National Mortgage News articles from February 2002

National Mortgage News archives from February 2002

Inside Track.
February 4, 2002... * Open forum Homeownership's Economic Role 4 * Securitization 2001: A Good Year for MBS Issuance 6 * B&C mortgages HUD May Want More GSE Subprime Data 7 * Earnings Countrywide: Results from New Reporting Period 8 ...

Industry Accounting Coming into Question.
February 4, 2002... In the wake of the Enron scandal, accounting practices at firms with large mortgage holdings are coming under increasing scrutiny from investors and analysts. J.P. Morgan Chase, for instance, saw its stock fluctuate as concern about...

Exited Exec's Firm Valued HS?
February 4, 2002... A principal in an advisory firm that performed valuations on HomeSide's servicing portfolio - values that are now being called into question - has resigned from that firm, National Mortgage News has learned. Exiting Phoenix Capital here...

Few Housing Expectations for Bush Budget.
February 4, 2002... When the president's budget is released Monday (Feb. 4), don't expect any major surprises with regard to housing programs. The consensus in Washington appears to be that the Department of Housing and Urban Development will be lucky if its...

OTS: Simplify Mortgage Laws.
February 4, 2002... The nation's new top thrift regulator thinks that all federal mortgage lending laws, for the sake of efficiency, should be distilled into one set of rules that lenders can easily understand. "There are so many mortgage laws, that you have...

MBS World Memorializes Those Lost on 9/11.
February 4, 2002... Former mortgage-backed securities trader Kris Buchanan lost eight former colleagues in the terrorist attacks on the World Trade Center in New York last fall and she still gets phone calls almost every day from a widow or a parent whose life has...

Private mortgage insurers.
February 4, 2002... (Ranked by New Policies Written in Q3/01 (Dollars in Millions) (part 1 of 2) New Ins. New Ins. Written Written Rk...

Flow Servicing: $6 Billion on Tap But Market May Be Running Dry.
February 4, 2002... At least $6 billion in "flow" servicing transactions are pending this week and next, but investment bankers who ply their trade in the industry say times are slow. Indeed, some investment bankers are beginning to wonder if the go-go days of...

Terrorism Bill Testimony Sought.
February 4, 2002... Congressional supporters of a terrorism insurance bill are trying to get real-life examples of how disruptions in the insurance market are impacting the real estate industry and the nation's economy. Unless they get people to testify that...

Home Sales High May Stand in 2002.
February 4, 2002... While 2001 turned out to be a record year for home sales, it appears that 2002 may match last year's performance, according to economists. Mortgage Bankers Association chief economist Douglas Duncan is forecasting that home purchase loans...

MBA Post Still Empty.
February 4, 2002... The Mortgage Bankers Association has yet to find a successor to its government affairs chief, even though he left two months ago. MBA president Jonathan Kempner said recently that the search to replace the official, Howard Glaser, is...

FDIC Scrutiny of Problem Institutions to Increase.
February 4, 2002... The Federal Deposit Insurance Corp. will be able to examine any problem bank or thrift under a new agreement struck with its fellow regulators. Under the agreement, the FDIC will be able to conduct special examinations of any federally-insured...

Stop Killing Trees.
February 4, 2002... The message the chief technology officer of Countrywide Credit Industries gave to the Thomson Mortgage Technology Conference held recently in Miami was simple: stop killing trees. And while it may seem unlikely for a newspaper editor to...

Homeownership's Economic Role.
February 4, 2002... In our economy, the three principal means for household asset accumulation are through homeownership, small business ownership and savings. As important as these are for the individual, they also represent distinct and important benefits to the...

MBS Outlook Hinges on Maintaining Balanced 10-Year Near 5%.
February 4, 2002... The Federal Open Market Committee's decision last week to leave rates unchanged may mark a period of lower volatility for mortgage-backed securities. But the benchmark 10-year Treasury bond's rate remains at a level at which a relatively small...

Former CRSI-ers Join New KBW Loan Unit.
February 4, 2002... Keefe, Bruyette & Woods Inc. has formed a new New York-based business unit focusing on the brokerage of whole-loan portfolios. The new Loan Portfolio Sales Group will focus on four related product lines: whole-loan portfolio brokerage,...

Seasoned Ginnie Prepays Rise.
February 4, 2002... Prepayment rates for agency mortgage-backed securities increased significantly among seasoned issues in the December reporting period, according to the Bear Stearns Prepayment Commentary. In the conventional sector, speeds rose across the...

