ARM Index Analysis
A new MortgageDaily.com analysis of adjustable rate mortgage indexes indicates the cost of funds index has performed better than the Monthly Treasury Average or 1-year Treasury during the past year, while a LIBOR-based index has performed worse.
Fitch Bumps Subprime Servicer's Ratings
A Merrill Lynch & Co. subsidiary saw its subprime servicer ratings improved as a result of an experienced staff and an efficient operation.
Falling Rates Fuel Refis
Applications for refinances reversed direction and rose -- fueled by four weeks of falling rates. But a forecast from the real estate finance industry sees a surge well past six percent in subsequent quarters.
Accredited Activity Off
In its latest earnings release, Accredited Home Lenders Holding Co. announced originations eased and competition in the subprime sector stiffened.
Fannie Business Descends
Business tumbled at Fannie Mae.
NY Attorney General Looking at Lender Discrimination
Large mortgage lenders in New York are being investigated by the state's attorney general over possible discrimination, the Wall Street Journal reported today.
ABN AMRO Originations Off Again
ABN AMRO Mortgage Group, Inc. reported its third consecutive quarterly decline but sees a brighter horizon.
E*TRADE Loses Lock Fee Appeal
Mortgage lenders must return rate lock-in fees if the borrower backs out of the deal, a federal appeals court of Appeals has ruled.
Book Offers Sales Secrets for LOs
Loan originators can become better salespeople by first visualizing an error-free mortgage process, as stated in one popular book, then focusing on what the customer wants.
Despite some opposition, the residential mortgage industry has followed the national trend of sending some functions offshore. And a new study says the trend will only gain momentum -- with a five-fold increase expected in outsourcing to India by mortgage companies during the next five years.
Alt-A lending is hot, and some dominant players have emerged in the sector -- which is expected to grow this year even as other areas of lending slow down.
100% LTV on Stated Income Investor Properties
Loan-to-values up to 100% are now available on investor properties for stated income applicants, according to the West Coast wholesaler that provides the first and second mortgages.
Stemming Fraud Losses
Borrowers can opt to receive a fraud alert when suspicious activity occurs with their credit files. The service, along with others catering to lenders, aims to curb losses caused by mortgage criminals.
Conferences on the Horizon
This weekend kicks off a plethora of industry conventions aimed at U.S. mortgage bankers, mortgage brokers and mortgage fraud personnel.
Best Mortgage CEOs
While Countrywide's chief executive was recently ranked among the nation's highest-paid CEOs, it was the head of another California-based lender that was named the best-performing CEO.
Consolidations, Mergers Will Improve Operations
Two recently announced transactions will result in more streamlined operations, according to the principals.
Freddie Purchases Persist
No news is good news for Freddie Mac, which today reported the latest quarter's business activity held steady from the prior period.
Is Every Customer Worth Having?
Wholesale lenders should assess the value of individual mortgage brokers, according to an industry report, because more is not always better.
Florida Official Tied to Broker Fraud Case
Fort Lauderdale's top code enforcement official has been suspended from her job for her possible role in a federal mortgage fraud investigation.
Niche Lead Providers
Many originators use mortgage lead companies to find loan prospects. And like many of the loan officers they service, some of these lead providers focus on niche prospects such as customers needing subprime, FHA or reverse programs.
Jumbo Performance Leads Strong RMBS Sector
Residential mortgage-backed securities saw across-the-board improvement in performance -- with jumbo loans leading the pack, according to a report released this week. Among jumbo issuers, Bear Stearns ARM Trust stood out.
First Horizon Fundings Hold
Quarterly production maintained at First Horizon National Corp.
Rates Gyrating, Apps Soft
Applications declined despite three weeks of descending rates -- which one economist doesn't consider a trend.
How Interest Rates Work
Mortgage originators can now send their prospective borrowers to a government Web site that will educate them about how mortgage rates operate.
New Century to Target NASCAR Fans
New Century Financial Corp. likes fast growth and fast cars.
GMAC Production Down
Volume was down at GMAC's mortgage operation.
Lender Sues Former Branch Manager
The one time head of the Texas Association of Mortgage Brokers is bankrupt and fighting a legal battle with one of the nation's biggest government wholesalers.
More Sales Through Extended Hours
Living in paradise, most people might spend their weekends taking advantage of beautiful beaches and lush landscapes. But a Hawaiian mortgage broker uses the weekends to grab more business.
WaMu Volume Off
Washington Mutual Inc. saw its first quarter fundings fall.
Golden West Fundings Down
Golden West Financial Corp. broke a string of quarterly production increases.
