Loan Think

We all know that Wells Fargo Home Mortgage has overtaken Countrywide as the king of correspondent lending (WFHM also is challenging Countrywide for the title of wholesale king) but did you know that Countrywide is fast gaining on WFHM in regard to retail? For all the details see the just-released version of the Midyear Data Report, which ranks the nation's top lenders and servicers -- in all channels -- based on the first-six months of 2006. You can't find these data anywhere else. For full details e-mail Deartra.Todd@SourceMedia.com…

Not only is Countrywide Financial Corp. slashing 5% to 10% of its general and administrative workforcebut a source familiar with the situation told us that the nation's largest lender also is ending its practice ofgiving out free doughnuts to its employees on the last Friday of the month. (What's next, the coffee supply?) Morechanges are likely just around the corner. We're told the lender is rolling out a new loan processing system thatwill allow its employees to manage the workflow process anywhere in the U.S., and not necessarily in high-costareas like Southern California. For the full story about the head count reduction see the Monday edition of NationalMortgage News. Don't subscribe? Call: (800) 221-1809…

This coming Wednesday two Senate subcommittees will tackle the sticky issue of "exotic" mortgages,or as they like to call them, "nontraditional" loans. (Leave it to those button-downed senators not touse such a sexy word as exotic.) At a hearing this past week, payment-option ARMs took it on the chin, sharingsome of the blame for home prices soaring into the stratosphere. (Most of the soaring has been on the coasts andin resort areas.) According to the just-released 2Q issue of the Alternative Products Quarterly Data Report,POAs now account for about 10% of all originations. To order the AP-QDR, e-mail Deartra.Todd@SourceMedia.com...

In the end, David Sambol got the big job. Officially speaking, Countrywide Financial replacedStan Kurland as president and chief operating officer with Mr. Sambol, but you can read between the lineson this one: Mr. Sambol is the heir apparent to Countrywide CEO Angelo Mozilo. On Thursday night Mr. Kurlandleft the building, opting not to stick around. Mr. Mozilo's CEO contract ends December 31. (He also holds the chairmantitle which does not expire at year-end.) One of these days Countrywide's board will get around to officially namingMr. Sambol CEO-in-waiting, but when that day will actually come is anyone's guess. Mr. Mozilo is on contract withthe company until 2011. Mr. Kurland had been with Countrywide for 28 years, Mr. Sambol 21. One source familiarwith the situation told us the board felt Mr. Kurland's management style evolved into one that had become "imperialin nature." Mr. Kurland could not be reached for comment. We assume he's open to offers…

What's going on with National City Mortgage these days? A few weeks back, National Mortgage Newspublished its exclusive second-quarter origination ranking. NCM ranked 28th nationwide with $3.55 billion fundedin the quarter, a stunning 77% decline from the second quarter of last year. The number looked funny to us so wecalled NCM to check it. NCM said it was fine. Then, after we published our ranking and story, an NCM official calledto say the number was wrong, but couldn't offer a real number. A day later the bank's PR contact left a messagetelling us that the bank-owned mortgage lender would be revising the number. As we went to press this holiday weekend,we still had not received the revised numbers. When we get them we'll pass on the information to our readers. Meanwhile,rumors are starting to circulate that the bank may sell part of its "A" paper business. It's alreadyselling its profitable subprime business, First Franklin Financial. Confused? Join the crowd...

Even though the housing market is caught in what could turn out to be an ugly downward spiral, mortgage bankersof all stripes funded an impressive $865 billion in loans in the second quarter, a 4% improvement over the sameperiod last year. The figures are courtesy of National Mortgage News and the new 2Q edition of theQuarterly Data Report. But amid the decent performance is carnage. Two Wall Street owned lenders - AuroraLoan Services, and EMC Mortgage - saw volumes fall 32% and 24%, respectively. But the biggest loserin the quarter appears to be National City, which reported that fundings dropped a stunning 77% to $3.5billion. For the full story see Monday's NMN. To subscribe to NMN call: (800) 221-1809...

Two more nonconforming mortgage companies are on the auction block. For the full story read the Monday, Aug.21 edition of National Mortgage News. Don't subscribe? Telephone: (800) 221-1809...

Deutsche Bank wants to purchase small-balance commercial mortgages and is in the market for a platformthat might get them there, sources tell us. "They would like to make an acquisition of a company," saidone official familiar with the matter. Deutsche recently inked a deal to buy MortgageIT Holdings, a top25 ranked residential funder. But at least one industry veteran, IndyMac's Mike Perry, thinks Deutscheis buying a clunker. During IndyMac's recent earnings conference call, Mr. Perry (a veteran at age 43) called MortgageITa "crappy company." His comments appeared in the Friday edition of American Banker, a sisterpublication to NMN. Mr. Perry is a protégé of Countrywide Home Loans chairmanand CEO, Angelo Mozilo. (Years ago, Countrywide owned a stake in IndyMac.) Mr. Mozilo, by the way, was expectedto relinquish his CEO title at year-end but remain on as chairman. The board was expected to pick a successor,but we understand that they are taking their time. Also, there's speculation that Mr. Mozilo might be staying onas CEO (or in some other management capacity) a bit longer...

Just when the industry thought the business of selling bulk servicing rights was in the tank, along comes WashingtonMutual, unloading $140 billion in product to competitor Wells Fargo. But servicing brokers, don't holdyour breath. The WaMu sale appears to be a one-time deal. The days of Hamilton, Carter, Smith ruling thebrokerage roost are long over...

At least five Wall Street firms are actively in the hunt to buy mortgage banking franchises, hoping to takeadvantage of profit-margin-challenged lenders that want to exit the business as the "cycle" winds down.(It's all about "vertical integration," folks.) For the full story see the Monday edition of NationalMortgage News. If you don't subscribe call: (800) 221-1809…