National Mortgage News articles from November 2003

National Mortgage News archives from November 2003

Inside Track.
November 3, 2003... EDITORIAL A Matter of Trust 4 OPEN FORUM The Trouble With DPAs 4 COMMERCIAL MORTGAGE GM Building Financing 12 PEOPLE 24 SPECIAL REPORT Subservicing Lately, servicing must seem...

$1.2B Error Adds to GSE Turmoil.
November 3, 2003... A month ago, in an interview with National Mortgage News, Fannie Mae chairman Franklin Raines said he was proud of his company's accounting systems but cautioned "we're not perfect." Last week Fannie Mae revealed exactly how not perfect it...

Agency 'Subsidy' Tops $15B.
November 3, 2003... The Federal government subsidizes Fannie Mae and Freddie Mac to the tune of more than $15 billion a year, according to a new analysis conducted by the Congressional Budget Office. In recent testimony before the Senate Banking Committee, CBO...

Lenders Lift Limits Early.
November 3, 2003... The so-called "conforming loan limit" won't be raised until Jan. 1, but some lenders have already pulled the trigger. For example, the Miami-based Homebuilders Financial Network, which operates mortgage companies on behalf of 31 builders,...

Average Purchase Price.
November 3, 2003... (New and Existing Homes) September 2002 $237,600 October 235,700 November 238,500 December 233,000 January 2003 243,600 ...

BoA-Fleet 'Low Impact'.
November 3, 2003... Bank of America here, the nation's fifth largest residential lender, is buying FleetBoston Financial for almost $47 billion in stock, a move that will expand BoA's presence in New England and create the nation's second largest bank. ...

Bank Of America/FleetBoston Deal.
November 3, 2003... (How Their Residential Mortgage Ops Stack Up) (Dollars in Millions) (part 1 of 2) Institution Res. Vol Thru 9/30 2002 Vol Bank of America $112,551 $88,050 FleetBoston Fin. ...

Subpoenas In Freddie Case.
November 3, 2003... The Office of Federal Housing Enterprise Oversight has issued subpoenas to a handful of former Freddie Mac officials who are not cooperating with the agency's investigation into the company's accounting practices, sources told National Mortgage...

Freddie Adjusting G-Fees to Gain Market Share.
November 3, 2003... Freddie Mac had its second best purchase month of the year in September, but it also revealed why it has been gaining market share on its chief competitor, Fannie Mae: the company said it has been adjusting the guarantee fee it charges lenders,...

GMAC Negotiating with Deutsche.
November 3, 2003... General Motors is now negotiating exclusively with just one bidder - believed to be Deutsche Bank - to sell its commercial mortgage banking affiliate. According to a recent report in the Wall Street Journal, GMAC Commercial chairman David...

Fed Governor Warns On Brokers.
November 3, 2003... State regulators may be better off investing in tools to ensure regulatory compliance on the part of non-depository financial institutions such as mortgage brokers than focusing their resources on adding new consumer protection legislation,...

Freddie Fire Relief.
November 3, 2003... Freddie Mac is encouraging its servicers to help those borrowers affected by the fires in southern California, the company announced on October 29. The company's disaster relief guidelines, which are designed to allow victims to avoid...

Fidelity Buys American Pioneer Title from PMI, Boosts FL Share.
November 3, 2003... The PMI Group here has elected to get of out of the title insurance business by reaching an agreement to sell its American Pioneer Title Insurance Co. subsidiary to Fidelity National Financial Inc., Irvine, Calif., for $115 million in cash. ...

A Matter of Trust.
November 3, 2003... We are delighted to see that both John Courson, the outgoing chairman of the Mortgage Bankers Association, and A.W. Pickel 3rd, current president of the National Association of Mortgage Brokers, have stepped up to the plate and advised their...

DPAs: The Benefits and Risks.
November 3, 2003... Mr. Paul's op-ed on the failure of downpayment providers to comply with HUD regulations is presented as our Open Forum. Among the most important housing finance innovations is the recent emergence of nonprofit downpayment assistance (DPA)...

Despite Drop Below 6%, Rate Bias Still Seems to Be Upward.
November 3, 2003... Although the Federal Open Market Committee meeting led to a short-lived dip in rate-indicative bond yields last week and the Freddie Mac average mortgage rate fell slightly below the psychologically important 6% line, secondary market movements...

Origination Volume May Be Slowing at Wells Fargo.
November 3, 2003... Wells Fargo & Co.'s mortgage volumes hit a record $161 billion in the third quarter, but there were signs during the fiscal period that originations at the company were slowing and Wells is starting to change its strategies accordingly, a...

WaMu May Have to Cut More Workers.
November 3, 2003... Washington Mutual will most likely have to cut more temporary and contract workers as the company, like many, seeks to achieve efficiencies that will allow it to offset the recent rate-driven decline in origination volumes. But despite having...

GSEs Back Federal Anti-Abuse Law.
November 3, 2003... After months of dancing around the issue of predatory lending, Fannie Mae and Freddie Mac have finally joined the call for national legislation to combat abusive practices. Speaking at the Mortgage Bankers Association's annual convention...

VA Adding 2,000 Appraisers.
November 3, 2003... In an effort to provide more timely service, the Department of Veterans Affairs is increasing its roster of appraisers by 40%. The agency also is in the process of testing a new system that will allow lenders to help appraisers find better...

FHA Eliminates Paper MI Certificates.
November 3, 2003... Loan files for single-family mortgages insured by the Federal Housing Administration will be a page or two lighter under a new directive eliminating paper mortgage insurance certificates. Effective Nov. 20, the FHA will no longer issue...

MBA: Rates Will Stay Stable Through Yearend, Rise Next Year.
November 3, 2003... Mortgage rates will remain close to their current levels for the rest of the year, the Mortgage Bankers Association's chief economist told a press briefing at the group's annual convention here. The average rate for the 30-year fixed rate...

MF Sector Now Looks to Recovery.
November 3, 2003... The National Multi Housing Council's latest quarterly survey of apartment market conditions indicates that the multifamily sector could be on the verge of recovery. The multifamily industry trade association reports that three of the four...

GM Building Financed by Wachovia?
November 3, 2003... Conseco has sold the General Motors Building in New York City to Macklowe Properties for $1.4 billion. The selling price, which translates into $735 per square foot, is "one of the highest ever" paid for a New York office building,...

CMBS Deals Now Become More Common.
November 3, 2003... Commercial mortgage-backed securities fusion deals have become more common in the last two years, according to John Gluszak, a director in Merrill Lynch's CMBS group. Speaking at a panel session on "financing hotels in the CMBS market" at...

United Kingdom, Netherlands See Mortgage Opportunities Increase.
November 3, 2003... Europe's evolving demographics and increasing consumer sophistication are creating significant opportunities for innovative mortgage lenders. Some of the more dramatic breakthroughs are occurring in the United Kingdom, where HSBC Bank PLC...

Technology Key in Europe, Too.
November 3, 2003... As European mortgage markets become increasingly complex, success will hinge more and more on the ability of organizations to use technology to manage information and to speed transactions. This will be particularly true at the interface...

Purchase Mortgages Hit British Record.
November 3, 2003... Purchase mortgage volumes in the United Kingdom have hit a high never before seen in the history of the Council of Mortgage Lenders monthly survey, the London-based trade group has reported. Loans made to those purchasing homes reached that...

Profits Double at Fidelity National.
November 3, 2003... Fidelity National Financial, Inc., a Fortune 500 company and solutions provider to the financial services and real estate industry, reported third quarter revenues of $2.2 billion, compared to $1.3 billion for the year-ago quarter. The company...

Fiserv Takes Home $80 Million.
November 3, 2003... Fiserv Inc. here has reported record net income of $80.4 million ($0.41 per share) for the third quarter, compared with $66.2 million ($0.34 per share) a year earlier. The company said it completed five acquisitions in the third quarter,...

First American Breaks All Records.
November 3, 2003... Proclaiming it the quarter with the highest quarterly results in the company's 114-year history, First American Corp. here reported revenues for the third quarter 2003 of $1.72 billion and earnings for the quarter of $141.8 million. The...

E-Loan Makes $8MM.
November 3, 2003... E-Loan Inc. says its revenues for the third quarter of 2003 were up 54% to $43.8 million, leading to net income for the quarter of $8.0 million, or $0.13 per share basic, up from $3.1 million for the third quarter of 2002. E-Loan chairman...

Titan Investment Signs Deal to Acquire Sollen Technologies.
November 3, 2003... Titan Investment Partners LLC, a private equity firm based here and the managing owner of Del Mar Database, will acquire Sollen Technologies LLC, Dallas, Texas. Sollen develops technology that provides real-time delivery of mortgage loan...

Dynatek Integrates Fraud Solution.
November 3, 2003... Dynatek Inc., here will integrate customer identification and reporting capabilities from VMP Fraud Management Solutions into its loan origination system, MORvision. A product of VMP Mortgage Solutions, St. Cloud, Minn., a Bankers Systems...

Entyre and Digital Forming Alliance.
November 3, 2003... Entyre here, a nationwide provider of Web-based mortgage closing documents, has formed a strategic partnership with Auburn Hills, Mich.-based Digital Dialogue, a provider of automated internet lending and call center solutions to credit unions....

Subservicing: Leaping To The Forefront.
November 3, 2003... Lately, servicing must seem like a revolving door business for many lenders. New loans come in to be boarded; old loans go out through the lien release or re-conveyance process. With refinancing at record levels during the past several...

RBMG Joins Freddie Mac, ICBA Alliance to Provide Subservicing Option.
November 3, 2003... Community banking institutions that participate in a Freddie Mac and Independent Community Bankers of America alliance now can add a private-label subservicing option from RBMG to the list of benefits available through the alliance. The...

Master Financial Sees Interim Servicing as Growth Area.
November 3, 2003... Kevin Quinn sees interim servicing as a great opportunity for his employer, Master Financial Inc. Mr. Quinn, the subservicing acquisitions manager for the Orange, Calif.-based company, says interim servicing - the temporary subservicing of...

Commercial Mortgage Servicers Getting Help from Outside Firms.
November 3, 2003... While commercial mortgage servicers have been outsourcing some aspects of the servicing function for a while, some newer outsourcing trends also have emerged. Stephanie Petosa, senior director, Fitch Ratings, said, "Fitch views traditional...

Top Subservicers.
November 3, 2003... (Ranked by number of loans at June 30, 2003) (part 1 of 2) Rank Organization Name Location 1 Aurora Loan Services, Inc. Aurora, CO 2 Wells Fargo Home Mortgage San Francisco, CA ...

Lenders Find Variety of Ways to Outsource Work Abroad.
November 3, 2003... A growing number of companies are united in having outsourced residential servicing functions to business entities in other countries, but these companies are approaching this outsourcing in different ways, Standard & Poor's credit analyst...

Countrywide's Business Grows in U.K.
November 3, 2003... Although there has been some skepticism when it comes to the U.S.-based mortgage providers offering outsourced servicing arrangements in the United Kingdom, one company that seems to be doing well - or at least making a name for itself in that...

Top Subprime Subservicers.
November 3, 2003... (Dollars in Millions) (At June 30, 2003) (part 1 of 2) Rank Organization Name Location 1 Fairbanks Capital Corp. Salt Lake City, UT 2 Option One Mortgage Corp. Irvine, CA ...

WaMu Flexible On CA Fire Victims.
November 3, 2003... Washington Mutual here has announced that customers in Southern California who are victims of wildfires in federally declared disaster areas are eligible for various disaster relief programs. WaMu said the programs include accelerated home...

Hispanic Caucus: 'No' On RESPA.
November 3, 2003... The Congressional Hispanic Caucus has turned against the Department of Housing and Urban Development proposal to reform the mortgage application and settlement process, claiming it could hurt minority homebuyers and minority-owned small...

People.
November 3, 2003... CALIFORNIA Santa Ana-The Talon Group, First American Title Insurance Co.'s new title and settlement services division, has appointed Marcy Rolston as an agency representative for the Philadelphia office. Ms. Rolston comes to Talon with...

Fannie 'Error' Will Lead to GSE Bill- But Not This Year.
November 3, 2003... Fannie Mae's $1 billion "computational error," announced last week, likely will lead to a GSE regulatory bill being passed - but not this year. The accounting error (see related story) assures that some type of bill will pass in 2004, but...

NovaStar Mortgage Leaving New Jersey.
November 3, 2003... The new predatory lending law in New Jersey has claimed a casualty as NovaStar Mortgage Inc. said it would stop doing business in that state effective on Nov. 27. The company blamed the lack of clarity in the law, which could result in...

Group Asks for Probe of Freddie Lobbyist.
November 3, 2003... Public Citizen, a consumer advocacy group, has asked the Federal Elections Commission to investigate alleged violations of campaign finance laws by Freddie Mac's top lobbyist and a Republican fund-raising firm. The complaint, though, does...

Mortgage Industry Equity Composite.
November 3, 2003... MIEC Index: 188.7 Change: 5.2 (part 1 of 2) Company 10/16/03 10/30/03 Wkly % Chg Countrywide Financial Corp. (CFC) 95.08 104.73 10% Capstead Mtg.(CMO) 13.08 ...

Publicly Traded 'Subprime' Related Firms.
November 3, 2003... B&C Stock Price Index: 246.6 Change: 15.3 (part 1 of 2) Company 52 wk/low 52 wk/hi 10/30/03 Aames (AMSF) 0.50 3.47 2.79 American Business Fin. (ABFI) ...

