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October 2010 Archive


Mixed Movements for ARM Indices
As the Cost of Funds Index moved lower, other adjustable-rate indices move in different directions.

All MERS Foreclosures in R.I. Assigned to 1 Judge
PROVIDENCE, R.I. -- Following a favorable ruling for mortgage servicers, all foreclosure cases in Rhode Island that are related to the Mortgage Electronic Registration System are being directed to one judge.

LPS CEO Sees Growth Despite Bumps
The top executive at Lender Processing Services Inc. reassured investors that no defects have been uncovered in the firm's foreclosure process and no illegal fee splitting has occurred. In fact, he sees a healthy increase in business ahead as the foreclosure crisis subsides and servicers resume a full pace on foreclosures. LPS also announced an addition to its senior management team.

Private M.I. Firms Gain on FHA
While government mortgage insurance has gained market share over its private insuring rivals during the past year, the latest month was in favor of private mortgage insurance companies.

FHA Finishes Year Lower
The Federal Housing Administration endorsed 10 percent fewer loans during fiscal-year 2010 than in the previous year and fell short of original projections. Refinances and reverse mortgages were responsible for the decline. As conventional defaults have fallen, FHA's delinquency metrics deteriorated. But it looks like the average FHA FICO score could break through the 700 level next month.

126,326 FHA loans endorsed for $24.4 billion in September

MGIC Expands 97% LTV
The mortgage insurance subsidiary of Mortgage Guaranty Insurance Corp. has expanded its 97 percent loan-to-value program.

Shift From Freddie to Fannie
Secondary marketing investments by the Federal National Mortgage Association jumped more than a third on a monthly basis, though the story was different for quarterly activity. The company saw its loans under management rise last month even as rival Freddie Mac reported a decline.

Refis Retreat as Rising Rates Headed Higher
Fixed-mortgage rates rose this week and are likely to be higher in next week's reports. Refinances drove a small decline in prospective borrower activity.

Best Mortgage Servicers
By several measures, Wells Fargo & Co. is considered the best mortgage servicer. On a more anecdotal level, some other big servicers don't rank so well.

Flagstar Improves Performance
Flagstar Bancorp Inc. increased the number of loan origination centers it operates by nearly a quarter while managing to trim its mortgage sales force by 4 percent. Home-loan originations were higher and losses were lower.

FL Court Rules Against US Bank; Wells to Re-file Affidavits
As Wells Fargo & Co. retreated from its assertion that its foreclosure affidavits have been accurate, a Florida appeals court has ruled in a case against U.S. Bank, N.A., that mortgage servicers cannot finalize a foreclosure without an original note.

Op-Ed: The Cost of Regulation
During the George W. Bush administration, around $70 billion in new federal rules were adopted. But the Barack H. Obama administration will likely have its predecessor beat by a long shot.

Update on Foreclosure Crisis
In the wake of allegations of potentially deficient affidavits being submitted in connection with foreclosure actions in a number of states, there was no doubt that courts would give much closer scrutiny to the documentation submitted by mortgagees in support of their applications for foreclosure judgments. But actions will likely go beyond the courts -- with federal legislators and regulators taking their own actions. Criminal liability is also a possibility.

U.S. Bank Needs More Mortgage Recruits
After unveiling plans to hire hundreds of employees, U.S. Bancorp's mortgage unit might need to recruit even more.

Mortgage Market Weakens
Mortgage rates rose as refinance transactions dragged down new loan activity.

Mortgage Market Index is 298 for the week ended Oct. 27, 2010

Originations Higher But Delinquency Mixed at Regions
Residential delinquency was worse at Regions Financial Corp., though delinquency on loans secured by investor commercial real estate sank. Originations were higher, and the company cut its losses.

OneWest Has New Leader
OneWest Bank FSB has a new chief executive officer.

Net Worth Requirements Raised for GNMA Participants
Mortgage lenders that participate in programs from the Government National Mortgage Association will soon be subject to new net worth requirements. One of the objectives of the updates is to ensure issuers have enough capital to cover repurchases and indemnifications.

Delinquent Borrowers Jeopardize Market for All
Regulators and senior executives at mortgage firms are warning that any blanket moratorium could cost companies and taxpayers dearly. One estimate has those costs at $150 billion. But attorneys for borrowers, as well as consumer activists, are still moving to protect delinquent borrowers -- a very small share of the overall market -- despite the potential costs to everyone else.

Mortgage Bankers Offer Bleak Origination Outlook
The latest outlook from the Mortgage Bankers Association has quarterly mortgage originations tumbling. But the outlook conflicts with recent reports from major mortgage lenders and the latest forecasts from Fannie Mae and Freddie Mac.

Freddie's Volume Falls Below Wells'
Despite a quarterly improvement in secondary marketing activity at Freddie Mac, the company's volume fell below that of the largest primary mortgage lender in the country. Residential delinquency improved, though that was not the case for late payments on apartment loans.

Government Too Involved in Mortgage Lending
At a panel discussion that included a U.S. senator, an official for the U.S. Department of Housing and Urban Development and an economist from the regulator of Fannie Mae and Freddie Mac, the general consensus was that the government is too involved in the mortgage market.

Signs Missed on Foreclosure Affidavits
WASHINGTON -- At a conference hosted by the Federal Reserve and the Federal Deposit Insurance Corp., federal regulators acknowledged shortcomings in foreseeing a wave of suspect foreclosure paperwork coming. One tell-tale sign was a decline in servicing fees. Still, they said that some foreclosures need to be completed.

Memphis Servicers Face Lawsuits
More than a hundred lawsuits are being filed by the City of Memphis, and mortgage servicers are among the defendants. It's not the first time that the city's mayor has taken legal action against mortgage firms.

Borrowers Warned about Foreclosure Notices
The government is warning delinquent borrowers that, despite a suspension of foreclosures by some mortgage firms, they should not ignore any notices from their servicers.

California Lender Boasts Hirings, Increased Lines
Empowered with an increased warehouse line, a mortgage lender based in California recently added several dozen employees and is still hiring.

FHA Loan Amount Requirements Eased
Requirements on loan amounts for mortgages that are insured by the Federal Housing Administration have been eased.

Baltimore Vs. Wells Goes Live Again
The City of Baltimore hopes that the third time is a charm in its lawsuit against Wells Fargo & Co.'s banking subsidiary. This time the city is trying to do a better job of showing how the San Francisco-based company's lending practices are responsible for its foreclosure problems. But the bank says that Baltimore is just wasting its citizens' valuable resources on the case.

FHA Third-Party Program Launched
A national mortgage wholesaler announced a new program that will provide a variety of options for third parties seeking to originate loans that are insured by the Federal Housing Administration.

Outlook Strong for Specialty Servicers
Business was already good at one specialty servicer who has been preparing for more growth as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. But the company wasn't expecting the increased demand tied to the foreclosure affidavit issue.

10 Go Down
In addition to seven banks that failed on Friday, recent mortgage-related operations to close or collapse include a credit union, a wholesale mortgage lending unit and a company that gave mortgage brokers with no net worth the ability to operate as mortgage bankers.

Sterling Boosts Performance
Sterling Financial Corp. slashed its construction lending assets, cut its losses and increased its originations.

BB&T Has Strong Quarter
Branch Banking and Trust Co. increased its originations, servicing portfolio and mortgage assets. The company said that its foreclosure procedures are solid.

Foreclosure Documentation Webinar Posted for Viewing
Mortgage Daily hosted a Webinar on the foreclosure documentation crisis. Panelists on hand to discuss this critical and timely issue included two senior servicing executives and expert mortgage banking attorneys from the Washington, D.C.-based firm of Patton Boggs LLP. The full event is now available for viewing.

Lenders Concerned about Dodd-Frank Provision
PHILADELPHIA -- Bankers and mortgage lenders are concerned about a provision in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 that prohibits "abusive practices," a term that has yet to be defined but will likely put an end of some products.

Fifth Third Sees Improvement
Fifth Third Bancorp grew its loan production, servicing portfolio and income. But home-equity assets were lower and repurchase expense was worse.

SunTrust Improves Performance
Mortgage fundings moved higher, home-loan delinquency declined and earnings improved at SunTrust Banks Inc.

Foreclosure Lawsuit against BofA Seeks Class Action Status
An Indiana couple has filed a federal lawsuit against Bank of America Corp. over allegations that foreclosure affidavits were signed even though the employees signing them didn't actually review the documents. Attorneys in the case hope to certify the case as a class action.

Fed Hearing Pits Lenders Against Consumer Groups
WASHINGTON -- Executives from some of the nation's biggest lenders told a Federal Reserve council that it is unfair to accuse all mortgage servicers of using bad foreclosure practices and warned about the consequences. But consumer advocates see it differently and are calling for more extreme measures such as cramdowns and moratoriums.

1-Year ARM Takes Spotlight
As fixed rates rose this week, the one-year adjustable-rate mortgage tumbled 13 basis points to its lowest level in nearly three decades -- pushing ARM share higher. The outlook for the one-year is a continued decline.

HAMP Activity Dissolves
Since reaching a peak six months ago, the number of monthly government modifications completed has fallen to the lowest level on record.

27,133 HAMP modifications completed in August

Fannie-Freddie Bailout Costs Could Exceed $350 Billion
The regulator of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp. projects that taxpayers could end up spending more than $350 billion in the bailout of the two companies.

Foreclosure Crisis Morphing to Repurchase Crisis
WASHINGTON -- Nearly a dozen federal agencies are examining servicing practices at the nation's lenders. Mortgage firms are also facing the prospect of huge repurchases. One estimate has mortgage firms repurchasing as much as $120 billion in loans from mortgage-backed securities.

Former Chase CEO to Lead Florida Lender
A mortgage banking executive who has held senior management roles at some of the nation's biggest mortgage lenders, including JPMorgan Chase & Co.'s mortgage unit, has joined a Florida-based lender with plans of becoming a significant player in the industry.

Record U.S. Bank Originations
It was a record high for quarterly home-loan production at U.S. Bancorp. In addition, the servicing portfolio increased and residential delinquency improved. But delinquency on home-equity loans deteriorated.

Activity Slows, Rates Rise
Interest rates increased, and refinances dragged down new lending activity. But the spread on jumbo mortgages improved.

Mortech-Mortgage Daily Mortgage Market Index for the Week Ended Oct. 20, 2010

Insurer Settles With Mortgage Lender
A lender that filed a lawsuit against a mortgage guarantee insurance company in the hopes of ending ongoing premiums while maintaining ongoing coverage has reached a settlement.

Mixed Mortgage Forecast
The latest mortgage outlook has mortgages outstanding falling by nearly $500 billion during the next two years. The share of adjustable-rate mortgages is projected to jump, while refinance share is headed lower. A peak in production is predicted for the current quarter.

BofA v. FDIC
The Federal Deposit Insurance Corp. has been sued by Bank of America, N.A., on behalf of investors whose claims were denied by the agency. The investors say they lost more than $1 billion because executives at two failed banks allegedly helped a subsidiary of Taylor, Bean and Whitaker Mortgage Corp. deceive them.

Biggest Lender Widens Lead
Wells Fargo & Co., already the nation's biggest residential lender, leapt past $100 billion in quarterly originations and put more distance between its top-ranking volume and No. 2's. The current quarter is on track for an even better performance.

MBS Investors Assert OwnershipVideo of Tom Deutsch discussing MBS ownership of loans
Securitization trusts are clearly the owners of mortgages despite accusations to the contrary by delinquent borrowers, according to the head of a securities trade group.

Video of Tom Deutsch discussing MBS ownership of loans

Fed Among RMBS Investors Calling for BoA Repurchases
SAN FRANCISCO -- A group of investors that includes the Federal Reserve is calling on the trustee in a mortgage-backed securities transaction to issue repurchase demands to Bank of America Corp. for loans that Countrywide Financial, the issuer, didn't approve in accordance with underwriting guidelines. The group is also asking that the issuer pay the cost of modification on predatory loans.

Mortgage Delinquency Improves Again
Late payments on home loans were lower last month. Over the past year, Los Angeles and Miami have seen huge improvements in the level of defaults.

Appraisal Rule Released
An appraisal rule that becomes mandatory in less than six months addresses appraisal independence, the compensation of appraisers and a requirement to report bad appraisals.

BofA Delinquency Rises, But Not Originations
Sharply higher third-quarter mortgage production at other lenders was not matched by Bank of America Home Loans -- which saw virtually no increase in originations. Meanwhile, the rate of home-loan defaults deteriorated as the company continued to buy back government-insured loans. Commercial mortgage delinquency was also worse.

BofA, GMAC Cautiously Move Forward
No bad foreclosure decisions have been uncovered by internal investigations at Bank of America Home Loans and GMAC Mortgage LLC. Both servicers are carefully moving forward with new foreclosures and taking additional steps to ensure no wrongful foreclosures are filed.

Billion Dollar Player Boosts Staff
A Michigan firm that originates nearly $1 billion annually has added more than a hundred employees so far this year and could add more.

