This just in: Lehman Brothers has picked a new CEO for its BNC Mortgage unit. To find out whoread Monday's National Mortgage News...
Before we get into politics, here's a prediction: look for Housing and Urban Development secretaryAlphonso Jackson to announce his departure in the next few weeks. Yes, I know that on Friday the WhiteHouse denied that any immediate changes are afoot at HUD, but in a lame-duck administration, why stick aroundwith a bunch of lame ducks? The big question for the mortgage industry is this: what does his expected departuremean for RESPA reform? Stay tuned...
On Tuesday the American people spoke and the message was this: the payment-option ARM is an endangered species.Follow the logic of one of my Republican friends: Republicans are out in the cold which means those liberal, lawyer-lovingDemocrats are in charge and that means class-action attorneys are going to have a field day suing the pants offpayment-option ARM lenders. They will sue over less-than-accurate disclosures on these exotic loans. Is this justmore fear-mongering from the GOP? Who knows? But one thing is clear: POA borrowers are starting to refi like crazy...
Meanwhile, read Brian Collins' story in Monday's National Mortgage News. Brian reportsthat, yep, class-action lawyers are ready to pounce on the POAs. "This is going to be an absolute nightmarefor the industry," attorney Andrew Sandler told a Consumer Bankers Association conference lastweek. If you let your NMN subscription (online and paper) lapse, call: (800) 221-1809...
In other HUD news, the agency's Office of Inspector General audited PlainsCapital McAfee Mortgage ofTexas because its two-year default rate for loans with amortization dates between December 2003 and November 2005exceeded HUD's national average by 44%. The agency also said the percentage of current defaults and claims was88% higher than the national average...
American Brokers Conduit, the wholesale division of American Home Mortgage Investment Corp., hasopened two new full-service wholesale branches in Jacksonville, Fla., and Ontario, Calif....
SourceMedia, the parent of NMN, has published a new research report by industry veteran RichardBeidl entitled "Credit Risk & The New Housing Market." For more information on the 31-page reportcheck the NMN website or e-mail
Loan buybacks are causing headaches at National City Corp. The bank has revised third-quarter earningsdown by four cents a share, citing an estimated lower value for servicing rights, and higher reserves for repurchasedloans (buybacks)...
Morgan Stanley on subprime lender NovaStar Financial: "We remain 'underweight.' NovaStaroperates in an increasingly competitive environment defined by thinner gain-on-sale margins, lower subprime originationvolume and higher credit losses"...
Friedman Billings Ramsey on Fannie Mae: the GSE confirmed plans "to complete the restatementand file the 10-K for 2004 by the end of 2006. However, we continue to believe it will take FNM another year ortwo before it is current in financial reporting"...
Mortgage insurer Radian Group has authorized the purchase of an additional two million shares as partof an expansion of the company's existing stock repurchase program...
MORTGAGE MEETINGS: There's still time to sign up for SourceMedia's annual "Secondary MarketConference" Dec. 6 in New York at the Le Parker Meridien Hotel. The meeting schedule has changed somewhat.M&A veteran Dale Kurland of Classic Strategies will moderate the panel called "Mergers &Acquisitions: Why is Wall Street Buying Mortgage Loan Companies?" I will be hosting the "New Products"panel, which will be quite timely given all the public attention focused on payment-option ARMs and loan buybacks.Hope to see you there. To register
MORTGAGE PEOPLE: The PMI Group has named Bonita Dorland chief credit officer. NationalCooperative Bank has named David R. Harrison business development officer and vice president of nationalreal estate/CMBS capital markets. Fannie Mae appointed Rahul Merchant executive vice president and chiefinformation officer. Mr. Merchant joins Fannie from Merrill Lynch & Co.
DATA NEWS: Looking for a great contact directory on mortgage bankers, servicers, brokers and loan officers?That would be the Mortgage Industry Directory, which is available online as well as in print. TheMID/eMID also has exclusive rankings on lenders and servicers that you cannot get elsewhere. The onlineversion also provides recent news articles on lenders and servicers ranked in the book. For more information e-mail
