Fannie Mae plans to tighten its underwriting guidelines on certain loans especially where risk layeringis involved. A spokesman confirmed to National Mortgage News that changes are coming in regard tohigh loan-to-value ratio mortgages and "very low" downpayment loans. He noted the idea is to preventconsumers from getting into trouble
Meanwhile, the Department of Housing and Urban Development wants to ban all downpayment "gift"assistance provided to homebuyers by sellers and in some instances nonprofits working with sellers. The ban wouldapply only to mortgages insured by the government. For the full story see the Monday edition of NMN. Don'tsubscribe? Call: (800) 221-1809. The Monday issue also provides a table on the nation's top 25 subprimelenders in 2006 and their B&C woes. (Keep in mind that not all subprime funders have woes.) NMN alsois publishing an up-to-date and accurate list on defunct firms and platforms
Here's to Bank of America for taking out a big full-page ad in The Wall StreetJournal on Tuesday promoting its "No Fee Mortgage PLUS." BoA is boasting that the loan has noapplication fee, no closing costs, no private insurance, and is offering a "close-on-time" guarantee."Here's what I say: with all those no's there's probably no profit either. No wonder why Angelo Mozilo thinksBoA should outsource its entire mortgage operation to Countrywide
This coming week look for a large player in the "scratch and dent" market undergoing a change of control
According to research by the Orange County Register, 17 midsized to large mortgage firms haveeither failed or announced layoffs in Orange County, Calif., since the beginning of the year. This has resultedin 3,200 local workers losing their jobs and plenty of empty office space
If subprime lender NovaStar didn't have enough problems, the National Community Reinvestment Coalitionhas filed a lawsuit against the company, accusing it of discriminating against minorities wanting to buy row housesand refusing to make loans to American Indians on reservations. A spokesman for NovaStar said the lender believesthe allegations are without merit. Meanwhile, the publicly traded company -- thanks to a one-time tax gain -- earned$44.4 million in the first quarter. Without the gain it lost almost $40 million. Moral of story: it pays to havegood accountants
PNC Financial Services Group has snatched up ARCS Commercial Mortgage of California, a midsizedcommercial mortgage banker. Terms were not disclosed. ARCS, which has 10 origination offices, funded more than$2.1 billion in 2006, according to the upcoming edition of the Mortgage Industry Directory
As reported by MortgageWire (National Mortgage News Online) this past week, WMCMortgage is trying to sell "hundreds of millions" of dollars in subprime scratch-and-dent loans.But will it like the bids? Stay tuned
Is there any good housing news out there? Some media outlets are reporting that not all is lost. Even thoughprices are sagging nationwide, home values are climbing in Portland, Ore., Boise, Seattle, Salt Lake City, Houston,Austin, Charlotte and other locales
Clayton Holdings, a mortgage analytics and consulting firm, said its Quantum Servicing Corp. divisionhas been added to Standard & Poor’s "select servicer list"
DON'T FORGET: NMN is still putting the finishing touches on its annual ranking of top mortgagebanking firms (lenders and servicers). Time is running out though. 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.
WASHINGTON NEWS: Presidential candidate John Edwards took some heat in The WashingtonPost this past week for working for Fortress Investment Group, a hedge fund that has made significantinvestments in subprime firms, including Centex Home Equity, Champion Mortgage and Green TreeMortgage. (Remember them?) Fortress hired Mr. Edwards in October 2005. The hedge fund bought into Centex andChampion within the past 12 months. The Green Tree deal went down in 2003. (See the Friday edition of the Post.)
MORTGAGE PEOPLE: John Courson, former president of Central Pacific Mortgage of California,has signed a consulting deal with the Mortgage Bankers Association. David Lereah, a former economistfor the National Association of Realtors (and MBA) has been named executive vice president of Move Inc.,an Internet portal that provides real estate listings and other information. A few years back Mr. Lereah penneda book entitled "Are You Missing the Real Estate Boom?: The Boom Will Not Bust and Why Property ValuesWill Continue to Climb Through the End of the Decade - And How to Profit From Them." Needless to say,the title has come back to haunt Mr. Lereah. (Hey, at least David Lettermen and Jay Leno haven'tpoked fun at him.) WMC Mortgage spokeswoman Brandie Young is departing this week.
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
