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December 22, 2006

Subprime Market Share

Posted by S. Germain at 09:08 AM | Comments (0)

Benton County, Ark., Awards Contract to Landata Technologies Inc. for an Enhanced Electronic Document Land Management System

Benton County, Ark., has awarded a contract to Landata Technologies Inc. for Landata e-STAR Plus, a comprehensive Solution for Total Automation of Records (STAR) for county clerks and recorders, in addition to data warehousing and document conversion services.

Posted by S. Germain at 09:04 AM | Comments (0)

Title Searches Go Automated via Title Data Platform Enhancement, Tested and Proven by Stewart Title of Houston

The TIMS® title plant and production platform was developed by Houston-based Title Data Inc., one of the largest title plant maintainers in the country. TIMS has been enhanced to interface with a title company's escrow and closing system to transmit a title order for searching.

Stewart Title of Houston has been the beta test site for the enhancement and has integrated the new functionality into its area operations.

If a title order is matched electronically to a property legal description, TIMS automatically launches a search of Title Data's title plant, which significantly reduces the time required for the title search.

Currently, TIMS gets a "hit" for approximately 68 percent of all orders submitted using TIMS including both acreage and lot and block parcels. This is considered a high match rate in light of the number of incomplete, incorrect and missing legal descriptions encountered in the typical title order and the complexity of matching a parcel which is described by metes and bounds.

Posted by S. Germain at 09:02 AM | Comments (0)

Title company stays busy during slump

For Equity Land Title LLC of Boca Raton, keeping busy during slow times meant thinking ahead, figuring out niches to create within the industry, or finding ways to set itself apart from the competition in a crowded field.

Equity Land Title did both.

The 17-year-old company offers customers a service in which they can track their property closings and complete deals online, and in the past few years worked with developers to close complicated condominium conversion projects throughout the state.

Posted by S. Germain at 08:58 AM | Comments (0)

Vuecentric Powers International Mortgage Operation.

Vuecentric Inc., Austin-based developer of MortgageDashboard™, the industry's leading mortgage loan origination system provided under the Software as a Service (SaaS) model, is currently powering the back office for a new international mortgage lending effort that is helping American and Canadian buyers invest in real estate in Mexico. A hot industry trend, Mexican real estate has become increasingly attractive to U.S. homebuyers.

Posted by S. Germain at 08:56 AM | Comments (0)

Ciercus Systems Announces Important Enhancement To Settlement Pro Mortgage Fraud System

New Jersey based Ciercus Systems, Ltd., announced that it has developed system enhancements for its proprietary Settlement ProTM closing fraud deterrent that will allow seamless interaction with existing systems. While retaining the ability to act as a stand-alone system for those who want it, the new enhancement will permit Settlement ProTM to stand behind and support front end systems already operating at mortgage lenders. Thus mortgage industry clients can request that closing data be shared and also validated with front-end processing and fraud guard systems. With this integration option, all data will be filtered, validated and stored in one place, at the lender's base of operations. Furthermore key closing documents, which under the old system were available in real time but stored off-site, can be attached to existing client files, eliminating the need to access the information from a separate storage source.

Posted by S. Germain at 08:55 AM | Comments (0)

EDS renews deal with mortgage processing firm

MERSCORP Inc. has renewed an agreement with EDS for another decade, as the organizations work together on a paperless mortgage processing system and creating digital records of the documents.

MERSCORP claims cheaper trading of mortgage loans with its paperless MERS system. More than 40 million, or about 60 percent of the nation's mortgage loans, are registered with the Vienna, Va-based company's system. MERS is an electronic loan registry created by the real estate finance industry to ease the trading of mortgage loans.

EDS hosts MERSCORP's information technology center and offers support to its call center.

Posted by S. Germain at 08:54 AM | Comments (0)

Huntington Bancshares and Sky Financial Group Announce Merger Agreement

Huntington Bancshares Incorporated (Nasdaq: HBAN - News) and Sky Financial Group Inc. (Nasdaq: SKYF - News) today announced the signing of a definitive agreement to merge the two companies in a stock (90%) and cash (10%) transaction valued at approximately $3.6 billion.

Posted by S. Germain at 08:53 AM | Comments (0)

The Wilber Corporation Announces Plan to Acquire Capital District Mortgage Banker

The Wilber Corporation today announced that it has entered into an agreement to acquire 100% of the capital stock of Provantage Funding Corporation ("Provantage"), a New York State licensed mortgage banker headquartered in Saratoga County, New York. Provantage was originally licensed as a mortgage banker by the New York State Banking Department in 2000. The acquisition is subject to approval by the New York State Banking Department and is expected to close during the first quarter of 2007.

Posted by S. Germain at 08:52 AM | Comments (0)

NY Court Upholds MERS Mortgage

The New York Court of Appeals has ruled that the MERS mortgage is a valid method of transferring rights from the borrower to MERS, the industry-owned system for tracking ownership of mortgage loans and servicing rights. MERS reported that the court affirmed the Appellate Division's decision that county clerks must record MERS mortgages, assignments, and lien discharges as required under New York real property law. In a 7-0 decision, the court found that the model MERS mortgage (as well as the mortgage assignment) "satisfies the limited requirements of the recording statute," MERS said. The court also found that MERS lien discharges comply with New York state law.

Posted by S. Germain at 08:50 AM | Comments (0)

McDonald Adds Reverse Mortgage Servicing

McDonald Computer Corp., a Southfield, Mich.-based provider of automated loan servicing technology to the mortgage industry, has added a reverse-mortgage servicing component to its system. The company said the new reverse mortgage capabilities in its flagship product, Servicing/T.I.M.E., can manage all types of home equity conversion mortgages, including FHA-backed loans. "According to the National Reverse Mortgage Lenders Association, the number of reverse mortgages made in the U.S. in 2006 grew 77%," noted Jim McDonald, founder and president of McDonald Computer Corp.

Posted by S. Germain at 08:49 AM | Comments (0)

CRL: 19% of '05/'06 B&C Loans Will Foreclose

Almost 20% of all subprime loans funded over the past two years will wind up in foreclosure, according to a new report issued by the Center for Responsible Lending. At a news conference on Dec. 19, CRL president Mike Calhoun said that when refinancings of troubled loans are factored into the equation, one-third of all B&C loans could go bust. In particular, the nonprofit chastised mortgage bankers for qualifying borrowers -- especially minorities -- using low teaser rates (instead of the fully indexed rate). Analyzing six million subprime loans funded since 1998, the CRL said foreclosures could eventually cost consumers $164 billion. The Mortgage Bankers Association criticized the group's findings, saying the CRL's numbers are cumulative and ignore the potential for delinquent loans to be worked out prior to foreclosure. "Their projections are incredibly pessimistic," said MBA senior economist Mike Fratantoni. At the end of the third quarter, just 3.8% of subprime loans were in foreclosure, according to the MBA. One in four loans in the foreclosure category are cured prior to actually being foreclosed upon, the MBA noted. Pat Vredevoogd, president-elect of the National Association of Realtors, participated with the CRL during the news conference, but the NAR did not fund the new report.

Posted by S. Germain at 08:48 AM | Comments (0)

NAHB Sees 15% Drop in Starts Next Year

Homebuilders are forecasting that housing starts will bottom out early next year, but they say they still expect a 15% decline in single-family starts, similar to this year's decline. Housing starts will be negative in the first quarter and steadily increase over the next three quarters, according to National Association of Home Builders economist David Seiders. New-home sales will be flat in 2007 after this year's 17.6% decline, he told reporters. Meanwhile, purchase mortgage originations declined this year, and Fannie Mae chief economist David Berson says he expects a larger decline in 2007. "It will be the first two-year fall in purchase originations since the early '90s," Mr. Berson said. His forecast calls for purchase originations to decline to $1.28 trillion in 2007, down from $1.45 trillion in 2006 and $1.51 trillion in 2005. Existing-home sales should be off 1% in 2007 following a 9% decline in 2006, according to National Association of Realtors chief economist David Lereah.

Posted by S. Germain at 08:47 AM | Comments (0)

Wells Fargo: Originations May Rebound

With the housing market stabilizing, mortgage lenders may see stronger origination activity next year, according to an economist at Wells Fargo & Co. "People may be surprised how quickly housing activity bounces back," said Scott Anderson, a senior economist at Wells Fargo. Home sales and construction are already starting to stabilize, and Mr. Anderson said he expects to see higher originations next year, mainly due to strong refinancing activity as well as increasing home sales in the second half of 2007. "It has really been a mortgage story," Mr. Anderson said. Mortgage rates are down nearly a percentage point from the peak last July, which created a surge in refinancings. In addition, purchase mortgage applications are up almost 15% over the past four weeks. "We do think we are at the bottom, and we will see an uptick in originations as well as sales and perhaps even starts," the senior economist told reporters.

Posted by S. Germain at 08:47 AM | Comments (0)

Title Insurance Firm Denies Targeting Toll

LandAmerica Financial Group executives have denied federal charges that they prepared to go after Colorado regulator Erin Toll as revenge for a title-insurance kickback probe. The House Committee on Financial Services has alleged that LandAmerica officials in internal company e-mails vowed to get "real stinky real quick" in order to discredit Toll, who at the time was the state's deputy insurance commissioner. LandAmerica has issued a company statement insisting that the congressional report "is riddled with inaccuracies" and calling the committee's investigation both "inadequate and incomplete." LandAmerica has further denied taking any measures aimed at undermining any investigation on either the state or federal level.

Posted by S. Germain at 08:44 AM | Comments (0)

Morgan Stanley Makes Cuts at Saxon

Morgan Stanley has pared down the staff at Saxon Capital Inc.--a subprime lender that it acquired earlier this month--by 14 percent. Morgan Stanley paid $706 million for the company and installed former Morgan Stanley Credit Corp. executive Kevin Rodman as the new CEO after Saxon's top four officials stepped down. The 171 job cuts follow the recent closure of Saxon's retail division and coincide with a consolidation effort that is now underway at a number of servicing locations. "The strategy going forward is focusing on wholesale production and servicing," said Morgan Stanley spokesman Mark Lake.

Posted by S. Germain at 08:44 AM | Comments (0)

Thompson: Wachovia's Acquisition on Track

A slowdown in the mortgage sector has not stopped Wachovia Corp.'s acquisition of California-based Golden West Financial Corp. from progressing as planned, reports Wachovia CEO Ken Thompson. The transaction took place in October, and Charlotte, N.C.-based Wachovia this month began selling Golden West's adjustable-rate mortgage products as part of the move to integrate the two firms' operations. "The housing market shrinkage is impacting volumes of mortgages some, " Thompson concedes, "but we will start seeing in early February the results of marketing their products through our channels." Additionally, he notes, the Federal Reserve's pause in its rate-raising campaign has improved margins at Golden West.

Posted by S. Germain at 08:43 AM | Comments (0)

Crossborder Deal

Indianapolis-based Ace Mortgage Funding has inked a deal to acquire Vancouver's Millennium Funding Group for undisclosed terms. In the last year, Ace originated $3 billion worth of home mortgages. Ace management intends to make Millennium, which funds $1 billion worth of mortgage volume, a wholly owned subsidiary. Roark Capital partner Lawrence DeAngelo states that acquiring Millennium would provide Ace--which is one of Roark's portfolio companies--with "an integrated origination and aggregation platform" and help it to create a number of new loan products in the coming year.

Posted by S. Germain at 08:42 AM | Comments (0)

Dim Forecast for Risky Mortgages

A new study by the Center for Responsible Lending indicates that the impact of foreclosures could spread to as many as 2.2 million subprime borrowers within the next several years, with first-time buyers and minority homeowners most at risk. The organization predicts a surge in the subprime foreclosure rate in Washington, D.C., for instance, to 22.8 percent from 6.8 percent, especially if the existing-home market does not rebound. However, Mortgage Bankers Association senior economist Mike Fratantoni calls the report "wildly pessimistic," emphasizing that the subprime market is fairly small and that most borrowers will sell or refinance to avoid foreclosure. "We don't want to jeopardize the availability of mortgage credit because not everybody is a success," says Fratantoni, noting that a majority of borrowers make timely monthly payments.

Posted by S. Germain at 08:41 AM | Comments (0)

Loan Quality in Florida Moves Back Toward Pack

The downturn in Florida's housing market is taking a toll on the credit quality of the state's commercial banks, which have experienced a 25 percent rise in loans that were 30 to 89 days past due in the third quarter from the second quarter, according to FIG Partners, Highline Data and SNL Financial. Last week, the Mortgage Bankers Association revealed that the percentage of past-due one- to four-family home loans reached 4.17 percent in the third quarter, which was an increase from 3.6 percent a year ago. Florida's past-due rate still trailed the national average of 4.84 percent, MBA's National Delinquency Survey showed. The local housing market continues to see little movement in price appreciation and in its backlog of homes for sale.

Posted by S. Germain at 08:40 AM | Comments (0)

2006 Real Estate Forecaster Report Card

Mortgage Bankers Association chief economist Doug Duncan expects the 30-year mortgage rate to hover around 6.5 percent for the remainder of the year, but climb to 6.8 percent by the end of 2008. Duncan is "optimistic about a rebound" in the housing market next year, citing still-low long-term interest rates, robust capital expenditures and rising equity prices, among other factors. Meanwhile, the National Association of Realtors expects existing-home sales to slip to just above 6.4 million in 2007 from an estimated 6.47 million this year; but a pullback in construction will spark an 8.7-percent decline in new-home sales to 975,000 from 1.07 million over the same time span. The median resale price will likely edge up 1.7 percent to $2! 27,500 next year, and the median new-home price is forecasted to climb 1.3 percent to $241,400.

Posted by S. Germain at 08:37 AM | Comments (0)

December 15, 2006

Ameriquest Production Numbers

Posted by S. Germain at 08:18 AM | Comments (0)

The First American Corporation Acquires UKValuation, Ltd.

The First American Corporation (NYSE: FAF), the largest provider of business information in the United States and the leading provider of title insurance services internationally, today announced that it has acquired UKValuation, Ltd., Countrywide Financial Corporation’s (CFC) UK-based automated valuation model (AVM) business headquartered in Dartford, Kent, England. Under the terms of the agreement, UKValuation’s staff, clients, technology and other assets will be transferred to The First American Corporation.

