Mortgage Industry Insider - Weekly insight from MortgageDaily.com
DALLAS, October 23 /PRNewswire/ Slowing mortgage originations didn't stop one lending giant from achieving a milestone, according to MortgageDaily.com, the dominant source of online news for the mortgage industry.
Wells Fargo & Co. leapt past Countrywide Financial Corp. to become the biggest U.S. residential mortgage servicer.
The San Francisco-based conglomerate reported its managed servicing portfolio ended the third quarter at $1.35 trillion, taking the top spot from Countrywide, which reported its ending portfolio at $1.24 trillion.
But Countrywide still holds the title of biggest residential lender, reportedly funding $113.7 billion during the period. Wells' reported production of $104 billion left it again as the second biggest mortgage banker, while Washington Mutual ranked third at $45.7 billion. (http://www.mortgagedaily.com/sFundings.asp?spcode=pr)
Volume at all three companies was down from the second quarter.
Accredited Home Lenders Holding Co. warned investors about earnings.
The San Diego-based lender announced it probably won't reach the previously-reported $4.50 per share, citing "increasing turbulence in the nonprime mortgage market."
Accredited said loan originations didn't increase as anticipated, while price competition and product contraction has prevailed this year. (http://www.mortgagedaily.com/AccreditedEarnings101906.asp?spcode=pr)
Despite the overall slowdown in real estate finance, Alt-A business is booming.
Driven by affordable mortgage demand, Alt-A RMBS volume was up 33 percent from the first quarter to the second quarter, an S&P report indicated. Securitizations were up 50 percent from a year earlier.
Nationstar Mortgage LLC announced a new call center in Cincinnati that will house 150 new jobs. The nonprime lender was recently acquired by Fortress Investment Group LLC for more than $0.5 billion. (http://www.mortgagedaily.com/Mergers071706.asp?spcode=pr)
But Lender Network 1-2-3 didn't fare so well. The mortgage lead company is in the process of a "winding up period" required under North Carolina law for the purposes of dissolution, the firm's attorney told MortgageDaily.com.
"The company hopes that it will be able to honor its remaining obligations to its employees and its creditors through the collection of outstanding accounts receivable or the liquidation of the company's few physical assets," the attorney said.
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