National Mortgage News articles from April 2003

National Mortgage News archives from April 2003

Inside Track.
April 7, 2003... OPEN FORUM Banking in Emerging Markets 4 EQUITIES Volume Leads Analyst To Tweak Up Targets 10 TECHNOLOGY IMX Unveils BrokerBank Tool for Broker Due Diligence 27 SUBSERVICING Midwest Loan Services Says...

25 Firms Look to Exit Mortgages.
April 7, 2003... Thanks to the two-year old refinancing boom, mortgage bankers are making money hand-over-fist. So now wouldn't be a good time to exit the business, would it? According to investment bankers, at least 25 mortgage firms - and perhaps more - are...

Reform Still Bogged Down.
April 7, 2003... Senate Banking Committee chairman Richard Shelby, R-Ala., is continuing to beat the drum to get housing secretary Mel Martinez to reissue his mortgage reform proposal for another round of public comments. At a National Association of...

WaMu Facing Prepay Lawsuit.
April 7, 2003... A lawsuit has been filed against Washington Mutual in Hennepin County here, alleging that the nation's largest mortgage servicer improperly charged or overcharged consumers for prepayment penalties. The Minneapolis law firm of Mansfield,...

'Mistake' Worrying Raines.
April 7, 2003... Given its size, Fannie Mae, the nation's largest mortgage investor, has a lot to worry about, but is a potential mistake by its regulator one of them? Last week, during a private question-and-answer session between the company and its...

Ranking Dem Eyes Fairbanks.
April 7, 2003... Sen. Paul Sarbanes of Maryland, the ranking Democrat on the Senate Banking Committee, has asked Fannie Mae and Freddie Mac to review allegations regarding the servicing practices of Fairbanks Capital Corp., Salt Lake City, the nation's...

'Mortgage Spammer' Hit.
April 7, 2003... The Federal Trade Commission has taken action against a mortgage lender it calls a "mortgage spamming operation." The FTC filed a complaint charging 30 Minute Mortgage Inc. with violating federal laws by using an array of deceptions to con...

The Final Tally for 2002.
April 7, 2003... (What a Barn Burner!) Quarter Production Subprime Production Refi % 4th Quarte $964 billion $75 billion 75.80% 3rd Quarte $729 billion $60 billion 64.10% 2nd Quarte $522...

U.S. Mortgage-Backed Debt Managers.
April 7, 2003... (UBS Warburg Regains Lead Among MBS Managers) (part 1 of 2) 1/1/02 - 3/31/02 Proceeds Market # of Managers ($Mil)...

Bankers Ask OCC to Pre-empt GA's Predatory Lending Law.
April 7, 2003... Bankers are calling on the Comptroller of the Currency to take a broad view of his pre-emptive powers so that national banks can make mortgage loans in Georgia without any interference from the state's anti-predatory lending law. ...

FHA Takes Aim At Wholesalers.
April 7, 2003... The Department of Housing and Urban Development is proposing to hold wholesalers responsible for the performance of Federal Housing Administration loans they buy from mortgage brokers. Under the Credit Watch program, HUD can automatically...

Bill Would Shield Servicers from Debt Collection Act.
April 7, 2003... The House has passed a bill by a 420-0 vote that would provide mortgage servicers a special exemption from the Fair Debt Collection Act so that they work with delinquent borrowers in a less hostile way. The bill (H.R. 314), sponsored by...

Editorial: Diversify, Diversify.
April 7, 2003... A lender that services has a customer relationship with every one of those borrowers. That lender should be thinking of ways to maximize those relationships. We recently heard an excellent presentation on how to do this at the recent...

Open Forum: Banking in Emerging Markets.
April 7, 2003... Mr. Powell recently addressed the National Community Investment Fund Annual Network Conference in Washington. His remarks are presented as our Open Forum. I am here to talk about how all of us can do a better job of ensuring banks provide...

Watching the Banks That Have Been Banking on MBS.
April 7, 2003... Given that banks have become such influential mortgage-backed securities investors and thus play a significant role in this important investment sector's fate, we should consider what kind of market moves might affect these financial...

Western Union Sees Growing Demand for Alternative Payment Options.
April 7, 2003... For many consumers, the days of paying bills by sitting at a dining room table one night a month and writing checks are all but over. These days, many prefer to make payments electronically or via telephone services, and that is opening...

New York Banking Superintendent Will Leave Post.
April 7, 2003... Elizabeth McCaul, the New York Superintendent of Banks whose responsibilities included oversight of the state's mortgage regulation, has resigned from the post. According to a copy of Ms. McCaul's resignation letter sent to Gov. George...

