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June 27, 2008
Existing Home Sales May 08
Posted by S. Germain at 08:37 AM | Comments (0)
Revamp Appraisal Standards, Regulators Urged
Senate Banking Committee leaders are urging federal banking regulators to "wake up" and revamp their appraisal standards, instead of complaining about the changes Fannie Mae and Freddie Mac have agreed to implement under a settlement with New York Attorney General Andrew Cuomo. The bank agencies have a role in setting appraisal standards for lenders, committee Chairman Christopher J. Dodd, D-Conn., said during debate on a major housing reform bill. "However, the appraisal fraud over the past couple of years, and the attorney general's action, should serve as a wake-up call to the regulators that their appraisal standards must be revamped and their enforcement stepped up," Sen. Dodd said.
Posted by S. Germain at 08:32 AM | Comments (0)
Countrywide's Litigation Problems Growing
Countrywide Financial Corp.'s litigation problems are growing as California and Washington state officials filed separate complaints against the giant mortgage lender for its lending practices. California Attorney General Edmund G. "Jerry" Brown Jr. has sued Countrywide and its chairman Angelo Mozilo and president David Sambol for allegedly using deceptive practices to "push" borrower into complex, risky, and expensive loans they did not understand and could not afford so the company could sell as many loans as possible to Wall Street securitizers at the highest premiums.
Posted by S. Germain at 08:31 AM | Comments (0)
Litton Loan Servicing To Make Loan-Level Data Available
Litton Loan Servicing LP says that it has begun to make loan-level data available on more than $45 billion of mortgage loans for which it services. The information will be accessible at no cost at www.littonloan.com/dealinfo.
Litton will make available a wide range of data about the mortgage loans, including loan characteristics, payment information and status. The data will not include any personally identifiable information about mortgage loan borrowers, the company notes.
Posted by S. Germain at 08:29 AM | Comments (0)
Operation Malicious Mortgage Results In Over 400 Charged
The FBI have performed a national takedown of mortgage fraud schemes, the culmination of substantial coordinated efforts during the last three and a half months to identify, arrest and prosecute mortgage fraud violators through the U.S.
From March 1 to June 18, Operation Malicious Mortgage resulted in 144 mortgage fraud cases in which 406 defendants were charged. Last week, 60 arrests were made in mortgage fraud-related cases in 15 districts. The FBI estimates that approximately $1 billion in losses were inflicted by the mortgage fraud schemes employed in these cases.
Posted by S. Germain at 08:28 AM | Comments (0)
Cogent Road Launches AVAIL Prequalifying Service System
Cogent Road announced the launch of AVAIL, an automated system designed to enable mortgage originators to provide continuing mortgage-qualifying services to prospective borrowers. An extension of Cogent Road's Funding Suite, a credit management solution that manages costs and enhances customer retention during the loan origination process, AVAIL enables loan originators to more effectively establish and maintain contact with potential borrowers to create top-of-mind awareness among consumers, the company says.
Posted by S. Germain at 08:27 AM | Comments (0)
Interthinx Integrates MERS Data
Interthinx Inc. has integrated Mortgage Electronic Registration Systems Inc. (MERS) data into its FraudGUARD scoring system. According to the company, this data can help detect undisclosed properties, reveal investors claiming owner occupancy and uncover recently closed loans that could indicate a borrower's intent to commit mortgage fraud.
Posted by S. Germain at 08:26 AM | Comments (0)
Title Firm Adds Default Services Unit
Stewart Information Services Corp. has rolled out Stewart Default Services to provide loss mitigation and to insure vacant properties, among other foreclosure services. The services will be provided directly by the company in Arizona, California and Nevada; but it will offer them elsewhere in the country through an attorney network.
Posted by S. Germain at 08:23 AM | Comments (0)
Fed Holds Rate Steady as Inflation Worries Rise
The Federal Reserve on June 25 ended its aggressive campaign of interest rate cuts, holding its target for the federal-funds rate—charged on overnight loans between banks—at 2 percent. The decision to stand pat contrasts with recent actions by numerous central banks overseas that have begun hiking interest rates amid inflation concerns.
