What We're Hearing

Now that Taylor, Bean & Whitaker has hit the wall, what will become of its $78 billion residential servicing portfolio – much of which covers Freddie Mac loans? Some might recall that when American Home Mortgage of Melville, N.Y. went bust two summers ago Freddie Mac pulled its servicing rights from that shop (hiring Bank of America to temporarily service those receivables) while Fannie Mae allowed American Home to continue servicing for them. (AmHome was in Chapter 11.) For the full update see the National Mortgage News website later today. Meanwhile, I just got back from a week long vacation on the (New) Jersey shore and vacation property values seem to be holding up in certain towns like Avalon, Margate, Ocean City, and Sea Isle City. Rental prices have come down a bit (say 20% or so at worst) but units are still being rented out which means the mortgagor can still make his payments. Absent from all the freebie real estate pamphlets: mortgage advertisements from lenders that are willing to finance vacation properties. I only spotted a few...