National Mortgage News articles from May 2004

National Mortgage News archives from May 2004

Inside Track.
May 3, 2004... EDITORIAL The Role of FHLBs 4 OPEN FORUM Freddie Mac As a Role Model 4 AFFORDABLE HOUSING The Usefulness of DPAs 10 B&C MORTGAGES Production Boom at MILA 9 COMMERCIAL MORTGAGES ...

Goldman Plans a Conduit.
May 3, 2004... For the past few years, Goldman Sachs & Co. has stood idly by as other Wall Street firms have cleaned up by operating nonconforming mortgage conduits. But those days appear to be over. Industry sources say is Goldman is seriously...

Fannie's Two Top Earners.
May 3, 2004... (Dollars in Thousands) Name/ Comp.(1) Comp. Title Package Last Year Frank Raines Chairman $17,056 46% Daniel Mudd Vice chr., COO $6,779 72% ...

Greenspan Doesn't Like Mandatory GSE Setasides.
May 3, 2004... Requiring Fannie Mae and Freddie Mac to contribute a percentage of their income for affordable housing programs does not sit well with Federal Reserve Board chairman Alan Greenspan. The legislative proposal to require the two...

Analysis: Stock Price a Blemish.
May 3, 2004... Fannie Mae earned almost $8 billion last year, is off to a strong start this year, but its stock price has remained virtually flat the past five, one of few blemishes on the professional career of its chairman and chief executive Franklin...

Countrywide Tops in Adjustables.
May 3, 2004... As interest rates rise, adjustable-rate products are expected to gain in popularity which means firms that are ARM experts could gain market share. According to exclusive survey figures compiled by National Mortgage News, Countrywide Home...

Rising Rates Threat to REITs.
May 3, 2004... With economists and investors anticipating that interest rates will rise, some mortgage-related stocks have taken it on the chin lately. But some analysts have said that the pullback, while understandable, may have less to do with the...

House, Senate Resolutions Would Overturn OCC Pre-Emption.
May 3, 2004... Resolutions are now pending in the House and Senate that are aimed at overturning two regulations issued by the Office of the Comptroller of the Currency that exempt national banks from compliance with state consumer protection and predatory...

Regulatory Presssure, Weak Loan Demand Stunt Farmer Mac Earnings.
May 3, 2004... The Federal Agricultural Mortgage Corp., informally known as Farmer Mac, reported earnings per share of $0.64 in the first quarter on net income of $7.8 million, compared to EPS of $0.70 on net income of $8.4 million in the first quarter of...

Treasury Department Reviewing Power to Limit GSE Debt Issuance.
May 3, 2004... The Treasury Department is reviewing its authority to limit the debt issuances of Fannie Mae and Freddie Mac as part of an effort to boost supervision of the two mortgage giants. This new initiative comes at a time when the Bush...

Rates Hit 6%.
May 3, 2004... With the 30-year mortgage rate hitting 6% for the first time since December, refinancing continued to taper off last week. If expectations for higher rates prove accurate, lenders had better make sure their Realtor and home builder contacts are...

The Role of the FHLBs.
May 3, 2004... The appointment of Alicia Castaneda as chair of the Federal Housing Finance Board provides a key opportunity for this huge government-sponsored enterprise to determine its direction for the new millennium. The reign of Ms. Castaneda's...

Freddie Mac As a Role Model.
May 3, 2004... Excerpts of Mr. Syron's prepared remarks at The Bond Market Association's recent annual meeting in New York are presented as our Open Forum. The ability to use the capital markets to expand homeownership is one of the special privileges...

FRM Supply Decreases, But Becomes More Valuable As Rates Rise.
May 3, 2004... The words "volatile" and "extension risk" came up last week in speaking to folks about the kind of mortgage market environment we've had of late, as the rate-indicative 10-year Treasury yield has risen to a level just shy of 4.5% and the...

Foreclosure Expert Says Retreat in N.J. Shows Depth of Problem Lending.
May 3, 2004... Alexis McGee, president of foreclosures.com, a 12-year old distressed property investment advisory firm here, said results from a study by a University of Virginia finance professor, which suggest subprime lending has declined in New Jersey...

CFB Overcomes Impairment Hit.
May 3, 2004... So, what happens when a modest-sized banking company has to take an impairment charge larger than its quarterly earnings? In the case of Commercial Federal Bancorp., not much. The company still beat a Wall Street consensus for first-quarter...

FHA Gives Lenders A Break on Binders.
May 3, 2004... The Federal Housing Administration has tweaked its rules on late endorsements to make it a little easier for lenders to get their loans approved. The changes are in response to numerous violations of its endorsement rules, which require...

