It's too bad subcommittee chairman Rep. Richard Baker has his hands full with the GSE bill and the FannieMae accounting scandal because 3,000 miles to the west there's a nice little GSE time bomb ticking at the FederalHome Loan Bank of Seattle. For the full details read the Monday edition of National Mortgage News,but here's just a taste: the bank has $260 million in unrealized losses on its books; as a way to increase earningsit bought the consolidated debt obligations of other FHLBs but screwed up the hedges big time; it now has placedlimits on stock repurchases, affecting its member banks and thrifts. (To boot, its president Norm Rice,a former Seattle mayor, was forced out.) Meanwhile, industry officials say there is growing talk that the bankwill be consolidated into another FHLB. One researcher told us that the last time this occurred was back in 1945when the Federal Home Loan Bank of Los Angeles was merged away...
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In other GSE news Federal Reserve chairman Alan Greenspan wants to cap Fannie and Freddie's on-balancesheet holdings at $100 billion each -- compared to current combined holdings of $1.4 trillion. Mr. Greenspan, abig fan of banks, must realize that if Fannie and Freddie were forced to divest, all their MBS would wind up inthe hands of, you got it, banks. Which bank would be the biggest beneficiary? Chances are Wells Fargo wouldbe at the top of the list. Wells, of course, is fighting a plan to slash the minimum GSE servicing fee down to12.5 basis points. One Wells competitor told us that when it comes to mortgages Wells wants to "take overthe world"...
And in more GSE-related news, on April 22 the Mortgage Bankers Association will hold a lunch time discussionon GSE oversight reform at the Longworth Office Building. For you non-Beltway insider types the LOB is on the Houseside of the Capitol...
On Tuesday April 5 Moody's Investors Service cut its rating on General Motors to just one notchabove junk status. GM owns GMAC Commercial Mortgage and GMAC/RFC. To see which bidders are talkingto GM about buying GMACCM read Monday's NMN...
Subprime lender American Business Financial Services of Philadelphia is headed forthe dustbin of mortgage history. The company recently said it will wind down operations and dispose of its assetsthrough a Chapter 11 liquidation plan...
The nation's largest mortgage banker, Countrywide Financial Corp., will report first-quarter earningson Tuesday, April 26...
GetSmart Lending said participation in its lender network grew by 75% during the first quarter. In thepast three months it has added more than 100 new lenders...
Chief financial officers at Fortune 500 firms had a 23% turnover rate in 2004, according to RussellReynolds Associates, an executive head hunting firm. Departing CFOs cited the demanding requirements of Sarbanes-Oxley,the corporate reform bill. We know a few former GSE CFOs who are out of work...
MORTGAGES AND BASEBALL: At Camden Yards on Monday a tall and rangy right hander, Sen. Paul Sarbanesof Maryland, the ranking Democrat on the Senate Banking Committee, threw out the first ball. (Not a badthrow either, though they did move up the rubber for the Maryland Democrat.) Meanwhile, out in right field newOriole Sammy Sosa was shagging fly balls in front of the Ameriquest logo...
WASHINGTON NEWS: On Wednesday, under suspension rules, the House passed The Mortgage Servicing ClarificationAct (H.R. 1025). The bill will be sent to the Senate for further consideration. The MSCA would amend the FairDebt Collection Practice Act by creating a narrow exemption from mandatory debt collection disclosures forservicers of first liens. Currently, when a mortgage servicing company acquires the rights to service a portfolioof home loans, a small percentage of the loans will inevitably be delinquent or in default at the time of transfer.Under the FDCPA, mortgage servicers are required to provide a Miranda notice to their new customers. This noticeis required when the servicer makes initial contact with the customer and is often included in a new client's welcomeletter.
MORTGAGE PEOPLE: Washington Mutual has named Doug Miller division executive of its correspondentlending channel. Mr. Miller will work out of WaMu's Memphis office. He will report to EVP Tony Meola. Countrywidenamed Eric Sieracki executive managing director and CFO. Friedman, Billings, Ramsey Group founderEmanuel J. Friedman, 58, announced he will retire from his roles as co-chairman and co-CEO in June. FBRhas been a major player in the mortgage REIT market. Timothy Dowd has joined Homebridge Mortgage Bankersas vice president of business development.
BROKER PUBLICATIONS YOU NEED TO READ: NMN's Broker magazine (soon to be renamedBrokerUniverse) and Origination News.
SURVEY REMINDER: Lenders and servicers don't forget to fill out our annual survey. Respondents will receiveFREE our daily mortgage news briefing (which is called, of course, Daily Briefing) plus will be ranked inNMN, the Mortgage Industry Directory and other publications. To view the survey
DATA NOTICE: NMN has just published its Annual Data Report, which provides rankings onthe top 100 prime and subprime lenders and servicers -- plus channel breakdowns -- and much more. Also available:NMN's new Alternative Products Quarterly Data Report or AP-QDR, which has rankings on thetop interest-only, alt-A and jumbo lenders. For more info about these products contact
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