First American has operated in the United Kingdom for more than 20 years through First Title, plc., a wholly owned subsidiary providing title insurance and related services in the UK. As a result of this acquisition, First Title’s scope of operations will be expanded to include local market support for the UKValuation business.

Posted by S. Germain at 08:13 AM | Comments (0)

First Indian Corporation Extends Operations into Third City in India—Selects Mangalore

First Indian Corporation, a wholly owned subsidiary of The First American Corporation (NYSE: FAF), the largest provider of business information in United States, today announced the selection of Mangalore as the third city in which to establish its operations in India.

A new First Indian facility will initially support transaction processing services for the U.S. mortgage industry. First Indian Corporation will seek to initially recruit 250 area professionals and leverage the city’s infrastructure to deliver services to its parent company.

Posted by S. Germain at 08:11 AM | Comments (0)

The First American Corporation Declares Quarterly Cash Dividend

The First American Corporation (NYSE: FAF - News), America's largest provider of business information, today announced that its board of directors has declared a regular quarterly cash dividend of 18 cents per common share.

The cash dividend is payable on Jan. 15, 2007, to shareholders of record as of Dec. 29, 2006. First American has paid a cash dividend for each of the last 97 years.

Posted by S. Germain at 08:10 AM | Comments (0)

FNC, HomeSafe Inspection Join Forces

Mississippi technology companies FNC Inc. and HomeSafe Inspection Inc. have teamed to provide lenders with access to advanced home inspection technologies.

FNC’s real estate collateral management systems will bring HomeSafe’s inspection technology to lenders and appraisers who require a more in-depth look at a particular property. HomeSafe inspectors use customized infrared cameras and acoustic equipment to, in effect, see and hear through walls, floors and ceilings. The technology shows inspectors water damage, electrical hot spots, energy loss, structural concerns and termite infestations that are invisible to the naked eye.

Posted by S. Germain at 08:09 AM | Comments (0)

eLynx Deploys Paperless Service for Countrywide, CitiMortgage

eLynx, Cincinnati, a portfolio company of American Capital Strategies Ltd., and a provider of a network of e-services for the financial services industry, announced that Pulaski Bank is using the company’s SwiftSend Investor Delivery service to electronically submit loans to investors, including CitiMortgage and Countrywide.

Posted by S. Germain at 08:08 AM | Comments (0)

Experian, Equifax Raising Fees on Mortgage Credit Reports

As of Jan. 1, Equifax and Experian--two of the nation's leading credit bureaus--will charge a fee each time a prospective borrower's credit file is accessed. The policy is intended to improve the ratings agencies' compliance with the federal Fair Credit Reporting Act; but it remains to be seen whether the third big credit bureau, TransUnion, will follow suit. Given that "reissue" fees will be imposed each time a mortgage broker shops an application to a lender, with applications from marginal-credit and low-income borrowers generally going to a half-dozen or more lenders, National Association of Mortgage Brokers President Harry Dinham says some borrowers could wind up paying $100 to $200 more. To lower costs, National Community Reinvestment Coalition CEO John Taylor says brokers may send the applications to fewer lenders, forcing moderate-income and minority first-time buyers with nontraditional credit histories to pay higher interest rates and fees. NAMB and other mortgage and consumer advocacy groups plan to fight the new rule, with Dinham noting that "it is unfair that consumers are being forced to pay more but are getting no additional benefit."

Posted by S. Germain at 08:07 AM | Comments (0)

A Web-based Alternative Geared Toward Preventing Foreclosure

A new Web-based service, Nonprofitreferral.org, is MortgageKeeper Referral Services, Inc.'s latest innovation toward combating foreclosure.

The company announced today that through the portal, troubled borrowers in 15 of the nation's high-risk foreclosure cities are able to connect to local services, charities, and other programs with foreclosure prevention counseling offered by servicer's loss mitigation departments and independent nonprofits. According to MortgageKeeper, the referral site is not a directory, but more of a narrowed list of organizations that stem from local industry practictioners recommendations.

Posted by S. Germain at 08:06 AM | Comments (0)

Mortgage Industry Insider - Subprime Meltdown from MortgageDaily.com

While it may not be the first time the subprime sector has been devastated, the current disintegration is unfolding with an ugly intensity, according to coverage from MortgageDaily.com, the dominant source of online news for the mortgage industry.

Stung by inverted yield curves and dwindling originations during the past year, nonprime mortgage bankers are consolidating or closing shop altogether. The ferocity of subprime consolidation has not been this strong since 1998, when a bond crisis sparked by Russian defaults and stormy Asian financial markets dried up interest in high-risk bonds such as those backed by subprime mortgages.

Among the latest fatalities was Ownit Mortgage Solutions, which last week notified its roughly 11,500 mortgage brokers that it would close on December 6, 2006.

Posted by S. Germain at 08:01 AM | Comments (0)

Global Energy Acquires California-Based Mortgage Bank

Global Energy Resources, Inc., a Delaware Corporation, announced today the expansion of mortgage services within its Financial Division as the result of the completion of GERI's acquisition of Saddleback Funding Corporation, a Laguna Hills, California-based Mortgage Bank. It is anticipated that Saddleback Funding's loan volume will approach $80 million for the year 2006.

Posted by S. Germain at 08:00 AM | Comments (0)

Metrocities Mortgage Surpasses 200 Joint Venture Mark

Metrocities Mortgage, LLC today announced that it has garnered more than 200 mortgage joint venture relationships with many of the nation's leading real estate firms, making it the preferred joint venture lender for the real estate industry.

Based upon a recent review of available industry data, Metrocities has learned that it is the country's No. 1 joint venture lender, having established more joint ventures with real estate companies than any of the country's largest lenders.

Posted by S. Germain at 07:59 AM | Comments (0)

Lender Embraces E-QC and E-Due Diligence

Hanover Capital Partners, Edison, N.J., has embraced imaging practices for providing due diligence and quality control services to its investor customers with the selection of BlitzDocs, the flagship product of Alpharetta, Ga.-based Advectis. Advectis said Hanover has also become a BlitzDocs Certified QC Provider and BlitzDocs Certified Due Diligence Provider. As a certified provider on the BlitzDocs collaborative document network, Hanover is prepared to receive imaged loan folders from lenders using BlitzDocs to perform QC and due-diligence review, Advectis said. Lenders and investors can deliver imaged loan folders electronically to Hanover by this method.

Posted by S. Germain at 07:52 AM | Comments (0)

McDonald Adds Reverse Mortgage Servicing

McDonald Computer Corp., a Southfield, Mich.-based provider of automated loan servicing technology to the mortgage industry, has added a reverse-mortgage servicing component to its system. The company said the new reverse mortgage capabilities in its flagship product, Servicing/T.I.M.E., can manage all types of home equity conversion mortgages, including FHA-backed loans. "According to the National Reverse Mortgage Lenders Association, the number of reverse mortgages made in the U.S. in 2006 grew 77%," noted Jim McDonald, founder and president of McDonald Computer Corp.