Posted by S. Germain at 08:22 AM | Comments (0)
Fiserv Goal: Find At-Risk Mortgages Before Default
Fiserv Inc.'s Prism and Home Retention Solutions suite is intended to help lenders curtail mortgage defaults by identifying borrowers who are making timely payments but could eventually fall behind. The Prism (Predictive Risk Index Score Modeling) tool monitors borrowers' credit ratings to identify customers who are current on their payments but whose credit scores are dropping. It also keeps track of the Case Shiller Home Price Index to identify weakening housing markets and takes into account property type, price and geographic area when recommending that lenders look at restructuring and other foreclosure alternatives.
Posted by S. Germain at 08:20 AM | Comments (0)
GMAC's $60 Billion Deal Loses Confidence as Mortgages Burn Cash
In May, banks led by JPMorgan Chase & Co. and Citigroup Inc. provided GMAC and its Residential Capital LLC mortgage unit with the largest restructuring package since the credit crisis began a year ago. Whether that is enough to survive the worst housing slump in decades and offset ResCap's mounting financial losses is unknown. The ResCap subsidiary was hit hard by the subprime mortgage debacle, losing more than $4.3 billion in 2007 and contributing to a $2.3 billion loss for its parent company. The unit must now come up with enough money to repay $3.5 billion of bonds and a $3.5 billion loan from GMAC in 2010.
Posted by S. Germain at 08:19 AM | Comments (0)
Alt-A Slips Again
None of the country's top 15 alternative-A lenders recorded an increase in business volume during the first quarter of 2008. Eight of the top lenders had declines of more than 80 percent--including Wells Fargo and Wachovia Mortgage, which had 99 percent declines in volume in the first quarter compared to a year ago. Bank of America had the highest dollar value, with a volume of $20.15 billion in alt-A lending in the first quarter. In the last three months of 2007, the top alt-A lenders saw volume decline an aggregate 87 percent.
Posted by S. Germain at 08:18 AM | Comments (0)
Freddie: No Restrictions for 3 Insurers
Freddie Mac will continue to do business with MGIC Investment, PMI Group and Radian Group, even though the mortgage insurers have been downgraded by the ratings agencies. The government-sponsored enterprise says it has reviewed their plans to regain double-A ratings from the credit agencies but adds that it could "rescind or modify" at any time its decision not to impose restrictions on the mortgage insurers.
Posted by S. Germain at 08:17 AM | Comments (0)
Servicer Offers a Deal to Banks Clinging to Assets
Residential Credit Solutions Inc. is a startup devoted to purchasing and servicing distressed mortgages, but its president, Dennis Stowe, says banks and lenders are hesitant to unload their assets as they weigh whether it is better to sell nonperforming assets at substantial discounts or hang onto them despite the likelihood of additional price declines. The firm could handle up to $6 billion in loans and services $1 billion currently, and Stowe points out that its loss mitigators handle only 125 cases each—far fewer than the 500 to 1,000 cases taken on by loss mitigators at many third-party servicing firms.
Posted by S. Germain at 08:16 AM | Comments (0)
June 20, 2008
Brit Insurance Employs First American's U.S. Flood Catastrophe Model
First American Spatial Solutions, a member of The First American Corporation (NYSE: FAF) family of companies and a leader in spatial and natural hazard risk solutions, announced today that it has licensed key components of its Advanced Flood Risk Solutions to the United Kingdom's Brit Insurance Holdings (Brit Insurance), a member of Lloyd's of London and an international insurer and underwriter of flood policies in the United States.
Posted by S. Germain at 08:27 AM | Comments (0)
Realserv to Service Over 150,000 of Nation's Real Estate Agents
The Economic Development Coalition for Asheville-Buncombe County (E.D.C.) and Realserv, L.L.C., announced today significant advances in product development and investment which will enable Realserv to service customers beginning with approximately 150,000 real estate agents around the country.
