Berkshire Unit Settles With NC
A growing manufactured home lender settled charges by North Carolina that it violated several laws in the state. The unit is owned by billionaire Warren Buffet's Berkshire Hathaway -- which is on the cusp of becoming one of the biggest players in mortgage lending.
The settlement was announced yesterday by the North Carolina Office of Commissioner of Banks.
The lender, Vanderbilt Mortgage and Finance Inc., allegedly violated numerous North Carolina laws.
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Wholesaler Liable for Broker Discrimination
The government has essentially settled with itself over alleged discriminatory practices by mortgage brokers on loans closed and funded through a defunct subprime wholesaler. The government claims the settlement marks the first time a wholesale lender has been held accountable for such broker behavior.
BoA Closes on Sale of Servicing Unit
Bank of America Corp. has closed on the sale of a nonprime servicing unit it acquired at the end of 2008.
Delinquency, New Foreclosures Decline
Seasonally adjusted residential delinquency improved as new foreclosure filings declined. But the inventory of foreclosed properties grew. Subprime delinquency tumbled more than 100 basis points.
Federal Funding to Help With 2nds
Some of the federal funding announced today by the White House will go toward second mortgages. One group quickly proposed allocating a portion of the funds for supplementing federal loan modifications but called on the government to rein in mortgage servicers and investors.
Over 5,000 Alt-A Tranches Downgraded
The lull in downgrades on Alternative-A securities has come to an abrupt end as a result of rising delinquency.
Banks Continue to Tighten Lending Standards
Although banks have eased up on increasing restrictions for many types of lending, mortgage guidelines continued to tighten. While fewer banks made fewer changes to restrict the issuance of home-secured credit lines, borrowers showed less interest in such products.
Non-Conforming Performance Seriously Bad
An analysis of loan performance on securitized non-conforming mortgages issued between 2005 and 2008 indicates that non-conforming lending was a colossal failure during those years.
2nd Upgrade for Subprime Servicer
For the second time in 12 months, a servicer of subprime and second-lien loans has had its servicer rating raised.
Fundings, Delinquency Deteriorate at US Bank
U.S. Bancorp reported a 25 percent decline in quarterly residential originations, though annual activity improved. Tucked away in the latest activity was nearly $10 million in subprime mortgage production.