Posted by S. Germain at 07:51 AM | Comments (0)

GMAC Selected as Interim Subservicer

GMAC Mortgage LLC, Horsham, Pa., has been chosen to handle the interim subservicing for Metrocities Mortgage LLC, a residential mortgage lender based in Sherman Oaks, Calif. GMAC Mortgage said it will provide interim subservicing for Metrocities' full line of first mortgages, closed-end seconds, and home equity lines of credit.

Posted by S. Germain at 07:50 AM | Comments (0)

SunTrust Tops Power Origination Rankings

The J.D. Power and Associates 2006 Primary Mortgage Origination Study has found that SunTrust ranks highest in overall customer satisfaction among primary mortgage lenders, with a score of 782 on a 1,000-point scale. Bank of America (781), Wachovia (774), Wells Fargo (766), and Chase (762) are the others in the top five. At the other end of the scale are five companies that deal in the nonconforming business. At the bottom is Homecomings Financial (648), followed by Option One (666), New Century (681), Ameriquest (684), and First Franklin (690). The industry average score was 750. The study found that 28% of respondents said they had a problem during the origination process, such as errors in closing documents, miscommunication of loan terms, and unavailable or unresponsive loan consultants or mortgage brokers. On average, 40% of those who had a problem said it caused their loan to close late.

Posted by S. Germain at 07:50 AM | Comments (0)

Aegis Closes 2 Operations Centers

Aegis Mortgage Corp., Houston, which said goodbye to its longtime chief executive last month, has closed two subprime operation centers, laying off an undisclosed number of workers. The move comes one month after it also combined two operating units -- Aegis Funding Corp. and Aegis Wholesale Corp. -- and parted ways with its longtime chief Rick Thompson. AFC was a subprime wholesaler. AWC (the surviving name) is a prime and alternative-A funder. A spokeswoman for Aegis, which is owned by Cerberus Capital, said she did not know how many workers lost their jobs with the closure of the two op centers. She stressed that no account executives have been let go, and would not comment on Mr. Thompson's departure.

Posted by S. Germain at 07:49 AM | Comments (0)

Real Estate Fraud Rises

Analysts say mortgage lenders are becoming more aggressive in detecting cases of real estate fraud, which the FBI has identified as the fastest-growing white-collar crime in the nation. The agency estimates that fraud cost the industry more than $600 million in 2005; and IRS and Treasury data suggest that activity has not abated. Observers worry about the economic impact if the downturn stretches beyond next year. "Real estate fraud is going to make the S&L crash look like two cars in the parking lot that bumped into each other at five miles an hour," warns Ralph Roberts of Warren, Mich., who penned the book "Flipping Houses for Dummies." The problem is blamed on automated underwriting that makes it easier for doctored applications to move through the system, the prevalence of nationalized mortg! age syndicates over localized banking, and the recent popularity of subprime loans; critics say the industry needs a national lenders' clearinghouse as well as more regulation at the federal level.

Posted by S. Germain at 07:48 AM | Comments (0)

Bankers Report More Mortgages Being Paid Late or Not at All

Mortgage delinquencies rose to 4.7 percent during the third quarter--up from a revised 4.4 percent in the second quarter--after two consecutive quarters of decline, reports the Mortgage Bankers Association. The delinquency rate for subprime borrowers rose to 12.6 percent, from 11.7 percent during the second quarter; and the pace of delinquencies for subprime homeowners with adjustable-rate mortgages shot up to 13.2 percent from 12.2 percent. MBA chief economist Doug Duncan expects there to be a "modest increase" in delinquencies and foreclosures in the quarters to come "as the housing market bottoms." As much as $1.5 trillion of residential debt, in the form of ARMs, could reset in 2007, according to Duncan.

Posted by S. Germain at 07:47 AM | Comments (0)

The Fed Leaves Short-Term Rates Alone

The Federal Reserve expressed concerns about inflation as it left short-term interest rates unchanged at 5.25 percent for the fourth straight time. In its decision to hold its benchmark interest rate steady, the Fed's policy committee also cited the economic impact of the housing sector downturn, which it described as being "substantial." Some economists who are hoping for a rate cut early next year believe the central bank may have chosen to depict the housing market in such a manner in case it needs to make a softer statement after its Jan. 31, 2007 meeting. "That would set the stage for the first of a series of funds rate cuts," suggested PNC Financial chief economist Stuart Hoffman in a research report

Posted by S. Germain at 07:45 AM | Comments (0)

Further Decline Seen in U.S. Home Sales

The National Association of Realtors predicts an 8.6-percent drop in resale housing activity this year to 6.47 million units, while new-home sales are poised to tumble 17.7 percent. Next year, the group expects a 1-percent decrease in sales of previously owned homes to 6.40 million and a 9.4-percent slide in new-home sales. However, NAR anticipates a rebound in the housing market by the fourth quarter of 2007, forecasting existing-home sales to come in 4.6 percent ahead of the fourth quarter of this year.

Posted by S. Germain at 07:44 AM | Comments (0)

Double Trouble for Mortgage Shares: Dual-Loan Borrowers Pose Added Risk

A growing number of lenders, including such industry heavyweights as Countrywide Financial and FirstFed Financial, are taking steps to tighten their underwriting standards as more of the nation's homeowners encounter trouble meeting their monthly mortgage obligations. Analysts, though, are concerned that such tightening may be too little and too late in helping these lenders avoid losses. A recent UBS study shows that almost 50 percent of all loans delinquent for more than 90 days this past year also have second mortgages, while an estimated 30 percent of loans that are current have them. Analyst Zach Gast of the Rockville, Md.-based Center for Financial Research & Analysis remarks, "Mortgages that have a second mortgage behind them run a far higher risk of default." Even worse, as delinquencies and defaults become more prolific, investor demand for mortgage lenders and their securitized loans could decline.

Posted by S. Germain at 07:44 AM | Comments (0)

December 08, 2006

New Home Sales

Posted by S. Germain at 08:06 AM | Comments (0)

Latest Issue of First American LoanPerformance MarketPulse(TM) Features Study of 2005 Subprime Origination Default From Friedman, Billings, Ramsey

First American LoanPerformance, a subsidiary of First American Real Estate Solutions (RES®) and a leader in residential mortgage data and analytics for the mortgage industry and Wall Street, today announced that the latest issue of its MarketPulse report is available for download at www.loanperformance.com.

This report features a new whitepaper by Michael D. Youngblood, Ph.D., managing director, asset-backed securities research for Friedman, Billings, Ramsey Group Inc. (NYSE: FBR - News) entitled, "Explaining the Higher Default Rates of the 2005 Origination Year." The study examines the potential reasons why subprime loans originated in 2005 are experiencing higher default rates than loans of the same age originating in the two previous years.

The study attributes the increase in default rates to economic weaknesses in 95 metropolitan statistical areas, including weak labor market conditions and the ongoing impact of Hurricanes Katrina and Rita on Louisiana and Mississippi.

The report also summarizes a selection of key mortgage performance statistics through June 2006, including geographic markets with the highest percentage of interest-only purchase loan originations and the highest incidence of serious delinquency and prepayment rates for prime and subprime loans.

Posted by S. Germain at 08:03 AM | Comments (0)

First American Title's Lenders Advantage Division Announces Completion of Its One-Millionth FACT Order

First American Title Insurance Company today announced that its Lenders Advantage Division has completed its one-millionth FACT order. Introduced in 2003, FACT is an accelerated title and settlement solution that helps home equity lenders complete same-day loan closings -- and positively impact their customers' in- branch or call-in experience -- while mitigating lender risk through best-in- class fraud protection and insurance tailored to the unique needs of equity lenders.

Prior to FACT, banks and credit unions often waited 2-3 days for a title search that provided $20,000 in warranty coverage, regardless of the loan amount. If a lender desired title insurance, either a full ALTA (American Land Title Association) policy could be purchased for 4-8 times the cost of the FACT product, or a Junior Loan Policy could be obtained for 2-4 times the cost of FACT. Either option added considerable time and cost to the loan closing, rendering both forms of protection less appealing to equity lenders.

Posted by S. Germain at 08:02 AM | Comments (0)

Curt G. Johnson Promoted to President of First American Title Insurance Company

The First American Corporation (NYSE: FAF - News), America's largest provider of business information, announced today that Curt G. Johnson has been named president of First American Title Insurance Company. Johnson, who previously served as senior vice president and National Commercial Services director for First American Title, will assume responsibility for overseeing the company's title operations on a national level.

Johnson succeeds Gary L. Kermott, who recently moved to the position of vice chairman for First American Title Insurance Company.

Johnson began his career with First American in 1996, when he was hired as vice president-Builder/Commercial Services for the company's Phoenix branch office. Two years later, he transferred to the Santa Ana, Calif., office to accept the position of vice president-California Subdivision, and in 2000 he was named senior vice president-National Subdivision director. In 2001, Johnson assumed the position of senior vice president and director for the company's National Commercial Services group.

Posted by S. Germain at 08:01 AM | Comments (0)

GMAC-RFC Insurance Claims Services Teams Up With Fidelity National Information Services' Field Services Division

U.S. financial institutions now have a new alternative source to assist them in the areas of property inspection, insurance claims recovery, and repair of damaged residential and commercial properties. GMAC-RFC Insurance Claims Services and Fidelity National Information Services, Inc.'s (NYSE: FIS - News) Field Services division are introducing a new strategic alliance to jointly promote their services.

Posted by S. Germain at 08:00 AM | Comments (0)

Harris County Set to Become the Largest e-Recording Site in the U.S.

Viewing real property documents sent electronically to her Houston office by Landata Technologies Inc., Harris County Clerk Beverly Kaufman declared, "The 'race to the courthouse' just got instantaneous."

Kaufman was viewing the first production electronic recording in Harris County, Texas, the third most-populous county in the United States. The recording was done through the county's Landata e-Recording System(TM), a module of the Landata e-STAR(TM) automated public records system.

"Harris County currently accepts 3,500 to 4,000 document filings each day, and we are projecting that within six months, the county will see 50 percent of those documents filed electronically," said Alan Cellura, president and chief executive officer, Landata Technologies. "That rate is similar to what we've been seeing in other counties that have installed this system nationally."

Posted by S. Germain at 07:58 AM | Comments (0)

Stewart Title Opens Three New Offices in the Eastern Caribbean

Stewart Title Eastern Caribbean Ltd. recently hosted grand openings for its headquarters office in Anguilla as well as its new branch offices in St. Kitts/Nevis and St. Lucia.

Posted by S. Germain at 07:57 AM | Comments (0)

Stewart Title Role as Co-Insurer Was Unsung Factor in Success of Record-Making 4.2 Million-Acre Timber Deal

It was one of the largest U.S. land sales ever: 4.2 million acres of forest land sold in the Southeast and Michigan by International Paper to a five-party investor group.

The transaction had a long-term, first mortgage loan by MetLife® Timberland Finance Group, a division of MetLife, Inc.'s Agricultural Investments unit, secured by approximately 2.6 million acres of timber and timberland. Title insurance and closings were handled by First American Title Insurance Co. And the unsung yet crucial role in the massive transaction's success: Stewart Title Guaranty Co., a 40 percent co-insurer.

Posted by S. Germain at 07:54 AM | Comments (0)

Title Company Launches 'Foreclosure Disclosure(TM)' for Buyers of Foreclosure and Auction Properties

For buyers of higher-risk foreclosure property, The Closing Company has launched "Foreclosure Disclosure(TM)," a service that quickly provides comprehensive and accurate insight on actual title and lien status of properties -- before a bidder pursues purchase.

For a flat fee of $450, the service provides a title search, judgment search, county tax search, lis pendens and civil actions search, federal tax lien and search for open permits and code violations.

Posted by S. Germain at 07:49 AM | Comments (0)

SharperLending Announces Partnership with NXG Strategies, Inc. and the National Credit Reporting Association

SharperLending, provider of a secure Web-based platform that enables lenders to order, store and manage products and services from multiple vendors at a single point of entry, announced it will partner with Brentwood, Tenn.-based NXG Strategies, Inc., a leading consulting firm for identity theft monitoring and restoration programs and the National Credit Reporting Association (NCRA) the largest credit industry association. The unique partnership will allow SharperLending lender customers and participating NCRA member lender customers to offer their clients credit restoration services if they are victims of identity theft. SharperLending is the first bundled service provider to offer credit restoration services in addition to credit reports currently offered through XpertOnline.

Posted by S. Germain at 07:46 AM | Comments (0)

Synechron Announces Strategic Solutions Frameworks(TM) For Mortgage Banking Industry

Synechron, a US-based software solutions and services provider in the mortgage industry, today announced the availability of two new Strategic Solutions Frameworks(TM) for the mortgage banking industry. These Frameworks reduce the time and expense required to implement, integrate, maintain and optimize the functioning of critical enterprise technology applications including LOS systems.

Synechron CRMS(TM) (Channel Relationship Management System) is an online application which has been designed to create and maintain broker and correspondent data for wholesale/correspondent/conduit lenders, enabling them to review, approve and manage their client (brokers/correspondents) network.

Synechron MCRS(TM) (Mortgage Credit Reporting System), is a web-based application that interfaces with most major credit reporting agencies to enable seamless, real-time retrieval of credit reports.

Posted by S. Germain at 07:43 AM | Comments (0)

FirstClose(TM) Announces FirstValue AVMs with Estimated Values, Confidence Scores, and Comps, Ranging From $8.95 to $1.95 Per Hit, Plus Free Trials

FirstClose, a service of First Lenders Data, Inc. (FLDI), an Austin, Texas-based provider of bundled mortgage settlement services, announced today that it is offering FirstValue, a proprietary FirstClose AVM that includes Estimated Values, High Values, Low Values, Confidence Scores, and Comparable Sales Data, ranging from $8.95 to $1.95 per hit based on the following volume scale.
Monthly Loan Volume Price
1-500 $8.95
501-1,000 $7.95
1,001-2,500 $6.95
2,501-5,000 $5.95
5,001-10,000 $4.95
10,001-25,000 $3.95
25,001-50,000 $2.95
50,001 + $1.95

FirstValue is one of the most accurate AVMs on the market today. Utilizing sophisticated technology, advanced algorithms, comparable sales data, sales history, and other valuation methodologies, these AVMs offer lenders the speed, accuracy, and price they need to compete in today's rapidly changing environment.

