Just when the industry thought the business of selling bulk servicing rights was in the tank, along comes WashingtonMutual, unloading $140 billion in product to competitor Wells Fargo. But servicing brokers, don't holdyour breath. The WaMu sale appears to be a one-time deal. The days of Hamilton, Carter, Smith ruling thebrokerage roost are long over...
Lost in all the publicity about the WaMu sale was the fact that the nation's largest thrift is not only exitingthe GNMA servicing business but that it will no longer originate FHA and VA mortgages. This has tobe a blow to the Department of Housing and Urban Development, which is desperately trying to revive a businessthat appears to be going down the tubes. According to the brand-new Mortgage Industry Directory,FHA/VA production accounted for just 3.29% of all loans funded last year. Remember when FHA/VA was 10% of the business?To order the MID or the Internet version e-mail
Keep in mind that National Mortgage News recently updated its Mortgage M&A Databaseproduct which tracks servicing and mortgage franchise deals. For more info also ask Ms. Todd...
According to a new study by J.D. Power & Associates, the most beloved servicer in the U.S. (belovedby consumers) is USAA Federal Savings Bank. Ranking second is BB&T, followed by Citizens Bank,GMAC Mortgage and Wells Fargo. Countrywide Home Loans ranked 12th...
According to a new report by the Mortgage Asset Research Institute, "stated-income loans" deservetheir nickname of the "liar's loan." MARI says that almost 60% of the stated-income amounts are exaggeratedby more than 50%. See the Monday edition of NMN for the story by Brian Collins. Don't subscribe?Call (800) 221-1809...
When builders get depressed watch out. According to the National Association of Home Builders, "increasedconcerns about interest rates and housing affordability" caused builder confidence to slip again in July.A chief concern is more monetary tightening by the Federal Reserve...
Merrill Lynch recently had this to say about homebuilder stocks: "We still think that homebuildingstocks should be avoided. It still seems too late in the economic and interest rate cycles to overweight the group"...
The share price of publicly traded subprime lender Delta Financial is once again inching up near its52-week high. Could a sale be close?...
The Mortgage Bankers Association is holding its annual convention in Chicago this year. The trade grouphas booked Michael McDonald whose blue-eyed soul put the Doobie Brothers on the map. This is a majorimprovement over last year's musical act, K.C. and the Sunshine Band. (We know for a fact that MBA chiefJonathan Kempner is a big Motown fan.) I'm still holding out for Wilco...
WASHINGTON NEWS: HUD general counsel Keith Gottfried is working on a compliance assistance processthat would allow lenders and settlement service providers to seek legal guidance on Real Estate Settlement ProceduresAct issues. "We want the industry to be innovative, and they can't be innovative if they have to worry aboutan enforcement action," Mr. Gottfried said in an interview. The general counsel is drafting a proposed rulethat will allow HUD to issue no-action letters -- signaling that the department will not take enforcement actionsagainst a company that is trying to make the homebuying process more transparent and less burdensome.
MORTGAGE PEOPLE: Jerami A. Marshal has been named president of Summit Mortgage LLC, a privatelyheld mortgage banking firm based in Boston. C-BASS has named John M. Draghi chief operating officer.Based in New York, C-BASS acquires, services and securitizes credit-sensitive residential mortgages.
MORTGAGE DATA & RESEARCH: As noted above, the new Mortgage Industry Directoryis ready for purchase. This 1,000-page book offers key industry rankings and contact info on the nation's top 400mortgage lenders, top 100 subprime firms and much more, including key analysis (and tables) on industry loan volumesfor 2006 and beyond. Trying to figure out what trends will drive the industry's future? Order the MID. Formore information: e-mail
