Countrywide, IndyMac Shut Out by Warehouser
A Texas-based provider of warehouse lines is removing Countrywide Home Loans and IndyMac Bank from its approved investor list because movement in their share prices resembles that of other imploded lenders.
Southwest Securities FSB made the disclosure in a message to customers yesterday.
"Regretfully, Southwest Securities, FSB is preparing to remove Countrywide Home Loans and IndyMac Bank from our approved investor list," according to the message, reviewed by MortgageDaily.com. "It is not our intention to disrupt your production pipeline, but we are earnest in our desire to reduce our exposure from these two investors."
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The Mortgage Graveyard
Journal of failed, ailing and acquired lenders.
Embezzlement Topples Net Branch
A nationwide mortgage banking company, with some 650 employees in 85 branches, has stopped funding loans and paying employees in the wake of the alleged embezzlement of $4 million by the chief financial officer, a branch manager told MortgageDaily.com.
"I've sat here for three days, hoping for light at the end of the tunnel," said Michelle South, manager of the Ankeny, Iowa, branch of Maverick Residential Mortgage. "But now it looks like there is no tunnel.
Nearly 150 Mortgage Operations Collapse in 2007
The failure of almost 150 mortgage operations was chronicled last year by the Mortgage Graveyard.
National City Quits Wholesale Lending
National City Mortgage will no longer do business with mortgage brokers.
BoA Negotiating Countrywide Acquisition
Bank of America Corp. has emerged as a possible White Knight for ailing Countrywide Financial Corp. The deal would represent quite a bargain for BoA, which was rumored to be considering the same acquisition one year ago when shares of the mortgage banker were priced at more than five times their current level.
FHA Limits Set
The U.S. Department of Housing and Urban Development has announced loan limits for government-insured loans, though they might not last long.
A new law in Massachusetts that took effect on Jan. 2, which limits fees and yield spread compensation and imposes other restrictions on mortgage broker originations, has at least 15 wholesale lenders modifying or curtailing operations and has brokers scrambling.
Mortgage Job Analysis by State and Company
Fueled by massive layoffs at Countrywide Financial Corp., American Home Mortgage Investment Corp. and First Magnus, states including Arizona, California and Florida saw significant losses in the mortgage sector last year, according to an analysis of layoffs, hirings and company closings conducted by MortgageDaily.com.
Lenders Losing Lawsuits
Borrowers appear to be winning a number of lawsuits filed against mortgage companies, an analysis of previously covered litigation by MortgageDaily.com indicated. Two of the cases are seeking to stave off foreclosures while another is targeting fees charged by state regulated lenders in Maryland. One lawsuit accuses several lenders of steering black borrowers into higher cost loans.
Mortgage Industry News
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