Should loan brokers be held accountable for all the early payment defaults that are hammering the nonprime sector?One due diligence expert told us "bad" brokers should be run out of the industry on a rail. Several wholesalersare scouring their broker-clients for bad actors with the intention of throwing them overboard
Just how bad was the loan underwriting at Mortgage Lenders Network? One servicing official who workedthere told us the privately held non-depository funded a "a ton of bad loans." He said underwriting wasso poor that a 27-year old who claimed to be making $14,000 per month was approved for a $500,000 mortgage ona stated-income loan. The mortgage is now in default. For the full story and an update on MLN's woes read Monday'sNational Mortgage News. Don't subscribe? Call: (800) 221-1809
Also in Monday's NMN a story about a huge bank eyeing Ameriquest/Argent and a very interestingstory by NMN technology editor Scott Kersnar about online lenders building brick-and-mortar retailbranches. Huh? That's right. Don't miss Scott's story
Countrywide's Angelo Mozilo to Wall Street: get out of the residential lending business, now. You don'tknow what you're doing and you're going to get hurt. OK, that's not exactly what he said during a conference callthis past Tuesday but it was close. The industry veteran noted that only "a couple of banks" know whatthey're doing in mortgages, but most treat it like a "side business." And what does he think about traditionalWall Street firms buying subprime funders? "Some will succeed, most won't," he said. He also estimatedthat 40 to 50 subprime shops are failing a day, a story that appeared on MortgageWire this past week.And one last item: Countrywide now employs 3,000 workers in India
Meanwhile, it appears that plenty of wholesale funders are cleaning up their nonconforming loan menus. We'retold that several are chopping 80/20 and stated-income programs. Others are hiking FICO requirements on these products
Nearly half of all consumers say they think a collapse of housing prices is very likely (16%) or somewhat likely(31%) in their local residential real estate market within three years, according to a new Experian-Gallupsurvey. This is up from 37% in May 2005 and 42% in April 2006, Experian reported
SURVEY NOTICE: Loan officers take note -- NMN’s annual survey of LOs is now ready.
WASHINGTON NEWS: Rep. Maxine Waters, D-Calif., says she wants to make sure that blacks and Hispanicshave access to prime mortgages and are not forced into higher-priced subprime loans. "I am very much focusedon the fact that we continue to get substantial documentation that people of color pay more for loans," thenew housing subcommittee chairwoman told the National Association of Affordable Housing Lenders. "Wecannot have African-Americans and Latinos, who earn the same amount of money as a Caucasian, pay their bills equallyas well, but they are only offered subprime loans and pay more for their mortgages. That has got to stop,"she said. Ms. Waters represents Los Angeles.
MORTGAGE PEOPLE: Bear Stearns-owned EMC Mortgage has named John Vella presidentand chief executive officer. During his career Mr. Vella has worked for Aames Investment Corp. and othershops. RBC Capital Markets has opened a real estate mortgage capital unit in Chicago dedicated to sourcingand securitizing commercial mortgage-backed securities. The Chicago staff includes Sean O’Malley, regionaldirector, and Anthony Giannini, a vice president. American Home Mortgage has named John Gardelladistrict manager in charge of Northern Los Angeles and Ventura County. Mr. Gardella joins the lender from CountrywideHome Loans where he served as a retail branch manager.
DATA NEWS: NMN has just raised prices on its popular Quarterly Data Report and AlternativeProducts Quarterly Data Report. The QDR tracks the nation's top lenders with breakouts on subprime and servicing.The AP-QDR focuses on second-lien funders, alt-A lenders, payment-option funders and more. For more info contact
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