Usually, when your regulator tells you to do something most financial service firms listen.But if you read between the lines of Fannie Mae's response to the Office of Federal Housing EnterpriseOversight regarding its request that Fannie write down the value of its $8 billion manufactured housing portfolio,you might get the impression the company is getting its back up. In the statement, Fannie does not say it willcomply with OFHEO's order, and instead states that it is in compliance with GAAP. It also says that its auditor,KPMG, as well as its "outside legal counsel" (that would be former Whitewater prosecutor KenStarr) as well as accountants advising Mr. Starr's law firm all believe that Fannie is in compliance with GAAPin regard to the MH loans. Translation: Fannie and its legal/accounting brain trust think OFHEO is dead wrong.Who will blink first? This week should be interesting, to say the least. Keep in mind that MH loans sunk insurancegiant Conseco. Fannie continues to argue that its portfolio is OK because it's highly rated. Right? Meanwhile,politics and mortgage finance continue to make strange bedfellows. Keep in mind that Mr. Starr went after PresidentClinton (a friend of Fannie chairman Franklin Raines) for lying to a grand jury. Republicans are theones pushing hardest to put Fannie under a new tough (though OFHEO has been looking pretty tough lately) regulatoryregime. Sen. Robert Bennett, R-Utah, has been carrying political water for Fannie (remember the Bennettamendment?). The senator's son, Rob Bennett, is deputy director of Fannie's Utah "partnership"office...
A top-10 lender with aspirations for growth is engaged in direct talks with Principal ResidentialMortgage, the nation's 11th largest residential servicer, National Mortgage News will reportin its Monday edition. To find out the identity of the lender, read the full story. If you don't subscribe to NMNand want to, call (800) 221-1809...
Meanwhile, now that mortgage rates are headed up for good (in this cycle, at least), you cananticipate that servicing values will finally firm up and the industry will see more bulk deals take place. Asthis edition of Weekend Briefing went to press, the yield on the 10-year Treasury was at 4.76% and rising...
The rising interest rate environment (if it keeps up) presents a quandary for investors. Ratesare rising and stocks and bonds are tanking. So, where do you put your money? In real estate? Maybe so, but homeprices in many popular markets are still in nosebleed territory. And with rates rising that means investing ina home will get more expensive. That would leave money market accounts, which are paying a big 2% at the most.In other words, something has got to give -- and soon. Will it be stocks? Bonds? Home prices? Stay tuned...
IndyMac Bancorp is getting into the reverse mortgage business big time. Last week,the mortgage lender inked a deal to buy almost 94% of Financial Freedom Holdings, which bills itself asa "leading provider" of reverses...
Loan volumes continue to boom at MILA (Mortgage Investment Lending Associates). Thenonconforming lender recently announced plans to buy an empty office building in the Quadrant I-5 Center near downtownLynnwood, Wash. The company says its expansion will bring 800 new jobs to the building and to Snohomish County...
Subprime lender American Business Financial Services of Pennsylvania said it recentlysold $276 million in mortgages for cash on a servicing-released basis...
Congratulations to Sandler O'Neill mortgage/financial services analyst Mike McMahon.Mr. McMahon was recently named a top 2003 equity analyst by Forbes.com/StarMine. He covers Fannie Mae, Countrywideand other mortgage related firms. He has been bullish on both companies for quite some time...
WASHINGTON NEWS: The House Housing Subcommittee on Wednesday passed legislationthat would allow the Federal Housing Administration to insure zero-down mortgages but with certain conditionsattached. The bill, "The Zero Downpayment Act of 2004" (H.R. 3755), includes an amendment that mandatesthe Department of Housing and Urban Development suspend the program if the claim rate on FHA-insured zero-downloans exceeds 3.5%.
MORTGAGE PEOPLE: Master Financial, as part of its expansion into the Texas market,has named John Tenzer regional sales manager. Initially, Mr. Tenzer will focus on the Dallas/Fort Wortharea and expand outward as business develops. Based in Orange, Calif., Master is a nonconforming lender. FranklinFinancial Group, Southfield, Mich., has named Howard N. Morof chief financial officer. Mr. Morof willassist the lender in developing its capital structure.
NO LONGER WITH US:
Chris Salazar, who founded both the San Diego Association of Mortgage Brokers and the CaliforniaAssociation of Mortgage Brokers, died at his home on April 30 after suffering a heart attack. He was 57. Mr.Salazar, who also founded Mortgage Originator magazine, was a well-regarded figure in the industry.Mortgage industry veteran Jim Hennessy said of Chris, "In addition to being a close friend and longtimebusiness associate, Chris was a tremendous presence in loan origination, pioneering the concept of professionalismand education among the emerging mortgage broker segment." Also passing: Abraham Spiegel, a Holocaustsurvivor and philanthropist, who founded Columbia Savings of California. He was 97. Columbia, a major buyerof junk bonds from Drexel Burnham Lambert, collapsed during the S&L crisis. The thrift failed underthe stewardship of Mr. Spiegel's son Thomas.
MORTGAGE DATA NOTICE: National Mortgage News, for a limited amount of time,is offering for just $399 its new research "white paper" on "Transactional Retail Mortgage Websites."If you purchase the white paper after reading this notice, NMN will throw in FREE of charge, a ranking of the top-20online retail lenders during the four quarters of 2003. For a summary and sample of the "Transactional RetailMortgage Websites" report contact Elizabeth Washington at
@ThomsonMedia.com
MORE DATA: Full-year production rankings (top 100 for prime and top 50 for subprime)including channel breakdowns and much more are now available via NMN's new Annual Data Report. TheADR is an electronic spreadsheet sheet that is growing in popularity. To subscribe to the ADR contact DeartraTodd at (202) 434-0320 or e-mail:
MORTGAGE SURVEY NOTICE: Yes, NMN is still conducting its full-year 2003 productionand servicing survey. But the door is closing very soon. If you would like to participate, gaining free publicityfor your institution, contact Ms. Todd at the above.
