This past week the statistical arm of National Mortgage News received three requests from WallStreet firms asking for our exclusive quarterly subprime rankings. Three. (That's the beauty of having an editorwear both a news and a data hat.) So, does this mean that there could be a ton of merger activity ahead in thesubprime space? Maybe, maybe not. One thing's for certain, several subprime residential REITs saw their share priceshit new 52-week lows this past week. See below and upcoming stories in both NMN and Origination News
Bank of America ranked first among all second lien lenders in the first half of 2005, according to thebrand new issue of the Alternative Products Mid-Year Data Report. The AP-MDR ranks the nation's top secondlien funders but also provides information on interest-only, alt-A, and jumbo producers. To order email:
Is Fannie Mae about to begin accepting a lot more automated valuation models (AVMs) when it comes toappraisals? See Tony Garritano's story in Monday's NMN
Alan Greenspan's assault on the housing and mortgage industries continued unabated last week with theFederal Reserve voting to hike short-term rates another 25 basis points to 3.75% -- the highest level sincethe summer of 2001. (For mortgage bankers that means the yield curve is getting darn flat -- and that's not good.)Greenwich Capital analyst Stephen Stanley believes the fed funds rate will peak out at 5.5% latenext year
Demographics to think about: The oldest "Baby Boomers" will begin retiring in five years, leavingcompanies facing the departure of their brain trust. Will this phenomena hit mortgage bankers? You bet. Also considerthis -- the reverse lending business might be in for a boom
The median price of a home in California will rise 10% next year to $575,000, according to a new forecast madeby the California Association of Realtors. The trade group says sales for 2006 will reach 630,610 units,a 2% decline compared to 2005
Now, back to the REITs. Early this past week Deutsche Securities initiated coverage on non-conforminglender New Century Financial, calling it a "hold." On Friday the company, a REIT, reduced itsearnings forecast, sending its stock down 8% to a new 52-week low. Also hitting a 52-week low -- Saxon Mortgage,and ECC Capital Corp., the parent of Encore Credit
In cased you missed it: Homebuilder Centex Homes said it is "exploring strategic alternatives"regarding its subprime home equity lending unit, Centex Home Equity Co. The alternatives being consideredinclude a possible sale. Goldman Sachs is its investment banker
Sandler O'Neill on North Fork Bancorp: "While mortgage originations are likely to be relativelystrong again in 3Q05 at Greenpoint Mortgage, especially given the large pipeline the company had cominginto the quarter, we would expect to see some downward pressure on gain-on-sale margins, given increased competition."NFB owns Greenpoint
Meanwhile, are homebuilders starting to sour on their business prospects? Not quite but a new survey by theNational Association of Home Builders reveals that storm clouds could be gathering. "Many buildersappear to be taking on a more cautious attitude because of uncertainties in the economy and this post-Katrina environment,particularly with regard to sales expectations in the near term," said David Wilson, a custom homebuilderfrom Ketchum, Idaho
THE LIGHTER SIDE: Our intrepid web columnist Georgiana Lee (visit BrokerUniverse)pointed out to readers recently that this past Monday September 19 was "talk like a pirate day." Ms.Lee's column can be found at
WASHINGTON NEWS: We understand that Senate Banking Committee chairman Richard Shelby ofAlabama is talking to other Senators about a compromise to move the GSE regulatory bill in the Senate. Sen. Shelby(like the White House, Treasury and the Federal Reserve) wants some type of portfolio caps for Fannie and FreddieMac. Meanwhile, House Financial Services Committee chairman Michael Oxley, R-Ohio, is urgingRepublicans to support floor consideration of his GSE bill, despite opposition by conservative Republicans whowant to kill an affordable housing fund provision.
MORTGAGE PEOPLE: CitiMortgage has named Fred Bolstad managing director of wholesale lending,effective October 1. Mr. Bolstad will oversee the lender's wholesale business, which serves more than 6,500 mortgagebrokers. He joined the company in 2001 from Smith Barney. MortgageIT Holdings elected Rep. Edolphus Towns,D., N.Y., to its board.
DATA NOTICE: Don't forget. NMN has just published its brand new "Loan Officer Compensationand Production Report," a new database/white paper on LOs. The product includes a database of close to1,000 LOs. For more information contact:
