PHH Servicer Ratings Improved
PHH Mortgage Corp.'s residential primary servicer rating for home equity and home equity line-of-credit products was raised.
Woman Wins Nearly $5 Million Verdict Against Ameriquest
An Oklahoma borrower, who claims Ameriquest Mortgage Co. ruined her credit because it didn't pay off mortgages in refinance transactions, has won the largest individual verdict ever obtained against the massive subprime company.
Nonprime Servicer's Rating Improved
A relatively new Colorado-based company saw its nonprime servicer ratings improved.
New Century to Acquire Warehouse Lender
New Century Financial Corp. will acquire an independent Texas-based residential warehouse lender.
WaMu Consolidates Prime, Subprime Units
Washington Mutual Inc. is realigning its subprime and warehouse lending units.
Citi Servicer Ratings Upgraded
Citigroup's conforming unit and subprime subsidiary are doing a better job servicing loans.
Monthly Declines Hit National City
First Franklin funded $1.5 billion during November.
Ameriquest Settlement May Be Near
Ameriquest Mortgage Co. may settle charges brought on by 33 states and clear a path for the company's billionaire founder to take a job with the U.S. State Department.
PNC, First Horizon Ink Online HEL Deal
First Horizon National Corp. and PNC have negotiated a production agreement for home equity mortgages originated online.
New Century Shifts Exec Responsibilities
New Century Mortgage Corp.'s president is stepping aside.
November Numbers Narrower at New Century
Volume slipped for the third consecutive month at New Century Financial Corp.
3-Month Decline at Countrywide
Home equity originations edged up from October, Countrywide Financial Corp. said, while nonprime volume was unchanged.
Subprime Performance to Worsen
As rates rise over the next year, Fitch Ratings sees subprime delinquencies rising.
Mortgage Entrepreneur Ranks High
The founder and chief executive of a Washington-based nonprime wholesale lender was one of three finalists for an award for the nation's top entrepreneur in financial services.
An Ohio wholesale lender has launched a 30-year home equity loan.
Most Brokers Originate Nonprime
Mortgage brokers originated nearly as many nonprime loans this year as conforming loans, according to a recent survey. The shift from prime production is diminishing the importance of pricing when choosing a wholesaler.
HEL's Outstanding to Top $1 Trillion
A new report suggests home equity lenders should focus on borrower retention in order to capitalize on the rapidly growing market.
100s of Wholesale Jobs Being Added
A subprime wholesale lender's expansion into the Northeast will create hundreds of loan processing and sales jobs.
Pace of HELs Slowing at Banks
As overall mortgage originations strengthened, home equity lending at banks and thrifts insured by the Federal Deposit Insurance Corp. grew at the slowest pace in years.
Ameriquest Cuts 1500 Jobs
In response to a challenging environment, the parent of Ameriquest Mortgage Co. laid off about 1,500 employees.
Retail, Subprime Drive HEL Production
Home equity loan volume rose, albeit at a slower pace than last year, with nonprime credit representing a larger portion of the portfolio, according to a recent survey of the nation's consumer bankers.
Option One Originations Apex
Option One Mortgage Corp. achieved record fundings once again, but the company anticipates a production slowdown and expects rising secondary costs to hurt earnings.
Ivy League Mortgage Education
A Connecticut-based Alt-A lender seeks to create hundreds of jobs by educating its students about managing, selling and operating in the mortgage industry.
New Century Adding Hundreds of Jobs
A recent relocation will enable New Century Financial Corp. to hire hundreds of new employees in Southern California.
Impac Originations Up
Impac Mortgage Holdings Inc. managed better production and earnings in the third quarter.
Record Originations at NovaStar
NovaStar Financial Inc. grew quarterly production to the highest-level ever but expects a "seasonal" decrease in the last quarter of the year.
Countrywide Continues Decline
Countrywide Financial Corp.'s home equity and nonprime production was down from September.
AmNet Fundings Headed Lower
Total nonprime volume represented 45% of American Mortgage Network's October production.
Accredited Home Lenders Holding Co. pushed production and earnings to a record during the third quarter.
IndyMac Claims Top 10 Lender Spot
Record fundings nearly pushed quarterly earnings to an all-time high at IndyMac Bancorp Inc. But shares of the company are trading nowhere near record levels.
Industry Originations Up
Against a backdrop of rising originations, U.S. borrowers are drifting away from conventional adjustable-rate mortgages and embracing interest-only, option ARM and Alt-A programs, according to a survey of mortgage bankers.
GMAC Enhances Subprime, HEL Programs
GMAC Residential Fundings enhanced its correspondent product menu.
ECC Originations Accelerate
Fundings soared to a new record for a California nonconforming lender.
New CEO at ResCap
Residential Capital Corp. announced it has refined its executive leadership.
Fundings Down at Downey
Bucking the recent mortgage production trend, quarterly originations slipped at Downey Financial Corp.
WaMu Expanding Subprime
Washington Mutual is making a deeper foray into the subprime lending business with a new conduit unit that will buy and securitize subprime mortgage loans.
National City Production Climbs
First Franklin's third quarter fundings were up more than $2 billion from the second quarter, parent National City reported.
Wachovia Volume Up
Wachovia Corp. boosted mortgage fundings for the third consecutive quarter. Home equity volume improved from the second quarter and from a year earlier.
Another REIT to Repurchase Shares
A New York-based real estate investment trust said it plans to repurchase more than 2 million of its outstanding common shares. A similar move announced last week by another REIT has thus far been a boon for that company's investors.
Impac Buying Back Shares
Taking advantage of a steep decline in the share prices of companies in the mortgage REIT sector, one real estate investment trust is buying back its own shares at a big discount compared to a year ago.
$50 Million Forward Commitment
A $50 million Alt-A deal has been struck between a Nevada net branch organization and a California loan fund.
Record Countrywide Fundings
For the third quarter, nonprime and home equity production totaled $23.8 billion at Countrywide Financial Corp.
Research Firm Recommends Selling New Century Shares
New Century is among a list of companies with shares one investment research firm recommends selling.
All-Time High Fundings at New Century
Record quarterly originations were again announced by New Century Financial Corp.
$1.5 Billion Servicing Portfolio for Sale
An alternative-A package of Fannie Mae bulk servicing rights is on the block.
Mfg Housing Loan Delinquency Down, HELs Up
Delinquency on home equity loans rose and may go higher, according to a report from the nation's bankers. But mobile home loans fared better.
Nonprime Production Vs. Earnings
Nonprime companies need to push yields higher -- at the expense of origination.
HSBC Adding Employees, Curtailing Correspondent
HSBC Mortgage Corp. is targeting retail ethnic markets -- and adding mortgage production jobs in the process. But the revised focus comes at the expense of anticipated correspondent production.
Nonprime Hurricane Relief
Nonprime lenders fired back at recent accusations from the industry's nemesis that they, as well as the government, have done too little to help borrowers impacted by Hurricane Katrina.
New Century Lowers Earnings Guidance
An increase in its cost of funds is forcing New Century Financial Corp. to raise its rates and lower its earnings guidance.
New Century Ponders Spinoff
A sagging share price has New Century Financial Corp. discussing the possibility of a spinoff.
Correspondent HEL Launched
Correspondent lenders have a new home equity lending program available.
Mortgage Groups Weigh In on Fed HMDA Analysis
The Federal Reserve Board released Tuesday its analysis of 2004 data under the Home Mortgage Disclosure Act, which for the first time required that lenders disclose pricing information for loans with prices above designated thresholds, as well as disclosures of whether a loan or application relates to manufactured housing, and whether a loan is secured or not by a first or subordinate lien.
Southerners See Excessive Subprime
The location of a borrower plays a big role in determining whether that borrower will wind up in a higher priced subprime loan or a lower rate conforming loan, according to a new study by an association of consumer advocate groups.
Chase Loses Court Battle
A federal district court rejected Chase Manhattan Mortgage Corp.'s claims of fraud and negligent misrepresentation by Advanta Corp.
Countrywide Reaches $1 Trillion
Nonprime fundings were $4.5 billion at mortgage banking behemoth Countrywide Financial Corp.
NovaStar Helps 100s of Delinquent Borrowers Find Jobs
Helping unemployed borrowers in delinquency find jobs has proven to be a "highly effective" loss mitigation strategy for NovaStar Mortgage, which has aided hundreds of borrowers in avoiding foreclosure over the past year.
Georgia Issues Cease & Desist to Ameriquest Wholesale Sub
Regulators in two states have come down on three mortgage companies -- including an Ameriquest Mortgage subsidiary -- with orders to halt or change the way they are doing business in Georgia and Massachusetts.
1,000 Alt-A Mortgage Jobs Coming to CT
Mortgage Lenders Network USA Inc. will soon build a new headquarters facility in Connecticut in which it plans to accommodate 1,000 new employees.
Delta Warehouse Capacity Grows
A 39% boost in its financing capacity paves the way for Delta Financial Corp. to increase annual production by a quarter.
Servicing Ratings Improve at GreenPoint
GreenPoint Mortgage Funding's ability to service nonprime loans has improved, according to a major New York ratings agency.
Impac Initiates Broker-to-Correspondent Program
Impac Mortgage Holdings Inc.'s warehouse lending unit is helping brokers convert to correspondent mortgage bankers with warehouse lines for loans it buys.
New Century Production Rockets
New Century Financial Corp. is on its way to another volume record. But the company's chief sees the increase as short term.
Increasing Originations at Option One
Option One Mortgage Corp. increased quarterly volume and helped its parent company achieve another all-time high.
National City Servicer Ratings Improved
Senior management changes and several operational enhancements have apparently improved National City Mortgage Corp.'s ability to service prime and Alt-A mortgage loans.
Wells Softening Nonprime Programs
Wells Fargo is making changes to its nonprime lending programs including capping originations fees, reducing prepayment penalties and shunning mandatory arbitration.
Nonprime REIT Shares Getting Pounded
Strong business doesn't mean strong earnings for subprime real estate investment trusts, which recently have seen their share prices sink. But dividends have softened the blow for investors.
Mortgage Bankers Say Market Risks Contained
The growth in stated-income and no-doc Alt-A loans indicates this lending is extending beyond the intended clientele of time-pressed but creditworthy self-employed borrowers to borrowers who would otherwise not be able to qualify for a loan, according to a mortgage banking analysis.
Full Spectrum Consolidates Underwriting Unit
Countrywide Financial Corp.'s migration east will impact 65 California employees at its subprime unit -- all who were offered jobs in the Grand Canyon State.
Broker Helped Mfg Housing Companies Deceive Borrowers
A mortgage broker, along with two North Carolina manufactured home companies, have been accused by the state's attorney general of using deceptive practices to lure customers into buying properties they couldn't afford.
Alternative Lending Growing at Banks
Demand for nontraditional mortgage products at banks picked up over the past year, although few institutions retained these loans in their portfolios.
Nonprime RMBS Performance Improves
There has been a "striking" improvement in the credit performance of nonprime securitized loans over the past year in most major markets. But some metropolitan areas didn't fare so well.
MortgageIT Fundings Soar
MortgageIT Holdings Inc. achieved its highest level ever in production during the second quarter as a result of milestone purchase activity. Subprime originations accounted for $1.0 billion of the latest production.
Strong Wachovia Production
Wachovia Corp. pushed quarterly volume to the highest level in nearly two years. But home equity fundings were off from a year ago.
NovaStar Notifies SEC of Improper Share Sales
NovaStar Financial possibly broke securities laws when it "inadvertently" sold more than 300,000 shares of stock over the past year. The action, which could cost the subprime lender at least $12.8 million, follows a lawsuit by shareholders accusing it of making misleading statements regarding regulatory and licensing matters.
Impac Reports Loss, Fundings Hold
Despite tumbling earnings, Impac Mortgage Holdings Inc. improved quarterly production.
Countrywide Originations Off
After rising the prior two months, Countrywide Financial Corp.'s mortgage volume edged down during July. Home equity production reportedly amounted to $3.6 billion in July, while nonprime loan originations totaled $3.7 billion.
Subprime Prepayments a Problem
Low rates and high appreciation have fueled unprecedented prepayment speeds on subprime loans, according to a recent study. But although an increase in rates and a softening in property values might slow prepayments -- the scenario presents another set of concerns.
New Century Lowers 2005 EPS
A competitive environment and a recent acquisition have prompted New Century Financial to reduce its earnings outlook. But the lender sees no easing for its production.
New Secondary Program for Local Banks
Members of America's Community Bankers have a new secondary outlet for nonconforming loans that they will continue to service.
Ameriquest Founder's Nomination Draws Criticism
Ameriquest Capital founder and co-chairman has been nominated by President George Bush to be ambassador to the Netherlands. But critics covering the nomination suggest the tycoon may have bought the coveted appointment with millions of dollars in campaign contributions.
HSBC Production Zig Zags
The residential mortgage originations of HSBC Holdings PLC surged by more than 80% from the prior quarter but are way off of last year's level.
NY Trust Adding 100+ Wholesale Jobs
East Coast brokers have another choice for Alt-A programs.
Record Accredited Originations
Accredited Home Lenders Holding Co. reported record quarterly production.
Former Executives of Failed Firm Going to Jail
In an abrupt about face, one of the former leaders of a failed South Carolina subprime lender has pleaded guilty to charges she deceived thousands of investors and now faces a long prison term.
Strong Originations at NovaStar
With wholesale production accounting for most of its business, NovaStar Financial Inc. reported quarterly volume jumped to the second highest level ever.
Mortgages Drive Loan Growth at Banks
Dallas led an increase in lending at most of the Federal Reserve District banks, with most attributing the loan growth to home mortgages, home equity loans, and business loans, the Fed said.
New IndyMac Bank Chief
IndyMac Bank has a new president.
Fremont's Subprime Servicer Rating Improved
Improved technology and reporting amidst a rapidly growing servicing portfolio were some of the factors cited in an upgraded subprime servicer rating for Fremont Investment & Loan.
Biggest Mortgage Lenders
A preliminary MortgageDaily.com analysis of second quarter mortgage production has one lender ranking No. 1 in both total residential fundings and nonprime fundings.
Record RMBS Issuance Likely this Year
Driven by gains in Alt-A/B, subprime and home equity securitizations, issuance of nonagency residential mortgage-backed securities could reach another record this year. The story is different, however, for the government sponsored housing enterprises.
Mortgage Industry Deals
As a mortgage lender on one coast looks to grow through expansion of its subprime wholesale and correspondent businesses, a mortgage banker on the opposite coast sees opportunity in the Vietnamese community.
Subprime Wholesaler Adding KY Jobs
With its expansion into Kentucky, a Georgia-based subprime wholesale lender will more than double its staff.
Record RMBS Downgrades
Upgrades on residential mortgage-backed securities were "vigorous" during the second quarter, according to one ratings analyst. But her agency reports a record number of downgrades during the same period -- with subprime showing the most significant decline.
Record Subprime Production at WaMu
Overall quarterly fundings increases at Washington Mutual Inc. were led by record subprime originations.
Merger Driving Layoffs at Chase
The home equity lending division of Chase Home Finance will layoff hundreds of employees when it closes the doors to its Houston operation and downsizes a New York office.
Ameriquest Settlement to Fund Urban Housing
In an agreement with Connecticut authorities, Ameriquest Mortgage Co. and four of its affiliates will pay over $7 million to settle allegations that it charged excessive fees on refinance loans and employed unlicensed loan officers. Much of that amount, however, will go toward funding housing for the poor.
New Subprime Wholesaler, Lead Co. Merger Among Latest Deals
This week's mergers, acquisitions and corporate transactions include a deal that will improve service to large companies buying loan leads and another that will net mortgage brokers a new subprime wholesaler.
New Century Balances Growth With Quality
New Century Financial Corp. has managed to maintain a stable credit quality portfolio while dramatically increasing volume over the past three years. But a Moody's Investors Service analysis suggests worsening delinquency for the subprime sector and a growing share of riskier loans in its portfolio leave the relatively young servicer facing challenges.
National City Production Edges Up
National City's subprime subsidiary, First Franklin, saw volume jump from the first quarter but fall from last year.
Robust Lending Environment for Countrywide
Countrywide Financial Corp. reported nonprime fundings during the latest three-month period edged up from the first quarter, but home equity originations rose 25%.
$70.9 Million Mfg Housing Portfolio Trading Hands
Fleetwood Enterprises Inc. has found a buyer for its manufactured housing portfolio and expects to finalize the sale of its retail financing unit soon.
New Century Originations Soar
Quarterly loan production soared to an all-time at New Century Financial Corp.
Serious HEL Delinquency Falling
Serious delinquency on home equity loans fell, fueled in part by high production in the sector. And while delinquency may eventually rise -- one ratings agency sees no signs of that happening anytime soon.
PMI Protests Piggybacks
Using second mortgages in purchase transactions to avoid mortgage insurance is bad for the banking system, according to a study commissioned by one of the nations biggest mortgage insurers. The author suggests policy makers get involved.
Record IndyMac Production
Quarterly mortgage loan production surged again at IndyMac Bancorp Inc. -- maintaining a string of record quarters.
More Job Additions at HSBC
The U.S. mortgage subsidiary of London-based HSBC announced, again, employee additions in the Southeast. The new hires will support the servicing operation.
A California wholesale lender anticipates it will double its loan volume by stepping into the nonprime lending arena. Among the new programs being offered are 100% loan-to-value stated income loans.
HSBC Adding Hundreds to Mortgage Staff
HSBC Mortgage Services expects to double its headquarters staff within the next five years, as well as increase call center and wholesale staff, as a result of relocating the headquarters.
Ameriquest Overcharge Accusations Settled
Leading subprime lender Ameriquest Mortgage Co. has agreed to pay up to $50 million to settle a class action suit that accused the California-based company of, among other things, charging excessive fees.
NovaStar Restructures Wholesale Unit
A shakeup at NovaStar Financial's wholesale lending unit has led to the exit of several managers.
Lenders Added to Financial Indexes
An Internet originator and a small subprime lender are now included in a trio of small cap indexes.
500 Job Additions Slated for Alt-A Lender
A Connecticut-based Alt-A lender is looking to relocate within the New England region and boost its staff by nearly three-quarters.
Delinquency Improves Except for Subprime ARMs
A smaller share of borrowers were late on their house payments during the first quarter, the industry's most prominent trade group said Tuesday, and the improvement is expected to continue for a few more quarters. But subprime borrowers with adjustable rate loans didn't fare as well.
Judgment Could Cost New Century Millions
A civil verdict awarded by a jury against the former chief information officer of an Orange County, Calif., lender may end up costing New Century Mortgage Corp. more than $11 million.
Rising Property Values Factor in Fraud
Residential mortgage fraud continues to plague the industry, according to a report from the Mortgage Asset Research Institute, but much of it is not being reported. And recently made subprime loans with serious defaults, which usually involve some sort of misrepresentation, are raising flags in states not traditionally known for high rates of fraud.
Volume Higher at National City
First Franklin originated $1.5 billion during May, and parent National City Corp.'s production increased and appears to be headed higher.
Ameriquest AEs Plead Guilty to Fraud
It sounded like an investment that couldn't lose.
Subprime Broker Among Recently Acquired Mortgage Cos
In the latest mergers and corporate transactions, mortgage fraud prevention has been given a new name.
Auditors Abandon Impac
Auditors have notified Impac Mortgage Holdings Inc. that they will not stand for re-appointement.
Ameriquest CEO Exits
Ameriquest Mortgage has a new chief executive officer.
Volume Up at Countrywide
Countrywide Financial Corp. reported home equity and nonprime fundings for May.
Record Option One Production
Amidst milestone volume, the parent of Option One Mortgage Corp. said profitability from the segment has returned to more normalized levels.
Mortgage Execs Ponder IO Risks
Several mortgage executives recently discussed the acceleration of nonprime interest only production, investors' growing appetite for these loans and the possible associated risks.
Georgia Leads US in IO Nonprime Borrowers
The state with the biggest share of subprime, Alt-A and jumbo borrowers that have interest-only mortgages is Georgia, according to data from a mortgage research firm.
New Century Production Off
Monthly production edged down at New Century Financial Corp.
Product Integration on New Century's Plate
New Century Financial Corp. is breaking out of its subprime shell and well on its way to becoming a major force in other mortgage industry sectors.
New Century Develops Women Leaders
A senior executive at New Century, who has managed to balance her career with her family, wants to help other women ascend to executive offices at the subprime lender and has done something about it.
Stated Income at Issue in MI Lawsuit
A lawsuit between a mortgage insurance company and a subprime lender has taken a turn -- with testimony from a key executive leading to new accusations from the defendant in the case. At the heart of the latest action is the distinction between "stated income" and "no ratio" loans.
New Century Acquiring RBC Branches
New Century Financial Corp. will dramatically expand its residential lending operations through a planned acquisition later this year that will put it in the prime and Alt-A business.
Wholesaler Helps Brokers Generate Leads
A California wholesaler is offering to help its approved mortgage brokers generate loan prospects.
GMAC Sub: Avoid Brokers
Prospective borrowers could save thousands by avoiding mortgage brokers, according to a GMAC subsidiary.
Alt-A Brokering for Dummies
An Alt-A and nonconforming wholesaler has applied the For Dummies approach to the handbook of its automated underwriting system.
MBS Issuance Off
Quarterly issuance of mortgage-related securities fell -- dragged down by big agency declines, a bond trade group reported. And while the home equity sector has been resilient, a disturbing trend is developing.
Govt Cautions About Home Equity Lending
Mortgage lenders may not be keeping up with the risks involved with home equity lending, according to new government research.
Impac Production Plunges
Volume sank at Impac Mortgage Holdings Inc. But the company's current pipeline suggests better months are ahead.
100% LTV With Low Score
A subprime wholesaler said brokers have been submitting record numbers of packages because of its new 100% loan-to-value program for borrowers with low credit scores.
Maverick's Owner Betting Against NovaStar
If his investments perform anything like his current NBA team, then NovaStar Financial investors should consider forfeiting their positions.
Countrywide Fundings Off, Pipeline Strong
Sinking subprime originations dragged down overall production at Countrywide Financial Corp. But a growing pipeline gives cause for a glowing outlook.
New Century Exec Donates Millions to Hospital
The co-founder of one of the nation's most prominent subprime lenders has made a sizable donation to an Orange County, Calif., hospital.
Hard Money Wholesaler
A company formed last year will provide wholesale programs for borrowers regardless of their credit score.
Shareholder Group to Shake Up New Century
A group of New Century shareholders are dissatisfied with the company's performance and aim to do something about it.
HELOC Boom on Horizon
Recently passed legislation is expected to boost HELOC activity, according to a major ratings agency.
NovaStar Production Descends
Fundings fell for the second consecutive quarter at NovaStar Financial Inc.
Home Equity Wholesaler Adds 87 Employees
Citing phenomenal growth in its second mortgage business, a California wholesaler recently added dozens of new jobs.
Fitch Bumps Subprime Servicer's Ratings
A Merrill Lynch & Co. subsidiary saw its subprime servicer ratings improved as a result of an experienced staff and an efficient operation.
Accredited Activity Off
In its latest earnings release, Accredited Home Lenders Holding Co. announced originations eased and competition in the subprime sector stiffened.
Alt-A lending is hot, and some dominant players have emerged in the sector -- which is expected to grow this year even as other areas of lending slow down.
100% LTV on Stated Income Investor Properties
Loan-to-values up to 100% are now available on investor properties for stated income applicants, according to the West Coast wholesaler that provides the first and second mortgages.
New Century to Target NASCAR Fans
New Century Financial Corp. likes fast growth and fast cars.
WaMu Volume Off
Subprime business from the specialty mortgage finance unit was $7.7 billion, Washington Mutual reported in its first quarter earnings announcement, while home equity loans and lines of credit accounted for $8.9 billion in volume.
FBR Subsidiary Launches Correspondent Unit
Sellers of nonprime, Alt-A and interest only mortgages now have another buyer for their closed loans.
National City Business Falls
Production at National City Corp. subsidiary First Franklin was down from the fourth quarter and the first quarter a year ago.
Option One is Family Friendly
Option One Mortgage Corp. was commended by a Southern California city for its family friendly workplace.
New Century President Races Cars
One of the nation's largest subprime lenders has not only put its money behind a sport-related branding deal, it has put its president in the front seat of a GT class Porsche race car.
New HSBC President
HSBC Mortgage Corp. has a new president.
Alt-A Activity Intense
While jumbo mortgage production is expected to fall this year, the fastest growing sector last year -- Alt-A lending -- shows no signs of fading. And some Alt-A growth is expected to come at the expense of subprime business.
Countrywide 1st Quarter Off
Countrywide reported first quarter home equity volume was down from a record 4th quarter. Subprime originations were also down from the prior quarter.
New Century Production Off
New Century Financial Corporation reported an increase in monthly fundings -- but quarterly fundings were off.
Best Ever at IndyMac
Originations inched up to an all-time high for IndyMac Bancorp -- which forecasts it will soon be among the top 10 originators in the nation.
New Subprime Mortgage Products Untested
The desire to originate more loans in a rising rate environment has resulted in the use of new subprime programs that have yet to be tested for performance.
A new report suggests it may be easy to increase subprime originations through interest only programs -- but only at the expense of retention rates. The analysis discussed which subprime originators had the highest loan-to-values and lowest credit scores.
Minorities May Represent More Risk
Women, minorities and lower-income borrowers continue to receive a disproportionate share of subprime loans, according to a recent study by a consumer advocate organization. But another group suggests risk, not social status, may be the reason these groups wind up in higher rate loans.
Citigroup Unloading Portfolio at Loss
Citigroup has decided to exit the manufactured home finance market with the selling of its portfolio of related loans to 21st Mortgage Corp.
2004 Production Falls at GMAC
Annual mortgage production was off for GMAC, but prime second-lien mortgage fundings jumped.
