Is it a load of nonsense that the residential lending sector is consolidating rapidly and that only a handfulof firms control the production market? According to the new Home Mortgage Disclosure Act database, 8,070firms filed detailed production information with the Federal Reserve in 2003. The year before 7,771 lendersfiled with the Fed. So does that mean the industry is growing? Yes and no. It also could mean that going forwardresidential finance will be an industry of "whales" and "minnows." For more information aboutthe HMDA database see the "Mortgage Data/Research Notice" at the end of this column...
So, the Federal Home Loan Bank of Seattle wants to become a broker/dealer so it can trade in MBS, doesit? It's probably one of the most interesting proposals to come out an FHLB since Alex Pollock launchedthe MPF program late last century. If the Seattle bank becomes a broker/dealer that means it would be competingdirectly with Wall Street firms that trade in MBS. And as we all know the fixed-income business (bonds) has beenthe Street's savings grace as the stock market continues to slog along...
Meanwhile, according to figures compiled by the Quarterly Data Report, residential loan production fellby 27% in the second quarter, but MPF fundings by the Chicago FHLB fell by an astounding 66%. It would appearnew Chicago FHLB president Mike Thomas has his work cut out for him. Maybe Chicago should become a broker/dealeras well...
Some industry officials are still scratching their heads over the recent resignation of Downey Financialpresident and chief executive Marangal Domingo. Mr. Domingo resigned from the California-based thrift afterjust seven months on the job and was replaced by Daniel D. Rosenthal. (See Monday's edition of NationalMortgage News for more details.) Mr. Rosenthal held the job before, that is, until Mr. Domingo replacedhim. Downey is controlled by chairman Maurice McAlister. As one West Coast-based thrift official put it:"At Downey, it's either Mac's way or the highway"...
Buried in a judge's ruling in the Leland Brendsel "back pay" case is some interesting informationabout his employment contract. (Last week the ex-Freddie Mac chairman and CEO won a round in court to release$53 million in frozen compensation.) According to court documents, Freddie Mac has to pay the ousted CEO a basesalary of $2.36 million for 24 months following his termination. He also is entitled to another $836,000 in bonusmoney...
Mess with Texas: Both Citigroup and Wells Fargo recently announced plans to increase their presencein the Lone Star State through small acquisitions...
Countrywide's stock split two-for-one before the market opened on Tuesday...
DATA NEWS: According to the QDR, there are roughly $240 billion in home mortgages being subserviced inthe U.S. There are $770 billion in subprime loans outstanding in the U.S...
RNC MORTGAGE COVERAGE: At the Republican National Convention in New York this past week, the GSEswere throwing money around like, well, Puff Daddy. Fannie Mae hosted a day-spa for congressionalwomen and Freddie sponsored a "salute" to the House Financial Services Committee at the famedRainbow Room in Rockefeller Plaza. Also, the FHLB of San Francisco courted select Republican conventioneersby sponsoring a political breakfast for delegates from Arizona and Oregon as well as their guests. Will the Bushadministration or will a Kerry White House (if there is one) mess with Fannie and Freddie in 2005? As we used tosay in Lawngiland: Fugghetaboutit it! Also seen at the convention was Housing and Urban Development secretaryAlphonso Jackson. The Cabinet member was interviewed by CNBC host Maria Bartiromo on Tuesday.The reporter asked him about housing and the Republican effort to get more minorities involved with the convention.Too bad Ms. Bartiromo didn't ask him about record high delinquencies in the FHA program. And lastly: FM PolicyFocus chief J.C. Watts, a former Republican congressman from Oklahoma, was in the Big Apple as well.Mr. Watts was interviewed by MSNBC on the last night of the convention.
RNC S&L Crisis Reunion: The national news media, which missed the savings and loan crisis in themid-1980s, failed to point out that two high-profile players in the $300 billion debacle were in attendance atthe RNC convention in New York this past week -- and one was a speaker. The two are first brother Neil Bushwho was sued by the government for his role in the failure of Silverado Savings of Denver. Silverado, whereBush was a director, lent $130 million to two of Neil's business partners. The loans later went bust. The otherhigh profile player? Sen. John "Keating Five" McCain of Arizona. (In case you're wonderingMcCain made a speech, Neil did not.)
MORTGAGE PEOPLE: American Mortgage Network, a wholesale lender, has named Carlos Romanbranch manager of its Charlotte, N.C., office. He joins AMN from Countrywide Home Loans where he was a wholesaleaccount executive. DPSI Flood Services has named Jim Lawrence vice president of national sales. Countrywideelected former Federal Reserve Bank of San Francisco CEO Robert T. Parry to its board. Mike Taylorhas been named manager of the loan servicing department at MILA Inc. of Washington state.
MORTGAGE DATA/RESEARCH NOTICE: Want detailed information on 8,070 mortgage lenders? NMN's HMDADatabase is now available. You can order the HMDA Digest or own the entire database. For different pricingplans contact
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