The "back story" to ABN Amro's $41 million settlement with the government may be the FederalHousing Administration itself, or its "parent" agency, the Department of Housing and Urban Development.ABN's mortgage affiliate agreed to pay the money to settle allegations that the lender falsified FHA underwritingcertifications. But one government official suggested to National Mortgage News that the agency issuffering from both a lack of field agents (employees) and experienced veterans to conduct spot (random samples)for FHA. In the "old days" HUD had 54 field offices and 13,000 employees keeping an eye on the program.Today, it has just six "homeownership" centers, 9,000 employees, and no field offices. "There wasa real expertise there that's gone," he said. "We need the gray haired guy with the bean soup spilledon his tie." In other words there are other ABN Amros out there waiting to be discovered. For the full storysee the Monday edition of NMN. Don't subscribe? Call: (800) 221-1809...
ABN Mortgage chairman Tom Goldstein wants to stress that despite its past problems with the FHA program,none of its brokers or consumers were hurt. He noted that ABN Amro has been keeping a low profile in the wholesalesector but that strategy could be ending soon. (ABN's InterFirst unit was once a top ranked table funder.)InterFirst is slowly adding new products including alt-A, and A- loans. For a complete ranking of the nation'stop wholesalers and correspondents see NMN's Quarterly Data Report (QDR). For more information on the QDRemail:
Mortgage bankers originated $122 billion worth of 'alt-A' loans in the third quarter, according to NMN's AlternativeProducts Quarterly Data Report (AP-QDR). For more information on the AP-QDR email Ms. Todd as well.The top ranked alt-A funders are: Aurora Loan Services, IndyMac, WMC, Impac Funding, and GMAC-RFC...
In case you haven't noticed the yield curve -- depending on what day of the week you look -- has become inverted.But according to recently released minutes from the last Federal Reserve policy committee meeting, the centralbank now believes it only needs to push rates up a little more. If that's the case, loan sale profit margins couldsee improvement quite soon...
Yes, profits margins are pretty tight in the industry right now. Recently, Sandler O'Neill had this tosay about Washington Mutual's upcoming quarterly results: "The increasingly difficult backdrop of themortgage market has been driven by rising rates and a flattening yield curve, a less favorable credit environment,and mortgage overcapacity that has pressured pricing. We project mortgage banking revenues of approximately $200million, down from $700 million in the prior quarter." In other words: ouch...
Bear Stearns recently downgraded mortgage lender Astoria Federal to "underperform" from"peer perform." Meanwhile, Bear's EMC Mortgage affiliate is being looked at by the FederalTrade Commission for some of its mortgage practices...
FANNIE MAE NEWS COVERAGE: Fannie Mae's stock soared almost 10% on Thursday after BloombergNews ran a story quoting former senator Warren Rudman (as in the yet unseen "Rudman Report")saying there would be nothing "new and alarming" when his report finally comes out. But then Dow Jonesran a story disputing the Bloomberg account. NMN sister publication American Banker ran astory on Friday quoting Mr. Rudman as saying he had a "miscommunication" with Bloomberg News. FannieMae's board hired Rudman and his firm to write the "War and Peace" version of the GSE's $12 billion accountingscandal. Just before Christmas Mr. Rudman told NMN (see our 12/19 edition) that his report will be ready"some time" in January but also said there might be "supplemental" reports filed as well. Mr.Rudman declined to discuss with NMN any specifics of what he and his investigators were/are looking at.Is it really news that there will be nothing "new and alarming" in the Rudman report? Answer: no. Weall knew that when Fannie's new (sort of) CEO Dan Mudd invited reporters to have milk and Christmas, I mean"Holiday," cookies, at Fannie's HQ a few days before Christmas. If there was really another "shoeto drop" do you really think Mr. Mudd would be chugging eggnog with the press?
WASHINGTON NEWS: The big news inside the Beltway this past week was uber lobbyist Jack Abramoff(a Republican) copping a plea to three felony counts, including conspiracy to bribe public officials. In connectionwith the plea deal Rep. Bob Ney, R-Ohio, chairman of the Housing subcommittee, issued a press releasedenying all wrongdoing in regard to his relationship with the scandal-plagued lobbyist. (In court documents regardingthe plea Rep. Ney is identified as "Representative #1.") Rep. Ney received campaign contributions andfavors from the lobbyist, including a golfing trip to Scotland. So, who's next in line to chair the subcommittee?That would be Rep. Gary Miller, R-Calif. And should the Democrats take the House in November say hello tonew subcommittee chairwoman Maxine Waters, D-Calif.
MORTGAGE PEOPLE: R&G Financial of San Juan said Ramon Prats, its vice chairman andpresident, has resigned as president of subsidiaries R-G Mortgage Corp. and R-G Premier Bank, inconnection with an investigation by the company's audit committee. NovaStar Financial has named DavidA. Pazgan president and chief executive of its loan origination unit.
DATA NOTICE: For a limited period of time NMN is discounting some of its technology research reports,including its new "Loan Origination Software (LOS) Report." For more information email:
