For three months now a source familiar with the situation has been telling us that Carrington Capital Management -- which bought the servicing platform of now-defunct subprime giant New Century Financial Corp. -- has been having (shall we say) some financial challenges. This past week it was reported that Carrington, the brain child of former Salomon Brothers executive Bruce Rose, is trying to persuade investors to lend it $200 million to replace its current bank lines. The obvious question is this: Have his current lenders become "risk adverse"?...
I'm on vacation this week but I've put together a handful of e-mails from readers who've been kind enough to share their thoughts on a variety of topics affecting the mortgage industry. Here's some of the more interesting ones (certain edits made by me):
* "Remember the ranting and raving from the mortgage industry when individual states and even cities were passing their own laws to curb abusive or high-cost loans? There is some muttering afoot in Massachusetts that the large national servicers are not being responsive to the concerns of consumer groups and politicians in regard to abandoned and post-foreclosure properties. This has led to one ordinance passed by the Boston City Counsel. Some observers believe the logic is: If we can't get them to pay attention through moral suasion, we'll just legislate them into paying attention. If you thought high-cost loan laws were tough, wait until you see some of the fines that are coming next." -- Massachusetts mortgage attorney (name withheld)
* "I was in attendance at the Arnall funeral also. Your source did not find the words to describe Roland's philanthropic initiatives that over the years he has generously supported. The countless lives that have prospered from his genius creation of his companies over the years and the ripple effect that has effected so many lives positively. He did not include the eulogy given by an articulate rabbi that emphasized Mr. Arnall's belief in human potential and how he reached out to many people at all levels of social standards to realize their full potential. Mr. Arnall was a not just a `subprime king,' he was a great humanitarian that was just beginning to do his best work ever. I have listened to so many ready to criticize Mr. Arnall, yet none were criticizing him while they were overpaid as an account executive." -- Jim Madrid, CEO/Founder, Entelechy Training & Development
* "Those of us that have been around for awhile and have experienced such market tumults such as the S&L debacle know one thing for sure -- that when one product door closes another opens and this time will be no different. In other words, the niche that was 'subprime' will become another niche called 'subprime' but with different rules and players. For as long as there is demand, someone somehow will fill it." -- Robert J. Sandoval Sr., Managing Member/CEO, Capital Plus Financial, LLC
* "Over the past 12 to 18 months the mortgage brokers of this country have been slandered, defamed and egregiously designated the scapegoats of 'subprime-gate.' They have lost their jobs, their businesses and their industry as a result of selling exotic mortgages created and distributed by big banks and Wall Street. From the likes of Hillary Clinton, to Chris Dodd to now Fed chief Ben Bernanke and his followers spitting out sound bites, brokers are the No. 1 target for retaliation by state and federal regulators and consumers alike. Just like the pharmaceutical company or any other manufacturing firm, the banks created, packaged and sold their subprime products through far reaching and sophisticated sales channels. The facts are that these people stole the broker industry. They created the Ameriquest's of the world and they encouraged everyone to sell their programs. If you didn't sell it, the company down the street did. To compete and pay the bills, you sold what the distributor gave you. The fallout from this mess will not only cripple the broker industry and its people, it will hurt borrowers more than one can imagine." -- Joe Adamaitis, Direct Mortgage
WASHINGTON NEWS: Sen. Hillary Clinton, D-N.Y., is calling for aggressive action to stem rising foreclosures and signaled her support for a Democratic plan to refinance one million "at-risk" homeowners into Federal Housing Administration-guaranteed loans. The FHA refinance plan proposed by Rep. Barney Frank, D-Mass., and Sen. Christopher Dodd, D-Conn., will give lenders new incentives to work with borrowers and quickly restructure their mortgages. However, the FHA or another government entity should be ready to purchase and restructure distressed mortgages if voluntary efforts aren't effective, the presidential candidate said at a Philadelphia rally.
LOAN OFFICER SURVEY NOTICE: National Mortgage News has launched its new 2008 Loan Officer Survey. To participate (it's free) just visit
MUST-ATTEND MORTGAGE MEETINGS: SourceMedia will hold its second annual Mortgage Servicing Conference at the Westin Park Hotel in Dallas on April 17 and 18. The keynote speaker is Paul Bennett, chief economist for the New York Stock Exchange. For more information visit
DATA NOTICE: The Mortgage Industry Directory and the online version of the book are still available. (Mention this notice and receive a free Quarterly Data Report.) Besides listing detailed information on the top 400 lenders and 300 servicers in the U.S., the MID ranks the nation's top funders of commercial mortgages. There's also information on loan brokers. The book has valuable contact information on the top executives and department heads at each firm. For more information e-mail