CEO Pleads Guilty in Secondary Scheme
The the former chief of a New Jersey lender that failed last year has pleaded guilty to $11 million in secondary lending fraud.

$1 Billion for Delinquent Borrowers
The Obama administration said it will soon begin accepting applications for a $1 billion program that will pay up to two years of payments for delinquent borrowers who have had a reduction in income. Six states will see more than half of the funds.

Citi Originations Shoot Up
Mortgage loan fundings jumped two-thirds at Citigroup Inc., though consumer delinquency inched higher. At Citi Holdings, delinquency dropped as the unit successfully cut its mortgage holdings.

Quicken Suspends Origination Reports
Quicken Loans Inc., which saw its origination ranking fall last quarter, is fed up with being compared to mortgage lenders that also originate loans from mortgage brokers and correspondent lenders. So the retail lender said it will stop reporting origination data. Except when it has a record month.

Bank Failures to Cost Over $500 mil
The insolvency of one bank in Kansas and two in Missouri is expected to cost the Federal Deposit Insurance Corp. more than $500 million.

Borrowers Advised to Break Into Foreclosed Homes
A California attorney, whose attempt to stop foreclosure on the home of a baseball player was called frivolous by the judge, has advised borrowers on two mortgages to hire locksmiths and reclaim their foreclosed properties. The lawyer sees the current environment as favorable for some of his legal theories, though other legal experts question his logic.

HVCC Replaced
The Home Valuation Code of Conduct has been replaced.

$73 mil SEC Settlement with Countrywide Executives
LOS ANGELES -- A trio of former senior executives from Countrywide Financial Corp. have agreed to a settlement with the Securities and Exchange Commission. The three executives, who are accused of misleading investors, will pay more than $73 million in fines and restitution.

Late Payments Rise
The share of home-loan borrowers who were past-due on their mortgages took a turn for the worse last month.

BofA Investigation Should be Complete Soon
The chief executive officer of Bank of America Corp. projected that the mortgage servicer will be done reviewing foreclosure documents in just a few weeks when it expects to make a decision about resuming foreclosures.

Former Countrywide Chief Could Settle with SEC
The co-founder and former chief of Countrywide Financial Corp., once the biggest mortgage lender in the country, is close to settling civil charges with the Securities and Exchange Commission and avoiding a court trial. But a criminal investigation still looms.

Servicers' Ratings Jeopardized by Affidavits
Possible irregularities in the foreclosure process at two mortgage servicers has their servicer ratings facing a possible downgrade.

Record Rates Likely to Escalate
The lowest mortgage rates since the 1950's will probably be higher in next week's reports. Business has accelerated at both mortgage broker shops and mortgage banking firms as refinance activity has been reinvigorated. But a steep decline in first-quarter refinances is projected.

HUD Chief: Moratorium Could Delay Recovery
REPORTING FROM WASHINGTON AND LOS ANGELES -- In hard-hit markets, a foreclosure moratorium could drive prices lower and cause a housing recovery to take longer, according to the head of the U.S. Department of Housing and Urban Development. His comments come as the Obama administration feels pressure to impose a moratorium.

Hotels, Nevada Push CMBS Defaults Higher
More than one-in-four securitized commercial mortgages in Nevada is delinquent -- the worst record of any state. For the country as a whole, last month saw ongoing deterioration. Hotel defaults continued to dog overall performance, while late payments on multifamily mortgages managed an improvement.

Closer Look at Foreclosure Probe
Four mortgage servicers are the focus of a 50-state investigation into foreclosure affidavits. States hope to use their findings as leverage in forcing servicers to increase loan modifications. One proposal has servicers being fined $25,000 for each case of fraud.

LendingTree Hiring 200 Employees
Around 200 new employees are being recruited by LendingTree LLC in California and North Carolina. Growth is at the heart of the hiring campaign.

The Storm Before the Calm
By most measures -- foreclosure filings, foreclosure rates and repossessions -- national foreclosure activity deteriorated on a month-over-month basis and a year-over-year basis. In fact, repossessions were the highest on record. But an upcoming improvement in these metrics is likely.

30-Year: 4.115%
The conforming 30-year mortgage fell to a shockingly low 4.115 percent this week, while mortgage activity continued higher for the second consecutive week. The chief of a jumbo mortgage lender sees room for improvement in jumbo spreads.

Mortech-Mortgage Daily Mortgage Market Index for the Week Ended Oct. 13, 2010

Guidance for Servicers on Affidavits
The regulator of Fannie Mae and Freddie Mac has created a framework for the two secondary lenders and their respective servicers to utilize as they sift through foreclosure cases for faulty affidavits.

50-State Probe Announced
All 50 states are on board with an investigation into foreclosure affidavits processed by the biggest U.S. servicers.

Chase Reports Strong Business, Fewer Lates
In a signal that U.S. home-loan production picked up in the third quarter, JPMorgan Chase & Co. reported a nearly one-third quarterly increase in originations. New applications indicate further strengthening is ahead. Other good news included a decline in mortgage delinquency.

Navigating Your Business Through the Foreclosure Documentation Crisis
A complimentary 60-minute Webinar has been planned to discuss the mounting legal challenges to the residential foreclosure documentation process and the other issues that will likely stem from this crisis.

Wells Still Stands By Foreclosures
Wells Fargo & Co. still stands behind its affidavits, though it will look more closely at future foreclosures. The lender noted that borrowers who do ultimately face foreclosures are, on average, more than one year past due.

Credit Union Package Not a Bailout
The failure of three corporate credit unions, and the government's plan to resolve them, won't be paid for by taxpayers, according to the chief of a credit union trade group.



GMAC Hires Firms to Review Affidavits
Several outside legal and accounting firms have been hired by GMAC Mortgage LLC to review its foreclosure process in every state.

U.S. Origination Outlook Lifted
Projected home-loan production by U.S. lenders this year was boosted by $100 billion, while conventional activity is expected to outpace government business.

Growing Crisis Prompts More States to Investigate
So far, five mortgage servicers have suspended foreclosures in 23 states that require judicial foreclosures, while one of the servicers has halted actions in all states. Several states have banded together to use their collective resources to investigate faulty foreclosures, and Kansas is among states expected to announce participation.

Florida Jumps on Foreclosure Bandwagon
The attorney general in Florida, who has been criticized for not being more aggressive with mortgage servicers but filed lawsuits months ago against law firms that handle foreclosures, is joining dozens of other states in investigating foreclosure practices. However, the state official has no plans for a moratorium.

Retail Reverse Originations Outrun Wholesale
The biggest originator of federally insured reverse mortgages saw monthly business soar 37 percent. While reverse volume through retail lenders has climbed 8 percent over the past year, wholesale originations have been chopped in half.

Golden State Expected to Join F/C Probe
A multistate probe into potentially faulty foreclosure affidavits is expected to add California to its ranks.

IN Expected to Join F/C Probe; 17 States Mulling
Indiana is expected to join 23 states conducting a coordinated foreclosure probe. In addition, another 17 states might be interested in joining. Investment bankers and the executive branch of the U.S. Government oppose a foreclosure moratorium.

Mortgage-Related Casualties Continue
During the third quarter, the failure or closing of 49 mortgage-related companies and operations were tracked in the Mortgage Graveyard from MortgageDaily.com. A subprime mortgage lender called it quits during the latest period, while a huge mortgage banker subsequently abandoned mortgage broker originations. Overall casualties this year are on track to subside from 2009.

Former Subprime CEO Heads Growing Firm
A billion-dollar lender based in California has plans to increase its mortgage staff in excess of 80 percent and more than double its home-loan production. The growth is being funded by an $8 million investment. The chief of the company talked with Mortgage Daily about upcoming plans and about his time leading a subprime lender while it became one of the first high-profile casualties of the subprime meltdown.

Banks Ordered to Cease-and-Desist
Banks have faced a multitude of regulatory actions lately. The number of cease-and-desist orders recently issued by federal banking regulators have been strong, though several such orders have also been terminated. The Federal Deposit Insurance Corp. has a new name for cease-and-desist orders.

Mortgage Bankers Traveling to Atlanta
The mortgage industry's premier annual conference kicks off in two weeks in Atlanta. Other upcoming industry events are expected to address the foreclosure affidavit crisis, hard-money lending and distressed investing -- among other topics.

Mortgage-related conferences and events
Ponzi Scheme Alleged with Bankrupt Mortgage Funds
Under pressure from federal officials, a bankruptcy trustee will not be paying a consulting fee to the former head of several bankrupt mortgage funds to help wade through the funds' financials. A massive Ponzi scheme is alleged.

