When consumers suffer, mortgage bankers suffer. A new survey conducted by Roper Public Affairs (for TransUnion)finds that 27% of homeowners think higher interest rates will make it difficult to make mortgage payments. Accordingto the recently released Quarterly Data Report, 33% of U.S. homeowners have an adjustable rate loan. TheQDR also reveals that U.S. residential debt now stands at $8.457 trillion -- with subprime housing receivablesat $1.34 trillion. This past week the yield on the 10-year Treasury was up over 5.15% again. To order a copy ofthe QDR email:
The American Federation of State, County, and Municipal Employees Pension Fund (AFSCME for short) believesthat Countrywide chairman and CEO Angelo Mozilo is overpaid -- way overpaid, and at a recent shareholder'smeeting tried to do something about it (and failed.) The pension fund tried to pass a proposal that would havegiven shareholders an "advisory vote" on executive compensation. AFSCME president Gerald McEnteesaid in a statement that the $160 million in total compensation that Mr. Mozilo earned was equal to 6% of the mortgagefirm's total earnings last year. (Roughly, $119 million of the $160 million reflected the exercise of stock options.)AFSCME recently gave "no" votes to 10 of 11 directors at Home Depot because they keep rubber-stampingthe "excessive" pay of executives there. The one HD director they didn't vote against? Answer: AngeloMozilo. A spokesman for the pension fund told us that Mr. Mozilo has only served on HD's board for eight months"and wasn't involved in the executive pay decisions that we're concerned about." What's the differencebetween Countrywide and HD? Answer: Countrywide's stock has performed relatively well the past year; HD's has not.Note: Countrywide is a big home equity lender. And where do consumers spend their HELOC checks? Answer: Home Depot
Fieldstone Investment Corp., a Maryland REIT that specializes in non-conforming lending, has cut its2006 dividend guidance for 2006. Previously, the company expected to pay between $1.84 and $2.04 per share thisyear in dividends. It now expects to pay between $1.60 and $1.80. Michael J. Sonnenfeld, president and chiefexecutive, said the change "reflects the current market conditions: stable originations in a competitive marketand the impact of slowing home price appreciation on prepayments and prepayment fees." The lender's stockcontinues to trade near its 52-week low
Here's an interesting statistic from the soon-to-be-released Mortgage Industry Directory: residentialloan production at Evangelical Christian Credit Union fell 48% in 2005. This statistic came to our attentionon the same month the movie "The Omen" opened. Spooky
WASHINGTON NEWS: The Federal Housing Administration wants to offer a LIBOR-rate ARM product tocatch up with market trends and to increase demand for FHA adjustable-rate mortgages and hybrids. FHA ARMs currentlyare indexed to the one-year U.S. Treasury securities rate, which closely tracks the one-year London Interbank OfferedRate (LIBOR). "LIBOR-based ARMs have become very popular in the secondary market, and this greater liquidityallows lenders to offer lower margins to borrowers," FHA says in a proposed rule. The public comment periodends Aug. 18. "With a large number of lenders now offering LIBOR-based ARM loans. It no longer makes economicsense for FHA to restrict itself to the Treasury index," FHA says. FHA/VA production accounts for less than5% of all loans funded in the U.S., according to the brand new Mortgage Industry Directory.
MORTGAGE PEOPLE: American Guardian Home Loans of California has named Karen Clark areasales manager for its wholesale division.
Charlotte Gilbert Biro, who has been a spokesperson for Chase Home Finance for as long as I canremember, has parted ways with the lender. "After 12 years, and 3 mergers, I'll be leaving JPMC on June 19th.It's been great knowing and working with all of you," she wrote in a recent email. (JPMC stands for J.P.Morgan Chase.)
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 email:
