Is the mortgage industry in the throes of what might turn out to be a lengthy and profitable recovery? Let’s look at the signs: Fannie Mae just posted a hefty profit, Freddie Mac has earned money on an operating basis for at least two quarters in a row, many lenders are enjoying strong profit margins and the HARP program appears to be humming along. Optimists might have reason to pop some champagne. Then again, let’s not kid ourselves: the CFPB’s decision to once again play with compensation formulas after the industry when through a wrenching LO comp nightmare a year ago will not help. Nonbank and brokerage executives I talked to this past week used words like “communism” and “socialism” when talking about the flat fee proposal. If the Obama White House is counting on the residential finance sector’s vote this fall, they can forget about it. (I would wager that 75% of mortgage professionals will vote for Romney in November, and that might be conservative.) But regarding the new LO comp proposal, there’s always the possibility that the CFPB will come to its senses and not create an industry where only the megabanks will thrive. After all, the CFPB’s mission is to help consumers, not commercial bankers…
As for commercial banking, on Friday I was hoping for some type of mortgage angle on JPMorgan Chase’s $2 billion hedging debacle. Unfortunately, I couldn’t find one except for this: Jamie Dimon despises loan brokers. But what does he think of rogue traders who bet on credit default swaps?...
Will Residential Capital Corp./GMAC Mortgage finally get sold this weekend to some type of combination of Nationstar and New Castle? We know this: a deal is in the works. REIT managers believe they can buy MSRs at huge discounts to true values. We know of a handful of good servicing advisors that can offer solid advice on values. If you need to know more drop me a line at
And what of SpringLeaf, the government’s subprime lender (via AIG)? They’ve been chopping heads since January. Another layoff occurred there in the past week or so. Fortress owns part of SpringLeaf. Bondholders in SpringLeaf are concerned…
Remember the Pritzker family of Chicago, which had some bank troubles a few years back? We understand they are (sort of) back in the business, in a round-about way…
Is it my imagination or is Sheila Bair—ex-FDIC chairlady—making the rounds on TV more than ever? Maybe she’s running for office or a post in the new Romney White House…
WASHINGTON NEWS: The Comptroller of the Currency has dismissed one of the consultants overseeing a massive foreclosure review after it discovered a conflict of interest in outside work the company has performed. The OCC said Friday that it has directed Allonhill to cease reviewing loan files related to the independent foreclosure review, which was required under the April 2011 consent orders with the 14 largest mortgage servicers. Allonhill was the primary independent consultant for Aurora Bank FSB, and had also reviewed Wells Fargo loan files as a subcontractor for Promontory Financial Group. The OCC said it made the determination after Allonhill disclosed that it had performed work for "third parties," including reviewing loan files that are part of the same pool of loans that the company was reviewing as part of the foreclosure review. (Reporting by Kate Davidson.)
MORTGAGE PEOPLE: Freddie Mac hired former E*Trade CEO Donald Layton to be its new CEO. But will he ask Treasury for a dividend payment reduction?
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MORTGAGE BANKERS/SERVICERS, GIVE US YOUR NUMBERS AND GET LISTED FOR FREE: NMN and its sister publication Mortgage Servicing News, the most widely read news magazine in the servicing sector, have launched its annual origination/servicing survey. Eventually, we’ll use this information for stories. To receive a survey drop a line to
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LAST WORD: What does Hilltop know abut mortgages that MetLife doesn’t?