Bottom line results of Realserv's significant investment in research and development over the past three years include a state-of-the-art web-based platform that integrates the core systems used on a daily basis by real estate professionals. User benefits include single-point access to required forms, individual property reports, multiple listing services, transaction management, and connection to the world of service providers required for listings, sales, and property management transactions.
Posted by S. Germain at 08:22 AM | Comments (0)
FIS Announces Expected Record Date and Distribution Date for the Distribution of Lender Processing Services, Inc. (LPS) Stock to FIS Shareholders
Fidelity National Information Services, Inc. announced that it has set the record date and distribution date for the distribution of Lender Processing Services, Inc. (pending NYSE: LPS) common stock to FIS shareholders.
The distribution of LPS common stock will be made on July 1, 2008 to FIS shareholders of record as of June 24, 2008. Each FIS shareholder will receive one-half share of LPS common stock for every share of FIS common stock held as of the close of business on the record date noted above. Shareholders will receive a cash payment in lieu of any fractional shares.
Posted by S. Germain at 08:21 AM | Comments (0)
LandAmerica Introduces New Customer-Focused Operating Structure in Colorado
LandAmerica Financial Group, Inc. announces the implementation of an innovative new operating structure for its title insurance, escrow and closing services in Colorado.
Through this initiative entitled "The New Frontier," the traditional model, which relied on outside Sales Representatives and office-based Escrow Officers, evolves to one that combines those functions into the role of Account Manager and centralizes data-driven functions into fulfillment centers or "hubs." LandAmerica Account Managers will provide a higher level of local service by working out of home-based offices. The new model provides customers with increased personal interaction with title and closing professionals and a single point of contact for answers to questions and resolution of issues.
Posted by S. Germain at 08:19 AM | Comments (0)
DataTrac Expands Open Platform to Include Pricing, Eligibility, and AUS Providers
Del Mar DataTrac®, Inc. has expanded its open platform approach and is now integrating with leading providers in the product and pricing eligibility (PPE) and automated underwriting space, and has decided to discontinue its PPE solution, PriceTrac. Del Mar DataTrac provides solutions that empower small- and medium-sized mortgage bankers to deliver extraordinary customer service and drive up production while reducing risk, increasing productivity and streamlining their overall efficiency.
Posted by S. Germain at 08:18 AM | Comments (0)
Wells Fargo Funding Authorizes Wave Systems' eDisclosure Solution for Its Mortgage Correspondents
Wave Systems Corp. announced that its eSign Transaction Management Suite (eTMS) has been authorized by Wells Fargo & Co.’s mortgage division for use by its correspondent lenders as an eDisclosure solution. Wells Fargo’s correspondents that have received approval to deliver electronic disclosures may elect to use the SmartSigning Room and SmartSignature applications to streamline electronic mortgage disclosures and help secure customer commitment early in the lending process.
Posted by S. Germain at 08:17 AM | Comments (0)
FHA Lessons 90-Day Rule to Help Lenders Sell REOs
Lenders will no longer find themselves struggling with the Federal Housing Administration's (FHA) 90-day rule, which prevents sellers who have owned a property for less than 90-days from offloading a home to a buyer who intends to be insured by the FHA.
While the FHA implemented this rule to prevent the practice of flipping in the otherwise safe FHA-insured atmosphere, lenders who are trying desperately to remove distressed properties from their books have been unable to seize the day with qualified borrowers because of the three-month waiting period.
Posted by S. Germain at 08:13 AM | Comments (0)
WaMu Drops Ax Again, Cuts 1,200 Jobs
Washington Mutual plans to lay off workers in its mortgage business as part of a new round of job cuts that will impact 1,200 employees across the board. The Seattle-based company has already eliminated more than 3,500 jobs this year.
Posted by S. Germain at 08:09 AM | Comments (0)
Investment in U.S. Commercial Real Estate Falls 70 Percent
Banks continued to clutch their purse strings during the first quarter of 2008, contributing to a 70-percent slide in U.S. commercial property investment. According to the National Association of Realtors, investor commitment to commercial real estate during the January-through-March period sank to $48.2 billion from $157.8 billion a year earlier.
