Servicing

SunTrust Mortgage ranked highest in overall customer satisfaction among national mortgage servicing companies in the inaugural J.D. Power and Associates Primary Mortgage Servicer Study.Based on more than 9,200 responses from home mortgage customers across the United States, the study found that World Savings Bank ranked second, followed by Bank of America and Countrywide Home Loans, according to J.D. Power. The Westlake Village, Calif.-based firm said the study measured performance in four areas: billing, payment, annual account review/administration, and customer-initiated interaction. "With climbing interest rates suppressing refinance activity, customer recommendations to others has become even more vital to mortgage lending companies," said Jeremy Bowler, senior director of the finance and insurance practice at J.D. Power. "Throughout our research, we find that customers who are satisfied with their lender are considerably more likely to offer a personal referral to a friend, co-worker, or relative, illustrating the strong relationship between customer satisfaction and long-term customer value." J.D. Power can be found on the Web at http://www.jdpower.com.

Nine classes of Greenpoint Credit Manufactured Housing Trust transactions have been downgraded by Fitch Ratings.The downgrades are as follows: series 1999-5, class A-4, from AAA to AA, class A-5, from AAA to A-plus, classes M-1A and M-1B, from A-minus to B, and class M-2, from BB-minus to CCC; series 2000-1, class A-3, from A to A-minus, and class A-4, from BBB to B; and series 2000-3, class IA, from BBB-minus to B, and class I M-1, from B-minus to C. In addition, the ratings on four MH classes were affirmed. Fitch attributed the downgrades to continued poor collateral performance. The rating agency noted that Greenpoint exited the manufactured housing lending business in 2002, but continued to service its MH portfolio until the assets and servicing rights were acquired by GreenTree Servicing in the fourth quarter of 2004.

Twelve classes of United Companies Financial Corp. manufactured housing securitizations have been downgraded by Fitch Ratings.The downgrades of United Companies Funding Inc. transactions were as follows: series 1996-1, class A-6, from AAA to AA-minus, and class M, from B-minus to C; series 1997-1, class M, from B-minus to C; series 1997-3, class A-4, from AA-plus to BBB, and class M, from CCC to C. In addition, Fitch downgraded the following classes: series 1997-4, class A-4, from AA to A-minus, and class M, from B-minus to C; series 1998-1, class A-3, from AA to AA-minus; series 1998-2, class A-4, from AA-minus to BB, and class M-1, from BB-minus to B; and series 1998-3, class A-1, from A-plus to BB, and class M-1, from BB-minus to B. Fitch also affirmed the ratings on nine classes of UCFC deals. The downgrades were prompted by the poor performance of the collateral, Fitch said. The rating agency noted that UCFC filed for Chapter 11 bankruptcy protection in 2000, and its manufactured housing portfolio, servicing rights, and residual interests were acquired by EMC, a subsidiary of Bear Stearns Cos. Fitch can be found online at http://www.fitchratings.com.

In the second quarter, 74% of the homeowners who refinanced their homes got a mortgage at least 5% larger than the original loan, the highest level since the fourth quarter of 2000, according to Freddie Mac.The percentage was up from 64% in the previous quarter and far higher than the 43% level recorded a year earlier, the government-sponsored enterprise said in its quarterly refinance review. "Interest rates on 30-year, fixed-rate mortgages dipped lower in the second quarter, spurring refinance activity higher," said Frank Nothaft, Freddie Mac's chief economist. "Mortgage borrowers took advantage of these low rates by cashing out some home equity before rates go up, as they are expected to in coming quarters." The GSE is forecasting that 30-year fixed mortgage rates will rise through the end of the year, averaging about 6% in the fourth quarter. Freddie Mac can be found online at http://www.freddiemac.com.

