First American Client Relations Industry View: March 2007 Archives

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March 30, 2007

Second Lien Lenders

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

eAppraiseIT Enhances Popular PMI Release Program

eAppraiseIT, a leading provider of real estate valuation products and services, announced today that it has enhanced its Private Mortgage Insurance (PMI) Release Outsourcing Program by offering low-cost automated valuation models (AVMs) to homeowners to help them determine whether they will qualify for mortgage insurance release if they order a full appraisal.

Posted by S. Germain at 08:38 AM | Comments (0)

Systemware and Fidelity National Information Services Announce Strategic Partnership

Systemware, Inc., the leading enterprise content management (ECM) company, and Fidelity National Information Services today announced a partnership agreement to integrate Systemware's world-class content management technology into FIS' extensive suite of banking applications. Together, the combined offering will provide FIS' worldwide banking clients an end-to-end, high-value solution for becoming paperless.

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

Stewart Transaction Solutions Optimizes SureClose(R) With ''Best of Breed'' Scanning Solution

SureClose, Stewart's online transaction management platform, provides a whole new level of service with the release of the SureScan integrated scanning solution, developed in partnership with innovative software provider, Certify Data Systems, Inc.

SureClose eliminates the hassle of paper-based closing documentation by integrating with SureScan - a simple, easy-to-use scanning solution created to streamline the entire list-to-close process. SureScan is a desktop scanning solution that can be loaded onto any PC connected to the Internet with a twain-compliant scanner. SureScan also has the option for a freestanding or wall-mounted touch-screen scanning kiosk to digitally process images and securely transmit documents to SureClose.

Posted by S. Germain at 08:36 AM | Comments (0)

Stewart Strengthens eMortgage Platform with Electronic Vault Management System

Stewart announces the release of its complete electronic vault management system.

The Stewart electronic vault is designed to store, maintain and transfer original electronic loan documents. In conjunction with other Stewart solutions, the electronic vault expedites a full end-to-end eMortgage process.

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

eGistics Introduces End-to-End Lending Process Management Solution

eGistics, Inc., today launched a hosted solution that image-enables the lending process from end-to-end. The solution streamlines the lending process from loan application to resale by using on-demand images, routing and workflow to significantly reduce the friction, time and cost of paper constrained processes.

Built on a hosted, archive-driven platform, eGistic's image-based solution enables work to be electronically distributed across an unlimited geographical area, and provides for concurrent document processing and access, with no investments in infrastructure or vendor-specific technology. Additionally, the eGistics infrastructure incorporates world-class security, unlimited storage capacity and very attractive per-image pricing.

Posted by S. Germain at 08:32 AM | Comments (0)

UBS Home Finance Approves DocuTech as Doc Provider

DocuTech Corp. announced that UBS, a global financial services firm serving a diverse client base, has made UBS-approved loan closing documents available to its correspondent through DocuTech.

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

DocuTech and Xetus Form Strategic Alliance to Deliver Compliant, Accessible Mortgage Documents

DocuTech Corp., a leading provider of compliant mortgage documents and services, announced today a strategic alliance with Mountain View, Calif.-based Xetus Corp. The alliance integrates DocuTech's compliant documents with Xetus' collaborative loan operating system

Posted by S. Germain at 08:30 AM | Comments (0)

Ellie Mae Chooses Wave Systems to Add Trusted Electronic Signature Solutions for Mortgage Industry

Wave Systems Corp. announced today that it has licensed its eSign Transaction Management Suite (eTMS) for integration into the eFolder of the Encompass® Mortgage Automation System, Ellie Mae Inc.'s first electronically-signed mortgage document solution. Wave's trusted electronic signature solution can be used to automate thousands of eFolder transactions monthly by eliminating the ink signatures and document transportation costs of faxes or other types of delivery service.

Posted by S. Germain at 08:30 AM | Comments (0)

Visionet Systems Enhances VisiLoanReview Enterprise Resource Management System

Visionet Systems Inc. has announced the availability of its new Workflow Solution Templates for its VisiLoanReview product for correspondent purchases (automating bulk and flow purchase of loans), investor due diligence and QC/QA (Quality Control/Quality Assurance).

Visionet has designed VisiLoanReview in the Enterprise Supply Chain Management (ESCM) model for the mortgage industry by connecting different mortgage processes from loan origination to servicing while providing all the intermediate processing functions from a single portal.

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

FICS Announces New, More Flexible Architecture for iNetAp

Financial Industry Computer Systems, Inc. (FICS®) announced today that it has implemented an enhanced version of iNetAp®, the company's online application tool used in conjunction with FICS'loan origination system, Loan Producer®.

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

MortgageHub Expands Suite of Products with Addition of Fair Isaac Mortgage Banking Offerings

Fair Isaac Corporation and ISGN, the parent company of MortgageHub, announced today that ISGN has acquired key assets and products associated with Fair Isaac's mortgage banking division, with plans to integrate them with MortgageHub.

The company is adding Fair Isaac products and services including the Diamond(TM) loan origination solution, the BridgeLink(TM) e-Services network for the mortgage industry, the LSAMS(TM) servicing system, the TCL(TM) construction lending system, the LenStar(TM) default management communications network, the FORTRACS(TM) default management system, and other technologies.

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

Lender Support Systems, Inc. Releases LSSIConnect

Lender Support Systems, Inc. announced the release of LSSIConnect, a single Internet connection point for ordering any LSSI product, service and specific third-party partner services sold through LSSI.

Products and services accessed through LSSIConnect include Docs3D, WebDocs, DocWin, LSSI E-Disclosure services, LSSI Flood certificates and access to ComplianceEase products.

Posted by S. Germain at 08:25 AM | Comments (0)

MRG Selected by Greenlight Financial to Provide Document Preparation Services

MRG Document Technologies (MRG), a provider of document preparation services for the financial industry, announced at the MBA's National Technology in Mortgage Banking Conference and Expo, that Greenlight Financial, an Irvine, Calif. mortgage lender, has selected MRG to provide compliance documents, disclosures and closing document packages for its lending products.

Posted by S. Germain at 08:24 AM | Comments (0)

Interthinx(R) HCL(SM) Scoring System Integrated Into Harland Financial Solutions' Interlinq(R) E3(R)

Interthinx®, the leading provider of comprehensive fraud prevention, regulatory compliance and risk mitigation tools for the mortgage industry, has successfully integrated its HCL-High Cost Loan Filter(SM) real-time automated compliance tool into Harland Financial Solutions' Interlinq® E3 enterprise mortgage lending solution. HCL now performs nearly a dozen loan-level compliance reviews and identifies high cost loan violations as defined by federal, state and local laws and investor guidelines. Harland Financial Solutions is a wholly owned subsidiary of John H. Harland Company (NYSE:JH - News).