Posted by S. Germain at 08:07 AM | Comments (0)
Countrywide Will Rework $16B in Mortgages
Countrywide Financial plans to restructure or refinance $16 billion in adjustable-rate mortgages that have recently reset higher or that will reset by the end of 2009. The program is set up primarily to help borrowers with subprime credit who have continued to pay on time; and they will have an opportunity to refinance into a lower-interest prime loan or a mortgage insured by the Federal Housing Administration, Fannie Mae or Freddie Mac.
Posted by S. Germain at 08:06 AM | Comments (0)
New Products, Approaches as Firms Feel Burned by FICO
Fair Isaac Corp. and the credit bureaus have rolled out numerous products to provide lenders and investors with alternatives to the FICO score in assessing borrowers' default risk. The Credit Capacity Index from Fair Isaac gauges how well borrowers manage incremental debt, while Trend Data from TransUnion gauges the performance of loan portfolios when specific variables and regional economic indicators are factored in.
Posted by S. Germain at 08:05 AM | Comments (0)
GSE to Servicers: Help Flood Victims
Freddie Mac will provide mortgage relief to homeowners who have been affected by the recent floods in the Midwest. Loan servicers have been instructed by the federally chartered company to use their discretion on how to assist borrowers with home loans owned by Freddie Mac, such as by reducing or suspending mortgage payments for up to 12 months. Freddie Mac will also allow servicers to waive penalties or late fees and suspend foreclosure and eviction proceedings for as long as a year.
Posted by S. Germain at 08:01 AM | Comments (0)
June 13, 2008
Equifax, Fair Isaac Call Off FICO War
Equifax and Fair Isaac have ended their war over FICO 08 and VantageScore. When FICO 08 was introduced earlier this year, Equifax said it was not ready to support the product because Fair Isaac was suing it over VantageScore. But the two companies in a joint statement said they are now forming a partnership to develop and sell advanced analytics and scoring solutions for businesses and consumers.
Posted by S. Germain at 08:23 AM | Comments (0)
Company Rolls Out New Reverse LOS
Reverse Mortgage Solutions, Spring, Texas, has rolled out RM Compass, a loan origination system that it called the first front-end product built from the ground up specifically for the reverse mortgage origination process. RM Compass, an Internet-based Application Service Provider software system, is designed for both established reverse mortgage originators and new players, the company added.
Posted by S. Germain at 08:22 AM | Comments (0)
Stewart Title of California Lowers Base Title Insurance Rates
Effective immediately, Stewart Title of California, Inc. has reduced its base title insurance rates. The new rates have been approved by the California Department of Insurance and will make purchasing a home more affordable for consumers. Escrow rates are not affected by this filing and will continue to be determined on a county-by-county basis.
Posted by S. Germain at 08:20 AM | Comments (0)
Stewart(R) Announces the Formation of Stewart Global Solutions
Stewart Real Estate Information (REI) Group, Inc., is pleased to announce the formation of Stewart Global Solutions, created for the purpose of pursuing international land administration and modernization projects in emerging markets
Stewart has participated in overseas title and project activity for many years. The formation of this entity for the targeted pursuit of large global land projects is a first for the Stewart REI Group.
Posted by S. Germain at 08:19 AM | Comments (0)
Xerox Simplifies Loan Process with Electronic Signature
Xerox Mortgage Services has added e-signature – a secure and convenient way to complete mortgage loans without having to sign hardcopy documents. This enhancement builds upon Xerox’s (NYSE: XRX - News) current Web-based BlitzDocs® Collaboration Suite that uniquely supports paper, imaged and electronic loan documents.
Posted by S. Germain at 08:16 AM | Comments (0)
StoneWater Mortgage Selects Guardian Mortgage Documents
StoneWater Mortgage, a new national wholesale lender, has selected Guardian Mortgage Documents as its partner for providing an automated document preparation system and related professional services. StoneWater's proprietary mortgage banking platform, H2Online, will use Web services to leverage seamless data transfer into GMD's system for fully automated loan document generation.
Posted by S. Germain at 08:13 AM | Comments (0)
Zaio To Provide Services To Virginia DOT
Zaio Inc. has entered into a contract with the Virginia Department of Transportation (VDOT) to provide technology and customized appraisal services. VDOT, among other things, is responsible for real estate related to building, maintaining and operating the state's roads, bridges and tunnels. Through the Commonwealth Transportation Board, it provides funding for airports, seaports, rail and public transportation.
Posted by S. Germain at 08:12 AM | Comments (0)
Is BofA-Countrywide Deal Bad News for FIS?
Fidelity National Information Services (FIS), Inc. could be facing a loss in business when Bank of America (BofA) and Countrywide Financial Corp. complete their merger later this year.
In a recent filing with the Securities & Exchange Commission (SEC), FIS said its subsidiary Lender Processing Services (LPS), Inc. stands to lose business with Bank of America announcing the possibility that it will consider no longer using the mortgage processing and appraisal services now provided by LPS after its merger with Countrywide. FIS says BofA is leaning towards handling those particular functions in-house.
In the filing, FIS added, “These services together generated approximately 1.4-percent of FIS consolidated and 4-percent of LPS revenue in 2007. If this decision becomes final, the Company anticipates that a mortgage processing conversion would take from 12 to 30 months after completion of the merger.”
Posted by S. Germain at 08:10 AM | Comments (0)
Exponential Growth Prompts MCS to Outsource
Mortgage Contracting Services (MCS), a property preservation and inspection services provider, says increased demand for the company’s services has prompted the organization to begin outsourcing some of its accounting and support functions.
Leaders at MCS say business is booming with the company experiencing 80-percent growth last year alone. With more business from top mortgage industry clients, MCS is turning to outsourcing to streamline the platform’s work flow and expenses. About eight-percent of the company’s work is now outsourced.
Posted by S. Germain at 08:09 AM | Comments (0)
OCC Study: Subprime Accounted for 43% of Workouts in March
Between October 2007 and March, the foreclosure rate grew from 0.9 percent to 1.23 percent, according t the Office of the Comptroller Currency (OCC), which focused on mortgage delinquencies, workouts, and foreclosures that are serviced by nine national banks.
When it came to loss mit, at the end of March, it was subprime mortgages that accounted for 43 percent of workouts. The popular workout solutions: payment plans superseded loan modifications in March, outnumbering by more than four to one.
Posted by S. Germain at 08:08 AM | Comments (0)
Visionet Ups the Ante, Expands India BPO Operations
Visionet Systems, an end-to-end BPO provider that offers services to banks and title companies, is growing its business process outsourcing (BPO) operations by opening a new location in Bangalore, India.
According to a company release, Visionet says their growth comes from the areas of high cost lending auditing, tax searches, title policy production, lien release, loan boarding, and repurchase management.
Posted by S. Germain at 08:07 AM | Comments (0)
Freddie Is Seeing 'Dramatic' Growth in Repossessions
Ingrid Beckles, Freddie Mac's vice president of servicing and asset management, reports that the government-sponsored enterprise's volume of repossessed properties "is rising quite dramatically" and could double this year as it did in 2007. She adds that the GSE is starting several aggressive loss-mitigation programs to modify loans for borrowers that its servicers have been unsuccessful in contacting.
Posted by S. Germain at 08:05 AM | Comments (0)
NAR: HUD Underestimates RESPA Reform Costs
A recent study funded by the National Association of Realtors and conducted by economist Ann Schnare finds that HUD's proposal to revise the Real Estate Settlement Procedures Act to require new good-faith estimate forms and permit packaged settlement services would actually boost loan costs by about $413-- rather than save $700 per loan, as the agency claims. According to Schnare, it is reasonable to estimate 2.7 to 3.4 good-faith estimates would be prepared for every loan, versus HUD's projection of 1.7. Additionally, the study says application processing and tracking would add up to $89 per loan, interest-rate locks would add $272 for $200,000 mortgages and other underwriting costs would add $52.
