Testifying before the Senate Banking Committee this past week, Astoria Federal CEOGeorge Engelke asked a very pertinent question aboutthe meltdown of the FHLB Seattle: "Where on earthwas the regulator?" The regulator here would be the Federal Housing FinanceBoard. We asked the FHFB's spokesman if the agency was investigating allegationsthat three FHLB members might have been privy to inside information about the Seattle bank's condition when, inthe fall of last year, the three requested stock redemptions. The spokesman said the agency itself is not lookinginto the matter, but has asked the bank to conduct an internal review. For more details see Monday's edition ofNational Mortgage News...
Meanwhile, Banking Committee chairman, Sen. Richard Shelby of Alabama, is toying with the idea of letting the FHLBs securitize loans. For that story see Brian Collins' story in the Monday edition. If securitization doesbecome a real issue, rest assured Congress will move to consolidate the 12 FHLBs down to at least six...
Rep. Jim Leach, R-Iowa, a former chairman of the House Banking Committee, wants both the FarmCredit System and Farmer Macto be regulated by the same regulator who winds up with oversight of Fannie Mae and Freddie Mac. A member of the House Financial Services Committee (but not its chairman), Mr. Leachmade a name for himself during the S&L crisis, proving to be a tough critic of S&L wrongdoers, accountantsand regulators...
In case you haven't noticed, the yield on the 10-year Treasury has been falling of late.As this weekend column went to press, the bond was at 4.27%. One national lender told us that application volumesare starting to pick up noticeably at his shop, including refis...
Credit-card giant MBNA is followingcompetitor Capital One into the mortgage business.MBNA is buying private-label funder Nexstar, whichis owned by buyout kings Kohlberg Kravis & Roberts (andothers). Not too long ago KKR's name came up as possible bidder on PHH Mortgage (formerly known as Cendant Mortgage),the nation's largest private label funder. By selling Nexstar KKR is cashing out of the residential market. KKR,though, is making a run at GMAC Commercial. Nexstaris a private-label originator for a unit of Morgan Stanley. Morganowns Discover Card,an MBNA competitor. Morgan, though, is trying to unload Discover. Do you have whiplashyet?
In other private-label news, Countrywide Financial, which almost bought PHH last year, has inked a deal to be a private-label funder for New Jersey'sHudson United Bank. HUB has 204 branches throughoutConnecticut, New Jersey, New York and Pennsylvania. CFC also was doing private-label work for MBNA but that contractlikely will end...
The alt-A market was the fastest-growing sector in the RMBS market in 2004, leaping morethan 137% from 2003, according to a recently released report by Standard & Poor's. For a complete ranking of the top alt-A funders see NMN's new Alternative Products Quarterly Data Report.Contact Deartra.Todd@SourceMedia.com...
Don't Go West Young Man: The median price of an existing,single-family detached home in California is now $471,620, a 21% increase from a year ago...
Meanwhile, New York-based mortgage bankers and brokers take note -- the next "hot"New York City neighborhood (hot meaning it's still affordable but won't be for long) is none other than Red Hook,Brooklyn. Who says so? AM New York, one of those freebietabloid giveaways. A 15-minute bus ride from downtown Brooklyn, Red Hook boasts about 10,000 residents, half ofits 1950s peak. And it was in Red Hook that gangster Al Capone received his nickname "Scarface" for an"injury" he received there...
Brian H. Darling, legal counsel to Sen.Mel Martinez (a former HUD secretary for George W.Bush) recently resigned from the Florida Republican's staff after admitting he penneda memo citing the political advantage of Republicans intervening in the case of Terri Schiavo. (And you thoughtyou never would see the name Terri Schiavo in this column)...
MORE BASEBALL AND MORTGAGES: PresidentBush threw out the first pitch Thursday at the home opener of the Washington Nationals. Mr. Bush once owned the TexasRangers. The Rangers ballpark now carries the Ameriquest name. Thepresident's pitch, to be kind, was a bit high and was no where as good at the pitch thrown by Senate Banking Committeeranking minority member Paul Sarbanes of Marylandat the Baltimore Orioles home opener. Then again,they moved up the rubber for Sen. Sarbanes.
WASHINGTON NEWS: TheHouse voted 302-126 for final passage of a bankruptcy reform bill that will make it harder for consumers with averageincomes to use the Bankruptcy Courts to avoid repaying their debts. What does this mean for the mortgage industry?It likely will be a boon to subprime lenders.
MORTGAGE PEOPLE: HSBC has named Randall L. Raup president of HSBC Mortgage Corp. and executive vice president of HSBC Bank USA. Greenwich Capital hasnamed David Cannon managing director and head of itsCMO trading desk. Kevin Gillespiehas been named to the newly created post of executive vice president for national production at CTX Mortgage.
BROKER PUBLICATIONS YOU NEED TO READ: NMN's Broker magazine (soon to be renamed BrokerUniverse) and Origination News.
SURVEY REMINDER: Lenders and servicers don't forget tofill out our annual survey. Respondents will receive FREE our dailymortgage news briefing (which is called, of course, Daily Briefing) plus will be ranked in NMN, the Mortgage Industry Directory and other publications. To view thesurvey
DATA NOTICE: NMNhas just published its Annual Data Report, which provides rankings on the top 100 prime and subprime lenders and servicers -- plus channelbreakdowns -- and much more. Also available: NMN'snew Alternative Products Quarterly Data Report, whichhas rankings on the top interest-only, alt-A and jumbo lenders. For more info about these products, contact
@SourceMedia.com. Dee can also give you info about our "M&A Database." NMN is still offering research reportson " LOS Systems," " D2C Internet Lending"and " Retail Lending Over the Internet."For more info on those contact
@SourceMedia.com