Posted by S. Germain at 08:22 AM | Comments (0)

New Technology from Mortgage Cadence Reduces Manual Labor and Aids Compliance

Mortgage Cadence announces the Mortgage Cadence Captivus(TM) Advanced document management application. As an enhancement to their already robust imaging platform, the Denver-based financial services vendor adds advanced document recognition, separation of documents and data capture to the Mortgage Cadence Captivus(TM) application.

Posted by S. Germain at 08:20 AM | Comments (0)

New PDF eSignature Guidelines for Mortgages

Adobe Systems Inc. and MISMO® Inc. today announced the release of guidelines for the standardization of electronically signed PDF documents in the mortgage process. The guidelines are intended to help standardize the implementation of PDF and electronically signed PDF documents across the mortgage banking industry, moving the industry to a new level of interoperability with PDF for end-to-end electronic mortgage workflows.

Posted by S. Germain at 08:19 AM | Comments (0)

Adobe and Wolters Kluwer Financial Services Team to Deliver Mortgages Electronically

Adobe Systems Incorporated and Wolters Kluwer Financial Services today announced an agreement to provide lenders with a new option for delivering mortgages electronically. With this agreement, the companies will work together to provide integration between Wolters Kluwer Financial Services Expere® Integrated Enterprise (IE) solution and Adobe® LiveCycle® interactive process management software.

The Expere IE solution serves as a central repository for the multitude of data comprising a mortgage institution's documents. When data is added, deleted, or changed in the repository, appropriate updates are automatically made to all of the documents--allowing an institution to use a single document library instead of multiple ones. Wolters Kluwer Financial Services plans to deliver its Expere IE content with support for PDF.

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

Equifax Mortgage Solutions Continues Growth Path With New Acquisitions and Expanded Product Offering

Within the first quarter of 2007, Equifax Inc. has acquired two mortgage services providers, further positioning the company to expand its portfolio of mortgage solutions and settlement services for lenders of all sizes.

EMS first strengthened its market position this year when it acquired the mortgage credit reporting business of Memphis Consumer Credit Association, Inc. (MCC). Prior to the acquisition, EMS had a long-standing relationship with MCC, which enabled this credit agency to deliver mortgage credit services across the Southeast. The second strategic acquisition occurred in February, when Equifax integrated the services offerings of Credit Financial Services (CFS) into its EMS business. This 100-year old credit agency also utilized the Equifax credit engine to provide mortgage credit services across the Southeast.

Posted by S. Germain at 08:15 AM | Comments (0)

FirstClose(TM) Announces Credit Insurance Markets as Latest Reseller Partner

FirstClose, a service of First Lenders Data, Inc. (FLDI), an Austin, Texas-based provider of bundled mortgage settlement services, announced today that it has formed a strategic partnership with Credit Insurance Markets to offer the FirstClose platform and suite of products to existing and future Credit Insurance Markets customers.

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

Origen Picks Thunderhead

Origen Financial, a national provider of manufactured housing loans, has picked the Thunderhead multichannel enterprise communication platform to automate, streamline, and control loan product documentation. A major consideration was the fact that the Thunderhead platform integrates with the IBM FileNet ECM Suite.

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

Archive Launches Aspen 360 LoanDepot

Archive Systems announced the introduction of LoanDepot as a collaborative service to manage content throughout the entire loan document life cycle. The offering is an extension of the services currently offered under the company's flagship service, Aspen 360. LoanDepot's collaborative services provide document imaging and workflow-enabled process automation to support loan origination, underwriting, post-closing and auditing, and loan servicing functions, Archive said.

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

DRI Launches Web Services Capability

Default management vendor DRI Management Systems, Newport Beach, California, has deployed a Web services portal for its flagship software, The Default Solution. Through this portal, The Default Solution now features additional connectivity to third party services providers via the Internet. The portal¹s secured hosted environment will allow current DRI clients the opportunity to request and receive specific information from their third party vendors right from within The Default Solution. The types of services incorporated into this Web portal offering are credit, appraisals, automated valuations, title reports, broker price opinions, flood certification and insurance, skip tracing, and second lien analysis.

Posted by S. Germain at 08:05 AM | Comments (0)

Lydian Adds Post-Closing and QC Services

Lydian Data Services, a provider of end-to-end outsourcing services for all aspects of the mortgage operation, is now offering post-closing quality control services to supplement the capabilities of InvestorExpress, its electronic loan delivery platform. With this combined service, Lydian Data Services is offering a solution that can extract data out of a loan origination system, move it seamlessly into post-closing and quality control services, and fulfill investor delivery on the back end as well.

Posted by S. Germain at 08:05 AM | Comments (0)

Vendors Partner to Allow for Straight-Through Processing

Ellie Mae and Advectis have partnered to enable mortgage originators to transmit their electronic loan documents via Ellie Mae¹s LenderConnect solution to lenders using Advectis' BlitzDocs. Originators gather and store their loan documents in the Encompass eFolder and the integration to BlitzDocs allows for quick and easy uploading of eFolder contents directly to the lender¹s BlitzDocs site. As a result of this partnership, lenders using BlitzDocs can sign up with Ellie Mae to effortlessly receive loan documents straight from a broker¹s Encompass system to the BlitzDocs network.

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

ResCap to 'Sharply' Reduce Subprime Lending

Residential Capital LLC, the Minneapolis-based mortgage arm of GMAC Financial Services, cut its subprime originations last year and expects to "sharply" lower its subprime volume again this year. ResCap CEO Bruce Paradis acknowledges that the company "should have run through the door, as opposed to stay in the room" when the housing market went south. The $30.56 billion in subprime loans it wrote last year accounted for 19 percent of its nationwide production, marking a year-over-year decline of 15 percent. However, the company had to boost its bad-loan reserves, considering that three-quarters of its portfolio remained in subprime loans.

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

Bernanke Open to Limiting Lending

In testimony before the Joint Economic Committee, Federal Reserve Chairman Ben Bernanke attributed rising subprime mortgage defaults to the failure of lenders to measure a borrower's repayment ability when interest rates adjust. According to Bernanke, "A large increase in early defaults on recently originated subprime variable-rate mortgages casts serious doubt on the adequacy of the underwriting standards for these products." The economist also said federal legislation to more strictly regulate lending practices may be a good idea, but he noted that the central bank can only enforce standards for federally regulated banks. Sen. Charles Schumer, D-N.Y., the committee's chairman, called Bernanke's testimony "further indication that we must respond on the federal level" to curtail predatory lending.

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

Lender Said to Be Weighing a Bankruptcy Filing Soon

New Century Financial is considering filing for bankruptcy protection soon but also is looking to secure financing that would allow the Irvine, Calif.-based company to reorganize or sell itself through a prepackaged bankruptcy. The embattled subprime mortgage lender still wants to find a buyer but has little time, considering it had less than $60 million in cash in early March and banks have begun to foreclose on its credit lines. "The one reason they haven't filed for bankruptcy yet is that they believe they can still pull off a transaction with someone coming in and acquiring them," says Jeffrey Garfinkle, a partner with Buchalter Nemer, an Irvine law firm that has represented New Century in the past. New Century trailed only HSBC in subprime mortgage lending last year, totaling $51.6 billion in loans, acc! ording to Inside Mortgage Finance.

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

IBM to Process Mortgages

IBM is moving into the mortgage arena, putting systems from FileNet and Palisades Technology Partners--acquired by IBM in 2006--to work in processing mortgages. A new unit has been established to undertake tasks related to application processing, underwriting, document preparation and closings to help lenders adjust to a climate of weaker demand and higher defaults.

Posted by S. Germain at 07:56 AM | Comments (0)

Morgan Stanley to Sell Subprime Lender's Loans

Morgan Stanley has announced plans to auction off $2.48 billion of residential mortgages from New Century Financial. The subprime lender's loans are collateral pledged to Morgan Stanley for a $2.5 billion credit line. The auction announcement comes on the heels of Accredited Home Lenders and Fremont General--two other major subprime lenders--opting to sell subprime mortgages at a significant discount in an effort to raise funds. New Century, which could be headed into bankruptcy, ceased making new loans earlier this month.

Posted by S. Germain at 07:56 AM | Comments (0)

New-Home Sales Dropped 3.9 Percent in February

The Commerce Department reports a 3.9-percent decline in new-home sales to an annual pace of 848,000 in February from 882,000 in January, marking a nearly seven-year low and failing to meet economists' expectations of an annual pace of 985,000. The median new-home price of $250,000, meanwhile, was 2.8 percent higher than January but still down 0.3 percent from February 2006. Regionally, new-home sales surged 24.6 percent in the West but plummeted 26.8 percent in the Northeast, 20 percent in the Midwest and 7 percent in the South. The report--which also reveals a boost in new-home inventory to an 8.1-month supply from 7.3 months in January--indicates "that ho! me construction will remain a drag on the economy for much of the year," according to A.G. Edwards & Sons chief economist Gary Thayer.

Posted by S. Germain at 07:55 AM | Comments (0)

Sub-Prime Risk Is Less for Big Banks

Wells Fargo & Co. has managed to offset losses in its subprime mortgage business with its sizable portfolio of other loans and business units. Company executives say this broader base should allow it and other sufficiently diversified lenders to continue offering subprime loans even as other companies falter in the niche. "We believe it is very important to offer non-prime loans and are committed to doing so in a responsible way," Wells Fargo spokeswoman Theresa Schrettenbrunner remarked. "Some borrowers simply need a non-prime loan to get started." According to her and other Wells Fargo officials, only 8 percent of the company's mortgage originations left Wells exposed to credit losses on subprime loans in 2006.

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

March 23, 2007

Top Originators 4Q 2006

Posted by S. Germain at 08:36 AM | Comments (0)

First American Launches New Suite of eClosing Services

The First American Corporation today announced the expansion of its eClosing technology offerings to help lenders and settlement agents further streamline the closing process.

Read the entire story here.

Posted by S. Germain at 08:34 AM | Comments (0)

First American Homeownership Foundation Marks First Year Anniversary

The unprecedented boom in homeownership and home values in recent years has benefited many Americans, but not all. The First American Homeownership Foundation (FAHF), a philanthropic entity established by The First American Corporation (NYSE: FAF), which recently completed its first year of operation, is working to address this inequity. FAHF focused heavily on assisting minority, new-immigrant and lower-income families achieve the dream of homeownership in 2006, and this year will emphasize helping current homeowners navigate the adjustable rate mortgage payment increases that are expected to be particularly challenging for lower-income families in 2007 and 2008.

Read the entire story here.

Posted by S. Germain at 08:32 AM | Comments (0)

First American CoreLogic Study Investigates Imapct of Mortgage Payment Reset on the Lending Industry and National Economy

First American CoreLogic, a member of The First American Corporation (NYSE: FAF) family of companies, released a new study today that investigates the impact of mortgage payment reset and provides insight into which loans will be most affected when adjustable-rate mortgages convert from low introductory interest rates to higher prevailing market rates. The study, titled “Mortgage Payment Reset: The Issue and the Impact,” is a definitive and comprehensive analysis of the issues surrounding mortgage payment reset during the next five to seven years.

Read the entire story here.

Posted by S. Germain at 08:30 AM | Comments (0)

Stewart Title Discontinues Business with Richmond Title in California

On March 14, 2007, the California Department of Insurance (CDOI) announced that it has issued a Cease and Desist Order to Richmond Title Services, L.P. (Richmond), Stewart Title Guaranty Co. (Stewart), and Electronic Closing Services Inc., a Stewart affiliate. The CDOI alleges that Richmond is not properly licensed under California law. Upon receipt of the CDOI's Cease and Desist Order, Stewart discontinued doing business with Richmond in California.

Posted by S. Germain at 08:28 AM | Comments (0)

Wells Fargo Claims No. 1 Position as Nation's Retail Mortgage Lender and Servicer

In 2006, Wells Fargo ranked as both the nation's No. 1 retail mortgage originator and No. 1 mortgage servicer for the full year, according to Inside Mortgage Finance.

This marks the 15th year in a row that Wells Fargo was the top retail
mortgage lender, originating $158.48 billion in loans through its retail channel and earning an industry market share of 14.2 percent. In addition, Wells Fargo grew its servicing portfolio to $1.34 trillion and, with the top ranking in this category, now has 13.2 percent of the nation's home mortgage servicing market share, up from 11 percent in 2005. That represents a 12-month increase in portfolio value of $336 billion, or growth of nearly 34 percent.

Posted by S. Germain at 08:25 AM | Comments (0)

N.Y. Suit Could Test Loans' 'Suitability'

Attorney Jacob Zamansky of Zamansky & Associates has filed a lawsuit in New York claiming that mortgages granted to two dozen elderly borrowers who cannot afford their payments are "legally void and unenforceable" because the lenders failed to consider repayment ability when granting the credit. The litigation against Countrywide Home Loans Inc., IndyMac Bank, Homecomings Financial LLC, PHH Mortgage Corp., Washington Mutual Inc. and First National Bank of Long Island--which seeks to stop collections and foreclosure proceedings--could be an early test of mortgage suitability standards.

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

US Technology Launches Mortgage BPO Practice

US Technology, a leading provider of IT services and Business Process Outsourcing (BPO) solutions for Global 2000 enterprises, today announced at the Gartner Outsourcing Summit the launch of their Mortgage BPO practice. The US Technology Mortgage BPO practice, which ranges from loan origination processing (or any portion thereof) to loan servicing, helps mortgage lenders and mortgage services providers significantly reduce their back office processing costs while improving processing efficiencies.

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

FirstClose(TM) Announces Mortgage Service Solutions as Latest Reseller Partner

FirstClose, a service of First Lenders Data, Inc. (FLDI), announced today that it has partnered with North Texas-based Mortgage Service Solutions.

Through FirstClose, Mortgage Service Solutions now has the ability to provide its customers with several vendor options when ordering credit reports, flood zone determinations, AVMs, insured AVMs, desktop appraisals, income verification, document preparation services, closing services, title reports, lien reports, title insurance, recording services, and more.

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

Applied Business Software, Inc. and Ellie Mae(R) Announce Strategic Partnership

Applied Business Software Inc. (ABS), developer of The Mortgage Office(TM), the leading loan servicing software solution for the lending industry, and Ellie Mae Inc., an award-winning provider of innovative software and services for the mortgage industry, announced today that they have formed a strategic partnership to provide full product integration between The Mortgage Office(TM) and Encompass® mortgage automation system.

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

California, Fannie Mae Sever Ties With New Century

Fannie Mae, the largest U.S. mortgage loan provider, yesterday informed New Century Financial Corp. that it will no longer buy or sell NEWC mortgage loans. Also, California yesterday joined a dozen other states in ordering NEWC to stop making new mortgage originations... FNM's move may be a death blow-- NEWC cannot provide mortgages without the partially government-backed Fannie Mae's business. While Accredited Home Lenders' received a $200 million lifeline from the Farralon Capital Management hedge fund, NEWC looks increasingly likely to join the privately-held People's Choice Home Loan Co., the latest of more than 20 bankrupted subprime lenders.

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

Mortgage Cadence Fulfills Commitment to Support Oracle

Demonstrating its vision to provide an ever-expanding lending platform, Mortgage Cadence announces that the Oracle Database 10g port has been completed - and that their lending platform now supports Oracle, as well as Microsoft SQL Server. The Oracle version of Mortgage Cadence operates against Sun Solaris and will also operate on Red Hat Enterprise Linux 4 in the next version.

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

VirPack Receives Patent

Vienna, Va.-based VirPack has been awarded a patent for its document management and imaging technology, MortgageWire has learned. "This certifies that the e-packaging and e-delivery technology pioneered by VirPack is truly unique and provides value to both the lender and investor," stated VirPack president and CEO Michael Coar. The VirPack e-package contains all data, documents, images and other files permitting a business to share loan and other files with their partners, allowing fully automated processing through a free downloadable browser.

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

Origen Picks Thunderhead

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

Fremont Unloading Mortgages

Fremont General, a California-based subprime lender, will post a $140 million pretax loss related to the discount sale of $4 billion in home loans. The company--which was told to halt its subprime operations by federal regulators--completed the first phase of the sale to an unnamed buyer that paid $950 million.

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

Fed Hints That Rate Hike Is Unlikely

The Federal Reserve left interest rates unchanged at 5.25 percent on Wednesday, as central bank policymakers generally saw the overall economy as being healthy. While investors welcomed the Fed's statement suggesting rates were unlikely to increase in the near future, analysts say the change in language could mean that officials are ready to lower rates if the economy falters. Lehman Brothers chief U.S. economist Ethan Harris believes the central bank is concerned about how mortgage delinquencies, home foreclosures and tighter lending standards will impact the economy. "It's something the Fed has to be nervous about," he says.

Posted by S. Germain at 07:55 AM | Comments (0)

Wells Fargo to Cut 500 Jobs in Subprime Division

In response to scaled-back subprime lending standards, Wells Fargo & Co. is shrinking the number of employees working in its subprime lending unit. About 514 workers in South Carolina, Arizona and California will be laid off in April, following a previous announcement of 70 layoffs in Tempe, Ariz. A total of 158,000 people work for Wells Fargo, but it is unknown how many employees make up its subprime division. Although the lender is one of the top players in the U.S. subprime business, it so far has managed to dodge any major losses.

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

Homeowners, Lenders Skirt Default, May Curb U.S. Housing Slump

Mortgage Bankers Association chief economist Doug Duncan says a growing number of lenders are approving short sales as an alternative to foreclosure, mainly because they are not in the business of managing real estate. "The way banks see it, it's better than if the house goes into foreclosure, stands empty and sees its value spiral downward before it's auctioned on the courthouse steps," explains Duncan, who expects rising delinquencies to spark an increase in pre-foreclosure sales. Though short sales put additional downward pressure on the national median home price, Fannie Mae chief economist David Berson says they also lower the number of foreclosures and can help ease the housing downturn. However, short! sales are not counted, making it impossible to know exactly how many occur.

Posted by S. Germain at 07:53 AM | Comments (0)

Home Builders Dour on '07 Prospects

Concern about the potential impact of rising subprime mortgage defaults on the ability of borrowers to obtain home loans has resulted in the first decline in the National Association of Home Builders/Wells Fargo index since September. The index of industry sentiment fell to 36 for March, down from a revised 39 in February--with any reading of less than 50 signifying that most home builders consider the business environment to be unfavorable. "Builders are uncertain about the consequences of tightening mortgage-lending standards for their home sales down the line, and some are already seeing effects of the subprime shakeout," says NAHB chief economist David Seiders. Last week, the Mortgage Bankers Association reported that subprime delinquencies rose to a four-year high during the fourth quarter of 2006 and that foreclosures on all loans reac! hed a record.

