Latest Mortgage News Headlines

Impac Survival In Doubt

Impac Mortgage Holdings Inc. reported a massive loss, disclosed that hundreds of employees were laid off during the first quarter and raised doubt about its ability to stay in business. (May 21)

ABX Reliability Questioned

All AAA classes of subprime residential mortgage-backed securities are not created equal, a new report suggests. But the ABX index does not necessarily reflect this. (May 21)

MBS Ratings All Negative

The volume of ratings actions was down ahead of the holiday weekend, but it was all bad. (May 21)

Foreclosure Army

Regulators, non-profit organizations and even the Internal Revenue Service are stepping up activity that will help reduce foreclosures. One banking regulator issued a warning advising delinquent borrowers of a number of foreclosure scams. (May 20)

Housing Bill Passes Senate Committee

Legislation passed today by a Senate committee would utilize the Federal Housing Administration to help curb foreclosures and create a stronger regulator for Fannie Mae and Freddie Mac. While there was strong bipartisan support for the bill, one conservative group suggests it will cost U.S. borrowers $500 million. (May 20)

Mortgage Bankers Highlight Broker Role

Mortgage bankers issued a new 33-page report suggesting that borrowers who use mortgage brokers do less research and comparison shopping, even though brokers don't necessarily look out for the customer's best interest. The paper recommended better yield-spread disclosures, more rigorous regulation and stronger oversight for brokers -- who have much less at stake in loan transactions. (May 20)

Losses Lead to Lawsuit, Exec Changes

Reports of mortgage-related losses continued, as did legal actions against banks and mortgage companies. Two financial services companies announced changes at the top. (May 20)

Borrowers Blame National City for Negative Equity

Litigation has been filed in Florida against National City Mortgage by 20 borrowers who claim the company turned a blind eye to overcharges and bad appraisals -- leaving them with loan balances that are higher than the values of the properties securing them. The attorney for the plaintiffs suggests thousands more borrowers may have been victimized. (May 19)

Fannie Eases Jumbo Requirements

Fannie Mae announced an expansion to its jumbo-conforming program. The move follows the easing of loan-to-values on properties in declining markets. (May 19)

WaMu Reduces Available Credit on HELOCs

Washington Mutual Inc. has reduced available credit for its home-equity line-of-credit borrowers by $6 billion as a result of slumping real estate markets. (May 19)

Commercial Originations Maintain as Prices Fall Falling commercial real estate prices have not stopped commercial loan originations. More than $1 billion in recent commercial mortgage transactions were tracked. (May 19)

LOS Enhancements

Improvements to loan origination systems dominated the latest round of mortgage technology advancements. Meanwhile, two U.S. banking giants have teamed up to form a new venture. (May 16)

Anatomy of a Meltdown

Thornburg Mortgage Inc., which has faced insolvency and bankruptcy, detailed a timeline of its demise in a recent securities filing. While a rescue deal has been worked out, the company is still not out of the woods. (May 16)

Fannie Eases LTV Restrictions

Fannie Mae reversed a recent decision to cut loan-to-values in declining markets. (May 16)

Mitigating Foreclosure Losses

The number of borrowers utilizing a government program to refinance into more manageable mortgages has recently reached a milestone. Other foreclosure-prevention activity included a fast-track loan modification implemented by a mortgage insurer. (May 16)

Chase Dumps Broker Subprime, HEL

JPMorgan Chase & Co.'s mortgage broker unit has closed the door on subprime and home-equity lending. While a number of employees are impacted by the move, the figure is well below the more than 1,300 job cuts already made in the units since October.(May 15)

Net Branches Boost FHA Programs

The self-proclaimed biggest U.S. mortgage broker recently grew by four branches. Other net branch companies are migrating toward government programs. (May 15)

ARMs Drop, Fixed Rates Headed Higher

Fixed rates barely budged but may head higher, while variable rates tumbled. Refinance activity boosted overall new loan applications. (May 15)

First Horizon Mortgage Unit to Either Be Sold or Closed

Executives of First Horizon National Corp. told investors they were committed to either selling or shutting down the mortgage unit this year. (May 15)

Subprime 2nds Downgraded, CMBS Volume Collapses

Nearly $30 billion in classes of subprime second-lien securitizations were downgraded this week. Issuance of commercial mortgage-backed securities is projected to collapse in 2008, with years passing before volume reaches even half of last year's record level. (May 15)

8 Lose FHA Approval Several lenders lost their approval to originate loans insured by the Federal Housing Administration -- including a branch of a rapidly growing Colorado-based company that has thrived on FHA-related activity. The terminations were prompted by excessive defaults. Eight mortgagees have had their origination approval agreements terminated by the U.S. Department of Housing and Urban Development under the Credit Watch Termination Initiative, according the Federal Register, Volume 73, No. 93, published today. HUD said it terminates the agreements when loans originated by the mortgagees have default and claim rates higher than the national rate, and they exceed the local area's default and claim rate by 200 percent. Any FHA loans closed or approved prior to the termination rate can still be submitted for endorsement. Loans in process must be transferred to for completion by another approved mortgagee or branch. (May 13) read full story Pair Accused of Secondary Fraud A pair of former executives of a New York-based mortgage banker have been charged with duping secondary market lenders on mortgage purchases exceeding $40 million. An indictment has been filed against Leib Pinter, 64, and Barry Goldstein, 59, U.S. Attorney for the Eastern District of New York Benton J. Campbell announced. The two were formerly principals of Brooklyn-based Olympia Mortgage Corp. (May 8) read full story Alt-A Fraud Worse than Nonprime Mortgage fraud is far more common in Alt-A loans than in nonprime or conforming loans, according to a new report from the Federal Bureau of Investigation. Annual losses from mortgage fraud could be in excess of $10 billion. (May 13) New FHA Premiums Slated for Summer Risk-based premiums on subprime loans insured by the Federal Housing Administration will be implemented within two months. (May 9) Fannie Will Buy Negative Equity Loans Fannie Mae has outlined a program for borrowers whose mortgage balance exceeds the value of their properties. (May 13)