FHA Mortgagees Face Stiffer Liability
Mortgage lenders who originate Federal Housing Administration loans face tougher underwriting requirements under a rule being proposed. Another change will impact which mortgagees have their origination agreements terminated.

CT Judiciary Ponders Moratorium
Judges in Connecticut are considering the legality of imposing a foreclosure moratorium in the state.

Bank of America Halts All U.S. Foreclosures
Under pressure by both state and federal officials, Bank of America Home Loans has suspended foreclosures in all 50 states.

Iowa Asks Servicers to Halt Foreclosures
Three mortgage servicers are being asked by Iowa to suspend foreclosures while the state investigates foreclosure documentation. All three companies, however, have already indicated they would hold up foreclosures in the state as well as 22 others.

Mortgage Jobs Retreat
After a surprise jump in the number of real estate finance jobs during July, mortgage employment settled back.

Possible FHA Fine For First TN
Excessive claims paid by the Federal Housing Administration on loans originated by First Tennessee could have the bank facing a fine of nearly $1 million. But alleged infractions are not significant; one of the loans had a 47 percent debt-to-income ratio, and another missed verification of the borrower's required investment in the property by less than $200.

Record Rates Might Fall Further
Another round of record-breaking interest rates helped boost mortgage business this week. One key barometer points to even lower mortgage rates. Last week's prospective borrowers were prompted to take advantage of Federal Housing Administration programs before new requirements took effect this week.

New Evidence Against Countrywide Execs
LOS ANGELES -- A judge is set to decide on new evidence filed in a government lawsuit against former Countrywide Financial Corp. executives -- including the company's founder.

MN AG Asks Servicers to Halt Foreclosures
Minnesota, a state that does not require judicial foreclosures, has become the seventh state to investigate the legitimacy of foreclosures within its borders and has asked more than a dozen major servicers to stop foreclosing until they can show the state that they are in compliance with Minnesota laws.

Activity Improves as Rates Retreat
Mortgage brokers generated more new loan activity this week, with refinances powering the increase. Conventional mortgage rates declined, but jumbo declined even more.

Mortech-MortgageDaily.com Mortgage Market Index for the Week Ended Oct. 6, 2010

Wholesaler Sees Opportunity in BofA Exit
A California-based wholesale lender is taking advantage of Bank of America Corp.'s departure from the wholesale lending business and offering to provide mortgage brokers with continued access to the bank's loan programs.

GMAC Fires Back at Ohio
In response to a lawsuit filed today by the State of Ohio, GMAC Mortgage LLC said that it has done nothing fraudulent, and no borrowers have been unfairly put through the foreclosure process.

1 Down, 2 to Go at LPS
The chief executive of Lender Processing Services Inc. told analysts that recently filed lawsuits are just exploiting negative press about foreclosures. The company sees a victory ahead in two cases, one in Mississippi and another in Kentucky, while a Texas case was dismissed.

Agreement with States has Wells Forgiving Principal
Some borrowers with pick-a-payment mortgages at Wells Fargo & Co. are being offered principal write-downs as part of an agreement with attorneys general in several states. The exotic loans, many with negative amortization, have a colored history. Some were originated under the supervision of the current Federal Housing Administration commissioner, while profits earned years ago off the loans are now being used to attack mortgage servicers -- including Wells Fargo.

Ohio Sues GMAC
Ohio is filing a lawsuit against GMAC Mortgage LLC over deficient affidavits, while the servicer is among 15 companies targeted by the State of North Carolina.

10-Year Yield Sinks
The yield on the 10-year Treasury Note sank today, leaving the 30-year mortgage rate poised to set a new record.

Chapter 13 Filings Jump
A jump in chapter 13 filings fueled a monthly increase in consumer bankruptcies.

Reverse Originations Decline
Government-insured reverse mortgage production fell 10 percent last month. But two top-five originators managed an increase.

Bank Reported Bogus Delinquency Rates
A former executive of a failed Pennsylvania bank has been indicted for reporting fraudulent delinquency numbers to the government.

Wanted: Production Employees
Mortgage production positions are being filed at an operations center in South Carolina. The recruiting campaign, which involves 50 new jobs, is just one of several in the state.

Ties to Foreclosure Debacle Send LPS Shares Lower
Lender Processing Services Inc.'s role in the current foreclosure debacle is being questioned by investors -- who sent shares of the company's stock tumbling. In addition, a lawsuit alleges that the company splits fees with attorneys in foreclosure and bankruptcy cases.

Fired Fannie Contractor Tried to Destroy Computer System
A former contractor at Fannie Mae has been convicted of trying to destroy the company's computer system after he was fired.

Texas AG Issues Letter to Servicers
More than two dozen mortgage firms that service residential loans in Texas have been asked by the state to suspend foreclosures.

Servicers Safe in CA
Mortgage servicers are unlikely to suspend foreclosures in California despite paperwork improprieties that drove three of the nation's biggest servicers to suspend foreclosures in 23 other states last week.

Bank of America Exits Wholesale Lending
The wholesale lending division that Bank of America Corp. inherited with its acquisition of Countrywide Financial Corp. will be shut down. Resources will be re-directed toward correspondent lenders. It's the second time that the bank has exited the mortgage broker business.

MD Seeks to Become 24th State of Foreclosure Suspensions
Officials in Maryland are asking servicers to suspend foreclosures -- and Maryland is not even among the states where lenders have halted foreclosures because of faulty affidavits.

Wholesalers Among Firms to Appoint Execs
New executives have recently been appointed to oversee wholesale lending operations at two companies, while a mortgage servicer and two commercial real estate lenders disclosed management changes. Also making recent changes to management were a warehouse lender and a mortgage branch operation. Three of the latest appointments involved former executives of subprime mortgage companies.

Service Providers Enact Executive Strategies
More than 20 mortgage service providers -- including an investment banker, a default service provider and valuation firms -- have recently recruited or replaced executives. Two trade groups and a public relations firm were also in on the action.

Bank CEO Disappears
The head of a bank with more than $0.5 billion in assets has gone missing, prompting the board to appoint an interim chief. More than a dozen other institutions recently announced executive changes.

Recent bank executive activity

MTA Falls to New Low
As predicted last month by this publication, the Monthly Treasury Average declined to a new low. The index is likely to set at least one more record.

BofA Servicer Rating in Jeopardy
Bank of America Corp. has become the third mortgage servicer to face a downgrade over the handling of foreclosure affidavits.

Wells Stands By Affidavits
Despite the reported admission of a Wells Fargo & Co. executive that he didn't personally verify information on foreclosure documents, the company is standing by its affdavits.

Chase Branches Lose FHA Approval
The latest companies to see mortgage lending branches lose Federal Housing Administration approval include JPMorgan Chase & Co. and a Colorado-based wholesale lender. Two mortgage branch operations were also among the impacted. In all, more than 30 mortgagees were recenlty terminated or lost their underwriting approval authority.

Commercial Originations Could Soar
A trio of recent reports offer insight into the current state of the commercial mortgage market. One indicates that quarterly commercial originations were up by more than a third, while another points to a marked increase in projected production.

Mortgage Banker Outlook Weaker than Agencies
Mortgage bankers have next year's residential originations coming in more than $300 billion less than the latest projection from the Federal Home Loan Mortgage Corp. The most recent outlook from the Federal National Mortgage Association falls somewhere in between.

2nd Week of FL, WA Bank Failures
It was the second week in a row that two banks failed, and one of those institutions was in Florida while the other was in Washington.

Agencies, Regulators Sound Off on Faulty Affidavits
Another big mortgage servicer is holding up foreclosures in nearly two dozen states to ensure affidavits were properly completed. With the number of servicers announcing such moves growing by the day -- mortgage agencies and federal regulators are telling servicers to fix the problems and to make sure that no borrowers have been harmed in the process.

$0.7 Billion in Distressed Assets Acquired
More than $0.7 billion in distressed residential and commercial assets were acquired by one company.

Fannie Issuances Up By Half
Agency issuance of fixed-rate mortgage-backed securities jumped in September and was also stronger than a year ago. The Federal National Mortgage Association was responsible for much of the month-over-month gain, with its own issuance surging by more than half.

RMBS Investors Call for Repurchases
Individuals and groups who invested in residential mortgage-backed securities are calling for servicers to pursue repurchases on loans with defective affidavits.

Other Servicers Could Suspend Foreclosures
The foreclosure process used by JPMorgan Chase & Co. and GMAC Mortgage LLC is likely no different than at other mortgage servicers, and some in the industry are speculating that more servicers will be suspending foreclosures.

COFI & Other Indices Continue to Fall
The Cost of Funds Index was lower in August, and if other indices on adjustable-rate mortgages are any indication -- COFI was fell further last month.

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