Fidelity National Financial Inc., Jacksonville, Fla., has announced that its LSI Market Intelligence division is now offering a Natural Disaster Condition Report to lenders nationwide.Based on data gleaned from the company's network of nearly 30,000 real estate professionals, the inspection report provides detailed information on the condition of a specified property in the aftermath of a natural disaster, FNF said. For lenders with transactions pending mortgage funding in a disaster area, the report helps them determine the existence and condition of subject properties. "In addition to stating whether damage to specific exterior features has occurred, this report provides percentage ranges that indicate the degree of that damage and a photograph to support those findings," the company said. FNF, a provider of products and services to the financial and real estate industries, can be found online at http://www.fnf.com.

Ocwen Financial Corp. has reported a 67% drop in second-quarter profits due to increased expenses and lower property intake under a Department of Veterans Affairs real-estate-owned contract.The West Palm Beach, Fla., servicing company posted second quarter earnings of $2.9 million, compared with $9.1 million in the second quarter of 2004. Ocwen chairman and chief executive William Erbey said the company's servicing and loan processing units achieved revenue growth, but a "sharply reduced" number of VA foreclosed properties and other factors offset those positive trends. In early 2004, Ocwen took over the management of 11,000 foreclosed single-family homes from the VA. VA foreclosures have slowed since then, and the department is delivering fewer properties as the REO is sold off. "They're selling at a pretty rapid rate but they are getting fewer properties," a VA official said. The company also reported the completion of its "debanking" initiative in the second quarter through selling the deposits of Ocwen Federal Bank FSB and surrendering its thrift charter. All the remaining assets and liabilities of the bank have been transferred to Ocwen Loan Servicing LLC, a new subsidiary of OFC, the company said.

CharterMac, New York, has reported the completion of its first offering of 4.40% cumulative perpetual convertible Community Reinvestment Act preferred shares, series A-1, at $50 per share.The company said the net proceeds of approximately $104.6 million will be used chiefly to acquire federally tax-exempt revenue bonds secured by mortgage loans on multifamily housing properties, as well as for general business purposes. The shares were offered to 17 financial institutions through Meridian Investments Inc., the placement agent. CharterMac can be found on the Web at http://www.chartermac.com.

Twelve classes from three issues of IndyMac Manufactured Housing contract pass-through certificates have been downgraded by Fitch Ratings.The downgrades were as follows: series 1997-1, classes A-2 to A-6, from A to B-plus; series 1998-1, classes A-3 to A-5, from BBB-plus to B; and series 1998-2, classes A-2 to A-4, from A to BB, and class M-1, from CC to C. The downgrades were attributed to continued poor performance of the underlying collateral. "The rating actions reflect Fitch's adjusted expectation that performance will remain relatively stable, and improvement will be limited," the rating agency said.

Three classes of Signal Securitization Corp./FirstFed Corp. manufactured housing transactions have been downgraded by Fitch Ratings.The downgrades were as follows: Signal Securitization Corp., series 1998-2, class A, from A to BBB-minus; FirstFed Corp., series 1996-1, class B, from B to CC; and FirstFed Corp., series 1997-2, class B, from B to CCC. In addition, the ratings on seven other classes from five transactions were affirmed. The downgrades were attributed to higher-than-expected losses that have resulted in "significant" interest shortfalls to various subordinate bonds in the deals, Fitch said. The rating agency noted that First Federal Savings and Loan Association had converted its charter to a national bank charter and changed its name to Signal Bank NA. The name of FirstFed Corp., the special-purpose entity involved in securitizing manufactured housing contracts, was then changed to Signal Securitization Corp. Fitch can be found online at http://www.fitchratings.com.

New York Mortgage Trust Inc. has announced the completion of its second securitization of loans originated entirely through the company's mortgage banking subsidiary, The New York Mortgage Co. LLC.The securitization, New York Mortgage Trust 2005-2, consists of approximately $239.5 million of notes backed by high-credit-quality, first-lien, adjustable-rate and hybrid adjustable-rate mortgage loans, the company said. NYMT said it will retain all the notes and treat them as debt for accounting and income-tax purposes. The weighted average loan-to-value ratio of the loans in the trust is approximately 69.8%, and the weighted average FICO score is approximately 736, NYMT said. RBS Greenwich Capital served as the underwriter for the transaction.