First off, I don't want it to seem like I'm picking on Bank of America, but let's face it: the bank's slow descent into mortgage irrelevance is one of the hottest stories of 2011, and something our readers have shown an acute interest in all year long. (And we have the page-view numbers to back it up.) This past week National Mortgage News broke several updates on the bank, including its decision to exit FHA/VA cash-out refis, the collapse of talks with Fortress over its correspondent unit, its decision to exit six states, and the departure of one of its top retail LOs, Kevin Budde. We interviewed several B of A officials, both past and present. Even though the bank keeps saying that it's committed to residential retail lending, there are few signs that it really is. The bank—from what we've been told—isn't even trying to retain any of its top retail producers, and few expect that it will be in mortgage banking for much longer (say three years at the most). One former manager told me this: “They're closing divisions and they're cleaning out the place through attrition so they don't have to pay unemployment. They're just letting people leave.” This type of corporate behavior doesn't create a stable employment environment for the bank's remaining mortgage workers. In short, the men and women of B of A who have been toiling in the trenches deserve better. There is some good news though. If you're a top producer plenty of B of A's competitors are willing to hire you right now. For the complete story see the Monday MBA edition of NMN, which will be distributed at the trade group's annual convention in Chicago…
One reason so many readers are interested in B of A has to do with market share. Earlier in the year the bank had a 20% share in both originations and servicing, according to figures compiled by the Quarterly Data Report. It would appear that a large chunk of that is now up for grabs. I wonder what Barbara Desoer is up to these days?...
One former B of A loan officer had this to say: “The board must be pounding their fists on the table, shouting 'We got to get out of this business'”…
In other mortgage matters, all seems to be quiet regarding MAC, a mortgage insurance startup. If you have any information drop me a line at
Well, the GSE jumbo loan limit is now lower. Congress failed to act despite intense lobbying by the National Association of Realtors and other trade groups. If you've noticed a change in your business drop me a line at the above email…
So, what's going on with the Obama GSE refinance plan? NMN's Brian Collins reports that the White House is waiting to hear from the Federal Housing Finance Agency regarding how far it will go in providing lenders with relief from buybacks on such loans…
Hey, whatever happened to Larry Goldstone and Aventur Partners? Larry used to head super jumbo lender Thornburg Mortgage…
In a new blog mortgage consultant Joe Garrett asks: “Are you still letting loan officers or processors issue disclosures? More than ever, we're seeing companies centralize this function. With compliance violations becoming so serious (think CFPB), there's just too much risk in letting loan officers issue their own disclosures.” It sounds to me like an opportunity for a vendor…
Talking of vendors, CoreLogic has launched a new credit report that uses existing credit bureau reports but here's the kicker: CoreLogic's goal is to uncover additional debt obligations on a consumer that were previously hidden…
In other vendor news, credit rating agency DBRS this week approved American Mortgage Consultants, New York, as a third-party due diligence provider for residential MBS…
RoundPoint Mortgage recently attained its Statement of Auditing Standards No 70 (SAS 70) Type II certification…
WASHINGTON NEWS: FHA acting commissioner Carol Galante told National Mortgage News that reopening the 203(k) to investors is under consideration, but a decision has not been made yet. "It's still on the table," Galante said. For 15 years FHA has maintained a moratorium on allowing investors to use the 203(k) program because of past abuses. Owner-occupants continue to use 203(k) loans, which allow the borrower to finance both the purchase of the property and upgrades into one high LTV mortgage guaranteed by the government.
POLITICAL STORY: I have a Chris Christie story. A few years back I was on the boardwalk in Ocean City, N.J., with the family and a lady comes up to me and says, “Would you like to meet Chris Christie?” I said sure, thinking it was the singer who crooned the No. 1 hit “Lightnin' Strikes.” As it turns out it was this large man running for governor—and not Lou Christie. I live in Maryland, but vacation on the Jersey Shore. Like Gov. Christie, I am not a fan of the show “Jersey Shore.” He gets my vote for killing the show's tax breaks.
DATA STUFF: In case you missed it: According to 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? For the numbers and a ranking of top wholesalers and correspondents see the new 2Q edition of the QDR. For a free sample send a note to
IMPORTANT DATA STUFF: MortgageStats.com is alive and well. This exclusive data website soon will be updated with new HMDA information. MortgageStats boasts the nation's top 8,000 lenders and 400 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: If you're going to the MBA show in Chicago, enjoy. I won't be there but NMNers in attendance include Lew Sichelman, Austin Kilgore, Mark Fogarty and Tim Murphy.
And Go Tigers!