Posted by S. Germain at 08:03 AM | Comments (0)
Nat'l City Agrees to Oversight
National City reportedly is on probation, agreeing to a "memorandum of understanding" with the Office of the Comptroller of the Currency. Submitting to stricter federal oversight could mean capital levels at the nation's 10th largest bank have dropped under the minimum required level, according to observers. The mortgage crisis has hit the bank hard, forcing it to obtain a $7 billion capital infusion from equity investors in May.
Posted by S. Germain at 08:01 AM | Comments (0)
June 06, 2008
First American Awarded Four-Year Contract with U.S. Small Business
The First American Corporation announced today that its First American Federal Solutions subsidiary has been awarded a prime contract in support of the Small Business Administration (SBA) Title Company Initiative, a key program sponsored by the SBA Office of Disaster Assistance. First American was selected by the SBA for its comprehensive portfolio of property information that enables the SBA to quickly assist victims during disasters.
Posted by S. Germain at 08:32 AM | Comments (0)
Fidelity National Financial to sell 20% of ownership stake in Sedgwick CMS
Fidelity National Financial Inc. Thursday said it is selling 20% of its ownership stake in Sedgwick CMS to UnitedHealth Group Inc.
Posted by S. Germain at 08:31 AM | Comments (0)
Preston Confirmed as HUD Chief
The Senate has confirmed Steven Preston to be the new secretary of the Department of Housing and Urban Development as the agency steps up its efforts to help struggling homeowners and tries to finalize a RESPA proposal before year's end.
Posted by S. Germain at 08:29 AM | Comments (0)
QuestSoft, Loan Energizer Enhanced Full Integration, Simplify Compliance for Lenders
QuestSoft announced that the company’s Compliance EAGLE, an end-to-end, fully automated compliance review system, has been integrated into Loan Energizer™. Loan Energizer is a loan origination system (LOS) designed by Encino, Calif.-based Management Systems Development, Inc. that provides complete underwriting and closing support for brokers and lenders of any size.
Posted by S. Germain at 08:28 AM | Comments (0)
FirstClose(TM) Launches Private Real Estate Auction Sites
FirstClose announced that it has launched private real estate auction sites in tandem with strategic partner investor groups ready to purchase Real Estate Owned (REO) and Short Sale properties from lending institutions. With over $300 Billion in available investor funds and over $3 Billion per month required to be invested, the Auction Sites offer an immediate solution for lenders desiring to sell properties.
Posted by S. Germain at 08:27 AM | Comments (0)
Stewart Title Guaranty Company Makes Deposit in Carver State Bank of Savannah to Seed Community Development in Minority Neighborhoods
Stewart Title Guaranty Company made a $100,000 deposit with Carver State Bank of Savannah, a minority-African American owned community bank in Savannah, Georgia. As a global real estate settlement services provider driven by sound investments, Stewart officials know that the real benefit will not be realized in just dollars and cents. This deposit will assist in the growth of small business opportunities in the vibrant Savannah market and promote higher levels of minority homeownership.
Posted by S. Germain at 08:26 AM | Comments (0)
FNC(R) Technology to Help Fannie Mae Streamline Appraisal-Related Processes
Fannie Mae is using FNC systems to mitigate risk and streamline its appraisal-related processes.
Fannie Mae began using the CMS to streamline its foreclosure appraisal processes in two of its divisions: the National Property Disposition Center (NPDC) and the National Underwriting Center (NUC), both in Dallas.
Both the NPDC, which processes more than 10,000 appraisals per month, and the NUC, which processes about 1,000 appraisals per month, are concerned about mitigating risk associated with fraud, according to John Scott, FNC's director of alliance sales.
Posted by S. Germain at 08:25 AM | Comments (0)
Nationwide Title Clearing Introduces ExpressRetrieval.com Online Service
Nationwide Title Clearing Inc. has launched ExpressRetrieval.com, an online service that allows mortgage industry professionals to place orders for research and retrieval of recorded real estate documents nationwide. According to the company, ExpressRetrieval.com allows users to order hard-to-find documents for any recording jurisdiction nationwide, one at a time or in bulk, and for a reasonable and predictable rate.
