Origination

SigniaDocs, a Houston-based provider of electronic mortgage services, has announced a new service aimed at protecting lenders against claims of improper disclosure processes. The service, called eSign eNsure, enforces compliant disclosure and closing practices by warranting the good-faith estimate, the truth-in-lending statement, and annual percentage rate calculations via the creation of electronic date-and-time stamps in key disclosure areas, signifying borrower understanding and acceptance of the loan conditions. Developed in collaboration with Shanks Darby PC, a Houston-based law firm specializing in commercial and residential real estate law, eSign eNsure creates a legal representation and warranty around electronic loan document disclosures. "Electronic initials can be placed anywhere on the document that you want to direct the borrower's attention," said Tim Anderson, president of SigniaDocs. "You can require electronic initialing in those areas of the documents where you want to show electronic evidence of borrower proof of understanding and intent." The company can be found online at http://www.signiadocs.com.

The Market Composite Index, an overall measure of mortgage applications, fell from 522.2 to 489.6 on a seasonally adjusted basis during the week ended July 18, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey. The Purchase Index fell from 359.7 to 335.6 on a seasonally adjusted basis, while the Refinance Index declined from 1474.9 to 1392.7. Refinancings represented 39.4% of total applications, up from 39.2% the previous week, while adjustable-rate mortgages accounted for 8.5%, the MBA said. The average contract interest rate for 30-year fixed-rate mortgages rose from 6.22% to 6.59%, and points (including the origination fee) decreased from 1.21 to 1.05 for loans with 80% loan-to-value ratios, the association reported. The MBA can be found online at http://www.mortgagebankers.org.

An online poll of homeowners in the United States and five European countries found that most believe the value of their home, while not rising this year, will increase within five years. The online Financial Times/Harris Poll found 54% of U.S. respondents joining the majority of respondents from Germany, France, Italy, and Spain in saying that the price of their home will be the same one year from now. Slightly more respondents from Great Britain, 43% vs. 42%, said their home value would remain the same than said it would decline. As for the future, 68% of American homeowners joined 64% of Italian, 57% of Spanish, and 56% of British homeowners who believe their property will increase in value within five years. But 48% of German homeowners said they expect their property value to remain the same. Most respondents were not worried about losing their homes if they could not make their mortgage or rent payments: France, 67%; Germany 62%; U.S., 61%; and Great Britain and Italy, each 55%. In Spain, however, 39% were not concerned, compared with 33% who were somewhat concerned.

The majority of subprime loans originated in 2006 were made to non-Hispanic whites and upper-income borrowers, according to ComplianceTech, an Arlington, Va.-based provider of technology and business intelligence. The report concluded that a disproportionate share of loans to minorities and low-income borrowers were subprime loans, but that non-Hispanic whites received 56.2% of the more than 1.9 million subprime loans originated in 2006. Upper-income borrowers got 39.4%, while only 7.6% went to low-income borrowers. Maurice Jourdain-Earl, co-founder and managing director of ComplianceTech, said the problem with portraying the foreclosure crisis as a minority and low-income issue is that it affects the development of possible solutions. "There could be a tendency to write off the subprime lending debacle as a type of affirmative action gone bad," he said. "We must acknowledge that the foreclosure crisis affects broader and more demographically diverse segments of society. This politically responsible approach will likely change the tone, climate, and context of how solutions are crafted." The company can be found online at http://www.compliancetech.com.

Bridger Commercial Funding, a San Francisco-based provider of commercial real estate capital, has announced the completion of a new round of capital financing (of an undisclosed amount) from its management and JMP Capital. Bridger said the investment will enable it to expand its lending and loan sales activities, including its BankXchangeloan sale advisory platform and STAR Loan products. The company said JMP Capital joins Banc of America Strategic Investments as Bridger's only outside investors, and that JMP president Walter Keenan has joined Bridger's board of directors. Bridger also announced that its BankXchange program has been retained on an exclusive basis to sell a $42 million pool of performing commercial real estate loans on behalf of an unnamed bank client. Bridger can be found online at http;//www.bridgerfunding.com.

Thacher Proffitt & Wood LLP, New York, has been hired as counsel to the Federal Deposit Insurance Corp. to act as the conservator for IndyMac Federal Bank FSB, Pasadena, Calif. The engagement pertains to corporate and transactional matters relating to the FDIC conservatorship. Its team is led by Stephen S. Kudenholdt, chairman of Thacher Proffitt's structured financial practice group, and Robert C. Azarow, a partner in the corporate and financial institutions practice group.

Lender Processing Services Inc., Jacksonville, Fla., has announced the acquisition of McDash Analytics, providing access to what LPS called the industry's largest loan-level database of mortgage assets. LPS said it now offers loan-level data for more than 39 million active first- and second-mortgage loans, representing approximately two-thirds of the mortgage market. "McDash's solutions complement our existing analytic forecasting capabilities and will enable us to serve our clients on a more comprehensive level," said Greg Whitworth, president of LPS's applied analytics division. ".... LPS has been successful in bringing together the loan and property-level data and analytics needed to provide mortgage originators, servicers, and investors with a more complete, accurate picture pf their portfolios." LPS can be found online at http://www.lpsvcs.com.

In May, home prices nationwide fell to a level 4.8% below that of a year earlier, but values may be firming up on the West Coast, according to new figures released by the Office of Federal Housing Enterprise Oversight. OFHEO said prices rose 0.3% from April to May in the Pacific region, which includes Alaska, California, Hawaii, Oregon, and Washington. Nationwide, values fell 0.3% from April to May. "It is very hard to draw conclusions from a one-month number, especially in these uncertain times," said OFHEO Director James Lockhart. The index is calculated by the agency using information on mortgages bought or guaranteed by Fannie Mae and Freddie Mac.

Wachovia Corp., the nation's 14th-largest wholesale originator, revealed Tuesday morning that it will exit that channel and shed thousands of mortgage-related jobs. The move was announced in tandem with an earnings report showing a stunning $8.86 billion loss in the second quarter. Overall, the Charlotte, N.C.-based Wachovia will shed 6,350 jobs. It said 1,000 mortgage workers will be "redeployed" to help Wachovia customers refinance "Pick-a-Pay" loans, a product the bank became heavily involved in when it bought World Savings of Oakland, Calif., two years ago. Wachovia blamed the huge losses on writedowns on its "commercial, corporate lending, and investment banking subsegments." Wachovia's investment banking arm was a huge player in the market for mortgage collateralized debt obligations.

Twenty-two classes from two small-balance commercial mortgage-backed securities deals issued by Hometown Commercial Capital Trust have been placed on Rating Watch Negative by Fitch Ratings. The affected transactions are Hometown Commercial Capital Trust 2006-1 and Hometown Commercial Capital Trust 2007-1. The negative rating actions were attributed to "a potential for significant losses from loans currently in special servicing," of which there are six in Hometown 2006-1 and nine in Hometown 2007-1, Fitch reported. Six of the specially serviced loans have the same sponsor, which is no longer able to operate the properties and has put them up for sale as part of a larger portfolio sale, the rating agency said.