twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.


1 Dead, 2 Seriously Injured

Recent mergers, acquisitions and other corporate activity

October 24, 2007

By COCO SALAZAR


photo of Coco Salazar

The country's credit crunch has cost two companies more than $8 billion and one wholesaler its life. Meanwhile, an exodus of founding chief executive officers from real estate investments trusts has one ratings agency warning bondholders about the troubling trend.

REIT founders and their family members are stepping aside as non-family members and second generation executives take control, a trend that troubles Moody's Investors Service. The agency announced it had viewed family control favorably because it leads to conservative financial policies and decisions based on a longer-term perspective, there are many signs that controlling shareholders are now considering their investment options more broadly and sometimes are not willing to operate under demands associated with remaining a publicly traded company.

"This change in perspective is a negative for bondholders," Moody's said in the announcement, "Selling out typically means higher leverage and an investor base with a short-term investment horizon; going private, even when the family remains involved, means higher leverage, less transparency, and less investment in core controls."

Allied Home Mortgage Capital Corp. announced a new branch in Summerville, S.C. The net branch operation, which reports $12 billion in 2004 originations, claims to be "the largest privately held mortgage banker/broker in the U.S."

Ambac Financial Group Inc. reported a third quarter net loss of $361 million, compared to earnings of nearly $214 million a year earlier, was prompted by the previously disclosed unrealized $743 million mark-to-market loss on credit derivative exposures resulting from unfavorable market pricing of collateralized debt obligations.

Write-downs of $7.9 billion for CDOs and U.S. subprime mortgages were the main drivers of the $2.3 billion net loss Merrill Lynch & Co. announced for its third quarter today. Merrill noted the write-downs were much larger than the $4.5 billion it anticipated at the time of its earnings pre-release because difficult credit markets and additional analysis at the quarter-end closing process let it to re-examine its remaining CDO positions with more conservative assumptions.

Moreover, "We expect market conditions for sub-prime mortgage-related assets to continue to be uncertain and we are working to resolve the remaining impact from our positions," said Stan O'Neal, Merrill chairman and chief executive officer, in the announcement. "Away from the mortgage-related areas, we continue to believe that secular trends in the global economy are favorable and that our businesses can perform well, as they have all year."

Following Merrill's released results, Fitch Ratings announced it downgraded Merrill's credit ratings and kept it on the Negative Rating Outlook.

"The size of Merrill Lynch's CDO position and subsequent loss reveal deficiencies in risk management," the ratings agency said in the announcement. "Fitch anticipates liquidity and pricing challenges to prevail in the market over the intermediate term potentially resulting in lower revenues (in select products/services), investment write-downs and/or fewer principal trading opportunities."

Honor State Bank confirmed to MortgageDaily.com that it closed its wholesale mortgage lending division as of Tuesday. The move affected about 10 employees. In the "good days," which the company cited as being since the division's opening in 1998 through 2006, wholesale volume was between $35 million and $40 million.

The closure forms part of a restructuring plan that called for a reduction in workforce as a result of "the turmoil in the U.S. real estate finance market," Honor State said on its Web site.

CWCapital Asset Management LLC announced it was appointed special servicer of a $36 billion portfolio consisting of 12 commercial mortgage-backed securities transactions. The appointment by ACAS CRE CDO 2007-1 Ltd, directed by American Capital, increased the size of CWCapital's CMBS special servicing portfolio to 14,500 loans for $178 billion, making it the second-largest appointed special servicer.

This week, a bankruptcy judge gave Wilbur L. Ross Jr. the green light to acquire the loan servicing operations of bankrupt American Home Mortgage Investment Corp. for as much as $500 million, Bloomberg reported. Banks that purchased loans from American Home that went bad, including units of Bear Stearns Cos., GMAC Mortgage and Citigroup Inc., had argued that whoever serviced the loans should also buy back the bad loans because the contracts used to sell some of them contained language covering servicing rights. But the judge ruled the buyer of the servicing rights was not forced to buy the bad loans.

An acquisition of Community Bank by Chittenden by Chittenden Corp. was approved by Community's shareholders, according to an announcement today. Chittenden, headquartered in Burlington, Vt., is expected to close on the acquisition this month.


Coco Salazar is an associate editor and staff writer for MortgageDaily.com.

e-mail: [email protected]


The Mortgage Graveyard
Failed, closed and a c q u i r e d mortgage-related entities.



Mortgage REIT news | REIT Directory
Coverage of real estate investments trust companies, litigation and corporate activity.




Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.


Mortgage Backed Securities | MBS News | MBS Statistics
News about commercial and residential mortgage-backed securities. Stories about ratings actions and changes to servicer ratings. Studies and reports about the performance of securitizations and problem vintages and classes. Subprime, Alt-A, home equity and j u m b o analysis.


Mortgage Branch News | Net Branch | Mortgage Branch Directory
Coverage of new and existing net branch operations. Programs, payouts and other details. Profiles of brokers and net branch lawsuits.


Wholesale Lending News | Directory | P r i cing Engine | Originator Newsletter
News about wholesale lenders, correspondent lenders and wholesale mortgage lending programs. Alt-A, subprime and other niche loan programs. Lawsuits between wholesalers and brokers.



Logout forgot
password?

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders