Payment option ARMs are evil and will be the death of all mankind. That's the opinion of some consumer groupsand regulators, but secondary market investors apparently love the product. Due to "strong demand," thesecondary market for payment option ARMs is quite strong right now, according to a new research report issued byFriedman Billings Ramsey. FBR says investors are paying prices of 103 to 104.5 for payment option ARMs.For the full story see the Monday edition of National Mortgage News. Don't subscribe? Telephone:(800) 221-1809...
Who was the top payment option ARM funder in the first quarter? According to the Alternative Products QuarterlyData Report, that distinction goes to EMC Mortgage, with IndyMac ranking a close second. Fora copy of the AP-QDR e-mail
Are we going to get a GSE regulatory bill this year? One industry lobbyist told us that the White House "isbeginning to soften" and that "something could move later this month." He said the compromise isthis: OFHEO would have the authority to limit the portfolio for safety and soundness purposes. He cautioned thatgetting "language" acceptable to all parties could be difficult...
Meanwhile, what role will new Treasury secretary Henry Paulson have in regard to a GSE bill? Willhe recuse himself from the issue? Keep in mind that Mr. Paulson is the former chief of investment banking powerhouseGoldman Sachs, which makes a market in Fannie bonds and equities. In other words, Goldman has made a tonof money off of Fannie. Another issue is former Fannie Mae chairman and CEO James Johnson, a GoldmanSachs director who chairs the investment banker's compensation committee. Mr. Johnson had a direct say overMr. Paulson's salary. We're sure Mr. Johnson will not want to see Fannie harmed by a bill that would damage theonce-proud (but no longer proud) GSE...
Also, more Raines-era Fannie board members are departing. The latest to leave: Don Marron and AnnKorologos. See Monday's NMN...
According to a new report by Sandler O'Neill, Countrywide's market share "is projected toincrease to about 17.6% based on our CFC production estimate." CFC's production goal is to "approach"a 30% market share in 2010...
Meanwhile, A.G. Edwards has downgraded American Home Mortgage to a "hold" from a "buy"rating. According to the Quarterly Data Report, American Home is the nation's 12th largest residential lender...
U.S. lenders will spend more than $186 million on commercial mortgage technologies by 2008, according to a newreport by the Aite Group. Some 70% of the top 100 lenders will invest in new or enhanced technologies duringthat period. The report concludes that the industry is severely underutilizing technology. As many as 75% of commercialmortgage lenders are still using home-grown proprietary solutions and almost 75% continue to rely on Excel spreadsheetsfor sophisticated modeling and cash flow forecasts...
MORTGAGE PEOPLE: Irwin Financial Corp. has named Jocelyn Martin-Leano president of itsIrwin Home Equity Corp. unit. Ms. Martin-Leano has been employed by Irwin Home Equity since shortly afterits founding in 1996.
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