Chase Volume Dragged Down by Correspondent
In line with several big banking institutions, JPMorgan Chase & Co. reported production was down from the prior quarter. But a drop in correspondent purchases left JPMorgan with a much bigger decline.
One Southern California mortgage lender plans to buck the recent trend of sponsoring sports events by reaching the masses through music.
FBR Subsidiary Launches Correspondent Unit
Sellers of nonprime, Alt-A and interest only mortgages now have another buyer for their closed loans.
National City Business Falls
Originations fell from the prior quarter and year at National City Corp., and the current level of loans in process indicates no increase is on the horizon.
Volume Off at Wells
Mortgage business was down at Wells Fargo & Company.
Sun Shines on SunTrust
Volume rose to the highest level in almost a year at SunTrust Banks Inc.
Bear Stearns Goes Wholesale
|Originator Steals Mom-In-Law's House
In his role as a mortgage originator, Patrick Morrison's job was to help put people into properties.
Mortgage brokers now have another nonconforming wholesaler to deliver loans to. The new operation promises high speed turnaround through online underwriting.
BoA Originations Continue Decline
Fundings fell again at Bank of America, with latest numbers near the lowest level in almost three years.
Nonprofit Mortgage Brokers?
Nonprofit mortgage brokers represent an opportunity for wholesale lenders, according to a new study, but such entities cannot operate under the same business model as a for profit broker.
Higher FHA Ratios
Payment and debt ratios have been increased on government-insured loans and child support can now be grossed into their calculations.
Industry Praises Passage of Bankruptcy Bill
The House of Representatives received a standing ovation from the real estate finance community for its approval of a new bankruptcy bill that makes it tougher to relinquish debt -- both secured and unsecured. But the legislation appears to benefit commercial and unsecured creditors more than residential lenders.
MortgageDaily.com Featured in Business Week Article
MortgageDaily.com's headlines are themselves making headlines.
Brokers Targeted Hispanics in Predatory Scam
A California couple, both mortgage brokers, were jailed for allegedly deceiving Spanish speaking borrowers into signing loans with terms they didn't understand.
Most Socially Responsible Mortgage Companies
After holding last year's top spot on a ranking of corporations with the best social responsibility practices, Fannie Mae has been bumped from this year's list entirely.
Citigroup Moving to Higher Credit Quality
As production fell at CitiMortgage, the company's parent announced the quality on its North American consumer portfolio has tightened.
6.5% by Year-End
More mortgage hunters applied for loans as long-term rates continued descending. But an industry forecast says rates will not stay below 6% for long.
Option One is Family Friendly
Option One Mortgage Corp. was commended by a Southern California city for its family friendly workplace.
Mortgage Lead Generator Busted by FTC
Federal and state government agencies have filed a complaint against a California company that generates mortgage leads by allegedly sending millions of illegal e-mail ads.
California Broker Raises Freddie's Ire
A California mortgage broker's agreements with borrowers to quickly refinance has caught the attention of Freddie Mac -- which has issued a statement indicating these type of arrangements are not permitted.
Bank Exec Sentenced after Decade of Stealing
Federal prosecutors never found a good reason why former Wilmington Trust Company executive John W. Flowers stole nearly $1.4 million from the Delaware-based company over a period spanning more than a decade.
In this first of a series of articles, MortgageDaily.com has profiled five executives from publicly traded mortgage-related companies. Compensation and background are presented, along with a look at the companies they run.
Lead Company Among Recent Mergers
While one deal has a mortgage service provider jumping into the leads business, another has a manufactured home producer jumping out of home finance.
REIT to Restate
Earnings from the final quarter of last year will be moved to the first quarter of this year, American Home Mortgage Investment Corp. announced today. The news was offset somewhat, however, by record loan production.
New Century President Races Cars
One of the nation's largest subprime lenders has not only put its money behind a sport-related branding deal, it has put its president in the front seat of a GT class Porsche race car.
Internet is Fraudster's Best Friend
Catch Me If You Can subject Frank Abagnale knows about fraud. As a young man he perpetrated a book's worth of the most ingenuous "white collar" crimes imaginable against corporations, law firms and the federal government.
Flagstar Fundings Fading
Flagstar Bancorp reported quarterly loan production yesterday, and it wasn't good.
New HSBC President
HSBC Mortgage Corp. has a new president.
Alt-A Activity Intense
While jumbo mortgage production is expected to fall this year, the fastest growing sector last year -- Alt-A lending -- shows no signs of fading. And some Alt-A growth is expected to come at the expense of subprime business.