Inside Track.
November 10, 2003... OPEN FORUM GSEs Can't Avoid All Risk 4 EQUITIES MuniMae Benefits from 'Unrealized' Securities Gain 12 COMMERCIAL MORTGAGES Wachovia Report: CMBS Defaults Likely to Crest Soon 16 PEOPLE 37 ...

Mortgage Insiders Selling Shares.
November 10, 2003... When rates start creeping up and loan volumes begin to fall, there's only one sensible thing for a mortgage banker to do: get out while the getting is good. Mortgage bankers aren't selling their companies per se, but it appears that a fair...

At a Glance: Insider Purchases-Sales of Selected Mortgage Lenders Over the Past Six Months.
November 10, 2003... Stock Shares Shares Lender Symbol Sold Purch(1) Accredited HM LEND 255,000 na American HM AHMH 89,000 5,000 Countrywide CFC 760,000 1,000 ...

90% NJ Drop For Option 1?
November 10, 2003... Option One, one of the largest subprime lenders in the U.S., said its production volume could drop dramatically in New Jersey after a new law goes into effect there in late November. In an interview with National Mortgage News last week,...

Senate Passes FCRA Bill.
November 10, 2003... The Senate has passed a permanent extension of the Fair Credit Reporting Act by a 95-2 vote, clearing the way for House and Senate conferees to work out a final version of the bill. Like the House-passed FCRA bill, the Senate bill provides...

Short Positions in Mortgage Stocks: Mixed Bets for the Fall.
November 10, 2003... Short Pos % Chg fr Company Name/Symbol Mortgage Sector at 10/15/03 9/15/03 Accredited (LEND) subprime 1,326,477 -2% E-Loan (EELN) online lender 5,246,589 -11% New...

States May Tax Origination Fees.
November 10, 2003... Cash-strapped state and local jurisdictions on the prowl for new sources of revenue may have their eyes on commissions earned by residential and commercial loan brokers, a Washington lobbyist warned here earlier this week. Michigan and Ohio...

Sharp Divisions Over How to Combat Predatory Lending.
November 10, 2003... A congressional hearing on predatory lending showed sharp divisions exist between Democrats and Republicans as well as between industry and consumer groups on how to stop abusive lending practices. Proponents of a bill to create a...

Royal Bank of Scotland Said to Make a Play for Sovereign Bancorp.
November 10, 2003... Royal Bank of Scotland, hoping to expand its presence in the U.S. market, made a run at Sovereign Bancorp, Philadelphia, but was rebuffed. Last week, Sovereign Bancorp's shares reached a new 52-week high amid speculation that the thrift...

Shays Accuses GSEs Of 'Chutzpah' Lobbying.
November 10, 2003... Rep. Christopher Shays, R-Conn., is calling for a congressional investigation of Fannie Mae and Freddie Mac's lobbying activities and their "chutzpah to dictate" to Congress and the White House how they will be regulated. In a letter to...

High Tide.
November 10, 2003... The dull roar emanating from the environs of the Mortgage Bankers Association's recent annual convention in San Diego had to put a smile on many a tired mortgage banker's face, even as all the scuttling around cost him or her shoe leather. ...

GSEs Can't Avoid All Risk.
November 10, 2003... Mr. Korsmo recently spoke at the Exchequer Club in Washington on the topic of GSE oversight. Excerpts of his prepared remarks are presented as our Open Forum. To begin, here are the facts, at least as I see them: First, the Federal Home...

Freddie's Rate Likely to Rise, But Maybe Not as Much, as MBS Improve.
November 10, 2003... Freddie Mac's average weekly fixed mortgage rate had rebounded somewhat at press time, and although it still hadn't risen back above 6% yet, it looked pretty likely last Thursday that it was heading that direction. I base this on the fact that...

White House Skeptical about GSE Benefits.
November 10, 2003... The Bush administration is raising questions about Fannie Mae and Freddie Mac's importance to the housing markets as it continues to push for tougher federal oversight of the two government-sponsored enterprises. In a speech last week, a...

Chase Overcomes Hedging Loss.
November 10, 2003... Even though revenues in J.P. Morgan Chase's home finance unit fell 32% in the third quarter, the company was able to generate net income of $1.63 billion ($0.78 per share). Hedging of mortgage servicing rights during the third quarter...

HUD Pulls Plug on Fair Housing Study of GSEs' AU Systems.
November 10, 2003... The Department of Housing and Urban Development is burying a study that was supposed to determine if the automated underwriting systems developed by Fannie Mae and Freddie Mac discriminate against minority homebuyers. But a Democratic...

Fitch Shuns 'High Cost' Market in LA, Oakland.
November 10, 2003... Fitch Ratings will not rate loan pools containing any mortgages from Oakland, or high cost-refinanced mortgages from Los Angeles, once those cities' predatory lending laws go into effect, the rating agency said on October 24. When or even if...