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

Top Five Subprime Lenders Asked to Testify: Dodd

Senate Banking Committee Chairman Christopher Dodd, D-Conn., said executives from five subprime mortgage heavyweights--New Century Mortgage Corp., Countrywide Financial Corp., HSBC Holdings Plc, First Franklin Mortgage and WMC Mortgage--have been invited to testify at a hearing on Capitol Hill this Thursday. The hearing, which will be followed by a second one by the House Financial Services Committee next week, affords an opportunity for subprime players to explain their lending practices. "At the very least," Dodd said, "homeowners facing foreclosure deserve to know what factors contributed to their dire financial straits, and what steps are needed to fix this pressing problem." Also asked to speak at this week's hearing were officials representing the Federal Reserve, the Federal Deposit Insurance ! Corp., the Office of the Comptroller of the Currency and the Conference of State Bank Supervisors.

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

March 16, 2007

Top Subservicers

Posted by S. Germain at 08:24 AM | Comments (0)

First American Default Technologies Launches VendorScapeCMS 3.7

First American Default Technologies, a leading default mortgage servicing software provider and a member of The First American Corporation (NYSE: FAF) family of companies, announced today the release of VendorScapeCMS™ 3.7, an automated, configurable workflow solution for the mortgage servicing industry.

Read the entire story here.

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

Fidelity National Financial Expands Multicultural Marketing Program to San Joaquin and Sacramento Counties in California

Fidelity National Financial, Inc. announced the expansion of their Multicultural Marketing Program into San Joaquin and Sacramento counties in California. The program, led by the company's Multicultural Marketing Division, is a continuing effort by FNF to close the home-ownership gap for Latinos, Asians, and African-Americans.

Posted by S. Germain at 08:15 AM | Comments (0)

Fidelity National Real Estate Solutions Acquires Realigent's Award Winning Broker and Agent Technologies

Fidelity National Real Estate Solutions, a division of Fidelity National Financial, Inc., announced today that it has acquired the assets of Realigent, an Irvine, California-based technology company that provides software solutions for real estate professionals.

Fidelity National Real Estate Solutions (FNRES) will now own and offer Realigent's industry-leading rDesk(TM), CMA Deluxe, VantagePoint and SearchPoint, as well as HomeSeekers.com, Realigent's established consumer portal for locating properties and REALTORS.

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

Ocwen Announces $300M Venture to Acquire Residential MBS Lower Tranches and Mortgage Servicing

Ocwen Financial Corporation (NYSE:OCN - News) today announced that it has obtained definitive commitments from affiliates of Angelo, Gordon & Co., Metalmark Capital, LLC and other lead investors to form and capitalize a new business, Ocwen Structured Investments, LLC (``OSI''). OSI will invest in the lower tranches and residuals of residential mortgage-backed securities, related mortgage servicing rights, ABX Index Protection and other similar assets.

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

Zaio To Acquire Realink Corporation

Zaio Corporation announced today that it has entered into a definitive agreement to acquire the assets of Realink Corporation. Realink operates two divisions that provide services to the appraisal and mortgage banking industries. The assets are valued at US$3.4 million. The transaction is expected to close, subject to receipt of all regulatory approvals including the TSX Venture Exchange, within the next 45 days.

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

Ace Mortgage Funding Selects Lender Support Systems, Inc.'s Servicer3D

Lender Support Systems, Inc. (LSSI), a global provider of eMortgage enabled lending and loan servicing technology solutions, announced that Ace Mortgage Funding, LLC, an Indianapolis, Ind.-based independent mortgage banker that provides wholesale and retail lending, has selected LSSI's recently released Servicer3D software for servicing their mortgage loans.

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

Old Republic Credit Services Complements Suite of CreditXpert(TM) Services

CreditXpert Inc., the leading credit analysis and management solutions provider, today announced that Old Republic Credit Services expanded its partnership with CreditXpert Inc. by upgrading to the full suite of CreditXpert® services.

CreditXpert will enable Old Republic Credit Services customers to close more loans by providing the most advanced, consumer-friendly credit management tools and content. CreditXpert products utilize proprietary technology based on advanced statistical techniques and analytical methods. They provide powerful new ways for lenders, brokers and credit service providers to attract, engage, and retain customers.

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

Mortgage Cadence Announces Complete Reverse Mortgage Capabilities

Mortgage Cadence, a leading provider of enterprise lending solutions (ELS) for the mortgage industry, announces complete reverse mortgage capabilities for Lenders.

Mortgage Cadence's reverse mortgage technology was built upon a robust, native business rule management system (BRMS) incorporating automation features within the Mortgage Cadence Orchestrator(TM) application. The configurable workflow supports reverse mortgage process flows and requirements. Additionally, it provides Lenders with the ability to enter 1009s and HUD supplements, complete calculations for FHA HECMs and Fannie Mae Home Keeper(TM) products, as well as the ability to add additional customized calculations for custom products.

Posted by S. Germain at 08:05 AM | Comments (0)

FBR Announces Share Buyback Initiation and Comments on First NLC Unit

Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR - News; "FBR" or "the Company") today announced that it intends to begin buying back its shares under an existing 14 million share buyback authorization. The Company also announced today that it will explore strategic alternatives to maximize the value of First NLC ("FNLC"), its non- conforming mortgage origination business.

The Company stated that FNLC continues to have more than sufficient liquidity to meet all margin calls and is in compliance with all warehouse agreements. FNLC has recently undertaken significant additional cost restructuring initiatives and has substantially modified its loan guidelines. These guideline changes will result in meaningfully lower origination volumes in the near-term in addition to greater loan values.

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

VirPack Receives Patent

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

Wachovia Touts New Mortgage Brand

Wachovia Securities, Charlotte, N.C., has created a new brand called Vertice for the combined entities of American Mortgage Network and Wachovia Mortgage Third Party Lending. Combined production from both entities totaled $18 billion in 2006, Wachovia reported. The continued integration of the wholesale businesses will capitalize on the strong competitive advantages the company has in the marketplace, he added. "While our branding and structure may be new, our values and our mission remain the same: provide the highest-quality service, a broad product range, and a local business presence that links us closely to our client base, ensuring efficient underwriting and closing for our broker customers," Mr. Robertson said.

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

GE Cap to Buy PHH, Sell Mortgage Ops

PHH Corp., Mt. Laurel, N.J., has agreed to be acquired by GE Capital Solutions, the business-to-business leasing, financing, and asset management unit of General Electric Co., in an all-cash transaction valued at approximately $1.8 billion. In connection with the transaction, GE has entered into an agreement to sell the mortgage operations of PHH, a prime mortgage originator and servicer, to an affiliate of The Blackstone Group, a global private investment and advisory firm. Under the terms of the merger agreement, PHH stockholders would receive $31.50 per share in cash at closing, representing a premium of 13.3% over the March 14 PHH stock closing price of $27.81 on the New York Stock Exchange. "We are attracted to [PHH's] platform and business model and look forward to working with the PHH Mortgage team to accelerate and enhance their strategic objectives and growth potential," said Chinh Chu, senior managing director at Blackstone. According to the Quarterly Data Report, PHH ranks 11th among mortgage servicers, with $160 billion in servicing.

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

New Century's Troubles Grow

The shadow looming over the U.S. subprime lending sector cast itself over Wall Street on Tuesday, sparking the second-worst stock selloff so far this year. California's New Century Financial--once the No. 2 subprime company in the nation--may have been hit the hardest, having lost an estimated $1.6 billion in market value over just the past month. The New York Stock Exchange has suspended its shares and indicated yesterday that the stock would be dropped completely from its listings. The latest news only worsens the situation at New Century, which has been forsaken by its creditors and also is now the target of a criminal probe into its trading activity and accounting practices.

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

Novastar Financial Feb. Production Volume Falls

Novastar Financial Inc. watched its stock price rise on Monday after announcing stronger-than-anticipated originations of subprime mortgages last month. The lender reported a 26-percent decline in nonconforming loan production to $386.25 million from $521.82 million during the year-over-year period ended in February, but the results were much better than analysts had expected. While Novastar has managed to stay operational amid trouble in the subprime mortgage market, New Century Financial Corp. announced early this week that it would no longer underwrite mortgages. In related news, Countrywide Financial Corp. is expecting weaker earnings as a result of rising subprime foreclosures.

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

Banks Go on Subprime Offensive

Big banks and investors that purchased subprime mortgages originated by small lenders over the last couple years are responding to an increase in defaults on the products by ordering the lenders to buy them backs. Many subprime originators are now facing bankruptcy because they lack the money necessary to comply, and some experts argue that the subprime mortgage market is weakening at a faster pace due to these repurchase demands. New Century Financial Corp., for instance, is among the lenders on the brink of bankruptcy, fielding repurchase orders from Morgan Stanley, Citigroup Inc., Goldman Sachs Group Inc., Credit Suisse Group Inc., IXIS Real Estate Capital Inc. and Bank of America Corp. The company reportedly owes a total of $8.4 billion to these creditors, and Piper Jaffray analyst Robert Napoli says that repurchasing the loans at a 20-percent loss would eliminate New Century shareholders' equity.

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

Countrywide Ends No-Money-Down Loans

Countrywide Financial Corp. has instructed its brokers to no longer offer zero-down mortgages as an option for borrowers. That is because such loans are among the biggest reasons for a recent and sharp increase in the level of delinquencies at U.S. home lenders. Countrywide joins such other companies as General Electric Co.'s WMC Mortgage and Washington Mutual Inc. in requiring that loan applicants have at least a 5-percent stake in their residences.

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

Foreclosures May Hit 1.5 Million as U.S. Housing Bust Deepens

Economy.com chief economist Mark Zandi believes the housing market will continue to record declines for at least one more year. During this period, economists predict that upwards of 1.5 million homes could be lost to foreclosure; and job losses tied to the housing industry could total 100,000. Additionally, Mortgage Bankers Association chief economist Doug Duncan estimates that another 100 mortgage lenders could leave the business in 2007. Rising inventories, higher new-home cancellations and mortgage fraud are among the chief concerns, leading some to believe that a recession like the one following the 1991 housing downturn is on the horizon. "The fallout in the early 1990s was much worse than what we've seen so far, but this downturn is not over," explains Raymond James & Associates managing! director Paul Puryear, adding, "The full impact hasn't hit yet."

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

March 09, 2007

Top Servicers 4Q 2006

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

First American LoanPerformance Announces Major Enhancements to Its RiskModel Analytics Solution

First American LoanPerformance, a leader in residential mortgage data and analytics for the mortgage industry and Wall Street, announced today the availability of the latest version of its RiskModel analytics solution for forecasting future mortgage prepayments, defaults, losses and projected cash flows.

Read the entire story here.

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

Fidelity National Title Launches Chinese, Korean, Spanish and Vietnamese Websites

Fidelity National Title Insurance Company, an underwriter for Fidelity National Financial, Inc. (NYSE: FNF - News), one of the nation's largest title insurance companies, today launched four websites in traditional Chinese, Korean, Spanish and Vietnamese dedicated to providing consumers in these segments with instant, accessible information on real estate, escrow and title insurance to help better prepare them for buying a home.

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

Fidelity National Financial Report

Read the entire story here.

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

Stewart Information Services Financials

Read the entire story here.

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

ICBA and Wolters Kluwer Financial Services Partner to Offer Community Banks 'One'

The Independent Community Bankers of America (ICBA) announced an expanded Preferred Service Provider relationship with Wolters Kluwer Financial Services which will offer ICBA member community banks the comprehensive ComplianceOne(TM) solution. ICBA made the announcement at the 2007 ICBA National Convention and Techworld in Honolulu.

A comprehensive solution that is capable of pulling together all aspects of a financial organization's major business lines, ComplianceOne gives community banks the tools they need to create complete loan, mortgage, deposit or IRA packages. ComplianceOne's enterprise-wide access to customer information allows community banks to open new accounts and complete transactions more quickly through a common database structure.

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

Lender Lead Solutions Introduces STORM Technology for Reverse Mortgage Originators

Lender Lead Solutions, a comprehensive reverse mortgage services company, introduced the Specialized Technology for the Origination of Reverse Mortgages (STORM) application to automate the tasks of managing the sales and loan origination processes for reverse mortgage loans. All originators purchasing reverse mortgage leads and wholesale partners of Lender Lead Solutions have access to the Web-based application.

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

Coldwell Banker Howard Perry and Walston Partners with DocuSign

Sean Nally, CIO of Coldwell Banker Howard Perry and Walston, has announced that the firm has partnered with DocuSign, the number one on-demand electronic signature service, allowing the firm’s clients to electronically sign documents, contracts, agreements and other records. The DocuSign on-demand infrastructure can handle thousands of transactions which will save agents and clients time by eliminating travel to sign documents, as well as eliminating the paper hassles of scanning, faxing and using overnight delivery for documents.