MBS Volume Surged to Record High in '01.
February 4, 2002... Not surprisingly, last year's record lending volume generated record issuance volume of both prime and subprime residential mortgage-backed securities, according to rating agency Standard & Poor's. Last year's volume substantially exceeded...

Coastal Assets Down Due to MBS Changes.
February 4, 2002... Coastal Bancorp Inc. has reported that, as a result of the restructuring of its mortgage-backed securities portfolio, its asset size for 2002 will be reduced by about $300 million to $500 million. Coastal's total asset size is expected to...

Freddie Mac Prices EuroReference Note.
February 4, 2002... Freddie Mac has priced its new 5 billion euro (about $4.43 billion) 5-year EuroReference Note due Feb. 15, 2007 at 99.851 to yield 4.66%, 27 basis points over the 6% German Bund due Jan. 4, 2007, and 16 basis points over the Freddie Mac 5-year...

HUD May Be Taking A Closer Look at GSE Subprime Activity.
February 4, 2002... The Department of Housing and Urban Development needs to closely monitor Fannie Mae and Freddie Mac's subprime lending activities, according to an early draft of a report commissioned by HUD. The two government-sponsored enterprises can...

Countrywide Fares Well as It Switches to a 10-Month Earnings Period.
February 4, 2002... Countrywide Credit Industries Inc. has reported unaudited net earnings of $486 million ($3.89 per share) for the 10-month period ended Dec. 31, up 30% from $374 million ($3.14 per share) for the 12-month fiscal year ended Feb. 28, 2001. ...

Record Originations Boost MI Cos.
February 4, 2002... The four publicly-traded mortgage insurance companies all had banner years in 2001, benefiting from the record number of mortgages originated. MGIC Investment Corp., Milwaukee, said its premium revenue exceeded $1 billion for the first...

Golden West: All-Time High in '01.
February 4, 2002... Golden West Financial Corp., parent of World Savings Bank, reported record diluted earnings per share for 2001 of $5.11, up 50% from the company's previous all-time high. The $5.11 EPS excludes a $0.04 one-time charge related to the...

Data-Vision: Bringing Doc Conveniences into the Folder.
February 4, 2002... A company that started out developing websites back in 1993 has aspirations of growing into one of the leading players in an industry moving toward an all-electronic product. According to John Dempsey, vice president of Data-Vision here, his...

Learning How To Help.
February 4, 2002... Making a donation that will be used solely to fund scholarships for financially needy dependents of MBS traders and brokers who died or were permanently disabled in last year's terrorist attacks is now something that can be done in a matter of...

Commercial/Multifamily Lending: Underwriting Tightening.
February 4, 2002... September 11 2001 may have come and gone, but the impact from that day is likely to cast a long shadow over the commercial real estate sector this year. For one, lenders will likely tighten their underwriting standards, especially in the case...

MF Favored, Hotels Seen as Difficult to Finance.
February 4, 2002... Lending on commercial and multifamily properties this year is likely to be clouded by issues related to the availability of terrorism insurance. Industry participants believe that even if the economy does rebound this year, the real estate...

CMBS at a Glance.
February 4, 2002... * Despite Rising CMBS volume overseas, global CMBS issuance will likely fall this year. * Global CMBS Issuance in 2001: $97 billion * International component: $23 billion * Expected decline in 2002 volume in the U.S.:...

CMBS Volume Will Fall This Year, Rating Agencies Say.
February 4, 2002... The volume of new commercial mortgage-backed securities deals will likely fall 15% in the United States this year, though that decline will be offset somewhat by an increase in international CMBS deals, according to two major rating agencies....

Real Estate Values Relatively Steady.
February 4, 2002... Looking at the commercial real estate market and investors' projections for 2002, it's a mixed bag of news. There has been a drop in the overall value of commercial real estate since the Sept. 11 attacks, but only a "miniscule" 0.5%, according...

Charter MAC Is Looking to Diversify.
February 4, 2002... Tax-exempt multifamily housing bonds investor Charter Municipal Mortgage Acceptance Co. seems to have embarked on a quest for new business opportunities. The company has announced the creation of a special committee that will operate as...

Healthcare REIT Outlook Is Stable.
February 4, 2002... The outlook for healthcare real estate investment trusts is stable for 2002, according to Moody's, reflecting "positive long-term demographics leading to current and projected high utilization rates." The rating agency, however, issues...

Commercial Banks ranked by multifamily holdings.
February 4, 2002... (part 1 of 2) Rank Company Location 1 Bank of America, NA Charlotte, NC 2 Lasalle Bank, NA Chicago, IL 3 North Fork Bank Melville,...

