We have a debt deal, but let's not kid ourselves: the mortgage and housing finance industries have been forever changed the past three years and one likely victim will be the mortgage interest deduction. President Obama, a Democrat, has no qualms about killing or whittling down the MID. (He's not too keen on Fannie Mae and Freddie Mac either.) Mortgage lobbyists on the Hill tell me they fully expect the MID to get carved down to $500k from the current $1 million – as part of a long term debt deal between the GOP and White House. As one seasoned Hill veteran (who represents a mid-sized mortgage firm) told me: “The vast majority [of Americans] would feel nothing if they cut it down to $500k.” This individual, who requested his name not be used, admitted that “what I'm saying is hearsay.” But just how much would a MID scale-back raise, revenue-wise? It all depends on where the 'grandfather' line is drawn. AARP lobbyists, start your engines…
On Friday, I conducted an informal poll of mortgage professionals, asking them how the federal debt crisis has affected their business. Some, as might be expected, said business was slowing but here's what Anne E. James, an LO from Whittier, Calif., had to say: “I am busier than a one-armed wallpaper hanger! Most brokers I know are because we are getting agents who now know banks are a risky place to get a loan done and borrowers who get turned down by banks. I've been a broker in Whittier for 8 years as Reliance Funding so trust level is great.” She blames the budget mess on Democrats and the President…
Meanwhile, the mortgage industry is headed toward what might turn out to be a historical trend toward deconsolidation – with midsized players gaining the most. One servicing advisor told me he's been working with an MSR holder that has grown its portfolio to $1 billion from zero over 18 months. The full story will be in the Monday edition of National Mortgage News. To subscribe to NMN and its website call: (800)221-1809…
For a ranking of the nation's top 100 servicers and how many loans they service (and subservicers) order the Quarterly Data Report by emailing:
So, who exactly is bidding on Bank of America's $50 billion MSR portfolio? We know hedge funds and subservicers have looked. Stay tuned…
By the way, the rumor is that Phoenix Capital of Denver is serving as BoA's advisor on the sale. Phoenix hasn't returned a telephone call from the NMN staff in 10 years. Its president is Brett H. Schaffer…
On Friday the new GDP figures were released and it wasn't pretty. Economic output increased at a 1.3% annual pace in the second quarter as consumer spending barely rose. But the real shocker was the re-evaluation of 1Q: a gain of just 0.4% , a sharp revision from the previously reported 1.9% gain. All this isn't good news for the single-family market, but it bodes well for multifamily. Builders and lenders may want to retool…
CONSIDER THIS: The California Mortgage Bankers Association reports that the commercial delinquency rate for 2Q11 dropped substantially: to 0.38% from 0.78%. The survey found that 99.62% of the California commercial real estate loans surveyed were either current or only one payment behind. I'm assuming those figures are not misprints…
We all know that mortgage and commercial bankers loathe the new Consumer Financial Protection Bureau, but how do credit union executives feel? Our sister publication, Credit Union Journal, asked its readers with 75% saying they oppose the agency and its mission…
Is industry veteran Tom Cronin really retired? He recently told friends and associates that he's retiring from The Clayton Group but he's not exactly ready for the beach or assisted living…
WASHINGTON NEWS: On Friday, NMN's Brian Collins was among the first to report that the U.S. homeownership rate fell by less than half-a-point in the second quarter to 65.9% as foreclosures accelerated and consumers put off buying homes because of fears about prices and the economy.
MORTGAGE PEOPLE: The Collingwood Group has hired Manoj L. Singh as a special advisor to the firm. According to a statement released by the firm, Singh will help “clients navigate the business opportunities that exist in Washington as a result of the housing crisis.” During his career he has worked at Freddie Mac and Bear Stearns, among others. Radian Guaranty has added three sales professionals to its team: Andrew Cooper, Shelley Duffy, and Patrick Harrigan. Cooper will serve as vice president and national account manager.
MUST ATTEND MORTGAGE CONFERENCES: On September 19 – 20 NMN and SourceMedia will hold its 'Mortgage Regulatory Forum' show at the Washington Marriott in the nation's capital. Speakers include OCC chief John Walsh, Rep. Shelley Moore Capito, R-WV, and some Congressman from Massachusetts whose last name is Frank. More info visit:
IMPORTANT DATA STUFF: MortgageStats.com has just been updated to include not only full year 2010 figures but first quarter information as well. 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: Saturday night at FedEx Field in Washington Barcelona plays Manchester United. FCB will win 1-0. You can go to the bank on that.