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

Bank of America Commits $20 Billion to Finance Green Buildings, Mortgages and More

Bank of America Corporation announced a $20 billion initiative to support the growth of environmentally sustainable business activity to address global climate change. Bank of America's ten-year initiative encourages development of environmentally sustainable business practices through lending, investing, philanthropy and the creation of new products and services.

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

Interthinx Expands Fraud Investigations Team to Train Government Agencies and Assist Major Lenders

Interthinx(TM), Inc., the leading provider of comprehensive fraud prevention, compliance and decision support tools for the mortgage industry, has significantly expanded the comprehensive services and manpower offered by its mortgage fraud Investigations Team in response to high customer demand and upward fraud trends.

To answer the industry's growing need for expert loan file review, Interthinx is offering broadened services to lenders including reviews that can be used to either verify or disprove information presented at the time of application to determine possible fraudulent activity. The reviews provide factual information to address concerns involving misrepresentations and to identify information that may have been undisclosed, misrepresented, or altered.

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

Beige Book Finds Weak Housing Markets

Housing markets are "weak" and house prices are generally "flat or declining," according to the Federal Reserve's Beige Book. "Almost all districts reported that housing markets remained weak," the Beige Book says, although a few Federal Reserve district banks reported some signs of stabilization in February. The Cleveland and Atlanta district banks noted that construction has "flattened out." The Richmond bank reported signs of a "firming" housing market. However, inventories of unsold homes in the Dallas-Fort Worth areas hit "new highs due to slowing sales and cancellations." The San Francisco bank reported "noticeable" recent price declines in some areas, while "[c]ontacts in the Boston district saw no signs that the weakness in housing was nearing an end," according to the Beige Book. Meanwhile, commercial real estate markets "continued to firm or remained solid" the Fed publication says.

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

Countrywide to Become Savings and Loan

The Office of Thrift Supervision has okayed Countrywide Financial's application to become a savings-and-loan holding company. This means that the federal agency will have oversight of all the mortgage lender's operations. Additionally, its Alexandria, Va.-based subsidiary, Countrywide Bank, will become a federal savings bank.

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

HSBC to Halt Acquisitions in the U.S.

London-based HSBC Holdings PLC has stated that it will not pursue any U.S. acquisitions in the near future, despite having considered a number of big-ticket possibilities in recent months. The world's No. 3 bank in terms of market capitalization, HSBC has been stung by acquisitions of risky mortgage loans that have subsequently gone bad in the past couple of years. Impairment charges for its North American personal-financial-services unit soared 34 percent to $6.68 billion last year from $5 billion in 2005. While HSBC still managed to squeeze out 4.7-percent growth in net income for 2006, poor performance in the company's mortgage operations held back the results.

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

Citadel to Acquire Mortgage Company

Citadel Investment Group LLC has managed to trump rival Credit Suisse Group by inking a $180 million deal to acquire ResMae Mortgage Corp. In securing the deal, Citadel's offer amounted to about $20 million for ResMae's lending operation and 98.5 cents on the dollar for the firm's $160 million loan portfolio.

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

Subprime Wreckage Entices Bargain Hunters

Wall Street heavyweights from Credit Suisse Group to Bear Stearns Co. have stepped up their investments in the nonprime lending market in the past year, running their own loan businesses, bundling and selling bonds backed by risky loans and providing subprime lenders with credit. With the sector now in the midst of a crisis, many see an bargain-rate opportunity to delve even further into the market. Despite the forced closure of at least two dozen subprime outfits in recent months, some investors and analysts are betting that the biggest mortgage companies--such as Countrywide Financial Corp.--will come out of the storm stronger than before as their weaker competitors fold.

Posted by S. Germain at 07:36 AM | Comments (0)

March 02, 2007

Interest-only Lenders

Posted by S. Germain at 09:31 AM | Comments (0)

First American LoanPerformance Launches PreTell 1.2

First American LoanPerformance, a leader in residential mortgage data and analytics for the mortgage industry and Wall Street, announced today that version 1.2 of its PreTell Prepayment Scoring System is now available. This newest version has significantly expanded the types of loans scored and has added a new set of Cross-Sell Scores for enhanced cross-sell and new customer acquisition.

Posted by S. Germain at 09:29 AM | Comments (0)

The First American Corporation Reports Financial Results for the Fourth Quarter and Full Year 2006

The First American Corporation (NYSE: FAF - News), America's largest provider of business information, today announced financial results for the fourth quarter and full year ended Dec. 31, 2006.

Read the entire story here.

Posted by S. Germain at 09:25 AM | Comments (0)

Fidelity National Information Services Expands Offshore Outsourcing Presence in India

Fidelity National Information Services, Inc. today announced that it has expanded its offshore presence in India through the acquisition of Second Foundation, Inc., a leading provider of offshore global information technology services. As a result of the acquisition, FIS' wholly-owned subsidiary, Fidelity Business Solutions India Private Limited now operates in Bangalore and Chandigarh, India.

Since 2003, FIS has offered the cost and productivity advantages of a global delivery model to its clients, including software application development and maintenance, as well as business process outsourcing services through more than 2,000 India -- and Philippines -- based staff contracted through strategic partners. As a result of the acquisition, FIS has expanded its captive offshore global delivery staff by more than 600 personnel and broadened its service offerings, with plans for future growth both in personnel and services.

Posted by S. Germain at 09:23 AM | Comments (0)

Amstar Financial Announces Affiliation With Amsure Title

Amstar Financial Holdings, Inc. announces the next step in financial growth with an investment in preferred stock of Amsure Title, Inc.

Amsure Title recently announced a partnership with Fidelity National Title Insurance Company to underwrite Amsure Title's title insurance. Amsure Title now offers services in all 50 states and the District of Columbia.

Posted by S. Germain at 09:22 AM | Comments (0)

Stewart Title of Wisconsin has acquired Title One of Waupaca

Stewart Title of Wisconsin Inc. has acquired Title One of Waupaca, with branches in Wautoma, New London and Shawano in east central Wisconsin. The offices will become part of Stewart Accurate Title, a division of Stewart Title of Wisconsin.

Posted by S. Germain at 09:21 AM | Comments (0)

Executive Title Insurance Services, a Stewart Title Affiliate, Acquires Hardee County Title and Abstract Co.

