THIS JUST IN: If you're trying to foreclose on a home in Florida it can take up to four years. That's the worst-case scenario, I've been told by some investors in distressed loans. "Usually it's at least two years," said a West Coast-based vulture fund manager. Of course, some borrowers got hosed on their loans and have every right to stay in the house. Then, there are folks who are gaming the system. It's a crazy mixed up world. Have a horror story about foreclosure problems? Drop me an e-mail at
GETTING IT OFF MY CHEST: This has been bothering me for a while so here goes. Over the past few weeks the anchors on CNBC—the business channel that I love to hate—have been blathering on about how higher corporate taxes are a plague on our financial landscape. The message seems to be this: Now that the economy is improving, firms that are profiting handsomely are paying higher tax bills to Uncle Sam. The folks at CNBC and their guests make it sound like our government—the very same government that saved the world's financial system with the $750 billion bailout in the fall of 2008—is acting, well punitively. And a new report from Barclays Capital notes that "net tax receipts jumped 25.2% y/y in May, while outlays declined 7.9%." All this means what? Answer: The U.S. budget deficit should start falling. But yet the "news personalities" on CNBC (and let's not mistake them for reporters because their objectivity is out the window) seem to be suggesting that our corporate executives are being disadvantaged because they're paying higher taxes. Well, duh. These firms are making more money, so therefore they're paying more taxes. And isn't it the same Wall Street honchos—those with the billion-dollar bonuses—who are worried about Uncle Sam's debt woes turning into a European-like crisis? So which way does corporate America want it? Should Uncle Sam cut taxes, benefiting the private sector but screwing the Treasury Department? Wasn't it the Bush Treasury that saved us all with TARP? It all boils down to this: It's time to pay the piper—that is, it's time to balance budgets and the only way to do that is through more tax revenue. There, I said it. More tax revenue is needed. I'm not suggesting (at least not yet) that we should increase the tax rate for corporations, but Great Caesar's Ghost, people. We (as in the Treasury) need more revenue. Cut spending, you say? It ain't gonna happen—not now and not when the Republicans and those Tea Party morons take power (if they take power) in the fall. Social Security is a God-given right to most Americans. The two largest expenditures in the budget are defense and interest payments on the national debt. What does all this have to do with the U.S. mortgage market? It's simple: Once the U.S. debt turns, employment will rise and housing will improve. And once housing picks up mortgage bankers will prosper once again...
As for loan brokers, well there's hope yet. Maybe. Although there are signs of life in the wholesale/broker sector, originations through this somewhat controversial production channel hit an all-time low in the first quarter, according to figures compiled by National Mortgage News. Residential loans facilitated through table funding accounted for just 12.8% of the $329 billion in originations in 1Q, down significantly from a peak of 28.2% three years ago. The full story is in the Monday edition of NMN. To subscribe call 800-221-1809. All the data and research that feeds our analysis is in the Quarterly Data Report. To order the QDR drop a line to
Marc Savitt, a former president of the National Association of Mortgage Brokers who runs new trade group for all real estate professionals, said despite what the numbers say, he sees more wholesalers entering the market. Savitt is lobbying to save the brokerage industry, hoping to clarify pending legislative language that would crimp, to some degree, yield-spread premiums. Stay tuned...
In case you didn't know it, Financial Freedom, the reverse lending subsidiary of OneWest Bank (formerly IndyMac) is still humming along, originating HECM loans...
In his testimony Wednesday before Congress Federal Reserve chairman Ben Bernanke expressed his grave concerns about all those retiring baby boomers and how they'll drain Social Security of its remaining cash. There is a solution: "Logan's Run." Rent the movie this weekend and get educated...
WASHINGTON NEWS: The Department of Housing and Urban Development believes that some homebuyers are getting the "back door" shaft from certain builders, even if these firms are offering $10,000 discounts or kitchen upgrades to use a seller's mortgage subsidiary. The agency is seeking evidence that buyers who use a related mortgage affiliate of a homebuilder might be paying higher rates and closing costs than applicants who use nonaffiliated lenders. (See Brian Collins' exclusive story on the NMN website.)
MORTGAGE PEOPLE: The American Securitization Forum has hired former GSE regulator Armando Falcon Jr. as a senior policy advisor. Paul Peters, the former president of Hibernia Bank's mortgage division, has joined residential mortgage advisory firm KLS Consulting LLC. Braver Stern Securities, an independent broker-dealer, opened a Midwest office based in the Chicago area. The office will be led by David Connelly, a 25-year veteran of Bear Stearns' MBS department.
OUR RESEARCH REVEALS: All MI firms saw their new policy volume plummet in 1Q except one: United Guaranty Inc., an AIG company.
DATA STUFF: The brand-new edition of NMN's Annual Data Report is out. In the ADR you can find rankings on the top 100 lenders and servicers in 2009 with complete breakdowns on production channels and subservicing and subprime servicing. To order the ADR drop a line to
SURVEY NOTICE No. 1: Our annual "Top Producer Survey" (a k a LO survey) is still available at
SURVEY NOTICE No. 2: It's survey time once again for sellers and servicers. Look for our annual survey in your computer mailbox or e-mail
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DATA NOTICE: National Mortgage News has all different datasets available for purchase including rankings and contact lists on the nation's top lenders and servicers. Send your requests for information to
THE LAST WORD: Fannie and Freddie will turn a profit some time in 2011, and Go Blackhawks!
