THIS JUST IN: It's called "funded indemnification." And certain nonbanks aren't too happy with it. Apparently, some large correspondent buyers (investors) are telling their nonbank lenders that they will purchase their new originations but the nonbank must set aside money in a reserve account to cover possible future losses. I'm not sure if this is a growing trend, but it sure is interesting. If you have any information about this type of behavior by investors, drop me a line at:
As for which firms were the top correspondent buyers of loans last year, it's all in the brand new Annual Data Report. The ADR ranks the top buyers of loans -- and table funders. It also has the top 100 lenders and servicers for the full year. All this information -- and more -- will be in the updated version of our MortgageStats.com product. To order the ADR send an email to:
This weekend the nonbank mortgage industry is probably breathing a little easier in regard to the 5% risk retention/MBS rule being considered in the Senate. Lobbyists working the issue say Sens. Chris Dodd (D-Conn.) and Richard Shelby (R-Ala.) now understand that without a "carve out" for GSE and FHA loans, that 80% of the nonbank industry could rollup and disappear. This means the big boys would gain additional market share, becoming even much more "too big to fail." I'm still in favor of capping origination and servicing market shares at 10% but it's not like I have any say in this matter. Anyway, for an update on the whole mess see the Monday edition of National Mortgage News. Don't subscribe? Call: (800)221-1809...
AND NOW FOR A WORD ABOUT GOLDMAN SACHS: It wasn't exactly a red letter day for Goldman Sachs on Friday. Its stock was down $15 a share or 9.5% overall. In the scheme of things, maybe that wasn't so bad. The selling began when press reports began to circulate that the SEC had filed a "criminal referral" with the Justice Department, suggesting that its white collar gumshoes look into Goldy's mortgage-related trading activities (read: Paulson, CMOs, credit default swaps, the ABX, and Frenchy Tourre). I caught some of the hearings this past week and although Goldman's behavior was on par with used car salesmen, it remains to be seen whether a civil or criminal jury will be able to grasp the details. (Note: in advance, I'd like to apologize to all the "good" used car salesmen out there. Some of you are better than Goldman's bond traders.) After Friday, it stands to reason that Goldman will move to settle the civil suit ASAP without (but of course) admitting or denying any wrongdoing (but of course). The next step for Goldman? Answer: It will buy its public stock back, go private (returning to a "partnership"), and tell Mr. Geithner he can have his damn bank charter back...
BlackRock Financial -- that would be Larry Fink's BlackRock -- has been quietly buying up shares in homebuilder PulteGroup. The buying, apparently, has been going on for a while and according to one SEC filing that's been sitting on my desk for two weeks, BlackRock owns about 4.88% of the firm. Mr. Fink must have the Midas touch. Pulte's shares hit a 52-week high on Friday. Mortgage historians might recall that he too is considered one of the early pioneers of mortgage-backed securities...
The $8,000 federal tax credit for first-time home buyers ends tonight at midnight so get your contracts signed ASAP! However, if you deal in California real estate, purchasers of new homes have a few more months to enjoy a $10,000 state tax credit. Gov. Arnold Schwarzenegger recently signed a measure extending the credit. According to one press report: "The new law provides $200 million for homes purchased between May 1 and Dec. 31 and between Dec. 31 and Aug. 1, 2011-- twice as much as a similar measure provided for new home purchasers in 2009"...
Deutsche Bank on unemployment: "While the labor market is mending, it will take a considerable period of time for the unemployment rate to normalize. Since the start of the recession, the economy has shed over 8 million jobs. For the unemployment rate (UR ) to decline meaningfully from its current level of 9.7%, net hiring will have to turn solidly positive-something we expect to become increasingly apparent in the near term"...
MORTGAGE PEOPLE: Seth Wheeler, a senior advisor at the Treasury Dept. who helped craft the Obama Administration's Home Affordable Modification Program (HAMP), has resigned, a Treasury spokesman confirmed to Debtwire. Formerly a banker at Morgan Stanley, Wheeler was one of the few holdovers in the Obama Administration hired under former Treasury Secretary Henry Paulson.
DATA STUFF: Not only is the brand new edition of NMN's Annual Data Report available, but we have quarterly production and servicing research dating back to 1998. For more information, drop a line to:
SURVEY NOTICE No. 1: Our annual "Top Producer Survey" (a k a LO survey) is at
SURVEY NOTICE No. 2: It's survey time once again for ALL residential and commercial lenders and servicers. Look for our annual survey in your computer mailbox or contact Ms. Todd.
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DATA NOTICE: National Mortgage News has all different data sets available for purchase including rankings and contact lists on the nation's top lenders and servicers. Send your requests for information to
THE LAST WORD: Is the curse of CitiField and the Mets fading? Don't bet on it. I say toss the Citi name and rename the ballpark Jack Robinson Park at Ebbets Field, or something like that.