Loan Officers Still Exempt from Overtime Rules.
May 3, 2004... Loan officers will remain as exempt employees under most circumstances under the Department of Labor's new "FairPay" rule, industry participants and observers agree. Last fall, National Association of Mortgage Brokers president A.W. Pickel...

Mortgage Funds Post Strong Quarter.
May 3, 2004... Mutual funds invested primarily in Fannie Mae and Freddie Mac securities led the rankings among mortgage mutual funds in the first quarter, according to data from Lipper Inc., New York. The funds, termed U.S. mortgage funds, produced an...

Selected National Mortgage Fund Performance.
May 3, 2004... (part 1 of 3) Latest Total 1 Quarter Fund Net Assets 12/31/03-3/31/04 Name ($Mil) Cum Tot Ret(%) Rank Adjustable-Rate...

Nehemiah Tracks DPA Impact.
May 3, 2004... Downpayment assistance programs have become efficient financial tools in helping low-to moderate-income families become homeowners and accumulate wealth, according to a first-ever study of the economic impact of privately funded DPA programs...

Homeownership Gains In Selected Markets.
May 3, 2004... Market African-Am Hispanic White Atlanta 5.0% increase 4.6% increase 5.4% increase Baltimore 13.8% increase 13.3% increase 20.8% increase Columbus 2.6% increase 3.8%...

MILA Expects Loan Production to Double, Reach $8 billion Level in 2005.
May 3, 2004... Subprime funder MILA Inc., Lynwood, Wash., anticipates more than doubling its loan production this year and then doing the same next year. In an interview at the Mortgage Bankers Association's National Secondary Market Conference here,...

Sec Examines NovaStar Practices.
May 3, 2004... The Securities and Exchange Commission is conducting an informal inquiry into certain business practices of NovaStar Financial Inc., the company said. Following the announcement, NovaStar's stock fell to below $32 per share. According to...

Trade Groups in Favor of Terror Insurance Extension.
May 3, 2004... Four different industry associations have initiated proactive action pressing for the extension of the Terrorism Risk Insurance Act, which is due to expire in 2005 unless the backstop is further extended by the government. The National...

Consumer Group Opposes Renewal Of Terrorism Insurance.
May 3, 2004... The nation's terrorism insurance law is not necessary to ensure the availability of affordable terrorism coverage for most areas of the country and should be allowed to expire, according to a study released last week by the Consumer Federation...

Equity Residential's EPS Down 15%.
May 3, 2004... Equity Residential has reported earnings per share of $0.35 for the first quarter, a 14.6% decline from earnings per share of $0.41 for the first quarter of 2003. The largest multifamily real estate investment trust by market...

WaMu Names Ely To Lead Multifamily.
May 3, 2004... Washington Mutual has made some personnel changes in its multifamily operations, promoting Edward Ely to head of the multifamily lending division. Mr. Ely, who will be executive vice president and head of the division, will oversee WaMu's...

HRPT to Buy Hallwood In $250 Million Deal.
May 3, 2004... HRPT Properties, Newton, Mass., is acquiring Hallwood Realty Partners for a total cash price of about $250 million. As well, HRPT will either take on or prepay all of Hallwood Realty's outstanding debt, Hallwood reports. Under the merger...

Roundup: Thornburg Mortgage Volume Up Year to Year in 1st Quarter.
May 3, 2004... Thornburg Mortgage bucked the trend in the industry during the first quarter, actually originating more home loans this year than the firm did in the first quarter of 2003. Thornburg originated $909 million in mortgages during the first...

Astoria's Net Falls.
May 3, 2004... Astoria Financial Corp. here, the holding company for Astoria Federal Savings and Loan Association, reported net income of $53.4 million, or $0.71 diluted earnings per share, for the first quarter of 2004, compared to $56.4 million, or $0.69...

ND Bank Sees Lower Income.
May 3, 2004... Community First Bankshares Inc. here reported net income of $16.9 million for the first quarter of 2004, a decrease of 12.9% from $19.4 million in the first quarter of 2003. Total loans as of March 31, 2004 were $3.3 billion, down 5.3% from...

People.
May 3, 2004... CALIFORNIA Brea-ResMAE Financial Corp., a wholesale specialty residential mortgage originator and servicer, said that Arthur Hickson has joined the company as senior vice president, division manager. Mr. Hickson has more than 17 years...

At a Glance: Subprime Subservicers at Year-End 2003.
May 3, 2004... Year S&P MBA 2004 5.8% 5.6% 2005 6.4% 6.2% 2006 6.8% 6.9% Source: S&P and MBA Copyright 2004 Thomson Media Inc. All Rights Reserved. http://www.thomsonmedia.com...

