It seems as though the Mortgage Bankers Association, the nation's premier trade group for firms that actually fund loans, has pulled down the cone of silence on the issue of guarantee fee discounts offered by Fannie Mae and Freddie Mac. Could it be that it's best for the trade group to not say anything on the matter because its members include both the big boys that actually get the discounts as well as the small pups who don't? We called the trade group's PR department more than 24 hours ago and our phone has yet to ring…
As for the big boys—Wells Fargo, Bank of America, Citigroup and Ally Financial—they had no comment. During the heyday of mortgage banking Countrywide Financial supposedly had a g-fee deal with Fannie Mae of less than 10 basis points. The Federal Housing Finance Agency late this week released its latest study on g-fees. Absent from that report: how much individual companies are getting on their g-fee breaks. If you work at the FHFA and want to provide that information to me (via private email) drop a line to
And keep in mind this one fact: FHA/GNMA do not offer g-fee discounts. With Uncle Sam there is parity. Who says regulation does not work?...
We know of a new warehouse lender that's going after loan brokers who can qualify as “mini-correspondents.” See the Monday edition of National Mortgage News with a shortened version appearing on our website soon. Don't subscribe? Call 800-221-1809…
According to just released figures compiled by National Mortgage News and the Quarterly Data Report, loan brokers accounted for 7.9% of all home mortgages originated in 2Q, compared to an all-time low of 6.8% in the first quarter. Is this the start of a trend or an aberration? For the numbers and a ranking of top wholesalers see the new 2Q edition of the QDR. For a free sample send a note to
Will the yield on the benchmark 10-year Treasury eventually fall to 1%? It sounds crazy but on Friday the yield hit yet another new low: 1.68% before floating back up to 1.8%. With Greece ready to default and other European nations teetering—and growth in China slowing—will investors continue to seek safety in Treasuries?...
HE'S BACK: In case you missed our exclusive report on the Monday National Mortgage News website, here's a bit of news: John Robbins, who exited the business about six years ago, is about to launch a new lending platform—a retail/wholesale shop at that…
Remember LendAmerica, the troubled (now defunct) FHA lender based in Melville, the Long Island town named after Herman? According to Newsday, two foreclosed properties owned by the nonbank were auctioned Thursday, the first assets sold in an "involuntary bankruptcy" that has racked up $69.5 million in claims. Former LendAmerica president Michael Primeau is awaiting sentencing on bank fraud charges involving the firm. As for former part owner Michael Ashley…
THE WEST IS THE BEST: Imagine not having to pay any rent or make any mortgage payments. According to a new report in The Orange County Register, almost 25% of every four homes in the county are in that boat because their owners don't have a mortgage. This revelation comes courtesy of U.S. Census data released Thursday. “We're talking 100% equity. Free and clear. Housing costs as low as $500 a month. And the number is growing,” the newspaper reports…
WASHINGTON NEWS: Back in 2006, some Fannie Mae officials knew that attorneys representing the company were filing false documents in foreclosure proceedings but did nothing about it, according to a new inspector general report. An audit by the IG's office of the Federal Housing Finance Agency says Fannie hired an outside law firm in 2005 to investigate allegations of foreclosure processing abuses. The investigators found that certain law firms representing Fannie filed false documents in Florida and elsewhere. (For the full story see the NMN website. Reporting by Brian Collins.)
BOOK CORNER: The best book I read this summer is “The Boardwalk Empire” by Nelson Johnson. I have yet to see the HBO series of the same name. The book is a great study on how a political machine should operate. In this case it's the GOP and its utter control of Atlantic City from the early 1900s through the 1960s. (You'll read it thinking: Boy, these guys sound like Democrats.) Of course that business was gambling, rackets and prostitution, but these are victimless crimes. Real estate, as you might imagine, is involved…
MORTGAGE PEOPLE: Jason Gillespie has joined Southwest Bank of Fort Worth in its warehouse lending department. He reports to David Frase. Southwest Bank is not to be confused with Southwest Securities FSB of Dallas, an affiliate of the SWS Group. However both men formerly worked at that institution…
IMPORTANT DATA STUFF: MortgageStats.com is alive and well. This exclusive only data website has been updated to include not only full year 2010 figures but first and second quarter information as well. (Some extra costs are involved on quarterly info.) MortgageStats boasts the nation's top 400 lenders and servicers, including hard volume numbers and contact information. It also includes exclusive monthly analysis from me. (You can't get this information anywhere else.) For more information drop an email to
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THE LAST WORD: Phillies in seven games. They take the whole thing.
