Origination

LandAmerica Financial Group Inc., Richmond, Va., has announced that United Title Co. is now doing business as LandAmerica Title Co. LandAmerica Financial said the move is "another step in LandAmerica's transformation of its collection of independent businesses into an integrated and unified operating company." The parent company can be found on the Web at http://www.landam.com.

Hall Financial Group, Frisco, Texas, has announced the formation of Hall Real Estate Capital LLC to consult on, sponsor, and offer real-estate-related investment opportunities to individual and institutional investors. The new company is expected to offer private placements involving individual real estate projects as well as raise capital for opportunistic RE-related activities. The founders of HREC are Craig Hall, chairman of Hall Financial; Herb Weitzman, chairman of The Weitzman Group/Cencor Realty Services; and Donna Arp, former chief executive officer of Realty Capital Partners, who will serve as CEO of the new company. "The current turmoil in the financial markets is creating tremendous opportunity at all different levels in the capital markets, and we believe that now is the right time for investors to look to real estate as an opportunistic area with the potential to deliver superior returns on a risk/reward basis," Mr. Hall said.

Ellie Mae Inc., a Pleasanton, Calif.-based origination vendor, has acquired the assets of Online Documents Inc., a provider of guaranteed compliant mortgage documents, from Stewart Lender Services Inc. No sale price was disclosed. Online Documents, based in Concord, Calif., provides services to more than 500 clients nationwide, ranging from local and regional lenders to large organizations. The acquisition agreement between Stewart Lender Services and Ellie Mae includes Online Documents' employees, client relationships, technology, business operations, and other assets. Ellie Mae said it will continue to serve current customers of Online Documents, and in the coming months will add Online Documents as an additional provider on Encompass Closer, its document preparation solution integrated within the Encompass Mortgage Management Solution. In addition, mortgage professionals will continue to see Online Documents among the many document service providers offered on the Ellie Mae ePASS Network. Ellie Mae can be found on the Web at http://www.elliemae.com.

The risk of home price declines in the nation's 50 largest housing markets has been "significantly heightened" by rising foreclosures and unemployment, according to PMI Mortgage Insurance Co., Walnut Creek, Calif. According to the PMI U.S. Market Risk Index for Fall 2008, the risk of price declines rose by more than 10% in 16 of the nation's top 50 metropolitan statistical areas, primarily in areas that experienced major house price increases during the housing boom. "The risk of future home price declines increased in 94% of all 381 MSAa in the country this quarter," said David W. Berson, chief economist and strategist for The PMI Group. "The majority of these increases aren't statistically significant -- in many cases, risk increased by less than 10% -- but risk did increase by a significant amount, as much as 30% or more, in some states and MSAs where foreclosures and unemployment increased significantly." PMI can be found online at http://www.pmigroup.com.

A national ban on seller-funded downpayment assistance programs linked to third-party reimbursements has gone into effect. The ban, which took effect Oct. 1 with the beginning of the new fiscal year of the federal government, had been fought by several nonprofit groups that provided assistance to consumers. Opponents of the ban estimate that 50,000 homeowners a month could be knocked out of the housing market because of the ban.

Thornburg Mortgage Inc., Santa Fe, N.M., says it has cut 29 sales and support positions in its home lending division "in response to the continued unprecedented turmoil in the mortgage financing and credit markets." About half the cuts were made in Santa Fe and the other half were made "throughout the country," the lender said. The company said it continues to employ 156 professionals in Santa Fe. "Today's announcement is in no way a reflection of the ability of these individuals; rather, it is a sign of just how prolonged and extensive the mortgage crisis has become," said Larry Goldstone, Thornburg Mortgage's president and chief executive officer. The company can be found on the Web at http://www.thornburgmortgage.com.

The Hope for Homeowners program will allows lenders to conduct "trials" to see if troubled borrowers can make their payments under a newly refinanced Federal Housing Administration mortgage. Congress directed the Department of Housing and Urban Development to establish the special FHA refinancing program, and the department is issuing lender and servicer guidance on Oct. 1. "I strongly encourage homeowners and lenders to look into this program," HUD Secretary Steve Preston said. At the request of lenders, the Hope program provides for a "minimum three consecutive month trial modification" for borrowers with higher-than-normal debt-to-income ratios. The origination guidance also allows second lienholders to share in future appreciation of the property, if they waive all rights to collect existing debt.

The PMI Group Inc., Walnut Creek, Calif., has announced that its primary mortgage insurance company, PMI Mortgage Insurance Co., will terminate all excess-of-loss reinsurance arrangements with lender-affiliated captive reinsurers as of Jan. 1, 2009. On that date, in-force XOL contracts will be placed into runoff and will mature pursuant to their existing terms and conditions. PMI said PMI Mortgage Insurance will continue to participate in quota share captive reinsurance agreements. The company can be found on the Web at http://www.pmigroup.com.

Genworth Financial Inc., Richmond, Va., has announced that it is examining strategic options regarding its U.S. mortgage insurance business, including a possible spinoff. The company also declared that its financial foundation is sound and its liquidity more than adequate. "We have demonstrated that, in the current stressed U.S. housing environment, our U.S. mortgage insurance business continues to operate from a more sound financial position and lower risk profile than any other U.S. mortgage insurer," said Michael D. Fraizer, chairman and chief executive officer. "At the same time, progress in our international, wealth management, retirement, life, and long-term care insurance businesses has been overshadowed by concerns about the future of U.S. mortgage insurance." Mr. Fraizer said Genworth's U.S. MI business is the only double-A rated mortgage insurer in the nation. Genworth can be found online at http://www.genworth.com.

House prices fell another 0.9% in July and prices are down 16.3% over the past 12 months, according to the Standard & Poor's/Case-Shiller housing price index. Despite the downward trend, the 20-city HPI shows an uptick in monthly house prices in nine cities. "While some cities did show some marginal improvement over last month's data, there is still very little evidence of any particular region experiencing an absolute turnaround," S&P's David Blitzer said. Prices have risen in Atlanta, Boston, Dallas, Denver, and Minneapolis for three months or more. The Office of Federal Housing Enterprise Oversight reported Sept. 23 that home prices fell 0.6% from June to July on a seasonally adjusted basis. The S&P/Case-Shiller index can be found online at http://www.homeprice.standardandpoors.com.