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MortgageChronicle.com Archives
week ended Jan. 8, 2010
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Market Improvement Prompts M.I. Update
An update was announced by United Guaranty in a bulletin. The mortgage insurance company said that more than 45 market are being removed form its declining market list. However, two markets are being added to the list.
FDIC Unloads $1 Billion in Loans
The Federal Deposit Insurance Corporation created a limited liability company to house distressed commercial mortgages from failed banks. More than 20 firms bid to acquire an interest in the LLC. The FDIC announced that Colony Capital Acquisitions LLC was the winning bidder.
Directors Depart, Join Mortgage Firms' Boards
Freddie Mac recently announced that Barbara T. Alexander will not seek re-election to the board of directors when her current term expires. George L. Argyros was nominated to serve on Pacific Mercantile Bancorp's board of directors, a statement said. Jonathan D. Mariner is leaving PHH Corp.'s board of directors, a news release last month indicated.
Bank CEOs, CFOs and CCOs
E*TRADE FINANCIAL Corp. announced that Robert Druskin replaced Don Layton as chairman and interim chief executive officer. Carrollton Bancorp announced that Mark A. Semanie was taking over as chief financial officer. City Bank announced that it named James Carroll as its new chief credit officer.
Service Providers Shake Up Boards, Management
Roslyn B. Payne resigned as a director of The First American Corp., the company said. Loan Value Group LLC announced Richard Santulli was elected chairman of the board. Dorado Corp. announced that Dave Parker was promoted to vice president, business development. Clayton Holdings LLC announced Edward S. Robertson was hired as managing director in charge of commercial real estate services.
Mortgage Jobs Creep Higher
During November, the number of people working in mortgage-related positions increased by 200, according to data from the U.S. Department of Labor. "Mortgage and nonmortgage loan brokers" accounted for all of the increase, the data indicated. "Real estate credit" employee count was unchanged.
Record HEL Delinquency as Overall Consumer Improves
Home-equity loan delinquency of at least 30 days increased 29 basis points from the second quarter to the third quarter, the American Bankers Association reported. It was an all-time high for HEL delinquency. Late payments on home-equity lines-of-credit also climbed to a new record. But ABA's composite ratio, which tracks eight categories of consumer loans, fell 12 BPS from the second quarter.
MetLife Nails Reverse Deal With Banks
MetLife Home Loans is offering a program to members of the American Bankers Association, according to a statement. The broker-correspondent program includes streamlined approval and "on-boarding process." Banks will reportedly have access to proprietary research, educational materials and dedicated account management.
Mortgage Market Shows Small Improvement
The average 30-year fixed-rate mortgage was down 5 basis points from the prior week in Freddie Mac's latest Primary Mortgage Market Survey. Freddie said the average 15-year fixed-rate mortgage was 4 BPS better. New loan applications edged up 1% on a seasonally adjusted basis in the Mortgage Bankers Association's latest Weekly Mortgage Applications Survey.
Victory for Wells in Baltimore
A federal judge granted Wells Fargo Bank, N.A.'s, motion to dismiss a lawsuit by the City of Baltimore. The city alleged that predatory and discriminatory lending practices by the bank harmed its property tax revenues. But the judge dismissed the suit, noting, "The city's allegations in the amended complaint of a causal connection between Wells Fargo's alleged misconduct and the damages the city claims is not plausible."
Foreclosure Legislative Update
States that adopted tough anti-predatory lending laws have lower delinquency and foreclosure rates than states without such laws, according to a recent study from the University of North Carolina's Center for Community Capital. New York's governor signed into law new legislation requiring 90-day pre-foreclosure notices and mandatory settlement conferences. A House Bill signed by Delaware's governor subjects loan modification companies in the state to the Mortgage Rescue Fraud Protection Act.
FHA Appraisal Changes Delayed
Enactment of Mortgagee Letter 2009-28, Appraiser Independence, will be delayed until Feb. 15, the U.S. Department of Housing and Urban Development recently advised mortgagees. The requirements were originally scheduled to go into effect on Jan. 1. "This extension will provide FHA and lenders additional time to adjust systems to accommodate the changes," the notice stated.
