Most Admired Mortgage Companies

FORTUNE magazine recently published America’s Most Admired Companies of 2008.

The ranking was determined through a survey of 3,700 people from dozens of industries. FORTUNE conducted the survey with Hay Group.

Among all types of companies, the list was topped by Apple Computer, which came in with a score of 7.42.

“This year’s winners all have strong records of innovation, leadership, and financial strength — and their employees know it,” the magazine said.

Among mortgage-related companies, Countrywide Financial Corp. was No. 10. The Calabasas, Calif.-based company, which has agreed to be acquired by Bank of America Corp. later this year, scored 4.78.

No. 9 was Thornburg Mortgage Inc. The real estate investment trust, which scored 5.25, warned on Friday it might not be able to continue in business due to its inability to meet more than $600 million in margin calls. Today the company noted it is working with creditors to arrange for repayment.

Freddie Mac ranked No. 8 on FORTUNE’s list with a score of 5.36. The government sponsored housing enterprise announced a $2.5 billion fourth quarter loss.

Stewart Information Services took the number seven spot with a score of 5.54. The company serves mortgage companies through subsidiaries Stewart Lender Services Inc., Stewart Transaction Services, Stewart Title and SureClose.

IndyMac Bancorp, which reported a $615 million 2007 loss, ranked No. 6 with a score of 5.62. The Pasadena, Calif.-based company reported a 33 percent monthly decline in originations during January and a 66 percent year-over-year decline. Today, IndyMac said a worsening market this week is expected to have a negative impact on the value of its mortgage-backed securities portfolio.

No. 5 on FORTUNE’s list was Sovereign Bancorp, which had a score of 5.71. Moody’s Investors Service recently announced it took negative ratings actions on Sovereign’s debt due to its exposure to commercial real estate. The company reported in January it expected a fourth quarter non-cash charge of nearly $1.6 billion, including $0.7 billion set aside for bad loans and leases.

First American took the No. 4 spot on the list of the most admired with a 6.28 score. The company and subsidiary eAppraiseIT were sued late last year by New York Attorney General Andrew M. Cuomo over allegations eAppraiseIT conspired with Washington Mutual Inc. to produce fraudulent appraisals. Other subsidiaries serving the mortgage industry include First American Proxix Solutions, First American Global Offshore Services and First American Subordinate Lien Outsourcing.

Fidelity National Financial Inc., which had a 6.43 score, ranked third on FORTUNE’s list. Affiliated companies include Fidelity National Information Services Inc., Fidelity National Foreclosure Solutions and Applied Financial Technology.

Washington Mutual Inc. was No. 2 on the ranking with a score of 6.76. The Seattle-based company saw negative ratings actions on its debt recently by Fitch Ratings over concerns about its deteriorating home equity loan portfolio and a rapid increase in HEL delinquencies.

With a score of 7.64, LandAmerica Financial Group ranked No. 1 among mortgage-related companies on FORTUNE’s most admired companies. Companies affiliated with LandAmerica include LoanCare Servicing Center Inc., LandAmerica Tax and Flood Services Inc. and Capital Title Group Inc. Services offered through LandAmerica include eZLoss Mitigation.

Sam Garcia worked in mortgage lending for twenty years prior to becoming publisher of MortgageDaily.com.

e-mail: mtgsam@aol.com