency that levied them. The settlement will cost the Washington, D.C.-based lender and servicer at least $750,000, The Federal Trade Commission announced last week.
Prison Time Growing for Fraud Chttp://www.mortgagedaily.com Criminal investigations of phony real estate schemes continue to be an area of concern, the Internal Revenue Service announced. Sentences increased to 78 in fiscal year 2004 from 64 from in fiscal year 2002.
Mortgage Bankers Discuss Offshore Servicing
Offshoring was the topic of one panel session held this week at the Mortgage Bankers Association's Servicing Conference & Expo. Some 40% of U.S.-based companies have or plan to have offshore operations, according to estimates, and the mortgage industry is just chttp://www.mortgagedaily.comCompanies that choose offshoring can reap considerable savings. An engineer in India, for example, can be paid $10,000 a year, where an equally qualified U.S. counterpart typically earns $75,000 annually, often with better benefits.
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