Advertising Campaign Aimed at Job Seekers.
April 7, 2003... Most mortgage banking firms run media campaigns to attract new customers. HomeBanc Mortgage here has created a campaign running throughout March and April aimed at attracting new employees. The company is using outdoor advertising...

Fannie Mae Registers Stock with SEC.
April 7, 2003... Fulfilling a voluntary commitment to register its common stock, Fannie Mae has filed its Form 10 registration statement and initial Form 10-K annual report, providing its audited financial statements for 2002, the company announced last...

Volume Leads Analyst To Tweak Up Targets.
April 7, 2003... Strong first-quarter lending volume, the latest in a long line of quarters that have exceeded expectations, has led one analyst to raise his expectations for stocks in the mortgage finance sector. Bill Roy of Merrill Lynch has "tweaked...

Commerce Bancorp Stock Called a 'Buy'.
April 7, 2003... Analysts at Merrill Lynch expect Commerce Bancorp to report earnings that are above Wall Street estimates for the first quarter. Edward Najarian, a first vice president at Merrill Lynch, recently issued a report rating Commerce a "buy"...

Household to Redeem Preferred Stock.
April 7, 2003... Household International has announced that it will redeem the issued and outstanding shares of several preferred stock series. Household will redeem all of its 5% cumulative preferred stock (NYSE: HI- prM), $4.50 cumulative preferred stock...

Analyst Raises Estimate on Fannie.
April 7, 2003... Analysts at Sandler O'Neill have raised their earnings estimate for Fannie Mae, citing the strong mortgage lending environment as evidenced by Fannie Mae's February operating statistics. Sandler O'Neill analyst Mike McMahon raised the...

Redwood Increases Its Common Dividend.
April 7, 2003... Redwood Trust, an investor in real estate loans, announced that it's board of directors has declared a regular cash dividend for common shareholders of $0.65 per share for the first quarter of 2003, payable on April 21 to common shareholders...

Fidelity Back in the Market with Purchase of Key Title in Oregon.
April 7, 2003... Fidelity National Financial Inc. here has agreed to acquire 100% of the outstanding common stock of Key Title Co., an Oregon-based company. Key Title operates in 12 counties in Oregon and generated more than $20 million in revenue in...

Portfolio Contraction A Concern at Freddie.
April 7, 2003... In a rare divergence from rival Fannie Mae, Freddie Mac reported that its retained mortgage portfolio contracted in February, and at least one analyst thinks that the company's now-defunct exclusive arrangements with several large lenders...

Servicing Sale to Test Market for MSR Transactions.
April 7, 2003... Hamilton, Carter, Smith & Co. here is brokering the sale of servicing rights on $1.7 billion of Freddie Mac loans at current interest rates in a deal that will test the market for current coupon deals. The trading of servicing rights has...

Conseco Hearing Planned for April.
April 7, 2003... Conseco Finance Corp. here has filed a proposed plan of reorganization with the U.S. Bankruptcy Court in Chicago. A hearing to approve the disclosure statement to be sent out with the plan has been set for April 30, at the end of which...

OTS Seeks Changes in Data on Rate Risk.
April 7, 2003... The Office of Thrift Supervision is proposing to change the data it collects for measuring interest rate risk as part of an effort to "comprehensively enhance" its IRR modeling capabilities. "The changes are intended to reduce the data...

Investors Bracing For 'Extension Risk'.
April 7, 2003... After two years of record mortgage securities issuance and faster-than- expected prepayment rates, some bond market participants are preparing to face a completely different challenge - extension risk. Last year, MBS issuance set a record...

Strategic Thinking Better Than Tactical Planning in Mortgage Sales.
April 7, 2003... (NMN recently interviewed prominent originator and sales trainer Greg Frost on the importance of strategic thinking in loan origination. What follows is an excerpt from the interview MN is co-sponsoring a seminar Frost is putting on in Las...

Many Businesses Opting Not to Worry about Terrorism Insurance.
April 7, 2003... Many businesses are not buying terrorism insurance, although insurers are offering the coverage, because they do not consider themselves targets of terrorism, or because the cost is too high, or both, according to a survey conducted by the...

Real Estate Markets May Continue to Deteriorate This Year.
April 7, 2003... Commercial real estate market conditions have not hit bottom yet, but they are likely to be "less worse" in 2003, according to PNC Real Estate Finance. Nicholas Buss, PNC's director of real estate market research, expects that "it will...

MF Transactions at a Glance.
April 7, 2003... * Red Capital has provided $253.9 million - through a Fannie Mae Master Credit Facility and a first mortgage bridge financing - for Klingbeil Capital Mgmt.'s acquisition of 16 multifamily properties. * GMACCM has placed a $26 million...

