THIS JUST IN: National Mortgage News is about to publish its 1Q edition of the Quarterly Data Report. One key finding is that mortgage bankers funded just $4 billion in subprime loans from January to the end of March, the industry's worst showing in two decades. (A year ago lenders originated $89 billion in subprime loans.) NMN soon will publish its Alternative Products Quarterly Data Report, which has rankings on the nation's top second-lien funders, interest-only lenders and much more. To order the QDR or AP-QDR, send an e-mail to
So, what's going on with Bank of America's purchase of Countrywide Financial Corporation? We understand that BoA has a three-pronged approach to the merger, calling each milestone a "tollgate." The first tollgate was to assess how CFC conducts business in its different departments and units. The second tollgate involves realigning CFC to how BoA is organized. The third tollgate: Matching up the departments and eliminating redundancies and ways of business that BoA does not like. From what we've been told the CFC/BoA mortgage "brain trust" will remain in Calabasas but certain offices and divisions might be closed. BoA has yet to disclose details. One source suggested that the merger actually might be completed early in the third quarter. Read National Mortgage News and NMNOnline (
Meanwhile, here's an interesting question that was just posed to me at press time: When CFC and BoA merge their mortgage businesses, which technology platforms/vendors will the combined entity use? Stay tuned...
The first-quarter delinquency numbers are out and it's not pretty. If you would like specific information on delinquencies by the nation's top servicers, try the Quarterly Data Report. Even though some think delinquencies might be peaking, chances are it could get a whole lot worse. The unemployment rate jumped by a full half-percentage point on Friday to 5.5% (the biggest monthly rise in 22 years), and oil spiked $11 a barrel to a new high. That's right $11 a barrel in one day! If you're a mortgage professional that relies on his/her car you may want to consider biking it or telecommuting. This is going to get interesting. (It's already interesting)...
CALLING ALL BROKERS: National Mortgage News and Broker magazine are putting the final touches on their annual broker rankings. If you would like to send us your numbers, drop an e-mail to
Some good news: Although falling home prices and credit losses continue to be a problem for Freddie Mac chairman and CEO Richard Syron told investors Friday that the GSE is on the right track and that it will not see a repeat of the $3.1 billion loss it suffered in 2007. "We believe our 2008 results will be significantly better than 2007," Mr. Syron said at the company's annual shareholder meeting. (Reporting by Brian Collins of National Mortgage News.)
A hard-money lender that you may've never heard of but which services $1.2 billion loans -- that would be FCI Lender Services...
We hear that Franklin Bank of Texas may be exiting the warehouse lending arena...
LUXMAC chief Mike Covino has penned a new article that blames the delinquency crisis on lenders that rely too heavily on FICO scores and shun human underwriters...
Just how dead is the residential ABS business? According to Deutsche Bank, just $600 million worth of residential ABS was issued in May compared to almost $37 billion a year ago...
If you're wondering why Americans can't afford downpayments anymore consider this: According to the National Foundation for Credit Counseling, 36% of adults have no savings outside of retirement...
MORTGAGE PEOPLE: Subprime lender Accredited Home Lenders -- one of the few remaining nonprime lenders left out there -- has named Jeff Walton as its new chief executive officer. He immediately replaces Jim Moran who has served as interim CEO since February. Earlier this week National Mortgage News broke a story about layoffs at Accredited. Firewheel Mortgage of Garland, Texas, has hired Danny Blakemore as a loan consultant. Mr. Blakemore specializes in a broad array of borrowers including first-time homebuyers, military veterans, move-up buyers and luxury homebuyers.
One of our readers wrote to me wondering what ever happened to Mitch Heffernan, CEO and founder of Mortgage Lenders Network of Connecticut, the failed subprime wholesaler. If you have any insights drop me a line at
CELEBRITIES IN DANGER OF LOSING THEIR HOMES TO FORECLOSURE: Jose Canseco (former professional baseball player), Michael Jackson (entertainer/singer), Ed McMahon (TV personality) and Rep. Laura Richardson from California (politician). If you have any names to add to this list, drop me a line at
DATA NOTICE: Need an accurate ranking of the top 100 lenders and servicers in 2007, including subprime? Order the new Annual Data Report, which comes in Excel. Send an e-mail to