Subprime ARMs Lead Delinquency Decline
Mortgage delinquency fell during the fourth quarter -- with subprime ARMs leading the decline, the real estate finance industry's association reported.
Ameriquest in Hot Water Over Lending Practices
Ameriquest Mortgage Co. has agreed to settle a California class action lawsuit and is in talks with dozens of states over alleged abusive lending practices, the Los Angeles Times reported.
Nonprime Servicers Clean Up Act
The word "contrite" comes to mind lately when executives of the former Fairbanks Capital Corp. speak in public. Many of these people are recent arrivals to the Salt Lake City company now known as Select Portfolio Servicing, and they bring with them a "fresh start" persona.
Countrywide Home Equity, Subprime Volume Tumbles
Countrywide Financial Corp.'s monthly volume declined again, with the biggest declines occurring in its nonprime lending.
Challenges for Nonprime Lenders
White-hot last year, the nonprime sector in 2005 still has "a tremendous amount of value," says one new entry in the field, while one of the biggest players says there no longer is much demarcation between prime and nonprime lending.
Fitch Upgrades Select Portfolio's Servicer Rating
Improved operations at the company formerly known as Fairbanks Capital Corp. have led to an upgrade in its servicer rating.
Servicing Portfolio on the Block
Five companies have been identified as potential servicers of a securitized pool of subprime mortgages for beleaguered American Business Financial Services.
Subprime Window May be Closing
The spread between subprime mortgage rates and conforming rates may widen as the sector struggles to maintain profit margins.
Nonprime Servicers Concentrate on Customer Communications
Driven by recent rash of predatory servicing issues, nonprime lenders are shifting their focus to better communications with borrowers.
NovaStar Expands Wholesale Operation
A new wholesale operation in Utah will result in the addition of hundreds of jobs at NovaStar Mortgage.
AEs Push Option One Production Higher
The addition of new wholesale account executives sparked a jump in volume for Option One Mortgage Corp.
Dynex Accused of Hiding Repos
A Virginia REIT has been accused in a class action federal lawsuit of securities fraud in connection with a bond issue collateralized by manufactured housing loans.
IndyMac Stands Out
In a letter to MortgageDaily.com, an IndyMac Bank executive criticized a comparison with Accredited Home Lenders -- noting that thrifts like IndyMac have always received significantly higher P/E multiples than mortgage banks and securitizers.
LTVs Rising for New Retirees
Borrowers approaching retirement now and in the future will have higher mortgage balances and higher loan-to-values than older homeowners, according to Harvard University's Joint Center for Housing Studies. But for older married couples, the home equity numbers improve.
Record 2004 Impac Originations, But Quarter Off
Alt-A borrowers with LIBOR-based ARMs originated by loan correspondents fueled record 2004 production at Impac Funding Corp.
Bad Underwriting at Heart of Class Action Lawsuit
Bombardier Capital, the financial arm of a Canadian manufacturing giant, has been accused in a class action lawsuit of deceiving investors about the quality of manufactured housing loans.
MortgageIT to Expand Subprime Operation
MortgageIT Holdings Inc. plans to open new wholesale subprime branches and add dozens of employees in the process.
Accredited Shatters All Records
Accredited Home Lenders achieved all-time high quarterly and annual fundings, as well as record earnings, and it expects to continue this pace of growth for at least another three years. The projection sharply contrasts the outlook for the company from one investment publication -- which calls Accredited a "ticking time bomb."
Bankrupt Firm Names New President
The former executive who successfully sued Advanta Mortgage for age discrimination is the new president of beleaguered American Business Financial Services Inc.
Record 2004, but 4th Quarter Off at NovaStar
NovaStar Financial reported it had the most productive year in its history. But that wasn't enough to impress Wall Street -- which sent shares of the company tumbling today.
New Century Outlook Stuns Subprime Investors
Shares of subprime companies sank last week after New Century lowered its earnings outlook and warned that other players are operating below costs. And the market's reaction to the announcement is just a precursor of things to come, according to one investment publication.
Subprime Lending Fueling CA Home Appreciation
SACRAMENTO, Calif. -- Not so long ago, someone looking to buy a house fit squarely into one of two boxes: Based largely on credit score, the borrower either qualified for a "prime" loan with the lowest rate and best terms or had blemished credit and was stuck with a more costly "subprime" mortgage.
