Are non-depository subprime funders beginning to see some relief in the secondary market? Prices are tickingup every so slightly, one executive told us, but nothing to write home about. "If we get 101 for a loan weconsider ourselves fortunate," said the president of one West Coast-based B&C shop. "If we get 101.5we consider that a fortune"
Sources also indicate that prices might be firming up in the “scratch and dent” loan market, but one participantsays he thinks the increase could be temporary. "A lot of mom and pops are entering this business," hesaid. Prices offered for nonperforming second liens that were part of 80/20 combos are still at rock bottom --in the range of $0.08 to $0.10 on the dollar
Carrington Capital, a hedge fund, won the bid for New Century's subprime servicing platform. Theauction was decided late Wednesday night, we're told. Morgan Stanley initially looked at the platform butultimately decided not to place a bid
Late this past week TheStreet.com (as in CNBC's Jim Cramer) initiated coverage of PHH Corp.,calling it a “sell.” “The company lost $0.13 per share in the third quarter of fiscal 2006 after gaining $0.90per share in the third quarter of 2005. The market is expecting a further contraction in earnings in the comingyear. The company's debt-to-equity ratio is currently very high at 4.8," says TheStreet...
The Illinois Association of Mortgage Brokers has sent out an alert to its members, warning that if anew proposed amendment passes bankers and brokers will not be able to originate any "stated-income" or"non-income-verification" loans. The trade group fears that if the language (Amendment 3 for HB 1478)passes, loan offices will be held "personally responsible" for their actions and could have their personalassets attached by the state attorney general
Doral Financial Corp., the struggling Puerto Rican mortgage lender, has agreed to be acquired by a groupled by a Bear Stearns private equity affiliate to avert a possible insolvency
A large hard-money lender is on the verge of closing its correspondent division, according to one industry sourcewho has played in that market. The source, requesting anonymity, said the lender also is entertaining buyout offersfrom two groups
Countrywide Financial Corp. chairman and CEO Angelo Mozilo believes that within two years justtwo lender/servicers -- CFC and Wells Fargo -- will control 40% of the mortgage market. CFC this past weeksold $4 billion in bonds. It will use some of the proceeds to repurchase stock but could it (perhaps?) spend therest on buying another franchise? Answer: Don't bet on it
New Jersey-based mortgage lender Hudson City Bancorp has opened new branches in Staten Island and WhitePlains, N.Y.; Monroe, Conn.; and Kendall Park, N.J., increasing the bank’s total number of branches to 114
Housing Secretary Alphonso Jackson on Monday ruled out any type of bailout for delinquent subprime borrowersat a HUD-sponsored symposium on "Homeownership Security." Mr. Jackson cautioned that taxpayer money shouldnot be used to bailout "investors" who were "fiscally irresponsible." The HUD chief also usedthe meeting to heavily promote the FHA program. FHA is hoping that as the subprime market continues to crater thegovernment's insurance program will gain business. Some industry wags refer to FHA as "the government's subprimeprogram"
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
ATTENTION LOAN BROKERS: NMN is still conducting its annual survey of brokerage firms. To participate
LO SURVEY NOTICE: Loan officers take note -- NMN's annual survey of LOs also is now ready.
WASHINGTON NEWS: Despite objections from the Bush administration, the House of Representatives late lastweek approved an amendment (by voice vote) that restricts a new GSE regulator from using "systemic risk"as a reason for scaling back the portfolios of Fannie Mae and Freddie Mac.
The adoption of the portfolio amendment -- sponsored by Reps. Randy Neugebauer, R-Texas, and MelissaBean, D-Ill. -- is considered a significant victory for supporters of the two GSE, according to a report byNMN's Brian Collins.
MORTGAGE PEOPLE: LendingTree has named C.D. Davies CEO, and Bob Harris presidentand chief operating officer. Mr. Davies joins LendingTree from Wachovia Mortgage Corp. First National Bank ofArizona has named Craig Chapman national sales director in charge of mortgages. American Home Mortgagenamed Scott Comeaux SVP of builder development for its western division.
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
