Remember this quote from Layne Sapp, the founder and chief executive of subprime lenderMILA: "When rates go up, we get busier." Mr. Sapp wasn't kidding. He and other subprime firmswere busier than ever in the first quarter. According to National Mortgage News' just released QuarterlyData Report, subprime production reached a new quarterly high in the first quarter as funders originated $114billion in A- to D credits. Compared to the same quarter a year ago, subprime production rose by a stunning 54%.For complete individual company rankings contact:
Meanwhile, Washington Mutual, the third largest subprime lender in the U.S. said itwould no longer disclose the size of its subprime servicing portfolio. A company spokeswoman said the reason wasa "change in policy." Long Beach Mortgage is the name of WaMu's subprime affiliate..
If Freddie Mac is still looking for an uber bond trader to replace Greg Parseghianwho, despite his alleged foibles, did a stellar job of managing the mortgage giant's portfolio, it had better notcall Treasury secretary John Snow. The Treasury secretary had egg on his face last week when he revealedthat, oops, he had unwittingly invested $10 million GSE bonds. Not only that, but when he caught the mistake heimmediately sold the bonds at a loss of $480,000. To the amusement of us all, a spokesman for the Treasury secretaryblamed the mistake on a "misunderstanding or miscommunication" the cabinet member had with his financialadvisor. Apparently, Mr. Snow told the advisor to invest the $10 million in Treasuries, but the advisor mistookFannie/Freddie bonds as, well, Treasuries, which raises an interesting question. If the financial advisor to theTreasury secretary of the United States (the richest and supposedly most financially astute nation on the planet)cannot distinguish between GSE debt and Treasury debt then how can anyone make the argument that there actuallyis a difference between the two? Mr. Snow has asked the agency's inspector general to review the matter....
In ARMs we trust: savings and loan institutions originated $130.4 billion in single-familyloans in the first quarter, and nearly half (44%) were adjustable-rate mortgages. Keep in mind that two of thelargest ARM funders are both thrifts -- World Savings and Washington Mutual...
On its first day of trading as a public company, Genworth Financial, the parent ofGE Mortgage Insurance, investors bought, sold and bought again 34 million shares of the company...
Astoria Financial, the third-largest thrift in New York State, said its directors authorizeda buyback of up to 8 million common shares, or about 10% of the company's stock...
The national homeownership rate will likely exceed 70% by 2013, and the demand for housingwill require the production of about two million new housing units a year, according to a report released todayby the Homeownership Alliance, a group backed by Fannie, Freddie, the National Association of Home Buildersand others...
NOT VIVA LAS VEGAS: Foreclosures.com also forecast that rising interest rates will"spark a surge in Las Vegas foreclosure activity later this year." The company said the rising rateswill "cool the very hot Clark County" rate of home price appreciation. "Foreclosures are a laggingindicator," said Alexis McGee, president of Foreclosures.com. "Although rates have been risingfor seven consecutive weeks, we won't see the impact on homeowners for another four to six months."
WASHINGTON NEWS: Two out of three Americans are so concerned about the cost of housingin their communities that they would be more likely to vote for a candidate who works to make housing more affordable,according to a new survey conducted by National Association of Realtors. "Our latest survey found that,despite all of the other concerns America faces, affordable housing ranks as voters' third greatest concern, justbehind health care and the economy," said NAR president Walt McDonald. "Moreover, our survey foundthat the issue is growing in importance." The survey found that 81% percent of voters would like to see governmentplace a higher priority on making housing more affordable for renters and homeowners alike...
The National Association of Mortgage Brokers will partner with the Department ofHousing and Urban Development to present four homeownership expos across America during the month of June.
MORTGAGE DATA/RESEARCH NOTICE: NMN, for a limited amount of time, is offeringtwo of its mortgage technology white papers, "Transactional Retail Mortgage Website Report" and"Mortgage LOS Report" for the discounted price of $249 each. Order both and get an additional5% off. For more information contact Elizabeth Washington at (202) 434-0328 or e-mail:
@ThomsonMedia.com
Have a safe holiday weekend. See you Tuesday on MortgageWire.