Posted by S. Germain at 07:42 AM | Comments (0)

1st Metropolitan Mortgage Adds Six New Companies to Preferred Lender and Vendor Programs

1st Metropolitan Mortgage, a division of Empire Equity Group, has added two additional lenders and three service providers to its Preferred Lenders and Vendors Programs (PLVP). Aegis Mortgage Corp. and Credit Suisse Bank have been approved as preferred lenders, and Ellie Mae, Richmond Title and Turning Point have been approved as preferred vendors. The preferred program strategically aligns individual branches with select partners and uses collective buying power to negotiate preferred service levels and pricing incentives that a single branch may not otherwise enjoy.

Posted by S. Germain at 07:41 AM | Comments (0)

PMI Canada and Solidifi Sign Agreement for Collateral Analytics Software

Solidifi Inc. and PMI Mortgage Insurance Company Canada, the subsidiary of The PMI Group, Inc. (NYSE: PMI - News) that, subject to regulatory approval, will soon offer mortgage insurance in Canada, announced today they have signed a Letter of Intent to develop customized real estate valuation software to be used by PMI Canada.

Subject to the conclusion of a contract, PMI Canada will engage Solidifi to provide collateral assessment analytics software and services to improve the efficiency and effectiveness of its valuation tools in the marketplace. These services will assist PMI Canada in providing rapid response to mortgage insurance requests from Canadian lending institutions.

Posted by S. Germain at 07:40 AM | Comments (0)

New Features Added to Loan Protector's EasyTrack(R) and EasyPlace(R)

Loan Protector Insurance Services announced several new product features to EasyTrack and EasyPlace. The new features have expanded the reporting capabilities and improved the overall functionality of the products. The latest additions are the direct result of customer feedback. Loan Protector has six scheduled updates a year to ensure it provides its customers with the most robust, up-to-date technology available.

As a result of the enhancements, the overall functionality of EasyTrack has been improved. EasyTrack is ideal for servicers who outsource their entire insurance tracking portfolio. It helps them manage insurance, escrow and verification processes in a secure, online environment. One new feature of EasyTrack provides customers with an online detailed billing statement, called the Monthly Billed Premium Statement, which shows the outstanding balance of all certificates in the system.

Posted by S. Germain at 07:39 AM | Comments (0)

Radian Europe Limited Expands International Mortgage Team and Receives AA Rating from Fitch

Radian Group Inc. today announced two key achievements against its strategy for disciplined growth in the U.K. and Europe. The company announced three appointments within its newest mortgage credit enhancement subsidiary, Radian Europe Limited, and noted it had earned a AA insurer financial strength rating from Fitch Ratings.

Posted by S. Germain at 07:37 AM | Comments (0)

Apps Rise as Refis Pass 50%

The Market Composite Index, an overall measure of mortgage applications, rose from 599.0 to 647.6 on a seasonally adjusted basis during the week ended Dec. 1 as refinancings climbed above 50% of all applications for the first time in two-and-a-half years, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey. On an unadjusted basis, applications increased 52.0% on the week and were up 1.9% from the level recorded a year earlier. The Purchase Index rose from 406.7 to 426.6 on a seasonally adjusted basis, while the Refinance Index rose from 1749.6 to 1989.7. Refinancings represented 50.1% of total applications (the highest level since April 2004), up from 46.9% the previous week, while adjustable-rate mortgages accounted for 23.9% (the lowest level since October 2003), the MBA said. The average contract interest rate for 30-year fixed-rate mortgages fell from 6.13% to 5.98%, its lowest level since October 2005, and points (including the origination fee) fell from 0.97 to 0.91 for loans with 80% loan-to-value ratios, the association reported.

Posted by S. Germain at 07:35 AM | Comments (0)

OwnIt Mortgage Closes Its Doors

OwnIt Mortgage Solutions, the Agoura Hills, Calif.-based mortgage company run by industry notable Bill Dallas, has shut its doors. According to an e-mail the company sent to its brokers (obtained via a link posted on our Mortgage Grapevine discussion board), the company is ceasing operations. "For the past three years, we have pursued a mission to influence the mortgage industry towards increased affordability options for a changing market of home buyers," the company says. "Change takes time, and we are saddened that the current unfavorable conditions of the mortgage industry did not afford us sufficient time to see our mission through." A message was left on Mr. Dallas' voicemail at OwnIt asking for comment, but the call had not been returned by MortgageWire's deadline. Among the investors in OwnIt is Merrill Lynch, which owned a small piece of the firm.

Posted by S. Germain at 07:34 AM | Comments (0)

Top-50 B&C Lender Fails

Sebring Capital, a Texas-based subprime wholesaler, has shut its doors amid rumors that the company was hit by large loan "buyback" requests. The lender officially closed on Dec. 1. Its website now contains a message confirming the shutdown. A Sebring official recently denied to National Mortgage News that the lender was going out of business. Sebring senior vice president Mike Waldron told MortgageWire Dec. 7 that Sebring's failure is due to "a combination of factors." He declined to elaborate, saying "it's a sad time for the company. A lot of people here worked very hard for its success." The lender employed 325 but is now down to a "skeleton crew," Mr. Waldron said. Sebring was 10 years old as a company and used warehouse lines of credit to fund production. Mr. Waldron declined to name its warehouse lenders or investors that bought its whole loans.

Posted by S. Germain at 07:33 AM | Comments (0)

Fannie Mae Final Tally: $6.3 Billion Overstated

The earnings restatement issued by Fannie Mae to correct accounting errors from 2002 to June 2004 shows that the government-sponsored enterprise overstated profits during the period by $6.3 billion. Fannie Mae was forced to shave $705 million off 2002 earnings and $7 billion off prior earnings, but profits rose $176 million for 2003 and $1.2 billion for the first six months of 2004. "They underspent dramatically on systems, internal controls, risk management--all the basic building blocks of a good corporation," said Office of Federal Housing Enterprise Oversight director James Lockhart III, adding that Fannie Mae moved "beyond mismanagement to manipulating earnings." According to Lockhart, the regulator will file lawsuits against former CEO Franklin! Raines and former CFO J. Timothy Howard to recoup the compensation they pocketed during this period.

Posted by S. Germain at 07:31 AM | Comments (0)

Wells Fargo Buying More 'Sub-Prime' Mortgages

Wells Fargo & Co. hopes that its new financial education program for subprime borrowers will help ease some of the increasing pressure it is now facing from consumer advocacy groups that accuse its subprime lending unit, Wells Fargo Financial, of engaging in predatory lending. The San Francisco-based banking company is expected on Tuesday to introduce Steps to Success, which is designed to help borrowers with flawed credit and/or heavy debt to develop a financial plan and improve their credit. Wells Fargo became the leading originator of subprime mortgages this year after tripling its investment in the category to $43.7 billion by mid-year, largely by acquiring loans from competitors. Industry observers say Wells Fargo also will use the new initiative to cultivate cross-selling opportunities with subprime customers.

Posted by S. Germain at 07:28 AM | Comments (0)

Construction Posts Big Decline

The slowing of the housing market is a key reason why construction outlays fell 1 percent in October to an annualized pace of $1.178 trillion. There was a 1.9-percent drop in spending on residential projects during the month, following a 1.4-percent decrease in September. Total construction expenditures in September had been revised to -0.8 percent from -0.3 percent. The overall decline in construction spending in October, which was worse than market observers had anticipated, proved to be the steepest drop since September 2001.