Simon Property Extends Deadline On Taubman Offer.
April 7, 2003... Simon Property Group and Westfield America have extended the deadline for the $20 per share bid for Taubman Centers' shares to May 30, 2003, as expected. By the previous deadline of March 28, approximately 40,302,385 shares of Taubman...

REIT Transactions at a Glance.
April 7, 2003... * Trizec Properties has sold three office properties: a 253,000 sq. foot Arlington, Va., property; a 203,000 sq. foot Lanham, Md. property; and a 496,000 sq. foot Detroit property, for a total of $90.1 million. * United Dominion has closed...

GMACCM and Apollo Start Mezzanine Fund.
April 7, 2003... GMAC Institutional Advisors, a subsidiary of Horsham, Pa.-based GMACCM, and Apollo Real Estate Advisors, a private real estate investment company, have closed a real estate mezzanine fund with an investment capacity of $200 million. The...

Former Chairman Gets Injunction Against Post Properties.
April 7, 2003... A temporary restraining order has been issued against Post Properties, enjoining certain activities of the multifamily real estate investment trust and its board of directors for a period of 30 days. The order was issued "as a result of a...

CRE Transactions at a Glance.
April 7, 2003... * Holliday Fenoglio Fowler has arranged a $245 million construction-permanent loan for the redevelopment of the 228,850 sq. foot Charles River Plaza in Boston. * Prudential Mortgage has originated a $39 million acquisition loan for the...

Lend Lease Explores Morgan Stanley JV.
April 7, 2003... Lend Lease Corp., the Australian parent of Lend Lease US Real Estate Investments, is looking into the possibility of a joint venture with Morgan Stanley for Lend Lease US REI's equity advisory business. The Atlanta-based Lend Lease US REI...

Farmland Values Rising Despite Weak Ag Economy.
April 7, 2003... In the agricultural sector, many farmers and ranchers find themselves in much the same financial situation as households in major metropolitan areas. Their income is falling due to weak agricultural prices, but strong land values have...

At a Glance.
April 7, 2003... (Rural Unemployment Is Higher Than in Urban Areas) Year Rural Metro Total 1998 5.5% 4.3% 4.5% 1999 5.2% 4.0% 4.2% 2000 5.0% 3.8% 4.0% 2001 5.7% 4.5% 4.8% 2002 ...

Europe Faces Declining Demand for Office Space.
April 7, 2003... European office markets underwent a dramatic downward shift in 2002 compared with year-end 2001 - particularly in Germany, Moody's Investors Service has reported. The rating agency said projected demand for office space in Europe...

Australian Realty Outlook Is Stable.
April 7, 2003... Listed property trusts in Australia are contending with some challenges, but overall their outlook is stable, according to Moody's Investors Service's office here. Credit quality across Australian commercial real estate sectors is...

Fifth Third is Fourth Lender on OpenClose Platform.
April 7, 2003... Mortgage Connect, the mortgage technology division of Beanstalk Networks, has announced that it has signed Fifth Third Bancorp to its OpenClose Wholesale MTG platform. The company reports that American Residential Funding, NV Mortgage and...

IMX Unveils BrokerBank Tool for Broker Due Diligence.
April 7, 2003... IMX Inc. here has launched BrokerBank, a browser-based workflow and vendor management system lenders can use to manage their broker due-diligence process. The product allows for digital storage and review of a broker's information, as well...

Myers Internet Offers Bi-Weekly Programs.
April 7, 2003... Myers Internet Inc., a provider of technology to the mortgage and real estate industries, has formed a partnership with Mortgage Saver to offer biweekly programs to mortgage originators. Myers offers a range of technology products and...

BCE Emergis Adds VOI-E to Exchange on Freddie's Portal.
April 7, 2003... BCE Emergis Inc. here and TALX Corporation, St. Louis, have agreed to offer verification of employment and income services through Emergis Vendor Services Exchange, a featured tool on Freddie Mac's loanprospector.com. Under the...

Credit Union Chooses Self-Service Software.
April 7, 2003... Visions Federal Credit Union, Endicott, N.Y., has implemented SilverCloud Software's Member Service Solution, starting with the company's core product, Question Manager. Visions Federal, a $1 billion asset credit union, is using the...

GHR Systems Forms an Alliance with ValuAmerica.
April 7, 2003... GHR Systems Inc. here, along with its strategic alliance partner ValuAmerica, a mortgage settlement services, technology and management consulting firm based in Pittsburgh, will begin delivering bundled services capabilities to lenders by the...

