The stock market got the crap kicked out of it again this past week. As we went to press the yield on the 10-yearTreasury had fallen below 5%. Could the mortgage banking industry be in for a “mini” refinancing boom? Don't beton it, but some consumers itching to get out of their payment option ARMs and interest-only loans might be doingsome serious comparison shopping this weekend
Meanwhile, according to National Mortgage News' just released Quarterly Data Report, theindustry originated $759 billion in loans in 1Q with the subprime sector funding $182 billion. Based on the currentrun-rate -- if it holds -- the industry could originate $3 trillion this year. To see a sample of the report e-mail
In a new memo provided to NMN, Jason Thomas of the Republican Policy Committee takes exceptionto a recent media report suggesting that Daniel Mudd will survive as Fannie Mae's CEO. The Office ofFederal Housing Enterprise Oversight recently issued a long awaited report on Fannie's $10.8 billion accountingscandal, saying the former chief operating officer under Franklin Raines did not follow through on allegationshe was hearing in 2003 about serious accounting problems at the company. In a bullet point in his memo, Mr. Thomassays Mr. Mudd "Helped to Cultivate an Image of Fannie Mae that He knew was False." (Letters capitalizedby Mr. Thomas.) The GOP staffer repeats OFHEO's claim that "the financial results reported by Fannie Mae from1998 through 2003 was an illusion deliberately and systematically created by senior management." Mr. Muddbegan his GSE career at Fannie in February 2000. He was part of Mr. Raines' "office of the chairman."One former GSE spokesman told us recently that he feels sorry for Mr. Raines "because his reputation has beentrashed," but added, "but he has all that money"
Going through some of the past stories NMN published in the fall of 2004 about the then widening FannieMae scandal, we found this reference: Ann Korologos, Fannie's lead director who signed the [regulatory]agreement [with OFHEO], testified that the company and its outside auditor, KPMG, have "a disagreement"with OFHEO over accounting issues. She stressed that the board is committed to conducting an independent investigationof the issues raised by OFHEO and to take corrective action, if necessary. (Two months later, the board forcedout Mr. Raines. Ms. Korologos is still a director.)
We also found this old Fannie Mae story, from September 2004: Anne Mulcahy, the head of XeroxCorp., Stamford, Conn., and the director in charge of Fannie Mae's compensation committee, has resigned fromthe company's board, effective Oct. 19. Her departure comes about a day after Citigroup appointed her toits board. However, it also comes at a time when Fannie's regulator is raising serious questions about the mortgagegiant's accounting, including the deferment of expenses to achieve bonus compensation targets. (In retrospect wehave to wonder why Ms. Mulcahy really resigned)
The National Community Reinvestment Coalition is "extremely troubled" about the mortgage originationsmarket and "problematic brokers," NCRC executive vice president David Berenbaum testified at arecent Federal Reserve hearing in Philadelphia. Mr. Berenbaum said that in 90% of the cases where the groupfound a problematic situation, there was a problematic broker involved
Wells Fargo has agreed to buy the assets of Reilly Mortgage Group, a privately owned multifamilyreal estate finance firm based in McLean, Va. The terms of the agreement were not disclosed
WASHINGTON NEWS: During a hearing before the Federal Reserve last week Jim Nabors, the2006 president of the National Association of Mortgage Brokers, advocated the use of criminal backgroundchecks for loan officers as a way to stop predatory brokers. Mr. Nabors offered several short-term suggestionsto help curb predatory lending, including a federal licensing standard that requires pre-employment certificationand continuing education.
MORTGAGE PEOPLE: American Brokers Conduit/American Home Mortgage Investment Corp. has promotedAl Crisanty to EVP and national production manager. Metrocities Mortgage named Virginia Martinezsenior vice president for the company's Southern California Region. Gregory S. Tornquist has been namedpresident and chief operating officer of Cenlar FSB, a Ewing, N.J.-based savings bank specializing in subservicingmortgage loans and home equity lines of credit.
MORTGAGE DATA & RESEARCH: NMN's "Annual Data Report" is still available.If you want detailed rankings on the nation's top 100 lenders in 2005 including breakouts on channels, servicing,plus subprime e-mail
