For years, Friedman Billings Ramsey was the "holy roller" of mortgage REITs, preaching thebenefits of using the structure when taking residential lending firms public. And for years, some firms boughtthe speech, went public, and paid out a lion share of their earnings in the form of dividends. Then a "correction"swept the subprime sector in mid-2005, a correction that is still occurring. Today, being a mortgage REIT doesn'tlook like such a good idea. Of course, trends come and go. But what about FBR itself, the preacher? Last week theinvestment banking firm shut down its ABS unit. This was the division that gathered residential product for securitizationinto ABS. But guess what? FBR, a spokeswoman confirmed, also shut down its mortgage trading desk. A spokeswomansaid about 12 people were let go. She said the company, however, has not closed the group that takes mortgage firmspublic. (There were rumors to that effect.) She also said there are no changes coming to is subprime lending affiliate,First NLC of Florida
It appears that the incoming president of the National Association of Mortgage Brokers has beentalking to housing secretary Alphonso Jackson about the government making it easier for loan brokers toget involved in the FHA market. For the full details see Brad Finkelstein's story in the Monday editionof National Mortgage News. If you don't subscribe, call (800) 221-1809
Meanwhile, in case you haven't noticed, the GNMA business is a shadow of its former self. The GNMA market shareof residential is half of what it was three years ago. For a complete ranking of all the top players in the GNMAmarket read the Mortgage Industry Directory. The new MID also providers subscribers with currentelectronic news stories on firms ranked in the book. For more information e-mail
This past week Kara Homes Inc., a New Jersey-based homebuilder, filed for bankruptcy protection, owing12 bank lenders at least $244 million. Among the mortgage-related firms, National City Corp. is on the hookfor $48 million
We hear that a midsized, privately held subprime lender is toying with the idea of putting itself up for sale.One advisor said he's been approached by the lender, but declined to identify the company
Yet, another government-sponsored enterprise is going into "accounting rehab." This time around thebookkeeping drunkard is none other than the Federal Agricultural Mortgage Corp. Farmer Mac, as itis known, said recently that it will restate earnings for the last three years to correct errors in hedge accounting.The GSE provides financing of agricultural real estate and rural housing loans and liquidity to agricultural andrural housing lenders
Don't mortgage trade groups ever learn? Last year the Mortgage Bankers Association hired KC and theSunshine Band to play its annual convention. So, who was caught playing at the recent New England mortgagetrade show? Answer: KC.
WASHINGTON NEWS: The Government National Mortgage Association wants to give Fannie Maesome competition for FHA-insured reverse mortgages. Agency officials are looking at different structures to securitizethese mortgages, which are designed to help cash-poor seniors stay in their homes.
MORTGAGE PEOPLE: Patrick Weaver, senior vice president of First Collateral Services, hasleft the company. Owned by Citigroup, FCS is a warehouse lender. Clayton Holdings has named CoreyOwens head of sales and business development. Clayton is a provider of integrated analytic and consulting servicesto the mortgage industry.
UPCOMING SHOWS: It's the best mortgage fraud conference in the industry. That would be SourceMedia'sannual mortgage fraud conference. This year it's being held at the Mandalay Bay Resort & Casino in Las Vegas,Dec. 11 and 12. To register, call (800) 803-3424.
DATA NEWS: NMN has just released its annual Home Mortgage Disclosure Act database of everylender in the U.S. The database has detailed production information on more than 8,000 funders, including their"high" cost loan volume, loans sold to Fannie and Freddie, and much more. For pricing plans e-mail
