The general media is going ga-ga over interest-only loans and not exactly in a good way. Are these loans goodor bad for consumers? The Mortgage Bankers Association and many lenders we know have taken the positionthat the loans are just fine as long as they are properly underwritten. Still, some might consider IOs a bit ofa fad. Time will tell but while we're on the subject of lending fads, we dug up some old tables NationalMortgage News published on another loan fad -- the 125% high LTV mortgage. Remember that once hot product?Back in 1998 the top high LTV lenders in the nation were FirstPlus Financial, Empire Funding, AMAXIMISLending, Life Bank and Master Financial. Now, how many readers can tell me which of these shopsare still around? Hint: Life is (technically speaking) still around but under a different name. Send an e-mailif know the answer...
Is HUD secretary Alphonso Jackson press shy? During a teleconference announcing HUD's new "roadmap"for RESPA reform, the housing secretary made a brief statement (already available on the Internet) and then leftquestions on RESPA reform to a spokesman. Bottom line on RESPA reform, everything's on the table and there's nodeadline on completing the task so don't ask any questions about when. Got that?...
A few hedge funds are building positions in PHH Corp., the publicly traded mortgage banker spun off byCendant Corp. Twice in the past week we received phone calls from investors about the company...
Pacific Mercantile Bancorp of Costa Mesa, Calif., said its wholly owned banking subsidiary, PacificMercantile Bank, will exit the wholesale mortgage banking business...
Commercial and multifamily mortgage debt outstanding rose 2.4% to $2.35 trillion in the first quarter, accordingto the MBA. According to the new Mortgage Industry Directory (11th edition), commercial mortgagelenders funded $185 billion in loans last year. For more information about the MID e-mail
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Metavante, the financial technology subsidiary of mortgage lender Marshall & Ilsley Corp.,has agreed to acquire GHR Systems Inc., of Wayne, Pa., for $65 million. Metavante is acquiring the companyfrom GHR's three founders and other investors. The deal requires regulatory approval...
Mortgage lender Sovereign Bancorp repurchased 10 million shares during the second quarter. The company'sCEO told investors recently that while the flat yield curve remains challenging, the company's mortgage bankingbusiness is doing just fine...
The share price of Genworth Financial, which owns a mortgage insurance unit, is once again toying witha new 52-week high...
In a recent research note, Greenwich Capital says, "While the good times keep rolling for ABS numbercrunchers, spreads are taking it on the chin, opening up a window for opportunistic investors"...
Residential Capital Corp. has closed a $4 billion private offering of senior notes. ResCap will use theproceeds to repay indebtedness owed to its parent, General Motors Acceptance Corp. and for general corporatepurposes. GMAC said it recently established ResCap as a "holding company and transferred ownership of GMACMortgage Corp. and Residential Funding Corp. to it in a move to provide additional operational and financial flexibilityand to enhance the liquidity of these operations." Translated into English: it wanted to lower its cost offunds in the light of woes at General Motors...
WASHINGTON NEWS:The Congressional Budget Office has concluded that Fannie Mae and Freddie Maccould take a tax deduction for their contributions to an affordable housing fund, sources say, which creates abudget problem for a GSE regulatory reform bill passed by a House panel in May. To cover this revenue loss, HouseFinancial Services Committee chairman Michael Oxley, R-Ohio, has circulated an amendment to take 25%of the affordable housing fund to pay interest on old savings-and-loan bailout (Refcorp) bonds. Rep.Barney Frank, D-Mass., said he disagrees with the CBO's decision but that the 25% offset is necessary to "accommodate"the revenue loss. For the full story see the July 11 issue of National Mortgage News.
MORTGAGE PEOPLE: Robert G. Partlow resigned as senior vice president and chief financial officerof Fieldstone Investment Corp., a nonconforming lender based in Columbia, Md. Fieldstone said Mr. Partlowresigned for personal and family reasons. He will remain with Fieldstone until August 5. Fannie Mae has named JeanHinrichs senior vice president of internal auditing. Ms. Hinrichs will report directly to the audit committeeof the board. She was formerly with Barclays Global Investors.
DATA NOTICE: The first-quarter 2005 edition of both the Quarterly Data Report and AlternativeProducts Quarterly Data Report is now available. The AP-QDR features rankings on the top interest-only, alt-Aand jumbo lenders. For more info about these products contact:
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