Executive Title Insurance Services Inc. has acquired Hardee County Title and Abstract Co. of Wauchula, Fla., from owner Margaret C. Bennett, who has retired.

Posted by S. Germain at 09:21 AM | Comments (0)

Everybody Wants 'One' Says Wolters Kluwer Financial Services

At next week's Independent Community Bankers of America's Convention & Techworld, Wolters Kluwer Financial Services will introduce financial organizations to ComplianceOne(TM) -- a comprehensive new solution capable of integrating and uniting all of an organization's major business lines, including lending, deposit, mortgage and IRA, as well as administrative functions on a single delivery platform.

ComplianceOne gives community and regional banks and credit unions all the tools needed to create a complete loan, mortgage, deposit or IRA package from a compliance, work flow and data perspective.

Posted by S. Germain at 09:16 AM | Comments (0)

Ivanhoe Mortgage Closes Doors

Ivanhoe Mortgage, a $2 billion-a-year conventional/government lender based in Orlando, Fla., has closed its doors, according to industry officials familiar with the company. As of MortgageWire's deadline, company executives could not be reached for comment. A year ago Ivanhoe merged with nondepository Central Pacific Mortgage, Folsom, Calif., which recently agreed to sell its wholesale division to TMSF Holdings, Los Angeles. It is not known whether Ivanhoe is part of that transaction. (It does not appear to be.) CPM is headed by former Mortgage Bankers Association chief John Courson. Officials at CPM and TMSF could not be reached for comment. On Ivanhoe's website there was no notice of its closure.

Posted by S. Germain at 09:14 AM | Comments (0)

Citi Has Option to Buy Argent

Citigroup has signed a deal that gives it an "option" to buy subprime wholesale giant Argent Mortgage, Orange, Calif., and the $65 billion servicing platform of its sister company, Ameriquest Mortgage. Both units are owned by ACC Capital Holdings, a company controlled by mortgage industry veteran Roland Arnall, who is currently serving as U.S. ambassador to the Netherlands. In a statement issued after the market closed Wednesday, ACC revealed that Citigroup not only has an option to buy Argent and the receivables, but is providing "additional working capital" to ACC's subprime units, becoming their primary warehouse lender. The option to buy does not include the retail division of Ameriquest and is subject to "certain requirements, including achieving business milestones and satisfaction of regulatory filings and approvals."

Posted by S. Germain at 09:13 AM | Comments (0)

19% of Countrywide's B&C Servicing Overdue?

Countrywide Financial Corp., Calabasas, Calif., reported Thursday that $22 billion, or 19%, of its subprime receivables are in some form of delinquency. The nation's largest mortgage banker -- and subprime servicer -- said in a filing with the Securities and Exchange Commission that late payments on its A-minus to D servicing portfolio spiked by 25% from the third to the fourth quarter. At year-end, Countrywide serviced $116 billion in subprime or "nonprime" loans. Countrywide said in the filing that 3.53% of the loans in its nonprime servicing portfolio are pending foreclosure. A year ago its B&C foreclosure rate stood at 2.93%. As of MortgageWire's deadline, the company had not returned several telephone calls. In trading Thursday, its stock fell 2.61% to $37.34.

Posted by S. Germain at 09:12 AM | Comments (0)

Citigroup Will Bankroll ACC Capital

Citigroup Inc. has agreed to provide ACC Capital with enough cash to keep it afloat and able to fund loans. Under terms of the deal, Citigroup not only has the option to purchase ACC's mortgage servicing and wholesale lending operations, it also becomes the firm's primary buyer and funder of loans. Last spring, ACC released details of a major shakeup in its operations that eventually included the closure of all 229 of its retail branches. ACC, the parent company of Ameriquest Mortgage, became the country's first top subprime lender to downsize amid a slowing home-sales market.

Posted by S. Germain at 09:10 AM | Comments (0)

Mortgage Defaults Start to Spread

Inside Mortgage Finance reports that 16 percent of mortgages originated in 2006 were midlevel, or "Alt-A," loans given to borrowers whose credit scores fall between prime and subprime, including low- and no-documentation loans and option adjustable-rate mortgages. Some lenders are seeing an increase in the number of Alt-A borrowers--many with credit scores above 700--who are encountering difficulty making their monthly payments, although the 2.4-percent delinquency rate reported by USB AG is substantially less than the current subprime delinquency rate of 10.5 percent. According to UBS mortgage analyst David Liu, "The credit deterioration has been almost parallel to what's been happening in the subprime market." IndyMac Bancorp Inc., Lehman ! Brothers Holdings Inc. and Impact Mortgage Holdings Inc. are among the Alt-A lenders currently tightening their underwriting standards by hiking minimum credit scores and lowering maximum amounts for low-documentation loans, among other changes.

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

Fannie Sketches Plans for Growth in Subprime Field

Fannie Mae CEO Daniel Mudd says the government-sponsored enterprise will expand its participation in the subprime mortgage market. Mudd says the GSE will continue to purchase bonds backed by subprime mortgages--which presently account for 2.2 percent of its mortgage assets--and move toward internal production. Fannie Mae is presently examining its lender partners' origination standards and notes that it will focus more on multiple layers of risk than particular characteristics of these mortgages. Additionally, the GSE says growth in the subprime sector will be based on the performance of subprime products.

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

Mortgage Delinquencies Increase

The mortgage delinquency rate rose to 2.11 percent last quarter from 1.72 percent during the previous quarter, according to the Federal Reserve, and the increase is its highest level since the fourth quarter of 2002. Weak underwriting standards appear to be the culprit, considering there has been recent improvement in employment and incomes. According to the Fed, most of the losses involve subprime mortgages. The Mortgage Bankers Association reports that subprime mortgage loan delinquencies increased to 12.6 percent during the third quarter, up from 11.7 percent in the previous quarter, and that subprime mortgages accounted for about 20 percent of all new home loans in 2006.

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

Existing-Home Sales Up, Prices Down

The National Association of Realtors reports a 3-percent jump in existing-home sales to a seven-month high in January from the previous month, though resales were down 4.3 percent year-over-year. Meanwhile, the median price slipped 3.1 percent to $210,600 from $217,400 in January 2006, and the trade group believes the decline helped push buyers back into the market. NAR also reports a 2.9-percent increase in resale inventory to 3.55 million, equivalent to a 6.6-month supply. Regionally, existing-home sales surged 5.6 percent in the West and a more modest 2 percent in the South.

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