Commercial Servicers.
February 4, 2002... (part 1 of 2) Company Location First Credit Commercial Capital Corp. Orlando, FL NCB Mortgage Corporation Washington, DC Leader Mortgage Company, The...

Fannie Mae Establishing 'Smart Doc' Guidelines.
February 4, 2002... According to Fannie Mae, 2002 will be a pivotal year for e-mortgages. Mark Oliphant, a principal with Fannie's E-Mortgage Solutions, made the comment at the Third Annual Mortgage Technology conference held here. "We're taking a broad look...

Fannie Mae Says It Met Low/Mod Goals.
February 4, 2002... Fannie Mae says that slightly more than half its 2001 loan purchases (51.5%) served low- and moderate-income families. The company's announcement came amid renewed criticism by FM Watch concerning the role it plays in the purchase of...

Mortgage Industry Equity Composite.
February 4, 2002... (part 1 of 2) (MIEC Index: 155.5 Change: 1.0) 52 wk/lo 52 wk/hi 1/24/2002 Alltel (AT) 49.43 65.15 58 Countrywide Credit Industries (CCR) 37.39 ...

WaMu Faces Late Fee Lawsuit.
February 4, 2002... A consumer-oriented law firm here is alleging that Washington Mutual improperly charged late fees to borrowers and erroneously reported negative information to credit bureaus. The law firm, Green Fauth & Jigarjian, is already involved in a...

Inside Track.
February 11, 2002... - commercial Fannie Mae's MF Volume Doubles to Hit $22.8 Bil 8 - technology MISMO Drafts Commercial Standards 10 - equities Investments in MF Beat Performance of S&P 500 13 - B&C Mortgages HomeEq Seeks To...

Policy Costs Threatening MF.
February 11, 2002... Although the inability to obtain insurance covering acts of terrorism has been widely reported, apartment owners also are facing an explosion in premium costs for all types of insurance, creating higher hurdles for deals to overcome. ...

Budget Seeks a 23BP FHA Premium Rollback Amount Will Be Adjusted Annually.
February 11, 2002... The president's budget proposal calls for a rollback in Federal Housing Administration insurance premiums for multifamily loans, but not until Oct. 1 when the new fiscal year begins. In addition, the premium will now be adjusted annually,...

After GMACCM, Midland Is Tops.
February 11, 2002... Midland Loan Services, Kansas City, Mo., emerged the top servicer of commercial mortgages for 2001, with a total servicing portfolio of $68 billion, according to a survey by the Mortgage Bankers Association of America. CapMark Services,...

NAMB Asks for Disclosure Parity.
February 11, 2002... The Department of Housing and Urban Development has missed its own deadline for coming up with new consumer disclosures on mortgage fees, but the delay has given the National Association of Mortgage Brokers enough time to ask that disclosures...

Size of GSEs Worries Bush.
February 11, 2002... The chief domestic priority of the Bush administration is turning around the ailing U.S. economy, but Fannie Mae and Freddie Mac are clearly on its mind, at least a little bit. The White House released its new fiscal budget last week noting...

28% Drop for Mortgage Issues? MBS, CMO Volumes Would Still Be Healthy.
February 11, 2002... Most market participants expect to see issuance of new mortgage- related securities remain relatively strong in 2002, but to ultimately decrease 28% relative to 2001's record levels, according to a survey by The Bond Market Association here....

Top Commercial Servicers.
February 11, 2002... Firm Volume Midland Loan Services $68 billion CapMark Services $64.4 billion GEMSA Loan Services $54.5 billion Wachovia Securities $48.1 billion ORIX Capital Markets $37.6 billion...

Budget Housing Highlights.
February 11, 2002... Calls GSEs' size a "potential problem." Rollback of FHA multifamily premiums to 57BP. Asks increased vigilance on FHA fraud, decrease in overdues. Allows OFHEO to charge GSEs. $200 million for new DPA program. $2.3B in tax...

Regulators Probe Ernst & Young's Accounting for Thrift that Failed.
February 11, 2002... Federal investigators probing the collapse of Superior Bank FSB, Hinsdale, Ill., are taking a closer look at why the accountants did not raise any warnings flags sooner. The Federal Deposit Insurance Corp. and the Office of Thrift...

FDIC Alerts Banks to Subprime Woes.
February 11, 2002... The Federal Deposit Insurance Corp. is warning bankers that the recession is taking a toll on the performance of subprime mortgage loans. The FDIC notes that delinquencies on Federal Housing Administration loans have risen dramatically...

HOT STAT.
February 11, 2002... Resales Down Despite a recession and terrorist attacks, 2001 turned out to be a record year for existing-home sales, even though sales in the month of December fell 0.8%. The National Association of Realtors reported that sales of existing...

Is Golden State Bancorp/First Nationwide Headed for the Auction Block?
February 11, 2002... Is Revlon chief Ronald Perelman ready to sell Golden State Bancorp here, which owns the nation's ninth largest residential servicer? Golden State isn't talking, but at least one stock analyst has suggested that the thrift - the nation's...

Jadlos Comments On His Departure.
February 11, 2002... A former principal in Phoenix Capital here says he departed the servicing brokerage/advisory firm, because "it was time to move on." The principal, Ted Jadlos, said he helped form the company five years ago, and was a part-owner. However,...

Editorial: A Place for Thrifts.
February 11, 2002... The thrift industry remains a fascinating niche of the mortgage business, with a checkered past, a thriving present, and a future that can't quite be foreseen. We hope it will always have a role to play in mortgage finance, and we expect it...

Open Forum: The Best Is Yet to Come.
February 11, 2002... Chairman and Chief Executive Officer, Fannie Mae Mr. Raines recently spoke about the economic power of housing before the National Press Club in Washington. Excerpts of his speech are presented as our Open Forum. During the last...

Ginnies Get a Boost As SOMA Additions Resurface in Official's Speech.
February 11, 2002... Ginnie Mae mortgage-backed security prices reportedly got somewhat of a boost last week from various developments, including critical comments about Fannie Mae and Freddie Mac in President Bush's budget document last Monday and comments by a...

Panel to Call for Major Production Program.
February 11, 2002... The need for the production of affordable rental units will be "a major thrust" of the Millennial Housing Commission's report to Congress, according to a member of the panel. The housing commission, which is expected to present its findings...

Mismo's Newly Elected Members.
February 11, 2002... Seat Name Company Credit Mike Bixby INFO1 GSE David Barkley (chair) Freddie Mac Lender Adam Hall IndyMac Bank Lender...

MISMO Drafts Commercial Standards.
February 11, 2002... The commercial working group of the Mortgage Industry Standards Maintenance Organization has released an exposure draft of its originations data dictionary - a move that will bring the commercial real estate finance market toward greater market...

Former HomeSide Lending Executive Starts 'Mini' Servicer Business.
February 11, 2002... When Phil Laren left HomeSide Lending here two years ago to start his own servicing firm, most people he told about the idea thought he was, well, a bit crazy. After all, the servicing of residential loans increasingly has become a...

FHFB Not Yet Ready For Multi-District Membership Approval.
February 11, 2002... The new chairman of the Federal Housing Finance Board plans to complete a rulemaking process before the agency acts on any petitions for multidistrict membership. In separate letters to petitioners, chairman John Korsmo points out that the...

Dealers Have New 'Model Agreement'.
February 11, 2002... The Bond Market Association, New York, has released a new model agreement that a dealer can use to comply with the association's guidelines on deliveries of offering materials relating to government- sponsored enterprise securities. The...

Brokers Blamed for Fast Prepayments.
February 11, 2002... A key reason for "scorching" prepayment rates in the current refinancing wave is that mortgage brokers have made refinancings even more lender-driven than in the past, according to Nomura Securities International. In the prepayment outlook...

Losses Edge Up On HLTV Deals.
February 11, 2002... Chargeoffs increased modestly for high loan-to-value home loan securities late last year, according to Standard & Poor's quarterly index. At the same time, prepayment speeds remained strong in the high LTV sector, the rating agency said. ...

Investments in Multifamily Sector Beat Performance of S&P 500.
February 11, 2002... The stock of publicly-traded apartment builders, owners and managers have significantly outperformed the rest of the market over the last three years, according to a new index compiled by the National Association of Home Builders. The 29...

PMI Says Growth Exceeds Its Rivals.
February 11, 2002... The chief financial officer of The PMI Group Inc., San Francisco, sees his company as a global credit enhancement provider. John Lorenzen Jr. was speaking at an insurance industry conference sponsored by the New York Society of Securities...

HomeEq Seeks to Outsource Hard-Won Money Store Experience.
February 11, 2002... When First Union took over The Money Store, the bank found it had to manage a large exposure to credit risk on subprime and nonperforming loans. Now, the folks that managed that problem for First Union are hoping to bring their expertise...

NY Legislator Praises Broker Initiative.
February 11, 2002... The chairwoman of the New York State Assembly Banking Committee commended the state's mortgage broker trade group on its efforts to increase industry standards. Aurelia Greene, D-Bronx, told attendees at the annual convention of the New...

King Award Goes to Delta Funding.
February 11, 2002... Delta Funding Corp. here has been given the Dr. Martin Luther King Jr. Award for Community Service during the 6th annual awards dinner honoring the slain civil rights leader on Jan. 19. In the not so distant past, Delta was slammed by...

Potential Growth Seen for Europe.
February 11, 2002... The United Kingdom, Italy and the Netherlands are the biggest players within the growing European securitization market, but other countries have the potential to be strong players as well, said Jerry De Melo, a partner in Cadwalader,...

U.K. Regulators Seek Broker Oversight.
February 11, 2002... Revisions that United Kingdom officials are making to their draft mortgage lending regulations in order to extend their oversight to the broker end of the business are turning out to be "substantial," according to Jerry De Melo, a partner in...

Roundup: Interest Growing in Australia MBS.
February 11, 2002... An increasing amount of Australia's mortgage-backed securities issuance is being placed outside that country's borders, according to Credit Suisse First Boston, New York. As a result, CSFB has released a report on how international investors...

Blackstone Closes Fund.
February 11, 2002... The Blackstone Group, New York, has reported the final closing of its Blackstone Real Estate Partners International Fund with 800 million euros (about $692.3 million) in commitments. These commitments came from corporate and public pension...

Would You Like to Get More NMN Data?
February 11, 2002... Each week, NMN brings you the top rankings from our comprehensive surveys of the mortgage industry. But if you would like to plug in deeper into our world of data, you can learn more about sectors such as these we've recently highlighted:...

Bush Seeks Crackdown on Loan Fraud.
February 11, 2002... The president's budget proposal is urging the Department of Housing and Urban Development to get tough on mortgage fraud and to reduce the default rate in the Federal Housing Administration's single-family loan program. "HUD will greatly...

Higher Premium Hasn't Slowed FHA.
February 11, 2002... One theory of marketing has it that if you can't sell a product, raise the price and buyers will beat a path to your door. John Weicher, assistant secretary for housing at the Department of Housing and Urban Development, doesn't subscribe...

Fannie, ACB Reach First Anniversary.
February 11, 2002... Fannie Mae and America's Community Bankers marked the first anniversary of their "affinity program" last week, saying that 40,000 families have become homeowners through the effort. ACB also said that community lenders enjoyed "cost...

Mortgage Industry Equity Composite.
February 11, 2002... (MIEC Index: 150.4 Change: -5.1) (part 1 of 2) 52 wk/lo 52 wk/hi 1/28/02 2/7/02 Alltel (AT) 49.43 65.15 55.47 54.75 Countrywide Credit Industries (CCR)...

Commercial Lending to Slow in '02.
February 11, 2002... Mortgage bankers who specialize in commercial and apartment loans are expecting 2002 to be another banner year, but not nearly as good as 2001. "Conditions are still good," said Jeanette Rice of Lend Lease Real Estate Investments, Dallas....

Inside Track.
February 18, 2002... - open forum Budget Pushes Homeownership 4 - securitization Increase in CMBS Delinquencies Reflects Fallout from Sept. 11 Attacks 6 - servicing MSR Prices Have Yet To Recover 9 - technology RMIC Goes Online...

Industry Spotlight: New NAHB Leaders.
February 18, 2002... Messrs. Garczynski (left) and Conine have been named to lead the National Association of Home Builders. Mr. Garczynski, a builder from Northern Virginia, was elected president at the group's convention. Mr. Conine, a builder from Dallas and the...

GSEs, Foes Give Generously.
February 18, 2002... As Congress bickers over legislation to curb "soft money" donations, the warring factions in the mortgage industry - the GSEs and their mortgage insurance opponents - have been donating heartily to Democrats and Republicans alike. ...

HUD Wants 'Sweeping' Reform.
February 18, 2002... Department of Housing and Urban Development secretary Mel Martinez told a Senate panel last week that he is working on a "sweeping" proposal to reform the homebuying and mortgage application process. The proposal to reform the Real Estate...

Top 10 Hold 50% of Market.
February 18, 2002... The nation's top ten servicers control almost half of all outstanding residential loans in the U.S., according to figures compiled by this newspaper. At year-end, the top 10 had a combined market share of 49.6%, and if Washington Mutual's...