The Government National Mortgage Association is coming off a record year in which it securitized $163.5 billion in FHA and VA loans. That's the good news. The bad news is that its overall share of the production market is at a new low. According to figures compiled for the new Mortgage Industry Directory, Ginnie Mae's share of the overall production market fell to just 7.9% last year. Over the past five years, its high was 11.4% -- back in 1999. This could add fuel to those pushing GNMA 'Choice' legislation as one way to improve its future...
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Surely, FM Watch thought it had a friend in President Bush. After all, if you can't rely on a Republican to carry water for you in a battle against a "government-sponsored enterprise," who can you trust? But last week President Bush asked that the GSEs -- Fannie Mae and Freddie Mac -- increase their purchases of loans to minorities. In other words, it sounds as though the administration won't be trying to radically alter these institutions, at least not any time soon...
Both GSEs are trading closer to their 52-week lows than to their 52-week highs...
In case you've been living in a cave, the stock price of subprime lender New Century Financial has been on a tear of late. Last week it reached a new 52-week high of almost $32 a share. A year ago it was at just $10 a share. In other words it has more than tripled in value. Investment banker Wedbush Morgan upgraded New Century (NYSE: NCEN) to a buy this past week...
Last week's annual gathering of the rank and file members of the National Association of Mortgage Brokers was a resounding success -- at least that's the buzz from some attendees. In a few months the Mortgage Bankers Association will hold its annual convention -- in Chicago. With loan volumes staying at near-record levels, attendance should be good... Once again, some industry officials are talking about a merger of the two trade groups...
IN CASE YOU MISSED IT: National Australia Bank, Melbourne, has settled an arbitration claim filed against it by three former top executives of HomeSide Lending, Jacksonville, Fla. The three former officials -- chief executive Hugh Harris, president Kevin Race and chief financial officer Blake Wilson -- will receive $4.65 million to settle charges stemming from their termination last fall. The three, who were let go after HomeSide wrote down the value of its mortgage business by $2.2 billion, claimed they were due compensation for entitlements under their employment contracts...