BB&T Earns $328 Million in Quarter.
May 3, 2004... BB&T Corp. here, the nation's 10th largest financial holding company, reported net income for the first quarter of 2004 totaling $328.5 million, or $0.60 per diluted share. The net income increased only slightly compared with $327.7 million...

Fannie's CEO Raines Earned $17 MM in '03.
May 3, 2004... Fannie Mae increased the compensation of its two top officers last year by 46% and 72%, respectively, according to a proxy statement the mortgage giant filed with the Securities and Exchange Commission. Fannie Mae chairman and chief...

Review For Large MF Transactions at GSEs.
May 3, 2004... The House Financial Services Committee has initiated a review of several large "unusual" loan transactions that Fannie Mae and Freddie Mac conducted last year to meet their affordable housing goals. "The transactions were unusual,"...

Record Earning For Triad Guaranty in 1Q.
May 3, 2004... At the nation's smallest mortgage insurance company, Triad Guaranty Inc., Winston-Salem, N.C., the first quarter was a time for record earnings. The company posted net income of $14 million, or $0.96 per share, up 14% from the $12.4...

Mortgage Industry Equity Composite.
May 3, 2004... MIEC Index: 175.4 Change: -3.9 (part 1 of 2) 4/22/2004 4/29/2004 Wkly.% Chg. Astoria Federal (AF) 35.54 34.60 ...

Inside Track.
May 10, 2004... OPEN FORUM Terror Insurance a Success 4 STREET SMARTS Here's What to Look for If Interest Rates Continue to Rise 5 EQUITIES April Bank Stocks Took A Beating 14 COMMERCIAL MORTGAGES Treasury Seems in No...

GSEs 'Don't Lead in AH'.
May 10, 2004... Declaring that the GSEs "don't lead the market" when it comes to funding affordable housing, the Department of Housing and Urban Development last week published proposed rules that would boost their purchase of these loans by 5% to 10% on...

Servicing Stats at a Glance: If CitiMortgage Buys Principal.
May 10, 2004... (Dollars in Millions) Servicer Name Serv at 12/31/03 Mkt Sh CitiMortgage $204,568 2.89% Principal Res $118,692 1.68% Totals: $323,260 4.57% Notes:...

Citi Eyeing Principal?
May 10, 2004... Citigroup, one of the most active buyers in the mortgage space the past few years, is talking to Principal Financial Group about buying its top-ranked mortgage subsidiary, investment banking sources told National Mortgage News late last week....

Scottish Bank Buying Servicer.
May 10, 2004... Royal Bank of Scotland has agreed to purchase Charter One Financial Inc., Cleveland, a top-30 residential servicer, for $10.5 billion. Charter One also is the nation's 40th largest residential funder, according to figures compiled by...

Mortgage Stats at a Glance: Charter One Bank.
May 10, 2004... ($ in millions) Residential fundings in '03: $13,903 Residential prod. rank: 36th Number of loans funded: 93,051 Main production channel: retail Residential servicing rights: $28,304 Servicing rank: 30th Company...

GEMI Spinoff Set for May 24.
May 10, 2004... Investment bankers have set May 24 as the day that General Electric will spin-off its life and mortgage insurance units into a separate publicly traded company called Genworth Financial. GE, which exited the conventional residential...

Indy Buys Reverse Leader.
May 10, 2004... IndyMac Bank here has reached an agreement to buy the nation's largest reverse mortgage lender, Financial Freedom Holdings Inc., Irvine, Calif. Lehman Brothers Bank FSB, New York, owns the majority of Financial Freedom with the remaining...

An American Disaster.
May 10, 2004... Visit the place where Anna Jackson's five grandchildren live and here's what you see: nothing, at first. It's dim inside the tiny, eight-sided hogan just off the main road of Tuba City, Ariz. That's because there is no electricity. There is...

OFHEO Orders Fannie Mae to Write Down Manufactured Housing.
May 10, 2004... The Office of Federal Housing Enterprise Oversight last week ordered Fannie Mae to write down the value of its $8 billion manufactured housing portfolio by this Friday, especially in regard to securities downgraded by rating agencies. The...

Fairbanks Refunds Florida Borrowers.
May 10, 2004... Subprime servicer Fairbanks Capital Corp. has agreed to refund Florida homeowners $1.65 million for allegedly charging improper fees, according to state officials. The settlement agreement is the result of an extensive review of Fairbanks'...

