If there is a single transaction that's causing sleepless nights (as in possible jail time) for certain formerFannie Mae officials, it's the one that occurred back in 1998. It was in that year the GSE -- then headedby Franklin Raines -- paid $27 million in bonus money, all of it tied to Fannie reaching its earnings goals.How did Fannie "make its numbers"? Answer: By deferring $200 million in expenses to later years. Notonly did the executives "make their numbers," they made 100% of the bonus goal. (At some companies bonusesare paid on a sliding scale.) In case you're wondering, as one seasoned investment banker told us: the manipulationof earnings to pay bonus money is a crime. "Among those who have left, there is a great amount of angst overthat transaction," said one former Fannie executive, requesting anonymity. Why would Fannie Mae officialscook the books to make their bonus goals? Because the stock price of the company since the Raines era began hadgone nowhere and their options weren't worth a whole lot. Keep in mind that to date nothing has been proved andall this might be explained away...
Meanwhile, sources tell us that morale at Fannie has hit an all-time low and many experienced managers are sendingtheir resumes around by the boatload. "There is paper all over the street," said one Fannie partner.A few weeks back, current Fannie CEO Daniel Mudd sent out a companywide memo, telling employees, more orless, to hang in there. One official familiar with the memo said Mr. Mudd promised employees that one day the companywill be back. The official said the GSE is losing "many good people." As far as morale is concerned,some Fannie employees are none to happy that they've been booted from the company's main campus on Wisconsin Avenueto make room for hundreds of consultants assisting with its massive restatement...
What does the average loan officer make in California? According to National Mortgage News' brand-new"Loan Officer Compensation and Production Report," the average wage is $127,000. To orderthe entire report, which has information on 1,000 Los, e-mail
RESPA UPDATE: So, is the Department of Housing and Urban Development any closer to revamping RESPA?Late this past week an agency spokesman told us "we found this summer's RESPA roundtables to be meaningfuland useful," but added there is still no timetable on when a proposed rule might be ready...
At midyear, the nation's largest subservicer was Cenlar FSB, Ewing, N.J., which had $52 billion in subservicingcontracts on its books -- a 73% gain compared to the same period a year ago. For a ranking of the nation's topsubservicers, servicers and much more read the Quarterly Data Report...
If you're looking for hard stats on online retail and wholesale lending don't overpay some high-priced consultingfirm. All the data you need on online lending is in the QDR and the new Mid-Year Data Report. Formore info contact
Fortune Lending Group of Southbury, Conn., has formed the Financial Professionals Mortgage Network,which enables certified public accountants and other finance professionals to originate mortgage loans for theirclients. Fortune, a mortgage lender and broker, said the network will allow CPAs to control a mortgage deal andearn a fee for doing so...
If you fund home loans in Russia take note -- the Black Sea villa of former Soviet leader "Uncle"Joe Stalin is for sale. The asking price is $10 million, which would qualify for superjumbo loan statusin the U.S...
Current damage estimates to insured property caused by Hurricane Katrina range from $35 billion to $65 billion...
Among the refugees from Hurricane Rita was industry veteran and mortgage consultant Richard Wilkes. AHoustonian, Richard writes, "My own trip to Austin, 165 miles from my home, took 11 hours. And I took theback roads. Friends of mine went the conventional way and spent 17 hours traveling the same distance." Hereturned to Houston Monday night...
MEETINGS YOU CAN'T AFFORD TO MISS:
The First Mortgage Lending Diversity Conference, co-sponsored by Genworth Financial and ComplianceTechnologies. The meeting will be held Oct. 6 & 7 at the Marriott Crystal Gateway in Arlington, Va.
National Mortgage News/SourceMedia's Subprime Lending Symposium Nov. 16 & 17 at theFontainebleau in Miami Beach.
MORTGAGE PEOPLE: eAppraiseIT has promoted DeAnna McCann and Diane Swanson to thepositions of vice president, valuation consulting. Ms. McCann will focus on sales and client relations in the company'sWestern region with Ms. Swanson covering the East. Washington Mutual named Fernando Hernandez seniorvice president of its multicultural and diversity strategy. He will be responsible for expanding the lender's businessstrategies to address the growing ethnic populations of the U.S.
DATA NOTICE: Don't forget the brand new "eMID" is now ready. The online, Web-friendlyproduct features three modules -- one each for lenders, servicers and commercial mortgage bankers. Key featuresinclude rankings and profiles on the top 400 firms plus an exclusive ranking of the nation's top loan brokers.For more information contact
