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Co-ops Boost Secondary Marketing Profits

A growing trend in secondary marketing is the use of cooperatives to garner better deals for smaller players. Several firms are promoting a host of services to secondary market players, with one law firm promising to help lenders with repurchase demands. Also, applications are being accepted for issuers of government-insured manufactured housing loans.

Community Bank Mortgage LLC announced last month the renewal of its contract with Wells Fargo Funding Inc. The arrangement enables Wells to act as a secondary market investor for loans originated by cooperative’s owners.

Community Bank was launched in 2007 by the American Bankers Association and uses the collective bargaining power of 55 owner banks.

Another ABA affiliate, Business Solutions, announced last month an alliance with Freddie Mac. The alliance promises to provide ABA members with “access to critical mortgage products, technology, staff training and other services.” It also is expected to give members competitive cash executions and exclusive training on Freddie’s products and solutions.

PHH Mortgage Corp. was designated as a preferred investor by Lenders One Mortgage Cooperative, a June 30 statement said. The 165 members of Lenders One will have direct access to PHH underwriters, the ability to upload documents electronically and ongoing compliance training.

Members of the Capital Markets Cooperative will have access to post-closing quality control outsourcing services as a result of a new alliance with The StoneHill Group. They will also have access to branch, collateral and servicing audits.

Capital Markets claims to be “a leading provider of secondary marketing services.”

Applications are being accepted by Ginnie Mae for issuers of new mortgage-backed securities backed by new Title 1 manufactured housing loans. The program was created as a result of recent changes in FHA’s Title I Program for manufactured housing. Eligible mortgages can only be pooled as Ginnie Mae II MBS, using the Manufactured Housing Custom Pool type.

A commercial mortgage finance and commercial mortgage-backed securities team has been added to Macquarie Group’s fixed income, currencies & commodities group, a July 8 news release said. The new team will join the credit trading business, which was established in March 2008.

The managing director and head of commercial finance and CMBS for the new team is Randy Reiff.

“We have successfully grown the business with a particular focus on high-yield and distressed credit, and now see an opportunity to extend that offering into the commercial real estate and CMBS market,” Michael McLaughlin, head of Macquarie’s credit trading division, said in the announcement.

CreditHorizons for securities, which delivers Experian’s consumer credit information for non-agency MBS, now offers the ability to link consumer credit data to ABSNet Loan, Lewtan’s private-label deal library, a recent statement indicated. This capability expands the offering to a broader base of non-agency RMBS investors.

Response Analytics’ Mortgage Asset Management’s solution was licensed by Quicken Loans Inc. to support its workflow for managing residential loans, a June 29 statement said. Quicken will also use the service to evaluate how to maximize the value of the loan portfolios it reviews for business partners.

1010data announced yesterday that its delivery platform was selected for TransUnion’s consumer risk indicators. The product utilizes TransUnion’s credit data along with CoreLogic LoanPerformance’s loan-level RMBS data. 1010data claims that the product allows more accurate risk assessment than traditional methods that don’t look at updated credit information.

“There has been lots of industry buzz about the true state of the assets behind MBS and what this means for investor risk,” said 1010data Vice President Greg Munves said in the statement.

Repurchase litigation is expected to rise as the economic downturn worsens, according to Shields, Britton & Fraser, P.C. The company says its experience defending major originators in previous situations can prove critical for new clients and outlined an number of defenses available to firms facing repurchase demands.

A June 23 news release from Interactive Data Corp. indicated that its pricing and reference data business has broadened its evaluated pricing offerings. The expansion includes the addition of evaluations coverage for new securities, the launch of monthly market commentary and the enhancement of its current services.

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