$135 Billion Cashouts Last Year
Home equity accessed through conforming first lien refinances fell in the fourth quarter and is expected to keep falling through the end of next year. The outlook changes, however, when second lien activity is factored in.
Mortgage Industry Outlook
While top industry economists expect continued strength in home equity lending, the share of subprime is expected to stay static.
Record Quarter at IndyMac
Volume soared to record-breaking levels at IndyMac Bancorp Inc.
Study Suggests Subprime Features Fuel Foreclosures
Predatory lending terms, particularly prepayment penalties and balloon payments, significantly raise subprime borrowers' risks of losing their home, according to new research.
Wholesaler Adding Jobs Across Country
The subprime division of ComUnity Lending plans to more than triple its staff base in multiple states during 2005.
$310 Million Portfolio Trades Hands
Newcastle Investment Corp. acquired a multimillion-dollar portfolio of manufactured home loans.
Subprime Drives Record 2004 RMBS Issuance
Subprime and second mortgage securitizations enabled residential mortgage-backed securities transactions to reach record-breaking levels for the third consecutive year, according to Standard & Poor's.
Growth is Good
More assets than expected is good, according to one investment banking analyst that upgraded its outlook for shares of an Alt-A REIT.
WaMu Q4 Subprime, Home Equity Fundings Higher
While Washington Mutual Inc.'s total annual volume shrunk by nearly 40%, subprime originations were strong.
Fieldstone to Restate Income
The SEC has told Fieldstone Investment Corp. that its interest rate swaps don't qualify for FAS 133, leading to a restatement of income. But the net effect of the restatement will be an increase in net income.
Home Equity Business Strong at Chase
Declining conforming production tugged down yearly volume for the mortgage arm of JPMorgan Chase & Co., but home equity fundings painted another picture.
Fed Gov Complains About Subprime Brokers
Setting off alarm bells in the subprime sector last week, a Federal Reserve official told reporters that mortgage brokers who make the higher-risk, subprime mortgage loans may lack enough incentive to underwrite them properly.
Conforming Down, Subprime Double at National City
Even as slashed conforming production pushed annual volume down at National City Corp., production at the subprime unit nearly doubled.
Wells Claims 'Biggest Home Equity Lender' Title 4th Time
Fundings for the year were down at Wells Fargo & Co. as a result of diminished refinance activity. But interest in ARMS and home equity loans accounted for an increase in quarterly production.
S&P Warning Comes as GMAC Mulls New Unit
Forget 'RFC' and 'GMAC'. How about 'RCC'?
New Chiefs to Head Chase Mortgage Units
Scott Powell has been promoted th CO-CEO of JP Morgan Chase & Co.'s nonprime home finance unit.
New Century Launches Retail Brand
New Century Financial Corp. has renamed its retail unit and hired a familiar home improvement figure as its new spokesman.
Fidelity, Capital One Announce Upcoming Deals
The latest moves in the game of mortgage monopoly involve not only mortgage operators, but also the companies that service them. And one upcoming transaction will land Capital One in the home equity business.
2004 Volume Off at Countrywide
While Countrywide Financial Corp. finished the year with less production than 2003, subprime and home equity loan fundings during December were up from the prior month.
Record 2004 at New Century
New Century saw record fundings last year -- with production up more than half over 2003. But the company's chief sees less than a 10% increase in originations for 2005.
1st Lien HELs Growing
Recent trends in home equity lending include the increasing use of first lien HELs, the growing acceptance of HELs from seniors and a rise in 90-day delinquency, according to a report from the nation's consumer bankers.
HEL Delinquency Rises
More borrowers struggled to make timely home equity loan payments, but payments on home-secured lines-of-credit and mobile home loans held up, according to a survey of U.S. bankers.
2nd Mortgage Lender Unloads Portfolio, Shuts Down
While a recently deteriorating second mortgage portfolio reversed a string of profitable years for one Midwest finance company, it was the lack of potential growth in the market that led the parent company to close the unit down.
First Franklin Launches Retail Brand
First Franklin has made a move to distinguish its retail and wholesale operations.
Pritzkers to See Some of Superior Settlement
One of the nation's top accounting firms will pay $125 million to the federal government for its role in the collapse of a Chicago subprime mortgage lender.
From Broker to Banker
Mortgage brokers across the country will soon have another wholesaler to fund their Alt-A and subprime loans.
CitiFinancial Servicer Rating Upgraded
Improvements during the past two years at CitiFinancial Mortgage Co. have resulted in upgraded subprime servicer ratings.