Servicing

IndyMac Bancorp Inc., Pasadena, Calif., the holding company for IndyMac Bank, has reported net earnings of $36.9 million for the first quarter and record earnings per share of $0.66.The savings and loan produced a record $6.5 billion of mortgage loans in the first quarter, up 59% from the level of a year earlier, IndyMac said. The company's mortgage pipeline stood at a record $6 billion as of March 31, up 101% from that of a year earlier. IndyMac's portfolio of mortgage loans serviced for others totaled $28 billion, up 22% from the level recorded on March 31, 2002. IndyMac can be found online at http://www.indymacbank.com.

The residential primary servicer and special servicer ratings of Fairbanks Capital Corp. have been placed on Rating Watch Negative by Fitch Ratings pending a review of certain reporting and remittance practices.The rating agency said Fairbanks has changed its servicing procedures regarding certain transactions to allow for the charging of interest on advances paid by Fairbanks, raising questions about whether the practice is considered "reasonable and customary" for the industry. To evaluate the practice, Fitch's Operational Risk Group has scheduled an on-site review at the company's four servicing facilities in Utah, Texas, Florida, and Pennsylvania. The review, which is scheduled to be completed within 30 days, will also address allegations by consumers that Fairbanks has engaged in predatory and deceptive business practices. Those allegations, and related lawsuits, have prompted reviews by the Department of Housing and Urban Development and the Federal Trade Commission. Fairbanks' current residential primary servicer ratings are RPS1 for subprime loans and RPS1-minus for alternative-A and home equity loans, and its residential special servicer rating is RSS1. Fitch can be found online at http://www.fitchratings.com.

Countrywide Financial Corp., Calabasas, Calif., which has reported taking a nearly $1 billion writedown to the value of its mortgage servicing rights in the first quarter, says those MSRs are poised to generate earnings when rates rise.In a conference call with investors and analysts, Countrywide chairman Angelo Mozilo said servicing rights will "provide a significant share of the earnings mix when rates ultimately rise." He also noted that the MSR asset is valued at $5.3 billion on Countrywide's books, a relatively small portion of the firm's $74 billion balance sheet. He said the intrinsic value of the MSR asset is "significantly higher" than the value recorded on the balance sheet because of the potential for ancillary income from cross-sales and other sources. Investors seemed to agree, focusing on the fact that Countrywide beat analyst expectations for first-quarter income and raised its guidance on income for the rest of the year. The company's stock rose almost 9% April 29 to close at $67.83, a 52-week high for the firm.

Countrywide Financial Corp., Calabasas, Calif., has reported record earnings of $326 million ($2.44 per share) for the first quarter, up 95% from $168 million ($1.32 per share) a year earlier.Pretax earnings by the company's mortgage banking operations totaled $354 million in the first quarter, up 85% from $192 million in the first quarter of 2002. "This marks the second consecutive quarter in which fundings surpassed the $100 billion mark and exceeded loan portfolio prepayments by over $50 billion," said Angelo R. Mozilo, Countrywide's chairman and chief executive officer. "Our servicing portfolio has surpassed $500 billion, driven almost exclusively by our internal production efforts." The servicing portfolio stood at $355 billion in March 2002. Mr. Mozilo also pointed to the expansion of the company's new business lines, which achieved pretax earnings of $170 million in the first quarter, representing 32% of total pretax earnings. The company can be found online at http://www.countrywide.com.

Nearly 450 members of America's Community Bankers are selling mortgages to Fannie Mae, Freddie Mac, and private wholesalers participating in the trade group's Mortgage Solutions program.Those institutions, which represent nearly 40% of ACB's membership, have sold $10 billion in loans to the wholesalers so far this year. Last year, loan volume totaled $22 billion. The Mortgage Solutions program, which was started in early 2001, offers thrifts and savings banks special deals as well as access to technology. Countrywide Home Loans, Principal Residential Mortgage, and Financial Freedom Senior Funding Corp. also participate in the conduit program. "Collectively, our members have accrued bottom-line value of more than $60 million through the unprecedented member-advantaged features of these programs," ACB spokesman Robert Schmermund said. ACB can be found online at http://www.acbankers.org.

CBC Cos., Columbus, Ohio, has announced an expansion of its mortgage and real estate services with the acquisition of Nationwide Document Service, Scottsdale, Ariz., and Denali Ventures Inc., Cheyenne, Wyo.The terms of the transactions were not disclosed. CBC said the acquisition of Nationwide Document Service enables it to offer mortgage lenders the services of more than 6,000 trained notaries who can deliver closing documents to the borrower's home or office for signature. With the acquisition of Denali Ventures, CBC said it now offers nationwide property preservation, clean-up service, winterization, and maintenance to lenders with residential real estate owned properties. "With the acquisition of these companies, CBC Companies will be able to offer a comprehensive group of mortgage and real estate services to customers nationwide, saving them both time and money," said Richard Alexander, CBC's director of business development. The companies can be found on the Web at http://www.cbc-companies.com, http://www.nationdocs.com, and http://www.denaliventures.com.

Fannie Mae has priced an offering of $300 million of 5.125% noncumulative preferred stock.The 6.0 million shares of Series L stock have a stated value of $50 per share, the government-sponsored enterprise said. Lehman Brothers Inc. and Goldman, Sachs & Co. are the co-lead managers for the issue. Fannie Mae can be found online at http://www.fanniemae.com.

Significant growth in residential mortgage-backed securities volume is being accompanied by regulatory changes and technological advances that will have "a lasting, monumental effect" on the future of that market, according to Standard & Poor's Ratings Services.In a recent commentary, S&P analysts cited the following developments: predatory lending legislation at the state and city levels; advances in alternative valuation modeling; continued standardization of collateral quality characteristics; and the effect of successful modeling in the United States on the advent of global RMBS risk models. "All in all, the explosion of volumes in the residential market has provided opportunities for increased profitability as well as accelerating a number of very positive technological innovations," said Frank Raiter, a managing director in S&P's Structured Finance group in New York. The title of the report is: "As RMBS Issuance Growth Persists, Regulatory Changes and Technological Advances Emerge." S&P can be found online at http://www.standardandpoors.com.

Flagstar Bancorp, Troy, Mich., the holding company for mortgage lender Flagstar Bank, has declared a 2-for-1 split of its common stock in the form of a stock dividend.The dividend will be paid May 15 to stockholders of record at the close of business on April 30, the company said. Cash will be paid in lieu of fractional shares. Flagstar operates 92 bank branches in Michigan and Indiana, 101 loan origination centers in 21 states, and 14 regional correspondent lending offices across the United States. It can be found online at http://www.flagstar.com.

Class B2 of Impac SAC mortgage pass-through certificates, series 1999-2, has been downgraded from B to CCC by Fitch Ratings, and class B1 has been placed on Rating Watch Negative.The rating actions were attributed to high delinquencies relative to the applicable credit support. Fitch can be found on the Web at http://www.fitchratings.com.