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Mortgage Industry News Headlines
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Last Updated Friday, March 10, 2006 02:56 PM CST
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Freddie's Financials Forthcoming
Freddie Mac announced it expects to release quarterly and full-year 2005 financial results in May. Freddie has previously released such results at the first quarter's end, but this year will instead only hold its quarterly market update conference call on March 30.
Mortgage Jobs Fall Below 500,000
There were 497,800 people with mortgage jobs in January, fewer than in December, the Bureau of Labor Statistics reported today. The latest total, however, is higher than a year earlier.
New Broker Growing Fast
Sun Capital Inc. opened its doors seven months ago -- originating just $200,000 in its first month with only three employees on the roster, the company's founder told MortgageDaily.com in a phone interview. He said the company, now with 20 employees, has grown so quickly that they have run out of room at their current office and plan to move into a new space when the lease is up.
Most Admired Mortgage Companies
FORTUNE magazine announced the 2006 ranking of America's Most Admired Companies. General Electric placed No. 1 on the complete list. "Through good years and bad, GE consistently does things the rest only wish they could," the magazine said.
Georgia takes Action Against 2 Mortgage Brokers
The Georgia Department of Banking and Finance has revoked the license held by an Atlanta mortgage broker. The department said it uncovered evidence that showed she and her company had made numerous misrepresentations in loan files. The department also announced it received a court order against a Stone Mountain, Ga., mortgage broker requiring her "to cease and desist from brokering mortgage loans."
Rates Climb to Highest Level in Years
Rising from a week ago, the 30-year fixed-rate mortgage averaged 6.37%, Freddie Mac said in its latest survey. The 30-year is at its highest level since early September 5, 2003, the report showed.
Most Vulnerable to ARM Payment Resets
FirstAm RES and its subsidiary LoanPerformance released a study classifying market segments as relatively safe or vulnerable under the pressure of mortgage payment resets. "The most vulnerable will be those who do not have substantial equity in their homes, but hold adjustable rate mortgages ... with low initial rates, often with interest-only and negative- amortization features."
Appreciation, Fraud Drive Risk by Market
"When a market is hot there's always a rambunctious phase where sellers try to game the peak, buyers stretch to get in before it's too late, and homeowners try to lock in equity gains with new home loans," according to Home Smart Reports. Sometimes the presence of fraud rings artificially inflates the value of properties and cause losses for lenders, Home Smart's president told MortgageDaily.com.
Flat February for Countrywide
February production was $30.9 billion, off from January and the second consecutive monthly decline, according to an announcement from Countrywide Financial Corp. Originations were, however, better than one year prior.
Wachovia Adding Mortgage Sales Jobs
Wachovia Corp.will hire over 750 loan officers during this year, a Wachovia spokeswoman told MortgageDaily.com. "We wanted to double our mortgage sales force, which we think will convert us into the top-third mortgage originator."
Mortgage Lead Company Launching TV Campaign
The Loan Page launched the second television campaign ever by a national leads generation company, according to an announcement from its parent. The TV campaign is part of the company's ongoing strategy to take advantage of the migration of consumers moving online for mortgage information and to ultimately find the right lender and mortgage.
FHA Wants to Fund More Subprime Borrowers
The U.S. Housing and Urban Development Secretary recently told state housing officials about a pending bill that would enable risk-based pricing for loans insured by the Federal Housing Administration. HUD is encouraging Congress to pass the bill because it "would provide an option to potential homeowners who have no choice right now but to go to subprime lenders," according to a HUD statement Tuesday.
Production Soars at IndyMac Subsidiary
Financial Freedom Senior Funding Corp. reported 2005 fundings of $2.9 billion, climbing from the previous year. The increase "indicates that in addition to closing more loans, the average home value per loan has increased as well."