FHA Zero-Down Bill Passed by Subcommittee, With Conditions.
May 10, 2004... A key House subcommittee last week passed legislation that would allow the Federal Housing Administration to insure zero-downpayment mortgages but with certain conditions attached. The bill, "The Zero Downpayment Act of 2004" (H.R. 3755)...

Chris Salazar (1946-2004): An Appreciation And a Suggestion.
May 10, 2004... Chris Salazar, founder of the California Association of Mortgage Brokers, died suddenly recently at the age of 57, and his passing inspires a couple of thoughts. I knew Chris first as a fierce competitor, the publisher of rival Mortgage...

Terror Insurance a Success.
May 10, 2004... Mr. Serio recently testified before the House Subcommittee on Oversight and Investigations. His remarks are presented as our Open Forum. The opportunity to come before you today to relate New York's experiences with the Terrorism Risk...

Here's What to Look for If Interest Rates Continue to Rise.
May 10, 2004... Once again I'm writing this the day before a Friday employment report release and I'm not making any promises as far as future interest rates. But I'll tell you some things I think may be worth considering if the trends I was seeing in the...

Fairbanks Gets an Upgrade as It Passes a Milestone.
May 10, 2004... On the long, painful road to recovery, Fairbanks Capital Corp. has just passed a big milestone. The company has received its first upgrade from one of the rating agencies since the company was plagued by publicity about controversial loan...

At a Glance: Subprime Subservicers at Year-End 2003.
May 10, 2004... Fairbanks $40.9 billion Homeq Servicing $20.8 billion Option One $13.1 billion Saxon $5.2 billion Source: NMN/Quarterly Data Report. Copyright 2004 Thomson Media Inc. All Rights...

Irwin Financial Earns $20.3 Million in 1Q.
May 10, 2004... Irwin Financial Corp., a mortgage banking and home equity lending company here, reported a 63% increase in net income for the first quarter of 2004 with $20.3 million, or $0.67 per diluted share, compared with $11.8 million, or $0.41 per...

New Mortgage Settlement Reg Signed into Law in WV.
May 10, 2004... Gov. Bob Wise recently signed a House bill into law here entitled "The Good Funds Settlement Act," which adds a new article to state statutes regulating settlements of mortgage transactions, according to Lotstein Buckman LLP. The act...

'Loans Getting More Creative'.
May 10, 2004... Consumer demand appears to have spurred "a dramatic increase in the use of creative home mortgage loans" by the mortgage industry during the past year, bringing five mortgage loan options to the most-favored product list by customers, says a...

Experts: Housing Better Off With Healthier Economy.
May 10, 2004... Housing is expecting a modest increase in loan rates later this year and into 2005. But most observers believe the business will be better off for it. While there is some concern that higher mortgage costs will nullify the ownership...

Valocity Exec Urges Adherence to USPAP Advisories.
May 10, 2004... Those who oppose the Uniform Standards of Professional Appraisal Practice's advisories that prohibit "retypes" of appraisals do not have an understanding of the obligations that an appraiser has, said the president of Valocity, a national...

Broker Protests NYSBD Action.
May 10, 2004... The New York State Banking Department has revoked the registration of mortgage broker Robert Kushner for falsification, forgery and fabrication of borrower information. In 2003, a complaint from a borrower's attorney resulted in...

April Bank Stocks Took a Beating.
May 10, 2004... The expectation that interest rates are likely to rise in the coming months has taken a toll on the stocks of banking companies. Investor concerns regarding the effect higher rates would have on bank balance sheets and income statements...

At a Glance: Bank Stocks to Watch.
May 10, 2004... Ticker 5-Yr Avg Firm Symbol EPS Growth Commerce CBH 30% North Fork NFB 18% New York Community NYB 47% Source: Sandler O'Neill Copyright...

Thornburg Leaders Buying Stock.
May 10, 2004... Thornburg Mortgage said that several top executives and an independent board member have acquired additional shares of the company's common stock following the company's first-quarter earnings release. Those purchasing shares include...

MFA Earned $21.9 Million in 1st Quarter.
May 10, 2004... MFA Mortgage Investments Inc. earned net income of about $21.9 million in the first quarter, up from approximately $15.3 million during the same quarter a year ago. Earnings per share during the first quarter were $0.32, down slightly from...

First Republic Originations Up in Quarter.
May 10, 2004... First Republic Bank here originated $880 million of loans in the first quarter of 2004, compared to $757 million for the same period in 2003, according to the company. Total loans serviced for investors were $3.2 billion at March 31, 2004,...

