UBS Paine Webber has been quietly building a retail mortgage effort to provide residential loans to its brokerage customers. The investment banker declined to discuss details of its plans, but may open up about it next year. Merrill Lynch operated a mortgage affiliate in Florida that did the same, but it is now outsourcing the business through Cendant Mortgage...
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There were plenty of hungover Republicans (from celebrating) and depressed Democrats in Washington last week. But even though the Republicans soon will control the Senate -- in addition to the White House and House -- the stock market didn't take off. On Wednesday, the Dow managed a lukewarm rally, but fell decidedly on Thursday and most of Friday. As I write this column, the 10-year Treasury -- which mortgages are pegged to -- is at 3.85% which means refis will continue unabated...
FM Watch and some of its backers think total control of the legislative process by the GOP is good for them and bad for Fannie Mae and Freddie Mac. But don't bet on it. President Bush will need the GSEs more than ever to push his homeownership initiatives, especially in regard to minorities. Also, the anticipated new Senate Banking Committee chairman Richard Shelby of Alabama may be a Republican but he's considered a populist. Populists tend to side with the GSEs. (Several years back the senator bolted the Dems for the GOP.) And guess who one of Sen. Shelby's largest contributors is? Fannie Mae, which gave more than $17,000 in the 2002 election cycle (as of early September.) Then again, FM Watch stalwart House International is a large donor to Rep. Michael Oxley, R-Ohio, who chairs the House Financial Services committee. However, Rep. Oxley isn't likely to do any favors for a company whose reputation has been damaged by a truckload of predatory lending allegations. One GSE official said Congress is well educated by now as to who's actually backing FM Watch...
Keep in mind that new campaign finance laws are now in effect, which means large soft money donations are verboten. Fannie and Freddie are two of the largest soft money donors out there, and it will be interesting to see how the two adapt to the changes. Will they start PACs?...
Yes, Fannie and Freddie look like they'll do just fine in the current political atmosphere, but what about the FHLB system? One Washington-based mortgage official suggested Congress might want to revisit the issue of consolidating the FHLBs or doing away with them outright...
PEOPLE CHANGES: E-Loan named Mark E. Lefanowicz to its board. Mr. Lefanowicz will serve as chairman of the online lender's audit committee. Freddie Mac named Linda Holmes vice president of customer management and communications in the secondary giant's multifamily division.
IN CASE YOU MISSED IT: America's Community Bankers held its annual convention in San Francisco last week. ACB leadership seems to like the FHLBs' MPF and MPP programs just fine. (See Monday's edition of National Mortgage News for full details.)
AND FINALLY: Fannie Mae is expected to introduce an ARM version of its "Interest First" product. An ARM version of its "Timely Payment" product also is in the works.
