Origination

The Federal Deposit Insurance Corp. hopes to complete a deal to sell a majority of IndyMac Federal Bank in December, according to an agency spokesman. "Our intent is to sell as much of it as possible to one buyer," the spokesman said. It's unclear that if sold, what will happen to the FDIC's loan modification efforts at the thrift. One source said he expected continuation of the loan-mod program to be a pre-condition of a sale. An investment banking source familiar with the transaction said at least two parties are involved in the latest round of bidding for the Pasadena, Calif.-based thrift, once a top player in the alt-A market. The investment banker described the parties as "consortium bids" that have syndicated out their financing. He said there is one lead negotiator for each consortium. The FDIC spokesman declined to discuss the bidding process except to say, "We'll be conducting bidding later this month." The FDIC placed IndyMac into a conservatorship this past summer. The company was formed two decades ago by Countrywide Financial founder Angelo Mozilo.

According to the Mortgage Bankers Association Weekly Mortgage Applications Survey for the week ending November 7, 2008, applications were up. The Market Composite Index, a measure of mortgage loan application volume, was 425.0, an increase of 11.9% on a seasonally adjusted basis from 379.9 one week earlier. On an unadjusted basis, the Index increased 10.5% compared with the previous week and was down 40% compared with the same week one year earlier. Similarly, the Refinance Index increased 16.1% to 1248.4 from the previous week and the seasonally adjusted Purchase Index increased 9% to 284.4 from one week earlier; the Conventional Purchase Index increased 6.5% while the Government Purchase Index (largely FHA) increased 15.3%. However, the four week moving average for the seasonally adjusted Market Index is down 3.7%.

Commercial and multifamily mortgage loan originations remained low in the third quarter, according to the Mortgage Bankers Association's quarterly survey of commercial/multifamily mortgage bankers originations. Third quarter originations were 53% lower than during the same period last year. The year-over-year decrease was seen across all property types and most investor groups. Decreases in total commercial/multifamily mortgage originations continued to be led by a drop in commercial mortgage-backed security conduit loans and loans for commercial bank portfolios.

The Department of Housing and Urban Development has unveiled a new, streamlined Real Estate Settlement Procedures Act rule that revamps the good faith estimate and HUD-1 settlement forms. Based on consumer testing, HUD officials said in a news conference that they believe consumers will save $700 per loan on average because the new disclosures make it easier to choose the lowest cost loan product. Federal Housing Commissioner Brian Montgomery said testing showed that consumers choose the loan with the most favorable terms 92% of the time using the new, standardized GFE. The new rule also requires that costs on the HUD-1 form, which discloses fees at closing, cannot exceed the GFE numbers by more than 10%. In a nod to industry protests, the final rule eliminates a proposed script that closing agents would have been required to read aloud to consumers at closing.

The industry saw a 2.1% decline in house prices on a national level in September, with an annual decline of 13.3%, but certain counties have seen month-to-month gains, according to the latest IAS360 House Price Index for September 2008 from Integrated Asset Services LLC. However, according to the report, the data also show bright spots at the individual county level with 75 of the 360 counties showing month to month improvement in September. "Housing prices at the national and MSA levels are still seeing declines, but we're seeing positive signs at the county level, and even more encouraging signs at the neighborhood level," said Dave McCarthy, president and CEO of Integrated Asset Services. The index, which tracks 15,000 neighborhoods, shows the national picture continues to look challenging. At the census region level, results for September show all four U.S. Census regions experiencing declines in house prices, with the South and West experiencing double-digit declines annually of 11.2% and 19%, respectively. Compared to September 2007, Western and Midwestern housing prices improved slightly while the Northeast and the South continued to weaken. In September, at the census division level, all nine U.S. Census divisions posted declines. West South Central led the way with a decline of 4.5% and New England, the South Atlantic and Pacific posted declines of 3%, 2.5% and 1.9%, respectively.

The New York Stock Exchange has permanently suspended trading in the common stock of CBRE Realty Finance Inc., Hartford, Conn., as of the close of market on Nov. 7. The delisting is the result of the fact that the company has fallen below the NYSE continued listing standard regarding average global market capitalization over a consecutive 30 trading day period of at least $25 million. As of Nov. 10, 2008, CBRE's common stock will trade over-the-counter under the ticker symbol CRTYZ. CBRE Realty Finance is a commercial real estate specialty finance company focused on originating, acquiring, investing in, financing and managing a diversified portfolio of commercial real estate-related loans and securities. The company's website is located at http://www.cbrerealtyfinance.com/.

At the direction of Congress, the Federal Housing Administration has increased the loan limit for reverse mortgages to $417,000 in the lower 48 states. The new loan limits for FHA-insured Home Equity Conversion Mortgages in Alaska and Hawaii have not been published yet. The national mortgage limit of $417,000 is "effectively immediately," FHA says in a mortgagee letter. Congress increased the loan limit for HECMs and imposed new limits on origination fees as part of an FHA modernization bill that the President signed July 30. "The new loan limit and other provisions will allow seniors to receive more benefit at lower origination cost to meet their retirement needs," said Peter Bell, president of the National Reverse Mortgage Lenders Association. Previously, the HECM loan limits were determined by area median house prices and ranged from $200,160 in rural areas to $362,790 in high cost areas. The new loan limit is likely to encourage senior to refinance their reverse mortgage so they can tap more equity in their homes.

The mortgage business may not like what's coming in the reform package the Bush Administration has in mind for the Real Estate Settlement and Procedures Act. But at least it will have 12 months to put the changes into effect, according to the Chief of Staff at the Department of Housing and Urban Development. RESPA reform is "imminent," David Horne told the National Association of Realtors' annual conference in Orlando. "But you'll have a one-year implementation period, so you'll have plenty of time to deal with it." Mortgage interests from top to bottom have generally panned HUD's effort at revising the ancient consumer protection law. But they have been unsuccessful in getting the White House to pull back HUD's reform package. Mr. Horne also told NAR that the transition to a new administration should be smooth, at least as far as his department is concerned. He said HUD started in June to carve out office space and computers for the transition team appointed by the President-elect, whomever he or she might be. It also has identified key career staffers and major issues for the new regime, and is just waiting for President-elect Barack Obama's team "to parachute in," Mr. Horne said.

The National Credit Union Administration has approved a new charter for Realtors FCU of Orlando, which will be an Internet-based credit union for an estimated 1.2 million members of the National Association of Realtors. Service will be provided by a 24/7 call center in addition to the Internet support, according to Michael Brodie, who will chair the start-up. "Realtors Federal Credit Union will be sensitive to the work habits and lifestyles of Realtors, most of whom are independent contractors who are compensated by commissions," said Brodie. Among its products, the new CU will offer first mortgages and HELOCs. -- <1>Credit Union Journal

American Mortgage Acceptance Corp., New York, a commercial and multifamily real estate investment trust, is closing its doors, saying its liabilities have exceed the value of its remaining assets. Among other things, the REIT invested in mezzanine, construction and first mortgage loans, subordinated interests in firsts, bridge loans, subordinate commercial mortgage-backed securities, and other real estate assets.