So, what were the biggest mortgage-related stories in 2003? According to the informal reader survey that we conducted over the past two weeks the three biggest stories of the year were the Freddie Mac scandal, the production/refi boom and the RESPA saga. Interestingly, more than a few voters noted that another big story related to the Freddie Mac accounting scandal is the new "vulnerability" of Freddie Mac and his chief competitor, Fannie Mae. As one voter told us, "These two can no longer be looked upon as being untouchable. They are now vulnerable. They can no longer argue that they are well managed." Other mortgage stories that garnished votes as being big stories include the Fairbanks predatory servicing scandal, the financial meltdown of Capitol Commerce of Sacramento, Calif., and the anticipated volume decline of 2004. One wise guy voter said that Hanover Trade announcing the "successful installation of Hanover/Busch 7.0 at Wells Fargo" was a big story. That voter's identity is being withheld to protect his reputation in the industry...
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The new year is off and running and with Congress out until Jan. 20, it's time for another edition of the "Peter, Bert & Tom" show. The PB&T show will be performed live at the American Enterprise Institute in Washington on Monday Jan. 12 at 2 p.m. In this episode financial consultants Bert Ely and Tom Stanton will present plans to privatize Fannie and Freddie. The host is AEI fellow Peter Wallison . Discussants include Charles Calomiris of AEI and Columbia University, Dwight Jaffee of the University of California and Larry White of New York University. Financial services veterans might remember Mr. White from the days when he served on the (now defunct) Federal Home Loan Bank Board during the heyday of the S&L crisis. No one from Fannie and Freddie will be speaking at the forum, though we assume that either their employees or attorneys will be in the audience. It's actually cheaper to send their employees because outside counsel likes to bill by the hour and employees, of course, are already on the payroll...
WASHINGTON NEWS: In case you missed it, a recent audit of the Federal Housing Administration found that the agency's automated data processing system environment "must be enhanced to more effectively support FHA's business and budget processes." The audit notes that this is a "material weakness." In short, FHA is having trouble quantifying risks in its portfolio. Boy, I'm glad no taxpayer money is used to fund FHA. Wait a second, FHA is taxpayer supported. No wonder Mel Martinez left HUD to run for a Senate seat in Florida. Gee, I hope the thing doesn't blow up before he gets elected.
MORTGAGE DATA NOTICE: In a few days National Mortgage News will send out its fourth-quarter 2003 loan/servicing survey. If you need results for the past three quarters on top lenders, servicers or channel breakdowns contact : Deartra.Todd@ThomsonMedia.com.
