Servicing

Clayton Holdings Inc., a provider of information and analytics to the banking and fixed-income securities markets, has announced the acquisition of Mortgage Resource Network, a Dallas-based provider of outsourced mortgage origination support and pre-close due diligence services.The terms of the deal were not disclosed. Clayton noted that the acquisition expands its presence in the mortgage services sector. MRN provides turnkey front-end fulfillment, imaging, contract underwriting, closing, funding, and investor delivery services required by mortgage originators and warehouse lenders. In addition, MRN provides post-transaction and servicing transfer support services, including trailing document management and MERS research and registration. Clayton, based in Shelton, Conn., can be found online at http://www.clayton.com.

Republic Title Co., Chicago, has announced that 1031 exchange services will now be offered to its attorney agents and other customers through an alliance with Nationwide Exchange Services.Republic said NES is a "qualified intermediary" that provides a full range of 1031 tax-deferred exchange services. Section 1031 of the IRS Code allows owners to exchange property held for investment or business purposes for "like-kind" property, with no federal tax liability, if they meet certain deadlines. NES can be found online at http://www.nationwide1031.com.

The Mortgage Bankers Association's ranking of top commercial and multifamily mortgage loan servicers places Wachovia at the top of the list in total primary and master servicing volume, at $233.2 billion.Following Wachovia are GMAC Commercial, with $231.5 billion, Midland Loan Services, with $159 billion, and Wells Fargo, with $95.5 billion. (They are also the top four primary and master servicers for commercial mortgage-backed securities.) Rankings of servicing for life company loans place Prudential Asset Resources at the head of the list, the trade group reported, followed by GMAC, NorthMarq Capital, and Q10 Capital. Deutsche Bank is ranked No. 1 for servicing of Fannie Mae and Freddie Mac loans, followed by Washington Mutual, GMAC, and ARCS Commercial Mortgage. Wachovia is No. 1 for servicing of commercial bank and savings institution loans. The MBA can be found online at http://www.mortgagebankers.org.

Irwin Financial Corp., Columbus, Ind. -- which recently announced that its conventional mortgage banking unit, Irwin Mortgage, is for sale -- has reported net income of $6.5 million ($0.23 per share) for the fourth quarter, compared with $13.9 million ($0.47 per share) a year earlier, a decline it attributed to a loss in its mortgage banking operations.The loss in the mortgage banking segment totaled $2.6 million in the fourth quarter, compared with net income of $1.0 million in the fourth quarter of 2004, the company reported. For the full year, Irwin reported net income of $19.0 million ($0.66 per share), compared with $68.4 million ($2.28 per share) in 2004. "Consolidated net revenues decreased on a sequential quarter basis largely due to reduced secondary-market gains on mortgage loan sales, [mortgage servicing rights] impairment, and the absence of mortgage servicing sales in the current period," Irwin said. The company can be found online at http://www.irwinfinancial.com.

Interactive Mortgage Advisors, Denver, is brokering a $40 million package of Freddie Mac and Fannie Mae bulk servicing rights.IMA said the weighted average interest rate of the offering is 5.636%, and the weighted average service fee is 0.338%. The average loan size is approximately $137,000, and more than 95% of the loans -- the vast majority on single-family residences -- are concentrated in Arizona. The bid deadline is Feb. 15.

HomeBanc Corp., the Atlanta-based parent company of HomeBanc Mortgage Corp., has priced a public offering of 2.0 million shares of 10% series A cumulative redeemable preferred stock at $25 per share.J.P. Morgan Securities was the sole bookrunner and lead manager of the offering. HomeBanc said it has granted the underwriters an option to buy up to 300,000 additional shares to cover any overallotments. HomeBanc, a real estate investment trust, can be found online at http://www.homebanc.com.

Sky Financial Group, Bowling Green, Ohio, has agreed to purchase Union Federal Bank of Indianapolis, and its parent company, Waterfield Mortgage, for $330 million in stock and cash.A spokesman for Sky said the company will not purchase much in the way of mortgage banking assets belonging to Waterfield. In mid-January, American Home Mortgage, Melville, N.Y., agreed to buy most of Waterfield's production offices, with its $19 billion in residential servicing rights reportedly going to Citigroup. (The Citigroup part of the transaction has not been confirmed, and both parties refuse to comment.) Union Federal, the fourth-largest bank in the state, has 44 full-service centers. The sale includes Waterfield's insurance and settlement services divisions. Sky can be found on the Web at http://www.skyfi.com.

Mortgage companies trimmed 1,400 full-time employees from their payrolls in December, following 2,000 job cuts in November.The U.S. Bureau of Labor Statistics reported that employment in the mortgage banker/broker sector declined to 500,900 in December from 502,300 in November. BLS previously reported that mortgage firms shed 200 employees in November. But a year-end benchmark revision now shows that companies actually were more aggressive in cutting their payrolls. Overall, industry employment averaged 489,900 in 2005, compared with 467,700 in 2004. In the past few weeks, MortgageWire has reported on layoffs at prime and subprime lenders alike, including Ameriquest Mortgage, Argent Mortgage, Aurora Loan Services, BNC Mortgage, ECC Capital Corp., and Countrywide Home Loans. (See the Feb. 6 issue of National Mortgage News for more employment-related stories.) The BLS can be found online at http://stats.bls.gov.

Freddie Mac says it expects that a flattening yield curve will increase its opportunities to expand its credit guarantee business and invest in fixed-rate mortgages this year.A flattening of the yield curve "plays to our traditional strength," Freddie's president and chief operating officer, Eugene McQuade, told an investor conference sponsored by Citigroup. Freddie is forecasting a decline in adjustable-rate mortgage originations in 2006 and 2007 and projects that banks will find it less profitable to invest in fixed-rate mortgages. "While we have yet to see a selloff of fixed-rate mortgages from bank portfolios, even slightly reduced investment by banks should create better fixed-rate buying opportunities for us in 2006," Mr. McQuade said. The Freddie COO also pointed out that most of the growth in the company's mortgage portfolio came from purchasing subprime mortgage securitizations that are rated triple-A. "We generated most of our retained portfolio growth last year in that sector," he said. Mr. McQuade also told investors that Freddie Mac gained market share from Fannie Mae in 2005 in the issuance of guaranteed mortgage-backed securities. Freddie said its share increased from 41% in 2004 to 45% in 2005.

W Holding Company Inc., Mayaguez, Puerto Rico, has announced that it will postpone the release of its financial results for the fourth quarter and for 2005 until it completes a review of the accounting presentation of certain mortgage-related transactions.W, the holding company of Westernbank Puerto Rico, said the review involves transactions entered into with Doral Financial Corp. from 2000 to 2005, and whether they represent "true sales" under Statement of Financial Accounting Standards No. 140. The review will also look at the hedge accounting treatment of certain rate swaps under SFAS No. 133. The company said the possible revised classification of the mortgage-related transactions -- previously reported as purchases of residential real estate loans -- "will not result in the need for additional reserves" and that the company "will remain well capitalized under FDIC rules." The company can be found online at http://www.wholding.com.