What We're Hearing

Slip Sliding away: In the third quarter G.E. Capital Mortgage Insurance, Raleigh, N.C., ranked fourth among the seven mortgage insurers in terms of new policies written. GECMI wrote $11.71 billion in new policies, followed closely behind by United Guaranty, Greensboro, with $10.2 billion. It's hard to say if GECMI soon will slip to number five. (Fourth quarter rankings will be available in National Mortgage News shortly.) Two recent events could boost its fortunes: new capital regs for Fannie Mae and Freddie Mac could force the two GSEs into doing more business with both GECMI and UGI because both are AAA-rated (thanks to their parent firms) while the other five are AA-rated. The irony here is that GECMI is key player in FM Watch, an anti-Fannie/Freddie lobbying group. GECMI also could gain business if "GNMA Choice" legislation because operative. However, the Choice legislation is thought to be a long shot for this year...

People in the news: Ted Jadlos, who left Matrix Capital, Denver, a few years back to start his own servicing/advisory firm, Phoenix Capital, has now left that firm as well. National Mortgage News will have the full story in its Monday edition. Patrick Cave, a longtime aide to Rep. Richard Baker , R., La., has left to take a job with Treasury Department. He will carry the title deputy assistant secretary for financial institutions. Rep. Baker chairs a subcommittee that oversees the GSEs. Rick Lee, executive vice president of subservicer Fairbanks Capital, Salt Lake City, has left the firm...

The typically press-shy/publicity-shy, Household Finance, Prospect Heights, Ill., has launched a marketing campaign to boost its image to investors and politicians. But the subprime giant, it appears, will not be marketing its new consumer friendly image to the mortgage industry...

Over the past few years some commercial banks have exited the residential mortgage sector, citing low profit margins and stiff competition. Two such banks that sold their mortgage units -- PNC and Fleet -- thought they could find greener pastures elsewhere. (Both sold their mortgage units to Washington Mutual.) So what happened when both these mega-banks announced fourth quarter earnings, a quarter in which they wouldn't have their lowly mortgage units dragging down earnings? Both got whacked good from their non-residential mortgage investments...