Appraisal Fraud 'Underreported' Despite Damaging Impact on Lenders.
November 10, 2003... Both mortgages originated in West Virginia this year are performing well. That line brought down the house at the American Association of Residential Mortgage Regulators' annual conference here last week. But the message quickly turned...

Appraiser Watch Is Up and Running.
November 10, 2003... The Department of Housing and Urban Development has announced that its new "Appraiser Watch" monitoring system is fully operational. Under Appraiser Watch, the Federal Housing Administration will be able to spot bad appraisers who are...

SEC Adds Another Name to Lawsuits Against Former Suncoast Executives.
November 10, 2003... The Securities and Exchange Commission has added a fifth person who worked at a broker-dealer active in the mortgage-backed and government securities market during the late 1990s to a series of separate legal actions it has taken against...

NetBank Earnings Nearly Double in 3Q.
November 10, 2003... NetBank Inc. reported record earnings for the third quarter of 2003, saying it earned net income of $15.6 million during the period, or $0.32 per share. That compares to $8.5 million it earned in the third quarter of 2002. Year-to-date, the...

MuniMae Benefits from 'Unrealized' Securities Gain.
November 10, 2003... Municipal Mortgage & Equity has reported net income of $18.1 million ($0.63 per share) for the third quarter, a tremendous increase from the $0.2 million ($0.01 per share) reported for the third quarter of 2002. The increase resulted mainly...

Irwin Reports Record Earnings in 3Q.
November 10, 2003... Irwin Financial Corp. here reported net income for the third quarter of 2003 of $31.1 million or $1.03 per diluted share. This compares with net income of $8.2 million or $0.29 per diluted share during the same period in 2002. Irwin is a bank...

ARMs Boost Bank's Bottom Line.
November 10, 2003... SunTrust Banks Inc. earned $331.6 million in net income during the third quarter, a 3% decline year-to-year. Among the residential real estate finance business lines cited by SunTrust as contributing to its earnings were increasing...

Aames Financial Is Ready to Report Its First Annual Profit in Five Years.
November 10, 2003... For the first time in five fiscal years, Aames Financial Corp. here will post an annual profit as reported to common stockholders. The subprime home equity company, whose fiscal year ended on June 30, had net income of $29.2 million for the...

Wilshire Finds Home on Nasdaq.
November 10, 2003... Wilshire Financial Services Group here has joined the Nasdaq SmallCap Market. The company received word from the Nasdaq composite index in August that its application to be listed had been approved. On Oct. 13, the stock was trading at $4.80...

Wachovia Report: CMBS Defaults Likely to Crest Soon.
November 10, 2003... Analysts see something of an anomaly in the commercial real estate markets today. Vacancy rates and rent levels are near a cyclical bottom, while valuations are approaching cyclical highs. But an improving economy may mean that CMBS...

At a Glance: National Office Vacancy Rate.
November 10, 2003... 3rd Q '02: 15.7% 4th Q '02: 16.0% 1st Q '03: 16.3% 2nd Q '03: 16.5% 3rd Q '03: 17.3%* * is forecast. Source: Wachovia Securities Copyright 2003 Thomson Media Inc. All Rights Reserved. http://www.thomsonmedia.com...

Roundup: REITs Post 9.3% Total Return.
November 10, 2003... The real estate investment trust sector turned in a total return of 9.3% for the third quarter, according to SNL Financial, an information provider. The SNL Equity REIT Index maintained by the company slightly outperformed the 9.1% return...

Two REITs Seek Financing.
November 10, 2003... Crescent Real Estate, Fort Worth, Texas, and Vornado Realty Trust, New York, are looking to disentangle themselves from AmeriCold Logistics, a provider of cold storage and transportation facilities. The two real estate investment trusts are...

Tanger, Blackstone Buy Outlets.
November 10, 2003... Tanger Factory Outlet Centers and an affiliate of New York-based Blackstone Real Estate Advisors are acquiring a portfolio of nine factory outlet centers from Charter Oak Partners for $491 million, including the assumption of about $187 million...

Chase Targeting Emerging Markets Through Joint Venture.
November 10, 2003... Chase Ventures Holdings Inc. and Prudential California Realty have entered into a unique alliance that combines the benefit of including professional real estate services with mortgage lending operations from origination to closing in one...

First American Reaches Out to Minority Home Buyers.
November 10, 2003... Strategically planing to place itself ahead of the game in community development, First American Corp. has announced a unique five-year initiative designed to assist underserved Hispanic, African-American, Asian-Pacific Islander and low- to...