Mortgage Brokers Pound Each Other
Two Chicago mortgage brokers recently came to blows at a local real estate event.
Mortgage Prospect Obstacles
A recent survey indicates consumers earning more than $75,000 a year are more confident about maintaining a mortgage than those making less than $75,000.
Countrywide Goes Reality TV -- Latin Style
In its efforts to reach the Hispanic market, Countrywide Home Loans has capitalized on the reality TV craze.
Overtime Lawsuits Overwhelm Industry
The industry is taking a pounding from a series of employee lawsuits alleging unpaid overtime. But employers argue that the overlapping of state and federal laws are fueling the claims.
Countrywide 1st Quarter Off
Business was off at Countrywide Financial Corp., but a rising pipeline indicates the tide may turn.
Brokers Get Help Becoming Correspondents
A mortgage industry service provider is offering to help mortgage brokers make the transition to mortgage correspondents.
APRs Lower with Brokers
A new study from the Georgetown University Credit Research Center contradicts the commonly held notion that it costs more to use a mortgage broker than a banker.
New ARM Product Hits Market
A new wholesale adjustable rate mortgage gives borrowers four ongoing options for their monthly payments.
New Century Production Off
New Century Financial Corporation reported an increase in monthly fundings -- but quarterly fundings were off.
Rates, Apps Off
While application activity worsened, rates fell for the first time in seven weeks -- with the lowest rates tracked in the West.
Best Ever at IndyMac
Originations inched up to an all-time high for IndyMac Bancorp -- which forecasts it will soon be among the top 10 originators in the nation.
New Subprime Mortgage Products Untested
The desire to originate more loans in a rising rate environment has resulted in the use of new subprime programs that have yet to be tested for performance.
Fortune 500 Mortgage Companies
The parent of CitiMortgage and CitiFinancial retained a top 10 position in the latest FORTUNE magazine ranking of the 500 largest corporations in America -- placing it at the top of all mortgage related companies on the list.
21 Years of Bad Accounting at Fannie
The Director of the Office of Federal Housing Enterprise Oversight testified today that a major programming error at Fannie Mae has resulted in 21 years of faulty accounting.
Fannie, Freddie Regulator Leaving
After his stint as David fighting the mighty Goliath, the director of the Office of Federal Housing Enterprise Oversight is stepping down.
American Business Financial Calls it Quits
The board of directors of American Business Financial Services Inc. has elected to wind down the operations and liquidate the company -- leaving employees without a job.
Broker Couple to Report for TV Show
South Florida residents may already be familiar with Anthony and Susan Cutaia -- in addition to founding their mortgage brokerage, the husband and wife team host a local radio show.
FHA 5/1 Rate Caps Raised
HUD is doubling the annual rate adjustment caps on government-insured 5/1 hybrid ARMs.
M&A, Secondary Transactions
The latest mergers and acquisitions include a secondary mortgage transaction in the billions that will leave at least 100 people jobless.
Mortgage Banker YSPs Attacked
In a new study, a homeowner watchdog group claims borrowers are unknowingly paying loan fees twice and says it is "astonishing" that mortgage bankers are exempted from yield spread premium disclosures.
Pastor Indicted for Fraud
Three Massachusetts mortgage brokers have been arrested for mortgage fraud. But what makes this case interesting is that one of the brokers is pastor at his local Baptist church.
More Accounting Woes at Fannie
Special purpose entities, those nasty little financing vehicles that helped Enron fool the world, have now surfaced as a point of concern with mortgage giant Fannie Mae.
Roommate Kills Originator
A young loan officer's attempt to be successful at originating was tragically cut short by a recently-rehabilitated drug user's anger over exclusion from a trip planned with mortgage business associates.
Mortgage REIT Returns Stumble
Returns for mortgage real estate investment trust investors sunk in the first quarter.
Gov Clarifies HMDA Data
The federal government is trying to make it easier to understand new Home Mortgage Disclosure Act data.
A new report suggests it may be easy to increase subprime originations through interest only programs -- but only at the expense of retention rates. The analysis discussed which subprime originators had the highest loan-to-values and lowest credit scores.
Fannie Eases Condo Process
Fannie Mae will soon loosen restrictions on its condominium loan buying guidelines. Among the planned changes is the acceptance of FHA project approvals.
Record ARM Activity
Even though short term rates rose more than long term rates, the share of mortgage applications that were adjustable rate reached a record.
Mortgage Industry Jobs Up in February
More than 7,000 mortgage related jobs were added in February, according to a closely watched report from the government.
COFI at Highest Level Since 2002
The West Coast index for adjustable rate mortgages continued its ascension during February.