Depending on what happens with the governor and the state legislature in Trenton, subprime lenders might soonbolt New Jersey. It all depends on pending legislation in the state, legislation that is intended to crack downon predatory lenders. "It could bring about a radical change," says attorney Wright Andrews. NewJersey is one of the largest production states in the nation...
WMC chief Scott McAfee says the average note rate on loans his shop is now funding is 7.75%.In case you're wondering, WMC is a subprime funder that specializes in A- and B product...
An e-mail to this columnist from New Century (another subprime lender) offers 30-year rates as low as6.89%. In case you haven't noticed New Century's shares have been rallying over the past several weeks...
Fannie Mae probably had a case of "headline" shock" when several media outlets (includingthis one) jumped on the news that its net earnings plunged by 52% in the fourth quarter. Fannie's arch enemy, FMWatch, pounced on the earnings decline, sending out a press release, saying, "You don't have to be anaccountant to realize that a dramatic reduction in GAAP income and shareholder's equity ... raise questions abouthow well the company is protecting itself..." Actually, being an accountant, at least one with an understandingof FAS 133, would help. Bottom line for Fannie: as long as it holds it options to maturity, any loss (or gains)on its options will never be realized. In other words, it's all a wash and "operating earnings" (as WallStreet analysts know) is a better barometer of true earnings. Fannie and other lenders might want to lobby to scrapor rewrite FAS 133. It's caused trouble for servicers as well...
The average "g-fee" that Fannie Mae charges its seller/servicers rose to 20.4 basis points in thefourth quarter, compared to 18.3 basis points in the second quarter. That's a nice little jump, but chances arethat as refis wane, Fannie's average g-fee will slide...
Was Fannie CEO Franklin Raines a candidate for the chairman's job at AOL/Time Warner? No, butit was reported by the New York Times early last week. The chairman job went to former Dime SavingsBank chief Dick Parsons. Dime is now owned by Washington Mutual...
Fannie and mortgage lender Chevy Chase Bank (parent of B.F. Saul Mortgage) each donated $25,000to fund inaugural festivities for Washington, D.C. mayor Anthony Williams. Mr. Raines is involved in a groupto bring major league baseball back to D.C.
Here's an interesting stat: Fannie owns a stake in 138 thrifts, banks and other financial institutions. Seethe Monday edition of National Mortgage News for more details...
Savings and loan Downey Financial of California earned a record $40 million in the fourth quarter...
The Spanish securitization market is set to show at least 30% growth in the year ahead after an impressive 2002performance, says Jose Ramon Tora, a director at Standard & Poor's.
MORTGAGE MEETINGS: National Mortgage News will hold its "Mortgage EC" (technology) conferenceJanuary 29-30 in Miami. The MBA will hold its 13th annual commercial conference February 3-5 in San Diego.
MORTGAGE PEOPLE: RBC Mortgage has named Linda J. Johnson national wholesale operations manager.Freddie Mac spokesman Douglas Robinson has just published his first novel, "Scooter andthe Galactic Starship." It's for kids of all ages.