Bill Challenges Aspect of HVCC
The independence of appraisals as required by the Home Valuation Code of Conduct would become moot under provisions of HB 4173, the Wall Street Reform and Consumer Protection Act of 2009. The bill was approved by the House on Dec. 11. It will soon be brought up in the Senate -- although it currently is not on the Senate calendar, Sen. John Kerry's office told MortgageDaily.com.
Monthly Foreclosures Fall
During November, new foreclosure filings fell 9 percent from October, according to data released by HOPE NOW. The month-over-month improvement was fueled by fewer prime foreclosure starts. Total foreclosures completed fell 10 percent, HOPE NOW reported.
Reverse Activity Picks Up in December
U.S. reverse mortgage originations during December rose 7 percent from November, Reverse Market Insight reported. The improvement came after two consecutive months of declines. Still, business was slower than in December 2008.
Over 40 Conferences in Q1
The conference calendar at MortgageDaily.com indicates that 14 events are scheduled for the month of January. During February, the calendar indicates that 17 events are planned. Another 13 conventions and meetings are scheduled so far in March.
Last Year's Bankruptcies Exceeded 1.4 Million
During 2009, 1,407,788 consumer bankruptcies were filed, the American Bankruptcy Institute reported. Filings were nearly one-third higher than in 2008. The group noted than annual filings have risen every year since 2005.
HUD Publishes New RESPA Booklet
The U.S. Department of Housing and Urban Development said in a public filing that it has published Shopping for Your Home Loan - HUD's Settlement Cost Booklet. The new booklet is required under the Real Estate Settlement Procedures Act. Mortgage brokers and lenders are required to provide the booklet to prospective borrowers within three days of the loan application.
More Record Lows Ahead for MTA
The Monthly Treasury Average declined 1 basis point from November to December based on government data. It was the lowest level ever for the index. Based on recent one-year activity, the MTA might creep higher this month, then retreat to new record lows during the following few months before turning higher.
Service Providers Address RESPA, Reg Z Requirements
Numerous technology companies -- including LenderLive Network Inc.' Guardian Mortgage Documents Division and Cypress Software Systems -- have announced that their software has been upgraded and modified to fully comply with the new Real Estate Settlement Procedures Act regulations. Such upgraded software as Byte Software's BytePro 4.1 and Avista Solutions' Avista Agile can flag any changes in fees between the Good Faith Estimate and HUD-1 that are greater than those allowed under RESPA. The new Regulation Z would "significantly revise consumer disclosures" and some of its provisions "may increase costs unnecessarily unless they are revised," the Mortgage Bankers Association charged in letters to the Board of Governors of the Federal Reserve System.
Regulatory Actions Swell
The Federal Deposit Insurance Corporation reported that it processed 51 matters during Nov. -- including 34 cease-and-desist orders, nine civil money penalties and three prompt corrective action directives. Bank failures are often preceded by cease-and-desist orders, which were recently issued against 85 institutions by the FDIC, the Federal Reserve, the Office of the Comptroller of the Currency and the Office of Thrift Supervision. Formal agreements -- which can require conservation of capital, improvements to lending operations and compliance or a change in management -- were recently reached with 36 institutions.
Retention Packages for Senior Wells Execs
Wells Fargo & Co.'s board of directors has approved a $5 million retention package for Mark Oman, a news release Thursday indicated. Oman is head of Wells Fargo Home and Consumer Finance. Packages for three other senior executives were also approved.
Record Mortgage-Related Failures in 2009
During 2009, the closings of 225 mortgage-related operations were tracked at the Mortgage Graveyard -- a journal of failed lenders that is maintained by MortgageDaily.com. The number of closed firms jumped from a revised 124 in 2008. It was the worst year for the industry since MortgageDaily.com began tracking the data in 1998. The previous record was set in 2007.
Agency Issuance Higher
Fixed-rate issuance during 2009 at Fannie Mae, Freddie Mac and Ginnie Mae increased by more than half from 2008, according to data from eMBS. During just December, volume was up by more than a quarter. Monthly agency volume was 62 percent higher than December 2008.
COFI Spikes
The Cost of Funds Index increased 84 basis points between October and November, the Federal Home Loan Bank of San Francisco reported. November's COFI was the highest since January 2009. Compared to November 2008, hwoever, the index was down 106 BPS.
