THIS JUST IN: HSBC Mortgage Services of Ft. Mill, N.C., is exiting the subprime correspondentchannel. An HSBC spokeswoman confirmed the move, but noted that another HSBC division, HSBC Corporate, InvestmentBanking and Markets will be taking over that chore. She called it a "recent decision"...
While WMC Mortgage president and CEO Laurent Bossard was testifying before the Senate BankingCommittee on Thursday, junior account executives at WMC Mortgage were getting the ax. (NationalMortgage News Online/MortgageWire broke the layoff story.) How many junior account executives (a k a "businessdevelopment associates") were let go? The General Electric-owned WMC isn't saying. It did confirm thelayoffs -- but declined to answer several questions. WMC's maximum LTV is now 85% compared to 100% earlier thisyear. For the full story see Monday's edition of National Mortgage News. Don't subscribe? If you buy thepaper you receive NMN's online premium content free. Call: (800) 221-1809...
If you visit the Grapevine webpage/bulletin board of NMN you will find several brokers seekingfunding for 100% LTV loans for their clients, many with stated income. This loan type -- cited as a culprit inthe current subprime crisis -- is going the way of the dinosaur...
Want an update and accurate list on defunct mortgage firms? Visit
By now, former Washington Mutual executive Tony Meola is probably wondering: "What was Ithinking?" Readers may recall that in May of last year Mr. Meola bolted WaMu to become EVP of loan productionat New Century Financial. To find out which hedge fund might be eyeing up New Century read Monday'sNMN...
A study by First American CoreLogic predicts that 1.1 million of the 8.37 million adjustable-rate mortgageloans originated between 2004 and 2006 will end up in foreclosure over a six- to seven-year period...
Are the former top dogs at Mortgage Lenders Network in the throes of forming a new mortgage firm? A reportin the Hartford Courant says they are indeed. The new business is called InHome Capital andalready has a new website:
WASHINGTON NEWS: On Thursday, members of the Senate Banking Committee lashed out at the FederalReserve -- and former chairman Alan Greenspan -- for fueling the growth of alternative mortgage productsand blaming the central bank for the rise in subprime-related delinquencies by not doing anything about deterioratinglending standards. In 2003, Mr. Andrea Mitchell touted AMPs, in particular ARMs, to consumers but a fewweeks later clarified his statements, saying only a narrow segment of households might benefit from AMPs. Of course,if senators on the committee knew anything about the mortgage industry they would realize that many of the biggestplayers in AMPs/subprime are non-depositories that are beyond the reach of the Fed and FDIC. The Senate panel mightwant to investigate Wall Street's role in the crisis but that might cast many of their largest donors in a badlight and we wouldn't want to see that happen.
MORTGAGE MEETINGS: It's one of the best subprime shows in the business -- that would be SourceMedia's5th annual Nonprime Lending Symposium May 17-19 in Las Vegas. Speakers include EMC's John Vella. Formore information call: (800) 803-3424.
MORTGAGE PEOPLE: Clear Choice Financial has named Gene O'Bryan chief operating officer.He joins CCF from Aegis Mortgage where he served as COO, CIO and president of correspondent lending. WashingtonMutual has named John Woods chief financial officer of its home loan division. Mr. Woods reports toDavid Schneider, president of the division. Former Fannie Mae president Larry Small -- heof the early Raines era -- is continuing to make headlines in the Washington Post. According to thenewspaper, Mr. Small, secretary of the Smithsonian, turned in a $15,000 receipt to the agency for replacementFrench doors at his home and spent $48,000 for two chairs, a conference table, and upholstery for his office suite.One senator referred to Mr. Small's spending as a "Dom Perignon" lifestyle.
SURVEY NOTICE: Loan officers take note -- NMN's annual survey of LOs is now ready.
DATA NEWS: According to new 4Q edition of the Quarterly Data Report mortgage bankers funded $795billion in loans during the quarter. Subprime production fell to $143 billion from $176 billion in 3Q. The QDRoffers complete rankings on the top 100 mortgage funders and servicers with breakouts on loan channels, subprimeand much more. For info on the product e-mail
