National Mortgage News articles from February 2006

National Mortgage News archives from February 2006

Inside Track.
February 6, 2006... EDITORIAL Made In America 4 OPEN FORUM Strengthening FEMA 4 STREET SMARTS Jumbo Hybrid MBS 5 COMMERCIAL MORTAGES Good Prospects For Reits 6 RATES GO NORTH Interest...

Volumes Decent, But Margins Sink.
February 6, 2006... WASHINGTON -- Fourth-quarter production volumes were decent, but lenders - both prime and nonprime alike - suffered from a major case of the profit margin blues. According to preliminary survey results compiled by National Mortgage News,...

Residential Originators in Q4 2005 (Sample).
February 6, 2006... ($ in Millions) (part 1 of 2) Organization Name Location America First CU Riverdale, UT Branch Banking & Trust Co. Wilson, NC Carteret Mortgage Corp. Centerville, VA Fidelity...

Mozilo: Countrywide May Be Buyer Now.
February 6, 2006... CALABASAS, CA -- For years, Countrywide Financial Corp. has prided itself on its "organic growth" strategy, which has created the nation's largest mortgage lender despite a historical aversion to acquisitions. Occasionally, there have been...

CMBS Market: Strong.
February 6, 2006... NEW YORK -- Coming off of a record year in issuance of commercial mortgage-backed securities, analysts on Wall Street, credit rating agencies and investors expect that 2006 will be another strong volume year for the sector, with most expecting...

MBA: Big Drop In Refinancing.
February 6, 2006... WASHINGTON -- MBA chief economist Douglas Duncan said in the association's recent long-term economic forecast that core inflation is likely to edge higher this year, but that it will remain contained. Still, the MBA expects mortgage rates...

How Much of an 'Asset' is Servicing?
February 6, 2006... ($ in Millions) Company Asset Value of Serv. Residential Serv. Value Name Rights at 12/31/05 Servicing Portfolio in basis pts. Countrywide $12,610 $1,111,090 ...

Argent, Aurora Trim Jobs.
February 6, 2006... ORANGE, CA -- Two of the nation's largest nonprime funders - Argent Mortgage and Aurora Loan Services - have cut close to 1,000 workers in the past 10 days. Argent, the largest subprime wholesaler in the U.S., cut 15% of its workforce (600...

Executive Changes for 2 Top Subprime Lenders.
February 6, 2006... NEW YORK -- A pair of the nation's largest subprime lenders is making changes in their executive suites. The more immediate change came at Aames Investment Corp., Los Angeles, where its president and chief operating officer John Vella has...

MGIC Promotes Patrick Sinks to President & COO.
February 6, 2006... MILWAUKEE -- MGIC Investment Corp. here has named Patrick Sinks as its new president and chief operating officer. Curt Culver will remain with the company as chairman and chief executive. Most recently Mr. Sinks was the executive vice...

Editorial: America Makes Mortgages.(Editorial)
February 6, 2006... We were saddened to see Ford Motor Co. follow the suit of General Motors recently and announce the slashing of tens of thousands of jobs and the closing of multiple plants in the United States. It is another reminder that America is making...

Open Forum: Strengthening the Program.
February 6, 2006... Excerpts of Mr. Maurstad's recent testimony before the Senate Banking Committee are presented as our Open Forum. The National Flood Insurance Program was established in 1968 to make affordable flood insurance available in communities that...

Short Duration Investors Can Find Value in Jumbo Hybrid MBS.
February 6, 2006... Total rate of return investors who are looking for short-duration value in the MBS market may want to take a look at purchasing jumbo hybrid ARMs vs. agency hybrid ARMs, according to a new report out of Countrywide Securities Corp. With...

After Strong '05, Experts See Generally Sound Prospects for REITs.
February 6, 2006... NEW YORK -- As the real estate sector continued to hold investor interest, REITs turned in a total return of 8.3% for 2005, going by the NAREIT Composite Index, outperforming other market benchmarks for the sixth year in a row. For 2006,...

Pru Sees Lower Realty Returns.
February 6, 2006... PARSIPPANY, NJ -- As commercial properties appreciate at a slower pace this year, total returns from real estate investments will begin a slight decline in 2006, Prudential Real Estate Investors expects. In a market report, the real estate...

Commercial Transactions.
February 6, 2006... * Greenwich Capital Financial Products has provided Thomas Properties Group with $130 million in mortgage financing, at a fixed-rate of 5.67%, interest-only for the first five years, secured by its 41-story office building. * California...

PwC Survey Finds Downtown Office Vacancies Declined Widely in '05.
February 6, 2006... NEW YORK -- Vacancy rates in office markets nationwide continue to decline, while debt and equity capital continue to flow into the commercial real estate sector, according to a PricewaterhouseCoopers fourth-quarter 2005 real estate investor...

Kennedy Wilson Eyes Apartment Deals.
February 6, 2006... BEVERLY HILLS, CA -- Kennedy Wilson, a real estate investment company, expects to invest $400 million in apartment property purchases this year, together with Kenedix, a Japanese real estate company. Kennedy Wilson has also sold a 20%...

Roundup: NREIS Adds to Team.
February 6, 2006... PITTSBURGH -- National Real Estate Information Services has expanded its commercial services team and begun marketing its commercial services nationwide. This means that the company will provide title services, collateral valuation and...

MuniMae Reduces Workforce.
February 6, 2006... BALTIMORE -- MuniMae, a multifamily lender and investment manager, has reorganized the company, resulting in an 8% reduction in its workforce. The company now has two major business groups, MuniMae said - affordable housing, and real...

Related Becomes CharterMac.
February 6, 2006... NEW YORK -- Related Capital Company, an affiliate of multifamily lender CharterMac, has been renamed CharterMac Capital. Related Capital, a player in the affordable multifamily housing niche, was acquired by CharterMac in 2003. "When...

Suitors Are Lining Up for TCT.
February 6, 2006... BALTIMORE -- Following an earlier acquisition offer last December, which is awaiting shareholder approval, the Town and Country Trust has reported a second acquisition proposal from Oriole Partnership, a partnership formed by Essex Property...

BB&T Will Shun Eminent Domain.
February 6, 2006... WINSTON-SALEM, NC -- BB&T Corp. has decided not to lend to commercial developers that plan to build on land taken away from private citizens using the principle of eminent domain. The bank reports that this policy change follows from a...

Commercial Transactions.
February 6, 2006... * GMAC Institutional Advisors has acquired a 216,904 sq. foot, Hollywood, Calif., multifamily property for $48.460 million in floating-rate interim funding provided by GMACCM. * Archstone-Smith has acquired a 550-unit Manhattan, N.Y.,...

Lenders Market to 'Unbanked'.(Company Profile)
February 6, 2006... NEW YORK -- During the past few years underserved low-income minority markets have become attractive to a growing number of housing investors. Furthermore, financial institutions appear to be on the lookout for new business among the unbanked,...

YouthBuild Renovates Housing.
February 6, 2006... WASHINGTON -- The Department of Housing and Urban Development has earmarked $58 million in grants as part of HUD's YouthBuild program that offers job training and continuing education opportunities to an estimated 4,300 low-income young people....

CD Group Targets Preservation.
February 6, 2006... PHILADELPHIA -- A group of 167 financial institutions nationally have launched Opportunity Finance Network, a new organization established to help leverage community development capital in underserved areas starting with a $4 billion campaign...

Value of Commercial Mortgage Market Equal to 15% of GDP.
February 6, 2006... NEW YORK -- Commercial mortgage loans outstanding now represent a record 15% of gross domestic product, and this record is likely to be broken soon, causing concern for Moody's Investors Service. The credit rating agency reports that the...

Fannie Gets Listing Reprieve from NYSE.
February 6, 2006... WASHINGTON -- Fannie Mae, which had been in danger of being delisted by the New York Stock Exchange, has received a reprieve. In a filing with the Securities and Exchange Commission, the congressionally chartered mortgage giant said the...

TrueClose Aids Processors with LOS Enhancements.
February 6, 2006... CANONSBURG, PA -- Loan processing is typically a time-consuming, tedious process that involves a large amount of paper pushing. TrueClose here hopes to change that with version 1.6, as processors no longer have to manage physical paper files,...

IndyMac Cites Big Gain in Lending Market Share.
February 6, 2006... PASADENA, CA -- IndyMac Bancorp said it produced $18 billion of mortgage loans in the fourth quarter, pushing its market share up 72% from one year earlier. Fast-growing IndyMac said its production tally gave it a 2.85% market share in the...

Flagstar Sees Lower Earnings in 2005.
February 6, 2006... DETROIT -- Flagstar Bancorp Inc., whose residential loan portfolio is heavily dependant upon borrowers from the economically strapped Detroit area, reported lower net earnings for the fourth quarter of 2005 and for its year-end results. In...

'Gradual' Rise Helps CarrAmerica.
February 6, 2006... NEW YORK -- CarrAmerica, one of the early office REITs to post fourth-quarter results, has shown continued improvement in the company's operating portfolio. Carr reported funds from operations - a widely used measure of REIT sector...

Record Earnings for GM's Mortgage Operations.
February 6, 2006... HORSHAM, PA -- While auto giant General Motors continues to struggle, its mortgage division ripped the ball off the cover in 2005, posting record earnings. According to financial statements released late last week, GM's mortgage operations...

North Fork Sees Big Earnings Gain.
February 6, 2006... MELVILLE, NY -- With year-end net income of $949 million, compared to $553 million in 2004, North Fork Bank said it has been right on target during 2005 featuring a 27% annualized growth in commercial loans, a 54% decline in total nonperforming...

California Builders Anticipate Slowdown in Home Construction.
February 6, 2006... SACREMENTO, CA -- The California Building Industry Association projects that housing production will drop slightly this year to between 185,000 and 205,000 homes, condominiums and apartments statewide. CBIA chief economist Alan Nevin said he...

Job Losses Foreshadow Higher Foreclosure Rate for Midwest.
February 6, 2006... DETROIT -- The future for the Midwest doesn't look too bright as industry insiders forecast a likely rise in 2006 foreclosures for the economically challenged region and the rest of the United States. Michigan is among states in the Midwest...

Freddie Prices a $3 Billion REMIC.
February 6, 2006... NEW YORK -- Freddie Mac has priced Reference REMIC R-004, Class AL, a $3.0 billion issue of real estate mortgage investment conduit securities. The issue (CUSIP: 31396GG70) was priced at 99.839843750 to yield 5.1653%, or 85 basis points...

National City Eyes Cap Markets.
February 6, 2006... CLEVELAND -- National City Corp. here has formed a Structured Products Group in its Capital Markets Division that will include a Mortgage Capital Markets Group. Peter J. McCarthy will be senior managing director and head of the Mortgage...

Roundup: Deal Is Downgraded.
February 6, 2006... NEW YORK -- Two classes of Banc of America Large Loan Inc.'s series 2003-BBA2 have been downgraded and the ratings have been removed from Rating Watch Negative by Fitch Ratings. Class K has been downgraded from BBB to BBB-minus and class L...

Delinquencies Pass 40%.
February 6, 2006... NEW YORK -- Class B3 of CWMBS (IndyMac) Inc. mortgage pass-through certificates, series 2000-H (RAST 2000-A8), has been downgraded from B to CCC by Fitch Ratings. In addition, the ratings on six classes in three CWMBS (IndyMac) deals were...

DLJ Deal Downgraded.
February 6, 2006... NEW YORK -- Class B-4 of DLJ Mortgage Acceptance Corp.'s commercial mortgage pass-through certificates, series 1995-CF2, has been downgraded from B to CCC by Fitch Ratings. Fitch also upgraded one class in the transaction. The...

Eastman CDO Downgraded.
February 6, 2006... NEW YORK -- Class B-1 notes issued by Eastman Hill Funding I Ltd., a collateralized debt obligation partly composed of residential mortgage-backed securities, have been downgraded from B to CCC by Fitch Ratings. In addition, the ratings on...

Losses Rise in Deal.
February 6, 2006... NEW YORK -- Two classes of Fremont Home Loan Trust's residential mortgage-backed certificates, series 2002-1, have been downgraded by Fitch Ratings. Class M-3 was downgraded from BBB to BB and class M-4 was downgraded from BBB-minus to...

RASC HE Classes Weaken.
February 6, 2006... NEW YORK -- Six classes from two Residential Asset Securities Corp. home equity transactions have been downgraded by Fitch Ratings. The downgrades were as follows: RASC series 2001-KS2 group 1, class M-I-1, from AA to AA-minus, class M-I-2,...

Lower Issuance in 2006.
February 6, 2006... NEW YORK -- Issuance of U.S. private-label residential mortgage-backed securities will decline this year but remain strong enough to record the market's second-best year, Standard & Poor's Ratings Services is forecasting. S&P's forecast...

American Home's Earnings Squeezed as Production Margins Shrink.
February 6, 2006... MELVILLE, NY -- As expected, the fourth-quarter earnings for American Home Mortgage Investment Corp. here were affected by low gain-on-sale margins and writedowns of asset-carrying values. It had earnings for the quarter of $16.7 million,...

Credit Agency Agrees to Pay Fine.
February 6, 2006... WASHINGTON -- Consumer reporting agency Far West Credit Inc. in Salt Lake City will pay $120,000 to settle Federal Trade Commission charges that the company violated federal law when it did not follow reasonable procedures to assure the...

Michigan Regulators Take Aim at Problem of Home Loan Fraud.
February 6, 2006... DETROIT -- Fraudsters hoping to squeeze cash from the mortgage industry in the midst of Michigan's economic struggles may soon have a harder time initiating scams. The Michigan Office of Financial Insurance Services is restructuring its offices...

Builders Are Regaining Some of Their Optimism.
February 6, 2006... WASHINGTON -- A drop in mortgage rates and a rise in consumer confidence helped to stabilize the confidence and market expectations of single-family homebuilders, according to the latest National Association of Home Builders and Wells Fargo...

Lenders Gearing Up For 'Oasis' in Phoenix.
February 6, 2006... In recent years, servicing executives have weathered more storms than they care to remember. A prolonged refinancing boom, with the refinancing share of loan applications sometimes exceeding 70%, meant loan servicers had to manage massive...

Phoenix Plays Host to Servicing Executives.
February 6, 2006... For the first time, the Mortgage Bankers Association is taking its annual loan administration conference to Arizona's Paradise Valley. The convention will be held downtown at the Phoenix Civic Plaza, with the nearby Hyatt Regency Phoenix...

Freddie Helps Servicers Monitor Past Due Loans.
February 6, 2006... Mclean VA -- Freddie Mac is adding tools to its software suite for servicers that are managing defaulted loans, hoping to make it even easier for lenders to monitor their own compliance with Freddie Mac's requirements and guidelines. ...

Fidelity Boards Over 2.2 Million Loans.
February 6, 2006... Fidelity Information Services, a division of Fidelity National Financial, said it boarded more than 2.2 million loans onto its Mortgage Servicing Package in 2005 using its electronic loan interface tool. That was a 10% increase in loans boarded...

MBA Forms Industry Think Tank.
February 6, 2006... WASHINGTON -- The Mortgage Bankers Association has named members to its recently created industry think tank, Council to Shape Change. The council plans to evaluate the forces and trends that shape the real estate finance industry to...

Risk of Defaults Could Be Rising.
February 6, 2006... Newport Beach, CA -- While economists are generally optimistic about the pace of economic growth this year, some who follow the housing market still expect to see an increase in mortgage defaults. Rising interest rates, the proliferation of...

Phoenix Touted for Security.
February 6, 2006... Anational trade magazine servicing the insurance industry has ranked Phoenix as the second-safest major U.S. city in which to conduct business based on its low susceptibility to major disruptions from extreme weather, earthquakes and terrorism....

Renting a Car Gets a Bit Easier.
February 6, 2006... PHOENIX -- A $285 million rental car center has opened just west of Phoenix's Sky Harbor International Airport, near 16th Street and Buckeye Road. By consolidating all rental-car activity into one building, congestion throughout the...

Events in Phoenix During Convention.
February 6, 2006... Numerous cultural and sporting events coincide with the MBA's annual mortgage servicing conference in Phoenix. The Greater Phoenix Convention and Visitors Bureau's website (www.phoenixcvb.com) includes a calendar of some activities that may be...

Convention Center Expanding.
February 6, 2006... PHOENIX -- If you notice some scaffolding around the Phoenix Civic Plaza, don't be surprised. The convention center is in the midst of an impressive expansion project. Scheduled for completion in May, the expansion is designed to enhance...

Keynoter Focuses on Creativity.
February 6, 2006... NEW YORK -- Marcus Buckingham, a senior consultant with the Gallup Organization and the co-author of several best selling business motivational books, has distinguished himself at "helping executives tap their strengths and think creatively,"...

People.
February 6, 2006... CALIFORNIA Irvine-New Century Financial Corp. said that Joseph F. Eckroth, hired in July 2005 as senior vice president and chief information officer, has been promoted to executive vice president of New Century Financial Corp. and chief...

Countrywide Misses Wall St. Target.
February 6, 2006... CALABASAS, CA -- On the surface, Countrywide just closed out a pretty good year. Earnings per share were up 13% in 2005 from 2004, and fourth-quarter earnings were up 69% from the fourth quarter of 2004. To top it off, Countrywide set an...

Residential Originators in Q4 2005 (Sample).
February 6, 2006... ($ in Millions) (part 1 of 2) Organization Name Location National City Mortgage Miamisburg, OH No Red Tape Mortgage Sherman Oaks, CA PFF Bank & Trust Rancho Cucamonga, CA ...

Second Look at Baker Plan?
February 6, 2006... WASHINGTON -- Three Republican governors of Louisiana are urging President Bush to take a "second look" at a bill that would create a Louisiana Recovery Corp. to assist for rebuilding New Orleans and other areas of the state devastated by...

Mortgage Industry Equity Composite.
February 6, 2006... MIEC Index: 158.4 Change: -2.0 (part 1 of 2) Company 1/26/2005 2/2/2006 Wkly. % Chg. Astoria Federal (AF) 29.86 28.52...

Inside Track.
February 13, 2006... EDITORIAL Technology Key To Growth 4 STREET SMARTS Peeling Back The Io Market 5 TECHNOLOGY Pa Creates E-notaries 7 COMMERCIAL MORTGAGES Outlook Bright For CRE Lenders 10 ...

Deutsche in the Hunt for Subprime.
February 13, 2006... WASHINGTON -- Deutsche Bank has caught Wall Street's fever for subprime lending and is in the hunt for a production franchise - preferably non-retail - investment banking officials told National Mortgage News. "Deutsche has looked at...

The Residential REFI Picture: 2002 - 2005.
February 13, 2006... ($ in Billions) The % of Res. Loan Prod. Purchase Refi Year That are Refis in Year Volume Volume 2005 (p) 50.0% $3,000 $1,500 $1,500 2004 52.8% $2,790 ...

Administration Worried about FHA Risk.
February 13, 2006... WASHINGTON -- The Bush administration has serious concerns about the performance of the Federal Housing Administration single-family program, but it still is proposing to give the agency the authority to charge risk-based mortgage insurance...

