Loan Think

Payment option ARMs are evil and will be the death of all mankind. That's the opinion of some consumer groupsand regulators, but secondary market investors apparently love the product. Due to "strong demand," thesecondary market for payment option ARMs is quite strong right now, according to a new research report issued byFriedman Billings Ramsey. FBR says investors are paying prices of 103 to 104.5 for payment option ARMs.For the full story see the Monday edition of National Mortgage News. Don't subscribe? Telephone:(800) 221-1809...

It seems that quite a few research firms have been ordering data lately from National Mortgage News.NMN, by the way, is about to release its new, Mortgage Industry Directory, which provides rankingsand profiles on the nation's top 400 lenders, top 350 servicers, and top 100 subprime specialists (and much more).The 1,000-page book includes contact names and telephone numbers and provides a look at key trends affecting thereal estate finance industry. For more information email: Rebecca.Keen@SourceMedia.com...

When consumers suffer, mortgage bankers suffer. A new survey conducted by Roper Public Affairs (for TransUnion)finds that 27% of homeowners think higher interest rates will make it difficult to make mortgage payments. Accordingto the recently released Quarterly Data Report, 33% of U.S. homeowners have an adjustable rate loan. TheQDR also reveals that U.S. residential debt now stands at $8.457 trillion -- with subprime housing receivablesat $1.34 trillion. This past week the yield on the 10-year Treasury was up over 5.15% again. To order a copy ofthe QDR email: Deartra.Todd @SourceMedia.com…

THIS JUST IN: It looks as though the bank-owned Irwin Mortgage -- a top 40 ranked lender and servicer-- will be sold to a mortgage firm that isn't exactly a household name. We caution, however, that the deal is notyet closed. To find out who the leading bidder is, read the Monday edition of National Mortgage News.Don't subscribe or you let your subscription lapse? Call:(800) 221-1809…

The stock market got the crap kicked out of it again this past week. As we went to press the yield on the 10-yearTreasury had fallen below 5%. Could the mortgage banking industry be in for a “mini” refinancing boom? Don't beton it, but some consumers itching to get out of their payment option ARMs and interest-only loans might be doingsome serious comparison shopping this weekend…

Insurance giant American International Group has been in the news the past year because it was on thewrong side of New York attorney general Eliot Spitzer. But now its residential division, American GeneralFinancial Services of Indiana, is making mortgage news. About two weeks ago AGFS shuttered its correspondentdivision. One of its key products was a 100% loan-to-value ratio prime mortgage, said one executive who was sellingthe loan to AGFS. The company, by the way, did not return several telephone calls placed to it by NationalMortgage News. For the full story see Monday's edition of NMN. Don't subscribe? Call: (800) 221-1809...

In a brief interview with National Mortgage News last week, Countrywide CEO Angelo Mozilopredicted that the industry's correction will last at least another two years. He believes that significant consolidationis now underway. Another executive told us that "we're about one-third of our way through this mess."Profit margins continue to be tight in both the prime and subprime sectors...

THIS JUST IN: It appears that Frank Curry, former president of Acoustic Home Loans, haslanded on his feet. Acoustic imploded a few weeks ago. Mr. Curry left the subprime wholesaler earlier this year.Where did he land? For details see the National Mortgage News Online Daily early next week. Don'tsubscribe to NMN? Call: (800) 221-1809…

THIS JUST IN: Deutsche Bank is reportedly talking to a New Jersey-based mortgage banker abouta possible acquisition. At press time the bank would not comment. For more details see the Monday edition of NationalMortgage News. Don't subscribe to NMN? Call: (800) 221-1809...

This past week was one of the ugliest in recent memory for the industry. Ameriquest Mortgage, once thenation's largest subprime lender, laid off 3,800 workers (one-third of its staff), and closed its traditional retailnetwork – all of it. Washington Mutual shut its traditional correspondent division, and late this past weekMerit Financial of Washington State was on the verge of going bust. Meanwhile, sources tell us that twopublicly traded mortgage REITs are on the auction block. The identity of one of the firms has been confirmed. Tofind out which one read the Monday edition of National Mortgage News. Don't subscribe? Call: (800)221-1809...