Montgomery County politician Tom Perez wasn't a popular person in Maryland mortgage banking circles thispast week. On Friday the news hit -- during a state mortgage broker trade show no less -- that a new county ordinancefining lenders and brokers for loan discrimination was about to go into effect. Mr. Perez sponsored the bill whichlevies minimum fines of $500,000 for "excessive" origination fees on minority loans without definingwhat excessive actually means. Some 40 lenders, after hearing about the ordinance, bolted the county, fearing frivolousclass-action headaches. Tom Shaner, head of the Maryland Mortgage Brokers Association, says manyof his members are hopping mad, particularly Hispanic and Korean loan brokers who are having deals screwed up becauseof the bill. A legal showdown on the ordinance is set for March 7 in Rockville, Md. For more details visit theNational Mortgage News website...
As we noted last week, the "Rudman Report" lets Fannie Mae's directors off the hook for theGSE's $11 billion accounting scandal but a shareholders lawsuit working its way through the U.S. District Courtin Washington does anything but. (Fannie chairman and CEO Franklin Raines was booted by the board in December2004 but only after regulators pressured them to do so.) Why was the board so in love with Mr. Raines? The lawsuitsays the board -- including current chairman Stephen Ashley and CEO Dan Mudd -- profited from a "webof lucrative personal and financial interrelationships" and some had ties to organizations that were gettingsizeable grants from Fannie's charity, the Fannie Mae Foundation, which Mr. Raines chaired. The allegations inthe suit -- which Fannie and its directors are trying to get dismissed -- are damning, to say the least. For thefull story see the Monday edition of NMN. Don't subscribe? Call: (800) 221-1809...
The new 4Q issue of the Alternative Products Quarterly Data Report is now out. The new issue containsa first-ever ranking on alt-A servicers and much more. For more information e-mail
How do we know when the loan production market has hit its peak for the cycle? Answer: when correspondent purchasesincrease as a percentage of total originations. For all the numbers read the new Quarterly Data Report...
Many lenders are seeing production volumes slip, but not all. 1st National Bank of Arizona,one of the nation's largest privately held wholesale lenders, said it had record loan fundings for the three-monthperiod ending, Feb. 28. The company says its successful start has it ahead of plan to exceed $10 billion in mortgageoriginations this year...
Provident Bank Mortgage of Rancho Cuchamonga, Calif., is now offering a 50-year mortgage. RichardHegg is the wholesale production chief at PBM...
The Securities and Exchange Commission said two former vice presidents of Countrywide Financialhave settled insider trading allegations with the agency. The SEC said Alan Cao and Jun Shi agreedto settle the case without admitting or denying guilt. Mr. Cao will pay $100,000, Mr. Shi $40,000, as part of thesettlement...
Investors in mortgage stocks take note. Morgan Stanley sees a 27% upside to Countrywide Financial andIndyMac, but a 5% downside at ARM giant Golden West Financial...
LOAN BROKERAGE FIRMS IN FOCUS: Manhattan Mortgage of New York was established in 1985 and nowfunds $3.5 billion a year.
WASHINGTON NEWS: NMN's Brian Collins reports that a Bush administration budget proposalposes a "serious threat" to the future of the Ginnie Mae mortgage securitization program, according toa letter circulated on Capitol Hill by housing and financial services groups. The fiscal year 2007 budget proposalwould impose a new upfront 6-basis-point fee on Ginnie Mae single-family and multifamily securitizations. "TheGinnie Mae program faces a serious threat from this new fee, which will disproportionately affect the lower-incomeborrowers" who rely on government-guaranteed loan programs, the letter says. (For the full story see the NMNwebsite.)
MORTGAGE PEOPLE: Elaine Batlis has been named president of Impac Warehouse Lending Group.IndyMac has named Ruthann K. Melbourne executive vice president and chief risk officer of enterpriserisk management. Preferred Bank said Chris Chan, SVP and chief financial officer, plans to resignfrom the company later this month. Mr. Chan said his decision is based on personal considerations.
SURVEY NOTICE: Mortgage bankers and brokers -- NMN is gearing up for its annual production survey.If your firm wants to be ranked send an e-mail to
DATA NOTICE: For a limited period of time NMN is offering discounts if you purchase the MortgageIndustry Directory along with the Quarterly Data Report. For more details, e-mail