Katrina Still on Servicers' Minds.
February 13, 2006... NEW YORK -- With the end of moratoriums on starting foreclosure action looming large, lenders gathering in Phoenix for the industry's annual mortgage servicing conference have a lot of decisions to make with regard to the management of loans...

Freddie Holdings/Purchases 2005-2004.
February 13, 2006... ($ in Millions) (part 1 of 2) Year/ Total Retained PCs Held in Port. Growth Month Portfolio Portfolio Rate(1) 5-Jan $646,925 $349,124 8.20% Feb $654,182 $353,475 ...

Technology Aids Offshore Moves.
February 13, 2006... MIAMI BEACH, FL -- As the market becomes more complex, lenders are looking toward globalization or offshoring to cut costs. Technology is an enabler that has made this process easier at GMAC Commercial Mortgage. "There are many names for...

Acoustic's CEO Departs amid B&C Challenges.
February 13, 2006... ORANGE, CA -- Frank Curry, president and co-founder of Acoustic Home Loans here, has left the company as it struggles to get its costs in line amid a tough operating environment. Metrocities Mortgage, Los Angeles, which owns 80% of...

Fannie's Mudd Earns $13 MM.
February 13, 2006... WASHINGTON -- Daniel Mudd, the man in charge of fixing Fannie Mae's $12 billion accounting scandal, earned about $13 million in compensation last year, according to an 8K statement the mortgage giant filed with the Securities and Exchange...

Community Bankers Are Optimistic about Growing Loan Volume.
February 13, 2006... WASHINGTON -- Over 75% of community bankers believe they will be able to increase their single-family originations this year or at least maintain 2005 production levels, according to a survey by America's Community Bankers. ACB's 13th...

Fed Is Focused On Underwriting.
February 13, 2006... WASHINGTON -- Residential funders have been making "stated income" mortgages for years, but the Federal Reserve is starting to have concerns about banks that originate loans without the borrower providing proof of income. Speaking at an...

Editorial: On Your Game.(Editorial)
February 13, 2006... Tech-savvy lenders and mortgage technology vendors will need to be especially on their game this year, maximizing efficiency in an originations environment that the Mortgage Bankers Association predicts will be off 20% from 2005. An...

Open Forum: Tough Choices for Housing.
February 13, 2006... Secretary Jackson's remarks before the U.S. Conference of Mayors Winter Meeting in Washington are presented as our Open Forum. I've met with mayors from across the country during the past four years. I've visited your cities and toured your...

Peeling Back Subprime IO Mortgages Reveals Some Opportunities.
February 13, 2006... With recent economic news showing that the U.S. economy is in a steady growth phase, and the Federal Reserve signaling that higher interest rates are a possibility, more consumers are going to look to interest-only mortgages to sustain housing...

Americorp Chooses GMAC for Subservicing.
February 13, 2006... HORSHAM, PA -- GMAC Mortgage Corp. will handle interim subservicing for Americorp Credit Corp.'s first mortgages and closed-end second mortgages. "Americorp chose GMAC Mortgage because of our strong reputation in the subservicing...

MERS Prevails In NY Lawsuit.
February 13, 2006... McLean, VA -- In a nod to the legitimacy of MERS, the Appellate Division of the Supreme Court of New York on Dec. 19, 2005 issued a unanimous 4-0 decision that requires county clerks to record all mortgages, assignments and discharges naming...

Lenders Embrace Service-Oriented Architecture.
February 13, 2006... MIAMI BEACH, FL -- Service-oriented architecture is high on the minds of most mortgage professionals looking to streamline and become more technologically flexible going forward, but when going down this path lenders need to know that it isn't...

eAppraiseIT Buys Network Company.
February 13, 2006... POWAY, CA -- eAppraiseIT is expanding its appraiser network and OCC compliance coverage with the acquisition of Network Appraisal Services, Kalamazoo, Mich. Terms of the transaction were not disclosed. NAS manages appraiser networks for...