Modification Litigation Explodes
Ohio's attorney general filed a lawsuit against Barclays Capital Real Estate dba HomEq Servicing, according to court documents. The servicer is accused of issuing unfair loan modification agreements and providing inadequate, incompetent customer service to delinquent borrowers. In Pennsylvania, a lawsuit was filed against Foreclosure Awareness Inc. and its owner by the state's attorney general, according to an announcement. The company allegedly used deceptive and misleading advertisements and failed to provide promised services. A lawsuit was filed in on Nov. 24 against Loan Mod One LLC by Illinois's attorney general, a news release indicated. The firm allegedly targeted at-risk borrowers for up-front fees on modification services that were never performed.
Credit Union Regulator Seizing Lawsuit
The National Credit Union Administration said that it has made a court filing oust plaintiffs in a lawsuit against Western Corporate Federal Credit Union. The San Dimas, Calif., institution was placed in conservatorship by the NCUA during March. The current plaintiffs are seven credit unions who are members of the WesCorp.
Mortgage Insurance Performance Improves
The dollar volume of mortgage insurance written during November was up 2 percent from October, the Mortgage Insurance Companies of America reported. Primary insurance defaults eased 1 percent, according to MICA. It was the second consecutive month that defaults were down.
Cap Lifted on FHA Origination Fees
FHA origination fees are no longer limited to 1 percent, according to a mortgagee letter from the U.S. Department of Housing and Urban Development. But originators will still be monitored to ensure borrowers are not overcharged and fees remain "fair and reasonable." HUD said it intends to issue additional guidance about the limits.
1-Year Finishes 2009 Lower, 30-Year Higher
In Freddie Mac's Primary Mortgage Market Survey for the week ended Dec. 31, the average 30-year was 9 basis points worse than a week earlier. The 30-year was 4 BPS higher than at the beginning of the year. But the one-year adjustable-rate mortgage was 47 BPS better than it started the year.
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Consumer Group Takes on Broker YSPs
A consumer group is at odds with mortgage brokers over the use of yield spread premiums.
On Christmas Eve, the National Association of Mortgage Brokers said it issued a letter to the Federal Reserve Board asking for a delay in the implementation of a final rule that would prohibit broker compensation on closed-end mortgages based on the loan's terms or conditions.
The McLean, Va.-based trade group claims the rule doesn't fairly regulate all compensation for all types of mortgage originators.
MortgageDaily.com subscribers read full story
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Huge Broker Acquiring Wholesaler
A California mortgage broker with nearly $3 billion in annual originations announced a deal to acquire a wholesale lender.
The broker, First Priority Financial Corp., said in a news release yesterday that it reached an agreement to acquire privately held Austin Perry Financial Corp.
Terms of the transaction, which is expected to close by Dec. 31, weren't disclosed.
MortgageDaily.com subscribers read full story
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MD Firm Loses FHA Approval
The Federal Housing Administration announced the suspension of a Maryland mortgage broker over allegations of overcharging borrowers and failing to disclose yield spread premiums.
The agency said Equitable Trust Mortgage Corp. can no longer originate and underwrite FHA-insured mortgages.
The suspension will last a minimum of six months.
MortgageDaily.com subscribers read full story
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Firms Make Broker Compliance With HVCC Easier
As mortgage brokers continue to battle the Home Valuation Code of Conduct, one firm is addressing a concern by brokers about not being able to transfer appraisals. Another firm is providing a solution to communication between originators and appraisers.
The National Association of Mortgage Brokers issued a Nov. 6 statement highlighting a one-quarter increase in third-quarter property valuation fraud reported last month by Interthinx.
The brokers, who want the HVCC repealed, called the code "a failure."
MortgageDaily.com subscribers read full story
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Lower Fees for NAMB Members
A wholesale lender based in Washington is offering discounts to members of the National Association of Mortgage Brokers.
NAMB members will receive a $100 discount on NetMore America Inc.'s administration fees, an announcement today said.
Brokers must show that they are an active NAMB member or show that they join before Dec. 10.
MortgageDaily.com subscribers read full story
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