After President Bush was re-elected we ran a story or two discussing the possibility that the Bush 2II might eliminate the mortgage interest deduction. Well guess what? On Friday Treasury secretary JohnSnow declared that when it comes to tax overhaul "everything is on the table." Everything means themortgage interest deduction...
When a Fannie Mae executive receives a bonus what does he or she do with it? Put an addition on theirhouse? Buy a car or two? Get their teeth fixed? Or maybe all three. But guess what? Rep. Richard Baker (R-La.)wants all Fannie Mae executives (not just the recently ousted Franklin Raines and Tim Howard) toreturn all bonuses dating back to 2001. In total, according to our calculations, that's at least $22 million.Fannie is about to restate earnings dating back to 2001 by $9 billion which means bonuses based on past earningsare, well, based on earnings that are about to be wiped out. So who might have to return the cash? Over the pastfew years Messrs. Raines and Howard were paid bonuses of $10.5 million, and $2.6 million, respectively. JamieS. Gorelick, a former vice chairman who departed in 2003, would have to scrape together at least $1.6 million. And then there's those who are still at the company: interim CEO Dan Mudd (on the hook for $3.2 million),EVP Thomas Donilon ($1.9 million), and interim CFO Rob Levin ($2.1 million). Apparently it's up tothe Office of Federal Housing Enterprise Oversight to consider Rep. Baker's request. At press time theagency was contemplating the request...
Of course, if the Securities and Exchange Commission had never thrown out Fannie's FAS 133 interpretationsnone of this would be an issue. But what goes around comes around. Late last week CNBC reported that SECemployees were mistakenly given an extra pay check at year-end -- via direct deposit. Now, Uncle Sam wants thatextra pay check back...
How hands-on of a chairman/CEO is Countrywide's Angelo Mozilo? According to a Sanford C. Bernsteinreport on the company, Mr. Mozilo left the mortgage giant's recent investor conference early to attend an "urgentmatter." The urgent matter involved his personal recruitment of a salesperson from a competitor. The salespersonwas the competitor's top loan producer...
Washington Mutual -- the nation's third largest lender according to the Quarterly Data Report-- will pay its new president and chief operating officer Stephen Rotella at least $5.5 million in hisfirst year. Mr. Rotella, who joined WaMu from Chase Home Finance, also will receive 220,000 shares of restrictedstock...
Non-conforming lender MILA said it donated more than $167,000 to a variety of children's charities during2004...
SouthStar Funding, a wholesale lender, was recently chosen as Atlanta's best company to work for in 2004by the Atlanta Business Chronicle...
Morningstar has named Goldenwest co-CEOs the Sandlers CEOs of the year...
The chairman and founder of Rock Financial/Quicken Loans, Dan Gilbert, is heading an investmentgroup that is purchasing majority ownership in the Cleveland Cavaliers of the National Basketball Association. According to one news report, Mr. Gilbert, at 5-6, "never had a realistic chance of playing in the NBA"...
Former FDIC chairman William Seidman, now a CNBC commentator, is predicting "significantly"higher interest rates for 2005. He made the prediction right before New Year's, but did not give a range...
BOB DYLAN AND MORTGAGES: A recent Wachovia report on the ABS market features none other thanBob Dylan on its cover. The report is entitled "Subprime Homesick Blues" and includes a BobGruen photo of the former Robert Zimmerman. It looks like Bob circa the "Planet Waves" era. Also featured the Dylan quote: "You don't need a weatherman to tell you which way the wind blows." I wonder if Bob knows about this. (By the way I highly recommend the new Dylan autobiography, "Chronicles,Volume I.")
A CLARIFICATION: A few weeks back we noted the formation The National Alliance of Independent MortgageBankers and mistakenly identified former HUD counsel Howard Glaser as its chief. Mr. Glaseris an advisor to the group and not its CEO. Also, we didn't mean to suggest that the NAIMB would be a threat tothe Mortgage Bankers Association.
WASHINGTON NEWS: The Department of Housing and Urban Development has reconvened its team to draft newrules simplifying the real estate closing process, but HUD's approach will be different this time, Secretary AlphonsoJackson told NMN assistant managing editor Ted Cornwell. Mr. Jackson said HUD will consult with congressionalleaders soon and then start working with the housing industry on new regulations pertaining to the Real EstateSettlement Procedures Act. "My position is that if we can get 75% to 80% of the industry on board with Congress,then clearly, though everyone is not going to be happy, we will have a consensus," he said in a Jan. 7 interviewwith NMN. Meanwhile, newly minted Senator Mel Martinez, R-Fla. (Mr. Jackson's predecessor at HUD) willget a seat on the Senate Banking Committee.
MORTGAGE PEOPLE: Merrill Lynch Credit Corp. has named Fred Hurt vice president, correspondentlending for its central region. Freddie Mac has named James P. Witkins SVP of technology. He joinsthe GSE from Fleet Boston Financial. And in case you missed it: last month Freddie hired a new chief lobbyist-- Timothy J. McBride. He replaces Mitch Delk who was (you might say) very kind when it came tohosting dinners for politicians.
DATA NOTICE: Start the new year with the best research in the mortgage business. For a limited timeNational Mortgage News is offering its new research report "20 Mortgage Bankers to Keep anEye on in 2005" for the discounted price of $99. The report includes analysis, names, telephone numbersand more. For information contact:
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