Automation Support Aimed at Midtier Insurance Companies.
April 7, 2003... Elios Inc. here is working to "take the pain and cost out of lien holder notifications," according to CEO and founder Jordi Huguet. A native a Barcelona, Spain, Mr. Huguet has over 30 years of experience in technology for insurance and...

Fiserv Solutions Incorporates SwiftView Technology.
April 7, 2003... Fiserv Lending Solutions, a business unit of Fiserv Inc., has expanded its relationship with SwiftView Inc. to add a fully-integrated, secure Web-based document delivery option to its easyLender loan origination and processing software. ...

Cenlar Puts Focus on Helping Clients Maximize Customer Retention.
April 7, 2003... How does a subservicer help its clients manage their portfolios in a refi boom? By aiding in loan retention, according to executives at Cenlar FSB here. And automation helps Cenlar do that. Cenlar has an 800 line for each of its...

Consultant: Post Closing Needs Improvement.
April 7, 2003... According to a study by PricewaterhouseCoopers, many lenders are spending too much money on post-closing processes. The accounting and consulting firm says that the refinancing boom has put an unprecedented burden on lender's post-closing...

At a Glance.
April 7, 2003... (Post-Closing Costs Per Loan) Firm at 9-30-99 High $140 Low $13 Average $87 Source: PrewaterhouseCoopers Survey Copyright 2003 Thomson Media Inc. All Rights Reserved.

Midwest Loan Services Says Technology Serves Small Shops the Best.
April 7, 2003... Ed Berger, who heads a firm that provides mortgage processing and subservicing for credit unions, doesn't buy the argument that you need to be big in order to succeed in the mortgage servicing business. In fact, technology has actually...

Low-Mod Specialist Says Getting a Loan Is Easier Than Many Think.
April 7, 2003... "I just got good at it," says P. Kirk Van Horn, the 37-year-old president of Best Home Financial who has been in the business of assisting low- to moderate- income borrowers in underserved communities for 16 years. Since then, time and...

Related Capital, Bridge Housing Team Up.
April 7, 2003... Related Capital Co. has announced that in cooperation with San Francisco- based Bridge Housing Corp., it is providing $48 million in equity financing for the development of a $102 million mixed-use affordable housing complex in San Francisco...

Mortgage Industry Equity Composite.
April 7, 2003... MIEC Index: 144.3; Change: 3.2 (part 1 of 2) 3/27/03 4/3/03 Wkly % Chg 52 wk/lo Alltel (AT) 44.87 46.03 3% 35.33 Countrywide Financial Corp....

Oil States Good for Subprime Lending.
April 7, 2003... The best place for nonprime mortgage lenders to make new loans continues to be the "oil patch" region of the country, according to University Financial Associates here. UFA's "Nonprime Mortgage Report Best Places to Lend" for winter 2003...

Cavalier Obtains $35M Credit Line.
April 7, 2003... Cavalier Homes Inc. here has received a commitment from its primary lender for a $35 million credit facility. This replaces a $35 million facility where the manufactured housing builder and financing company was not in compliance with...

Fitch Ratings Launches Manufactured Housing Deal Tracker.
April 7, 2003... Fitch Ratings has added manufactured housing-related transactions to its RMBS Deal Tracker, a Web-based product that provides investors with an array of original deal collateral attributes on Fitch-rated residential mortgage-backed...

Net Branch Deals Hinge on Compensation.
April 7, 2003... When it is done correctly, there is no difference between a net branch and a regular corporate branch, a representative of a net branch firm told the Regional Conference of Mortgage Bankers Associations here. Marc Minnick, vice president...

Subprime Originators by No. of Loans Originated in 4Q-02.
April 7, 2003... (part 1 of 2) Rk Organization Name Location 1 Household Financial Svcs (E) Prospect Heights, IL 2 CitiFinancial Baltimore, MD 3 Wells Fargo Home Mortgage Des Moines, IA...

Average Loan Size Cracks $200k.
April 7, 2003... As residential production volumes continue to soar into the stratosphere, the industry has set yet another record: the average U.S. mortgage is now north of $200,000. According to figures compiled by National Mortgage News, the average...

Aaverage Loan Size in 4th Quarter 2002.
April 7, 2003... (part 1 of 2) Rank Organization Name Location 1 First Republic Bank San Francisco, CA 2 Thornburg Mortgage, Inc. Sante Fe, NM 3 Union Bank of California San...

People.
April 7, 2003... ALABAMA Birmingham-Collateral Mortgage Capital LLC announced that John Davis recently joined the firm as executive managing director. Mr. Davis will be overseeing all production offices and will be operating out of Minneapolis. Mr....