Posted by S. Germain at 08:19 AM | Comments (0)
Franklin Credit Signs Servicing Agreement
Franklin Credit Management entered into various agreements to service approximately $245 million in residential home equity line of credit mortgage loans for Bosco Credit LLC, which is owned and controlled by Thomas J. Axon, chairman of Franklin Credit. The loans that are subject to the loan servicing agreement were acquired by Bosco on May 28, the firm adds.
Posted by S. Germain at 08:18 AM | Comments (0)
Cogent Road Incorporates IRS Data In Funding Suite
Cogent Road has launched a new feature in Funding Suite, its credit management platform, that enables loan originators to quickly and securely retrieve borrowers' tax documents online from the Internal Revenue Service (IRS).
Posted by S. Germain at 08:17 AM | Comments (0)
Delinquency Rate for Mortgage Loans Increases 53-Basis Points
The delinquency rate for mortgage loans on one-to-four unit residential properties rose 53-basis points between the fourth quarter of 2007 and the first quarter of 2008 to reach a rate of 6.35-percent of all loans in delinquency on a seasonally-adjusted basis, according to the MBA's latest National Delinquency Survey. The MBA says the delinquency rate also is up 151-basis points when compared to a year ago.
Posted by S. Germain at 08:14 AM | Comments (0)
Bank of America Gets Federal Reserve's Approval to Buy Countrywide
Bank of America Corp.'s acquisition of Countrywide Financial Corp. has been given the green light by the Federal Reserve, and the deal is now expected to be finalized in the third quarter. Once the deal closes, Bank of America will control 10.9 percent of the nation's insured bank deposits, or $773.4 billion. The all-stock deal will cost the company approximately $4 billion.
Posted by S. Germain at 08:12 AM | Comments (0)
First Horizon Sells Mortgage Biz to MetLife
First Tennessee Bank National Association has agreed to sell more than 230 retail and wholesale offices across the country to MetLife Bank N.A., a unit of MetLife Inc. The deal, which is expected to close by the end of September, enables the First Horizon National Corp. subsidiary to sell its entire mortgage business outside of the state and retain its 21 mortgage offices in and around Tennessee.
Posted by S. Germain at 08:11 AM | Comments (0)
Fremont and Litton Close Deal
In response to an order from the Federal Deposit Insurance Corp. to either generate capital or put itself up for sale, Fremont General Corp. says Litton Loan Servicing LP has purchased the last of its servicing rights on $12.2 billion in mortgages. In April, CapitalSource Inc. agreed to purchase the troubled subprime mortgage lender's branches, deposits and other assets.
Posted by S. Germain at 08:10 AM | Comments (0)
Fed Chairman Signals an End to Interest Rate Cuts Amid Concerns About Inflation
The Federal Reserve is unlikely to continue to cut interest rates due to concerns about inflation, Chairman Ben Bernanke suggested during remarks delivered via satellite to an international monetary conference in Barcelona, Spain. "For now policy seems well positioned to promote moderate growth and price stability over time," said Bernanke in his June 3 comments.
Posted by S. Germain at 08:09 AM | Comments (0)
Wachovia CEO Forced Out
Wachovia has fired CEO Ken Thompson less than a month after relieving him of his position as chairman. The board ousted Thompson as Wachovia continues to struggle with its widening losses linked to its acquisition of troubled Golden West Financial, and there is speculation that the company could deliver more bad news or might be taken over.
Posted by S. Germain at 08:08 AM | Comments (0)
7 Percent April Workout Increase
The HOPE NOW Alliance reports a 7-percent jump in mortgage workouts to 183,000 in April from the prior month. Principal reductions and other such modifications occurred with 77,000 of the loans, while others had late payments added to the end of the loan or saw other modest changes. The report also reveals that 9,000 homeowners received a five-year interest-rate freeze. Over the past 10 months, 1.6 million workouts have been performed.
Posted by S. Germain at 08:05 AM | Comments (0)