Commerce Bankshares Ups Earnings.
May 10, 2004... Commerce Bancshares Inc. here, an investment and securities brokerage whose subsidiaries provide mortgage banking, reported earnings of $0.75 per share for the three months ended March 31, 2004, an increase of 14% compared to $0.66 per share in...

Treasury Seems in No Hurry on TRIA.
May 10, 2004... The Treasury Department seems to be in no hurry to make a critical decision that would ensure the availability of terrorism insurance next year, despite pressure from congressmen and industry groups to act quickly. "It is crucial that the...

Rebound Foreseen for Most CRE.
May 10, 2004... Commercial real estate property types across the country are likely to rebound over the next year, with some exceptions, according to a report from Moody's Investors Service. Based on a scoring system the rating agency has developed, Moody's...

New REIT Sub to Buy And Originate Loans.
May 10, 2004... SL Green Realty, an office real estate investment trust, has formed Gramercy Capital, a specialty finance company that will focus on originating and acquiring mortgage loans and other fixed-income investments secured by commercial real estate....

Grades of Three CMAC Classes Slip.
May 10, 2004... Three classes of Commercial Mortgage Acceptance Corp. commercial mortgage pass-through certificates, series 1997-ML1, have been downgraded by Moody's Investors Service and four others have been placed on review for possible downgrade. The...

Class Downgraded In Salomon CMBS.
May 10, 2004... Class F of Salomon Brothers Mortgage Securities VII Inc. mortgage pass-through certificates, series 1996-C1, has been downgraded from B-plus to CCC by Fitch Ratings. Fitch also upgraded one class and affirmed the ratings on four other classes...

Wescom Starts CRE Lending Unit.
May 10, 2004... Wescom Credit Union, is entering the commercial real estate lending area, and has hired Dean Lambertson as vice president for its new commercial real estate division. The division will provide its 215,000 members with financing of up to $5...

MacDonald, Dettwiler to Buy Marshall & Swift/Boeckh.
May 10, 2004... Canada-based international real estate information company MacDonald, Dettwiler and Associates Ltd. here plans to acquire automated property valuation firm Marshall & Swift/Boeckh, Los Angeles, according to separate press releases issued by the...

U.K. Lending Rose Vs. Previous Month.
May 10, 2004... Total gross lending in the United Kingdom rebounded in March, according to estimates provided by the Council of Mortgage Lenders here. "A total of PN24.5 billion [about $43.8 billion] of gross advances was lent in March, up from PN20.5...

Technology Leaders: Setting The Tempo.
May 10, 2004... Mortgage technology leaders are hoping to hit all the right notes this year as they gear up for record spending on automation. According to the first-ever technology study conducted by the Mortgage Bankers Association released at the MBA...

SouthStar Implements Commerce Velocity's Automation.
May 10, 2004... SouthStar Funding, Atlanta, has implemented credit decisioning and automated underwriting technology developed by Commerce Velocity here to provide a Web-based platform tailored to its unique business method and has pushed through over $600...

Web Enables Broker Price Opinions Anywhere.
May 10, 2004... There's never been a single time BPO Tracker, based in Truckee, Calif., has failed to produce a broker price opinion, CEO Duane Andrews says. And with 100,000 BPOs provided as of March, there have been plenty of chances to miss one. Getting one...

Technology Helping Lenders Manage Secondary Market Challenges.
May 10, 2004... With rates rising, lenders are looking for technology that can make their operations more efficient and preserve profitability in a smaller mortgage market. And Associated Software Consultants, based in Middleburg Heights, Ohio, believes...

MortgageServ Launches Biggest Release in Fiserv History.
May 10, 2004... At Fiserv's annual MortgageServ Client Conference in Myrtle Beach, S.C., the company's division president, John R. Tenuta, told National Mortgage News about the product's largest release coming up May 14, which will include over 170 new...

U.K.'s Mortgage Brain May Be Worth Thinking About.
May 10, 2004... One technology provider in the United Kingdom market that bears watching is Mortgage Brain Ltd., based in Croydon, England, a company that is jointly owned by a consortium of U.K. lenders. About half of the close to 40,000 "introducers" in...

Mortgage Cadence Touts Quick, Easy Implementation.
May 10, 2004... 3T Systems, based in Denver, has always extolled the virtues of rapid implementation to its clients, and was recently able to complete the entire implementation of their loan origination solution, Mortgage Cadence, at Global Home Loans,...

PTP Cites Open Standards as Key to Mortgage Technology Leadership.
May 10, 2004... Some vendors would have to have passed on the Wachovia Mortgage RFP for a Web-based LOS system because Wachovia systems are architected on the IBM WebSphere platform. Palisades Technology Partners was unfazed. To PTP chief operating officer...