Fannie Mae was kind enough to give National Mortgage News some guidance on what's going on regarding all those rumors we've been hearing about the GSE outsourcing some of its technology chores supposedly to IBM. A spokeswoman for Fannie confirmed that there is a 'request for proposal' out regarding the matter, but said that IBM is not the "leading bidder" on the contract. She would not name the other bidders, and would not even confirm that IBM is still in the running. As for what exactly Fannie plans to outsource in the technology space, she would offer no guidance there either. At this point we know that IBM's servicing division is one of at least five subservicers handling 'high touch' product for the GSE -- a lot of it. How much is IBM's servicing unit processing for Fannie? The spokeswoman would not say. You might think IBM would want to clarify the matter but Big Blue ain't talking either. Both firms are publicly traded, but Uncle Sam owns most of Fannie…
FILE UNDER: DO AS I SAY, NOT AS I DO: Uncle Sam wants mortgage lenders to have "skin in the game." And, hey, why not? It makes sense to me. If a lender has to hold capital or cash against the loan chances are they will be a bit more careful on what they originate. As we all well know the "skin in the game" concept has worked in the servicing sector. Fannie Mae and Freddie Mac have the right to pull MSRs from servicers doing a poor job – and they haven't been shy about it either. (IBM has benefitted in this regard too because it's Fannie's 'subservicer' of choice.) But what if the gang over at FHFA, FDIC and HUD reduce the minimum servicing fee to zero or something paltry like 10 basis points? We're starting to hear arguments that favor maintaining the current minimums because (like I said) it gives these servicers "skin in the game." On Thursday regulators working on the issue met with servicing advisors and a handful of megaservicers. The pow-wow was at FHFA's HQ in downtown DC. It was not open to the press, though next time I'm sure they'll want me there…
By the end of next week loan brokers will know whether they have a chance of delaying the Federal Reserve's LO compensation rule. (On Friday Glenn Corso's trade group filed an amicus brief supporting NAIHP and NAMB's position.) According to the Quarterly Data Report brokers have a market share of just under 11% -- near their all time low. To order the QDR drop a line to:
Meanwhile, the biggest complaint I keep hearing from brokers and many lenders outside of the top five is this: that the government (despite what it says) doesn't realize that all the mortgage regulations forced upon the industry the past two years benefit only the largest lenders. Many brokers and LOs truly believe that there's a government conspiracy to eliminate all the smaller players so they only have to deal with the top five…
On Friday, NMN broke the news that: Not only are state attorneys general pushing the nation's megabanks to sign a servicing settlement tied to faulty foreclosure practices, but they want these institutions to sign a regulatory consent order, holding their boards' responsible for correcting deficiencies. Glad I'm not a director…
THIS JUST IN: The new MORTECH study is out with company chief Jeff Lebowitz declaring that: "The general economic client has improved. Lenders are more optimistic than they have been in three years. Still the industry remains coping with the 'new normal.'"
WASHINGTON NEWS: Mortgage bankers likely won't see any official proposals to revamp servicing compensation until late summer, according to Government National Mortgage Association president Ted Tozer. For full details see the NMN website at:
KEY DATA POINT: In the fourth quarter the top retail gainer among the top 10 mortgage funders was none other than CitiMortgage. Citi funded $10.5 billion of residential product through its branches and over the Internet, a 90% jump compared to 4Q09. A complete ranking of the nation's top 100 retailers is in the Quarterly Data Report. Meanwhile, if you're looking for a ranking of the top jumbo and interest-only lenders check out the brand new 4Q edition of the Alternative Products Quarterly Data Report. To view the QDR or AP-QDR send an email to:
MORTGAGE PEOPLE: In case you missed it FDIC chief Sheila Bair is leaving the FDIC by midyear. Will she pull a David Stevens and head an industry trade group like maybe the American Bankers Association? Nah.
CALLING ALL LOAN OFFICERS: We want to know how you did in 2010 and your outlook for this year. NMN's new LO survey can be found at:
DATA STUFF: If you're going to weather the market you need to know who's on top in originations, servicing and more. You may want to check out NMN's Quarterly Data Report, an Excel spreadsheet and database product that tracks the top 100 every quarter without fail. To order the QDR send an email to:
A MUST ATTEND SERVICING SHOW: The MBA's servicing show ended three weeks ago, but if you missed that event try the SourceMedia show. The publisher of NMN and American Banker will hold its fifth annual servicing show in Dallas April 5 – 7. Top servicing and subservicing executives will be there. For more information email:
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THE LAST WORD: Snow expected for Sunday in Washington, D.C. Maybe it's time to buy one of them cheap condos in Florida.
