Secondary market buyers of nonprime loans are starting to see a noticeable increase in fraudulent loans. Oneexecutive whose firm conducts due diligence reviews for Wall Street told National Mortgage News thathe was recently handed a package of 270 loans to review. "Of the first 40, we found problems with half,"he said. "This is the next big story for the industry." Stay tuned
Meanwhile, fraud may have played a role in the collapse of Texas net branch operator QuoteMeARate.com.QMAR went bust last week, leaving 600 or so loan officers/net branch operators out in the cold. For the full storysee the Monday edition of NMN. Don't subscribe? Call: (800) 221-1809
Also in Monday's NMN Ted Cornwell's story on Wells Fargo having huge mortgage exposurein California and Brian Collins' story on VA "no-bids" becoming an issue in New Orleans and theGulf states affected by hurricanes Katrina and Rita
We all know that Countrywide Home Loans ranks first among residential funders (see the new AnnualData Report for the top 100 in 2005) but did you know its commercial mortgage arm funded $5 billion last year?At least 90 people work for the fast-growing division
CHL's parent, Countrywide Financial Corp., will extend and expand its "Serving Those Who Serve"initiative. CFC has pledged $1 million for the program, which provides free home modifications for American militarypersonnel returning from Iraq or Afghanistan with debilitating injuries. The company launched the program in September.Since then it has transformed the homes of three severely injured soldiers.
MORE TIDBITS FROM THE RUDMAN REPORT: We all know that former Fannie Mae chairman and CEO FranklinRaines disliked the Office of Federal Housing Enterprise Oversight and all the snooping it was doinginto the GSE's accounting woes. (At one point Fannie hired former Whitewater prosecutor Ken Starr to runlegal interference.) According to the Rudman Report, from November 2003 to September 2004, Fannie turned over 412,670pages of documents to the agency. Then in September 2004, OFHEO released its scathing report on the company, paintinga less-than-favorable picture of its executives. Between October 2004 and November 2005, Fannie then turned overto OFHEO an additional 744,081 pages of documents. Perhaps, Mr. Raines leaving the company in December 2004 hadsomething to do with the increased cooperation?
MORTGAGE MEDIA DIVAS: It was a wild and woolly time at the "going away" party for Dow Jonesreporter Dawn Kopecki. Attending the event was Freddie Mac spokeswoman Sharon McHale, Fanniespokeswoman Janice Walker, OFHEO spokeswoman Corrine Russell and FM Policy Focus PR womanBeneva Schulte. Also in attendance: Fannie president Dan Mudd as well as plenty of folks from OFHEO.Last month, Ms. Kopecki, who covered the GSEs extensively, jumped ship for BusinessWeek.
RESEARCH YOU CAN'T BEAT: Twice a year National Mortgage News publishes its exclusive researchreport on "20 (Mostly) Private Mortgage Firms to Keep an Eye On." The new report for 2006 -- featuringsome firms that may be new to you -- is now available. To order a copy e-mail
WASHINGTON NEWS: The Department of Housing and Urban Development is preparing to issue a RealEstate Settlement Procedures Act reform proposal soon, according to secretary Alphonso Jackson. The HUDsecretary told the National Association of Mortgage Brokers that it is "too early" to discussthe "substance" of the RESPA proposal. "But I will tell you that there will be a new rule proposedvery soon." It is believed HUD is working with the White House budget office on the final drafts of the RESPAproposal. So is Godot.
MORTGAGE PEOPLE: Bear Stearns-owned EMC Mortgage has named John Vella presidentand chief operating officer. Mr. Vella recently left Aames Investment Corp. where he served as president and chiefoperating officer. EMC also added two other executives, Robert N. Pruett and William Glasgow.
Metrocities Mortgage of California has named loan consultant Mike Platt to run its Charlottesville,Va-based office.
SURVEY NOTICE: Mortgage bankers and brokers -- NMN is still conducting its annual survey of lenders,servicers and brokers. If your firm wants to be ranked send an e-mail to