Posted by S. Germain at 07:27 AM | Comments (0)

KeyCorp in Deals to Sell Mortgage Unit in 2 Pieces

HSBC Finance Corp. of Prospect Heights, Ill., has closed on its deal to acquire the $2.5 billion loan portfolio of Champion Mortgage Co., which is the Parsippany, N.J.-based subprime mortgage unit of KeyCorp. "Champion has the same geographic area as a lot of our existing customers," said Kate Durham, spokeswoman for the U.S. consumer finance unit of HSBC Holdings PLC of London. Meanwhile, KeyCorp, the Cleveland regional banking company, also is selling the origination platform of Champion to New York private-equity firm Fortress Investment Group, which expects to close the deal in the first quarter. Some industry observers expect Fortress to integrate the origination platform into its Nationstar Mortgage LLC subsidiary, the former Centex Home Equity business that it acquired over the summer.

Posted by S. Germain at 07:26 AM | Comments (0)

December 01, 2006

Top Wholesale Funders

Posted by S. Germain at 08:35 AM | Comments (0)

First American Joins Gulf Coast Rebuilding Challenge

The First American Corporation (NYSE: FAF), America’s largest provider of business information, today announced that it has made a $1 million investment as a charter depositor in The Gulf Coast Rebuilding Challenge, a collaborative effort that aims to raise $1 billion in corporate deposits to provide liquidity for community banks financing reconstruction efforts in hurricane-damaged areas along the Gulf Coast.

Posted by S. Germain at 08:31 AM | Comments (0)

The First American Corporation Names Kathleen M. Collins Senior Vice President, Director of Corporate Compliance

The First American Corporation (NYSE: FAF - News), America's largest provider of business information, has appointed Kathleen M. Collins to the newly created position of senior vice president, director of corporate compliance, as part of the company's efforts to continue to centralize and strengthen its existing compliance programs. Collins will have compliance oversight covering the corporation's operational, human resources and information security programs, and will retain her positions as special counsel and assistant secretary for the corporation.

Experienced in state and federal compliance and regulatory requirements, Collins has served as vice president, special counsel and associate counsel for The First American Corporation since 2001. In addition to her extensive industry experience, Collins, who has worked for First American since 1997, holds a bachelor's degree from American University in Washington, D.C., and a juris doctor from Loyola Law School in Los Angeles.

Posted by S. Germain at 08:29 AM | Comments (0)

Stewart Title of Colorado acquires Telluride Mountain Title Co.

Stewart Title of Colorado has acquired Telluride Mountain Title Co.

Stewart had served as the exclusive underwriter for the office since its founding in 1989.

Posted by S. Germain at 08:27 AM | Comments (0)

AirPhotoUSA(R) Offers New Higher-Resolution Aerials for East Coast Metropolitan Areas

AirPhotoUSA, a GlobeXplorer® company and a leading provider of affordable, pre-packaged aerial information solutions, announced today a major-market update featuring high-resolution, one-foot pixel imagery of the Eastern United States.

AirPhotoUSA (APU) has finished acquiring more than 40,000 square miles of seamless aerial imagery for Virginia, Maryland, Pennsylvania, New Jersey, New York, Connecticut and Rhode Island. The project is part of APU's extensive new acquisition program that will provide nationwide coverage at one-foot pixel resolution.

Posted by S. Germain at 08:27 AM | Comments (0)

Stewart Title Ltd. Opens New Office in Bellshill, Scotland

Stewart Title Ltd., the primary underwriter for European transactions for Stewart Information Services Corp. (NYSE:STC - News), has announced the relocation of its Scotland office to Bellshill. Bellshill is centrally situated between Edinburgh and Glasgow.

Posted by S. Germain at 08:26 AM | Comments (0)

Fiserv subsidiary offers technology for mortgage lenders

Del Mar Database (DMD), a business unit of Brookfield-based Fiserv Inc., has launched DocumentTrac Standalone, an electronic document management solution that helps mortgage lenders with the filing, retrieval and distribution of all documents associated with a loan file.

DocumentTrac Standalone can be integrated with a lender's existing mortgage banking system to increase overall efficiency and profitability.

Posted by S. Germain at 08:23 AM | Comments (0)

MortgageTree Lending Signs Outsourced Processing Agreement With eXpertivity Mortgage Solutions

MortgageTree Lending announced that it has opened the doors to eXpertivity Mortgage Solutions Corp., a leading national provider of mortgage loan processing services. eXpertivity's processing and communication platform will be integrated with MortgageTree Lending's current infrastructure.

The integration will streamline the loan process by allowing loan originators, processors, partners and lenders instant access to level-appropriate information including underwriting findings, loan status, credit information, e-mail communication and appraisals via a secure on-line connection.

Posted by S. Germain at 08:18 AM | Comments (0)

Mortgage unit drives Block's further loss

Continued weakness in its mortgage division caused H&R Block Inc.'s deeper second-quarter loss and lower revenue compared with the same period last year.

Block said its Option One Mortgage subsidiary was affected by the industrywide trend of reduced origination volumes, reduced gain on sale margins and increased provisions for loan losses.

Revenue for Block's mortgage services division decreased 40 percent to $140.6 million in the second quarter, compared with $235.8 million a year earlier. The division posted a pretax loss of $39 million in the second quarter, compared with income of $48.8 million last year.

Nonprime loan origination volume was $6.6 billion in the second quarter, compared with a record $12.2 billion a year earlier.

In early November, Block said it was considering selling its Option One Mortgage Corp. subsidiary or entering into some other transaction through the public markets involving Option One. Block expects to announce its decision regarding Option One during the first quarter of calendar 2007.

Posted by S. Germain at 08:16 AM | Comments (0)

Ellie Mae Unveils Customizable LOS

Ellie Mae, a mortgage software and services provider based in Dublin, Calif., has announced the introduction of Encompass Custom Edition, a customizable version of the Encompass loan origination system. With features like a custom-input form builder, business process management, and seamless process-to-process integration, the LOS enables businesses to streamline processes and achieve greater control and flexibility, Ellie Mae said. "We can't expect larger companies to build their businesses around a loan origination solution, so we're enabling them to customize the loan origination system around their company," said Jonathan Corr, Ellie Mae's chief strategic officer. Because security can be an issue, Encompass Custom Edition allows users to be assigned to user groups, so the company has control over who has access to what.

Posted by S. Germain at 08:14 AM | Comments (0)

Lender Embraces E-QC and E-Due Diligence

Hanover Capital Partners, Edison, N.J., has embraced imaging practices for providing due diligence and quality control services to its investor customers with the selection of BlitzDocs, the flagship product of Alpharetta, Ga.-based Advectis. Advectis said Hanover has also become a BlitzDocs Certified QC Provider and BlitzDocs Certified Due Diligence Provider. As a certified provider on the BlitzDocs collaborative document network, Hanover is prepared to receive imaged loan folders from lenders using BlitzDocs to perform QC and due-diligence review, Advectis said. Lenders and investors can deliver imaged loan folders electronically to Hanover by this method.

Posted by S. Germain at 08:12 AM | Comments (0)

MBA: Many ARMs Will Refi Before Reset

The Mortgage Bankers Association is predicting that $600 billion to $700 billion worth of adjustable-rate mortgages will refinance in 2007 before the loan resets and the borrower gets hit with a higher rate. Those borrowers could end up with 7.5% interest if the loan resets, but now they can refinance into a 6.13% fixed-rate mortgage, which would be "pretty enticing," MBA economist Mike Fratantoni said. The MBA estimates that $1.1 trillion to $1.5 trillion in ARMs could reset in 2007, and $600 to $700 billion of those loans "will actually refi before they face any higher payment," the MBA economist told the Women in Housing and Finance symposium. "So you have $300 to $400 billion worth of mortgages where the borrowers will face a higher payment for the first time," Mr. Fratantoni said. "We don't think that will be a macroeconomic event."

Posted by S. Germain at 08:12 AM | Comments (0)

Umbrella Mortgage Opens for Business

Umbrella Bancorp Inc., Chicago, has announced that Umbrella Mortgage Inc., a wholly owned subsidiary primarily focused on the origination of reverse mortgages, has opened its doors. The company is a full-service mortgage brokerage operation that will initially originate mortgage loans in Illinois and Colorado, the parent company reported. It will offer reverse mortgage products offered by the Federal Housing Administration, Fannie Mae, and other third-party investors, as well as a full range of traditional mortgage products, Umbrella Bancorp said. Many of its employees are former members of the retail and wholesale lending departments of Flower Bank FSB, which Umbrella Bancorp sold to American Home Mortgage Investment Corp. earlier this year.

Posted by S. Germain at 08:11 AM | Comments (0)

Ameriquest and Argent Up for Grabs

ACC Capital Holdings, Orange, Calif., is actively entertaining offers for its entire mortgage franchise, which includes Ameriquest Mortgage and its wholesale arm, Argent, investment bankers and other officials have confirmed to MortgageWire. As of MW's deadline, an ACC spokesman had declined to comment. Matthew Howlett, an analyst with Fox-Pitt Kelton, said he has been hearing reports that Ameriquest, Argent, and the servicing operation are all up for grabs. According to the Quarterly Data Report, Ameriquest services $113 billion in loans, ranking second among all subprime firms. ACC is a privately held company controlled by California businessman Roland Arnall, who is now serving as U.S. ambassador to the Netherlands. Estimates vary, but bankers say the entire mortgage operation could fetch close to $2 billion.

Posted by S. Germain at 08:10 AM | Comments (0)

Major Banks See Fall in Applications for Home Mortgages

According to the Mortgage Bankers Association, applications for home loans fell 3.9 percent last week. Refinancing requests were down 9.6 percent from the previous week, while purchase applications rose 1.3 percent. Year-over-year, however, refi applications climbed 18 percent and purchase demand plunged 14.6 percent. Last week, only 24.5 percent of applications were for adjustable-rate loans, marking a three-year low.

Posted by S. Germain at 08:09 AM | Comments (0)

Commercial Loan Demand Is Brisk, Beige Book Says

A new Federal Reserve Board Beige Book study shows that office vacancies nationwide have continued to decline in the last six weeks, while commercial loan demand--especially for new construction projects--remained robust in wide swaths of the United States. Considering that regulators spent the better part of the last year expressing concern over banks with growing concentrations of commercial real estate loans, the positive take on commercial property markets has created a buzz. Upticks in commercial lending were reported in such markets as Dallas, Minneapolis, Philadelphia and Kansas City. In chronicling its 12 districts for the period, the Fed further noted that demand for residential mortgages continued to slow, with some markets reporting that the decline had spread to other types of consumer loans. The Cleveland Fed stated that "builders, land! developers and other firms involved in residential real estate and construction might soon face cash flow problems, and [bankers] are monitoring these borrowers closely."

Posted by S. Germain at 08:08 AM | Comments (0)

Greenspan: Housing Over Hump

The U.S. housing market appears to be stabilizing, former Federal Reserve Chairman Alan Greenspan said Tuesday during an investor conference organized by investment bank Friedman, Billings, Ramsey Group Inc. The slumping housing market had its biggest impact on gross domestic product in the third quarter, Greenspan said data shows; but he now expects inventory levels to fall at a "reasonably rapid pace" and sales to level out. Moreover, the economist further anticipates that housing prices will begin to decline, which will effect consumer spending. Greenspan also reported that he is co-authoring a study on the impact that mortgage wealth has had on consumer expenditures.

Posted by S. Germain at 08:06 AM | Comments (0)

Wall Street Leads Consolidation of Subprime-Lending Business

Lenders of subprime mortgages profited handsomely during the recent housing boom but have since seen their fortunes slip, thanks to higher interest rates and declining home prices. Consolidation is now the trend, with Morgan Stanley recently agreeing to acquire Saxon Capital Inc. for $706 million and Merrill Lynch & Co. inking a $1.3 billion deal to purchase the First Franklin lending unit of National City Corp., among other transactions of this type. Analysts note that the growth in collateralized debt obligations (CDOs) is fueling Wall Street's interest in subprime lenders. CDOs, which are a type of derivative, are viewed as an ideal way to repackage and transfer credit risk as they circumvent limits on investing in low-grade debt that other institutions face.

Posted by S. Germain at 08:04 AM | Comments (0)

Mortgage Lead Generator Taps Into Credit Scores

LowerMyBills.com recently announced plans to tap into credit scores generated by Experian, its parent company, in order to improve the quality of its leads. The Internet-based lead generator recorded slower growth during the first six months of this year, partly due to contraction at Ameriquest Mortgage Co.--one of its biggest clients--but earnings have slowly rebounded as LowerMyBills.com has improved its marketing and used Experian data more. LowerMyBills.com now calls for a Social Security number with all requests for home loans, which enables the service to obtain credit scores and credit reports. As a result, lenders are better able to zero in on poorer-credit borrowers and market higher-cost loans, which are more profitable, to them. Among the lending companies that purchase leads from LowerMyBills.com are Champion Mortgage, Countrywide Financial Corp., IndyMac Bank F.S.B., Qui! cken Loans and Wells Fargo Bank.

Posted by S. Germain at 08:02 AM | Comments (0)

Mich. Takes Wachovia to High Court

Since the first of the year, Michigan regulators have pursued nearly 40 cases against alleged unscrupulous mortgage lenders in a bid to curb deceptive marketing practices and prohibit unlicensed brokers from committing fraud against unsuspecting consumers. Now, a case before the U.S. Supreme Court--Watters v. Wachovia, that has Michigan's Office of Financial Services squaring off against Wachovia Mortgage--ultimately could compromise their ability to enforce such consumer safeguards. Wachovia Mortgage contends that because it is a unit of nationally chartered Wachovia Bank, only a federal agency can regulate its activities; Michigan, with the support of more than 30 other states, counters that the federal Office of the Comptroller of the Currency is overstepping its authority by claiming such an inordinate ability to pre-empt state rules. A ruling in the case is not expected until at least spring 2007.

Posted by S. Germain at 08:00 AM | Comments (0)