Not only is Countrywide Financial Corp. slashing 5% to 10% of its general and administrative workforcebut a source familiar with the situation told us that the nation's largest lender also is ending its practice ofgiving out free doughnuts to its employees on the last Friday of the month. (What's next, the coffee supply?) Morechanges are likely just around the corner. We're told the lender is rolling out a new loan processing system thatwill allow its employees to manage the workflow process anywhere in the U.S., and not necessarily in high-costareas like Southern California. For the full story about the head count reduction see the Monday edition of NationalMortgage News. Don't subscribe? Call: (800) 221-1809
Also, in Monday's NMN a story by assistant managing editor Ted Cornwell about WashingtonMutual outsourcing even more jobs overseas
According to an upcoming story in Origination News, if Wall Street-owned subprime lenders werecounted as one they would control 7.76% of the B&C market, ranking third (by a hair). The analysis is basedon figures compiled by the soon-to-be-released Midyear Data Report. To order the MDR e-mail
Lawyers and lobbyists were packed like crushed tomatoes into a Senate Dirksen meeting room this past week tohear regulators wring their hands about payment-option ARMs and interest-only loans. Bottom line for the industry:so far these "exotic" mortgages have delinquency rates that aren't a whole lot higher than conventionalnotes. Of course, these products are not well seasoned. At the very least, though, the "Gucci Gulch"crowds stand to make a ton of money "educating" elected officials on the benefits of these loans. Lendersfear not. Sandra Braunstein, a top Federal Reserve official, said the agency does not want to increasethe "regulatory burden" on the industry. I'm guessing she's a Republican
Michael W. Perry, chairman and chief executive officer of IndyMac Bancorp, has inked a five-yearCEO contract with the nation's ninth largest funder. Mr. Perry is well regarded in the industry as a technologyinnovator and an aggressive competitor
Here comes the recession? Stocks retreated late this past week after the Philadelphia Federal Reservesurprised Wall Street by revealing that its broadest measure of manufacturing activity fell to a negative readingfor the first time since April 2003. This, in turn, sparked concerns that the U.S. economy could be cooling tooquickly. If and when a recession does come, look for the Fed to cut rates
Subprime lenders take note: Americans earn more money than people in most other countries, but also spend more.In a new survey, Americans report being the second-most "cash-strapped" nation, trailing only residentsof Portugal. If a citizen is cash-strapped that means he/she will be a subprime customer, right?...
IN CASE YOU MISSED IT: Jay Sidhu, Sovereign Bancorp's chief executive, recently said heexpects to ultimately sell the company, one of the nation's largest thrifts. Earlier this year, Spain's Banco SantanderCentral Hispano SA acquired just shy of 20% of Sovereign.
WASHINGTON NEWS: Late this past week, Rep. Spencer Bachus, R-Ala., said he plans to circulatea draft of a predatory lending bill soon, but clarified the draft is not the product of a bipartisan agreement,although he hopes to reach such an agreement next year.
MORTGAGE PEOPLE: American Brokers Conduit, the wholesale arm of American Home Mortgage,has named Jeanette McGraw senior vice president of its Intermountain region. Freddie Mac named JamesD. Hughes senior vice president and chief information officer.
DATA NEWS: NMN recently updated its Mortgage Broker Database product, which tracks thenation's top loan brokerage firms, including top producers at those shops. For more info e-mail
