In the mortgage industry, it doesn't get any better than this. Then again that's what we were hearing last year. According to the brand new third-quarter issue of the Quarterly Data Report, residential funders originated almost $730 billion worth of loans in the three-month period ending Sept. 30. Leading the pack was Wells Fargo Home Mortgage with $89 billion in total production (retail, wholesale, correspondent). Washington Mutual ranked second with $75 billion, and Countrywide third with $63.6 billion...
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If you work for FM Watch or do any consulting work for the group you might be wondering about its future, at least a little bit. Last week's announcement that HSBC was buying FM Watch charter member Household International rang an alarm bell with some. There's speculation that HSBC might pull the plug on Household's support of the group. Another FM Watch backer, J.P. Morgan Chase, is struggling. If JPM chairman William Harrison departs, look for a push by the investment banking side to have the parent bolt the group. Another key FM Watch supporter, GE Mortgage Insurance, is on solid financial footing, but influential bear James Grant raised questions on CNBC this past week about its parent, GE Capital Corp. And in another odd twist Friday, JPM analyst Don MacDougall cut his rating on GE (the parent, that is) to "underweight." FM Watch spokeswoman Beneva Schulte insists everything looks rosy for the group. And she promised that if FM Watch ever does decide to throw in the towel (not likely, she says), it will tell National Mortgage News first. Thanks, Beneva...
Meanwhile, Salomon Brothers has downgraded its rating on Household to "underperform" from "in-line." Analyst Matt Vetto said, "We expect Household shares to trade in-line with HSBC." The foreign-based HSBC, known for lending to the rich, is obviously going downscale by purchasing Household. Does this mean it thinks the U.S. economy has bottomed and is on the rebound?
LendingTree, which posted its first-ever net profit in the last quarter, has some new competition (new to us, at least). America's Lending Partners, which offers a similar service, was seen advertising on CNBC this past week...
Here's an interesting note from Bank of Hawaii's third-quarter earnings report: "Hawaii prepayment speeds remain significantly slower than national averages." The bank, unlike some of its peers, did not take any mortgage servicing impairment charges in the quarter...
IN CASE YOU MISSED IT: Jacques Nasser, the former Ford Motor CEO who was ousted last year after a rocky 34-month reign at the world's second largest automaker, has been hired to head Bank One's venture capital unit. Bank One is also a large player in the home equity market. (Ford used to own Associates First Capital Corp. , now owned by Citigroup.)
MORTGAGE PEOPLE: We hear that former First Nationwide Mortgage chief Walter Klein has landed at Ocwen Financial. Details to follow in NMN. William J. Popejoy, a former president of Freddie Mac, and Donald Lange, a former president of Weyerhaeuser Mortgage, have been named to the board of subprime lender New Century Financial Corp.
AND FINALLY: A new survey from the National Association of Realtors says the median age of second homebuyers is 61. An earlier study by the trade group had the age pegged at 46. If true, Realtors might want to consider advertising during "60 Minutes" or "CSI."
