Net branch operator All Fund Mortgage of Washington state has lost another top officer. This time it'sPerry Stiles, executive director of branch operations. Managers say Mr. Stiles -- who departed lastweek -- helped All Fund start its branch division eight years ago. In February, AFM was sold by a private individualto five partners including Chris Dunn who now serves as its president. (A source said another partner inthe deal is David Syme of David M. Syme Consulting.) AFM has been taking up to three weeks -- andmore -- to pay some of its branch managers on deals. (Typically, it used to pay in 48 hours.) For an update onAFM see the Monday edition of National Mortgage News. Don't subscribe? Call: (800) 221-1809
Efforts by the bankrupt New Century Financial Corp. to sell its wholesale platform have come to naught.The deadline was Wednesday. One insider told us: "We just got the word: no bidders for the origination side.So, we are done." A few hours after hearing there was no sale, roughly 2,000 workers got the pink slip. Thesale of its servicing platform is still pending
One veteran warehouse executive tells us hedge funds and private equity players may have moved "too quicklyinto subprime space. They were lulled into a false sense of security by their ability to acquire mortgage loansat 5 or 6 point discounts to par"
Meanwhile, the scratch-and-dent securitization market is picking up steam. See Monday's NMN and BonnieSinnock's "Street Smarts" column
Venezuelan president Hugo Chavez on Thursday threatened to nationalize that country's banks. Could itsmortgage banks be next? Do they have any there? Here's a thought: When Cuba finally "opens up" whichU.S. mortgage lender will be the first in? I would bet on Countrywide, but you never know
According to a recent report in the Newark Star Ledger, New Jersey's banking and insurance commissionerhas sought a court order to restrict the operations of Dana Capital Group of California. Commissioner SteveGoldman is asking the court to prevent Dana Capital from doing business at 63 unlicensed offices inthe state
Did you know that at year-end Pabrai Investment Funds, as in Mohnish Pabrai of Irvine, Calif.,owned 9.77% of subprime lender Delta Financial? Delta was one of few subprime lenders turning a profit inits last reported quarter...
Countrywide CEO and chairman Angelo Mozilo said this past week that he will take a pay cut in an effortto blunt criticism of his compensation. Mr. Mozilo told The Wall Street Journal, "Idon't want to be a lightning rod that casts any negativity on the company." Mr. Mozilo -- like many CFC executivesand directors -- has been exercising options (a ton of options, you might say) and selling stock. He has to paytaxes on his net gains
Less than 1% of outstanding payment-option arms will reset this year, according to a new report issued by GreenwichCapital. Greenwich analyst Desmond Macauley calls the reset or "recast" figure "negligible."However, Greenwich predicts that next year 8% of POAs will reset and in 2009 and 2010 the figure spikes to 29%and 45%, respectively
Employees of ailing subprime lender Fremont General Corp. are suing the bank, claiming its directorsshould have acted to prevent the loss of millions of dollars from retirement and stock ownership plans
Mortgage banking giant IndyMac has changed its stock symbol to IMB from NDE
DON'T FORGET: NMN is putting the finishing touches on its annual ranking of top mortgagebanking firms (lenders and servicers). To participate (it's free) please visit
ATTENTION LOAN BROKERS: NMN is still conducting its annual survey of brokerage firms. To participatevisit
LO SURVEY NOTICE: Loan officers take note -- NMN's annual survey of LOs also is now ready. Visit
WASHINGTON NEWS: Mortgage brokers and other non-bank lenders will have a fiduciary duty to their borrowersunder a bill introduced by Sen. Charles E. Schumer, D-N.Y. The bill also holds lenders accountable for thesubprime loans they fund and purchase from brokers. (See Monday's NMN for details.)
MORTGAGE PEOPLE: Eugene McQuade, president of Freddie Mac, has turned down an offer tobecome the next chief executive of the company. He will leave the GSE later this year but will remain as a director.
Fannie Mae's chief financial officer, Robert Blakely, also will depart later in the year. He willbe replaced by Stephen Swad. American Home Bank of Pennsylvania has named Dave Ferguson seniorvice president of retail mortgage banking.
DATA NOTICE: Need reliable research on top funders and servicers dating back to 1999? NMN hasavailable for purchase back issues of its popular Quarterly Data Report going back to the fourth quarterof 1999. (The QDR provides information on prime and subprime.) If you want details on the top funders of alt-A,payment-option ARMs, jumbos and more, check out the Alternative Products Quarterly Data Report. For moreinformation e-mail