Lenders Halt Exodus from County in Maryland
A Montgomery County circuit court judge has granted a temporary injunction that halts implementation of the county's recently enacted predatory lending ordinance. The Mortgage Bankers Association told reporters in a conference call Monday that the law, which increased the fine for predatory lending violations from $5,000 to $500,000, had resulted in 50 lenders no longer doing business in the county.
Mortgage Employee Attacked at Office
Police in St. Charles say a man robbed a woman and then sexually assaulted her at a Missouri mortgage brokererage. The man escaped on foot and there have been no arrests, a St. Charles police officer told MortgageDaily.com.
New Century Fundings Hold
Loan fundings for February were $4.0 billion, unchanged from the previous month, New Century Financial Corp. announced Tuesday. The total, however, is better than a year earlier.
CA Lender Buys FL Operation
Central Pacific Mortgage announced it acquired Ivanhoe Financial Inc.'s retail branch offices, the wholesale production platform and current operations center. "In the past, Central Pacific Mortgage's primary focus has been on the West Coast," said Central's president and CEO in a written statement. Orlando, Fla.-based "Ivanhoe has a great footprint on the East Coast and will allow us to increase our presence there."
$1.5 Billion Subprime Portfolio Trades Hands
Approximately $1.5 billion in subprime residential mortgage loans were acquired by Newcastle Investment Corp., according to an announcement Monday. Current market conditions "create opportunities for buyers with long-term capital to selectively take credit risk, and price that risk conservatively," the company's president said in the statement.
Treasury Yield Highest Since '04
The yield on the 10-year Treasury note rose to 4.75% Monday. The current 10-year yield is at the highest level since June 28, 2004.
Lenders Question Benefit of State Regulations
A study from the Center for Responsible Lending, analyzed subprime loans originated in from 1998 through 2004 and found that the states with the strongest laws had "the largest declines in loans with predatory terms." But a spokesman for the Mortgage Bankers Association told MortgageDaily.com, "MBA is concerned that as lenders are required to comply with numerous state and local abusive lending laws, the costs to comply with the varying laws will deter them from doing business in certain states and localities."
Quickly Reach 6 Figures Originating
A book authored by one mortgage industry veteran gives an overview of the mortgage business, loan types, program guidelines and an outline of how to become a knowledgeable loan originator. The training and reference manual is designed to help originators skip the rigors of on-the-job-training and begin making money right away.
HSBC Executive Blasts Subprime IO Loans
A Household Finance executive recently told The L.A. Times that about 40% of the subprime borrowers in California, where home prices have risen significantly, are in IO loans. "I have trouble believing that 40% of subprime customers are well-served by taking out interest-only loans," he reportedly said.
Credit Card Fraud Prevention is Good Model for Mortgages
Banks have historically the primary target of financial crimes, with fraudulent transactions hiding among a large volume of checks and payment card transactions, according to BasePoint Analytics. Fraud prevention in the sector has gone through four phases lasting 30 years. "By applying those [banking] lessons and customizing the technology for the mortgage industry ... mortgage lenders shortcut the learning curve and immediately prevent fraudsters from committing their crimes successfully," BasePoint said.
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."
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Copyright © 2005 MortgageDaily.com
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New Broker Growing Fast
A start-up mortgage brokerage in the South is enjoying growth that is exceeding even the founder's expectations. He talked to MortgageDaily.com about how he prepared for success and why producing originators are approaching him about employment.
Hoover, Ala.-based Sun Capital Inc. opened its doors seven months ago -- originating just $200,000 in its first month with only three employees on the roster, founder Jerry Scarborough told MortgageDaily.com in a phone interview. January's loan production shot up to a reported $6.3 million, February's was the same and projections for March exceed $7.5 million.
He said the company, now with 20 employees, has grown so quickly that they have run out of room at the 1,800 sq. ft. office they occupy and as soon as the lease is up, plan to move into a new 3500 sq. ft. space.
The company isn't having a hard time finding experienced originators; they have been knocking on his door. "There are a lot of people who want to come work for me," Scarborough said en route to a closing. "And they are bringing their customer bases with them."
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