Epic Financial Corporation Buys American National Mortgage Services.
April 7, 2003... Epic Financial Corp., until recently based in Oceanside, Calif., has purchased American National Mortgage Services, a mortgage banker-broker based here. William Parker, president of American National, has been named president of Epic pic's...

Low Rates Take a Bite Out of FHLB System's Earnings.
April 7, 2003... Consolidated earnings for the 12 Federal Home Loan Banks fell 16.5% in 2002 to $1.8 billion, down from $2.15 billion in 2001. The 2002 annual consolidated financial report, issued by the FHLBank System's Office of Finance, shows that...

UBS Back on Top for MBS.
April 7, 2003... UBS Warburg regained the lead in the rankings of mortgage-backed securities underwriters in the first quarter from Bear Stearns & Co. Inc., according to Thomson Financial, a National Mortgage News affiliate. MBS deal volume totaled...

Inside Track.
April 14, 2003... OPEN FORUM Some Encouraging Signs 4 EQUITIES Countrywide Moves Up Big Company Indices 10 COMMERCIAL Secured Capital Looks North for Business 21 SPECIAL REPORT Affordable housing Just like Don Quixote,...

Home Equity ABS 'Booming'.
April 14, 2003... As much as $50 billion in home equity loans could be securitized during this year's first quarter alone, a major source of investment capital predicted here earlier this month. If Robert McGinnis, managing director of RBS Greenwich...

RE Bubbles Go Overseas.
April 14, 2003... A number of housing bubbles exist now in some countries besides the United States, data collected by the International Monetary Fund suggest. Although the IMF report did not specify the countries, an analyst here has named Australia and...

Will the Twelve FHLBs Consolidate Into One?
April 14, 2003... The Federal Home Loan Bank of San Francisco has seen the future of the System and it likely will entail consolidation of the 12 regional banks into one "very powerful" government-sponsored enterprise. But that isn't necessarily what...

Ney Adding More RESPA Pressure.
April 14, 2003... The chairman of the House Financial Services subcommittee on housing has added his voice to the chorus of legislators who want the Department of Housing and Urban Development to reissue its mortgage reform proposal for another round of...

Household Overdues Up 48%.
April 14, 2003... In its last 10-K filing as an independent company, Household International here revealed some less-than-promising news: its mortgage delinquencies are on the rise, as are its credit loss reserves. The subprime giant, which became the...

Hhousehold International.
April 14, 2003... (Statistics at a Glance) (Delinquencies and Credit Loss Provisions) Year Credit Loss Provisions HE Delinquencies 2002 $3.7 billion 3.91% 2001 $2.9 billion 2.63% ...

GMAC Will Create New Brand Name Targeted to West Coast Customers.
April 14, 2003... GMAC Mortgage officials announced last week that they intend to create a new brand for mortgage originations on the West Coast within a month. The brand, whose name has not been announced, will be the third owned by GMAC Mortgage. The...

LIBOR Rate Index Still Gaining Favor.
April 14, 2003... As an increasing number of Wall Street banks have come to do business worldwide, the London interbank offered rate has become more commonly used as a mortgage index throughout the U.S. "I call it the globalization of the mortgage market,"...

Promotion Spotlight: Zan Hamilton.
April 14, 2003... Mr. Hamilton is leaving Credit Suisse First Boston's capital services group in New York to become president of Platinum Capital Corp., Irvine, Calif., a mortgage banker. He replaces Dan Perl, who recently resigned from Platinum. The CSFB...

Under Fire from Regulators, Fairbanks Hires a Compliance Chief.
April 14, 2003... Until a year ago, Fairbanks Capital Corp. - the subject of a federal investigation into its servicing practices - didn't have a compliance department. Today, the subprime servicing giant not only has a formal compliance department, but...

Promotion Spotlight: Hugh Harris.
April 14, 2003... Formerly head of Homeside Lending, Mr. Harris has come out of retirement to head up Fidelity's new Fidelity Information Services division in Jacksonville, Fla. The new division is largely made up of the assets Fidelity acquired when it...

Editorial: The Big Guy and the Little Guys.
April 14, 2003... Six industry trade groups, spearheaded by the Mortgage Bankers Association of America, used the recent MBA Secondary Market Conference in New York to petition Sen. Richard Shelby to allow Real Estate Settlement Procedures Act reform to...

Open Forum: Some Encouraging Signs.
April 14, 2003... Secretary Martinez recently addressed the Ginnie Mae Investors Symposium in New York xcerpts of his remarks are presented as our Open Forum. We see encouraging signs of economic progress. The nation is in its second year of growth....