Mortgage Wire articles from July 2002

Mortgage Wire articles from July 2002

Building Business: A couple of ideas on how brokers can add customers.
July 1, 2002 ... Just a couple of thoughts that mortgage brokers should consider when looking to build up business. The first comes from a press release from an investment advisory firm, Strong Capital Management of Milwaukee. Strong Capital notes that Americans refinanced $1.2 trillion last year (much...

The Modification Mystery: The GSEs' new modification mortgage programs could take refi business out of your pocket.
July 1, 2002 ... It could be one of the biggest threats to the survival of the mortgage broker industry, or it could be just a minor nuisance, costing the broker some market share. It is the modifiable mortgage product that is being offered by both Fannie Mae and Freddie Mac. There is at least one...

No More Refi Booms for Brokers?
July 1, 2002 ... The following was part of a roundtable discussion held at the Foundation Marketing Turn On Your Million Dollar Brain seminar in San Antonio. More excerpts were printed in the April/May 2002 issue of Broker. Speaking are: Todd White, senior vice president, loan production manager,...

Subprime: What Needs to Happen: Our panel at the National Home Equity Mortgage Association Convention in Boca Raton addresses abuses and doing business with brokers.
July 1, 2002 ... MARK: How do you feel about Secretary Martinez' recent pronouncements that's he going to do a thorough overhaul of RESPA with consumer priorities in mind, and the more recent one that he's not going to require any broker-specific disclosures? JOE: There have been several different...

The Need For Better Brokers.
July 1, 2002 ... RICH: It's not difficult to become a broker. If you have a savvy (loan offier) that understands the process to some manner, they feel they can become a broker and run their own business, without understanding the whole process. LEW: The consumer doesn't do their homework on whether they...

New Century Enters $2.8 Bil Loan Deal.
July 1, 2002 ... New Century Financial Corp.'s secondary marketing subsidiary NC Capital Corp. has entered into forward loan sale commitments totaling $2.8 billion with Morgan Stanley, CS First Boston, Bank of America and Deutsche Bank. The company said it will sell a "substantial portion" of its ...

ARIT Executive Is Optimistic Despite Earnings Challenge.
July 1, 2002 ... American Residential Investment Trust Inc. here is very ecstatic about the progress it is making with the establishment of its new conforming wholesale mortgage banking operation, American Mortgage Network. The new unit, known as AmNet for short, funded $368.9 million during the first...

Charter One Hires VA Wholesale AE.
July 1, 2002 ... Charter One Mortgage Corp. has appointed Teresa Borden Howell as an account executive for wholesale lending in the state of Virginia. She joins the company from GE Mortgage Insurance Corp., where she served as an account manager, overseeing the company's insurance relationships in...

Two New Appointees Join National City.
July 1, 2002 ... National City Corp. has made two new appointments to its nationwide home equity unit. Todd D. Crisman has been named as Midwest regional sales manager and James K. Kleyweg has been named as a wholesale account executive. Mr. Crisman will oversee all of the recruiting, hiring and ...

Simon Terror Policies Cover GMAC Dispute.
July 1, 2002 ... Simon Property Group has purchased two standalone terrorism insurance policies from Lexington Insurance Company, a subsidiary of American International Group, each with an aggregate limit of $100 million, the retail Real Estate Investment Trust has reported. One policy will insure the...

Bringing More Customers In: It takes bait, marketing knowhow and a willing target to be successful.
July 2, 2002 ... The chief strategy officer and chairman of Domania, Steven Kropper, compared lead generation to being like the Pied Piper. To bring the customer in, the originator has to use something for bait, for example, information. The originator should talk about things likes schools, crime and ...

Premium Show Provides Latest Ideas for Branding.
July 2, 2002 ... Looking for a unique way to have your name stick in your customer's memories - try Silly Putty. The maker of the product, Binney & Smith, Easton, Pa., will print your company's name on the outside of the Silly Putty egg, as well as print a custom note inside. This was one of the many...

Warning to Mortgage Brokers: Are you making these colossal mistakes in your business?
July 2, 2002 ... As a mortgage broker, company owner and marketing expert responsible for generating large amounts of loan customers for over 15 years, I've discovered that most mortgage professionals make the same mistakes in their advertising. Here are the most common ones, with tips on how to avoid...

At the Top Of the Ladder.
July 2, 2002 ... 2001 was the best year ever for originations. But even with the volumes at an all-time high, one leading broker is making more time for the other things in life. Top producer Jeff Lake says, 2001 was a gift from God. As a professional loan originator, you really did not have to do more...

Age No Barrier for Top Woman Producer.
July 2, 2002 ... The top woman mortgage originator on the list, Janel A. Jordan, has made a fast climb in the industry. At age 27, she has made it to the top ranks of her profession in just five years. She went to work as a receptionist, answering phones in a mortgage company after graduating college...

Commercial Originations Fell Year-to-Year in the 1st Quarter.
July 2, 2002 ... The volume of new commercial mortgage originations fell on a year- to-year basis during the first quarter of 2002, according to a survey conducted by the Mortgage Bankers Association of America. The total reported commitments during the first quarter of the year were $12.4 billion. The...

TPO to Boost MF at RMCC.
July 2, 2002 ... M. Robert Goldman & Co. of New Jersey has entered into a correspondent relationship with Reilly Mortgage Capital Corp. This will allow the mortgage banker to "more effectively compete for multifamily loans" MRG believes. Reilly Mortgage, as a Fannie Mae Delegated Underwriting and ...

S&P Lowers Ratings On 2 CMBS Classes.
July 2, 2002 ... Standard & Poor's last month lowered its ratings on class E and F of Prudential Securities Secured Financing Corp.'s commercial mortgage pass- through certificates series 1995-C1. The lowered ratings reflect cumulative unpaid interest shortfalls in the amount of $299,637 and $190,326,...

LendingApps Releases New Tech.
July 2, 2002 ... LendingApps, a software provider for the commercial mortgage industry, has released a new version of its underwriting software aimed at smaller companies. LoanSizer Broker Express 1.0 desktop underwriting software is the "lite" version of the company's LoanSizer Broker Pro software...

Column Financial Expands into Western Canada.
July 2, 2002 ... The Canadian subsidiary of United States commercial mortgage conduit Column Financial Inc. has expanded into Western Canada and opened a new office in Vancouver. Rob Reichelt has been named business development officer at the new office, which will focus primarily on sourcing and...

Commercial Originations Fell Year-to-Year in the 1st Quarter.
July 3, 2002 ... The volume of new commercial mortgage originations fell on a year- to-year basis during the first quarter of 2002, according to a survey conducted by the Mortgage Bankers Association of America. The total reported commitments during the first quarter of the year were $12.4 billion. The...

TPO to Boost MF at RMCC.
July 3, 2002 ... M. Robert Goldman & Co. of New Jersey has entered into a correspondent relationship with Reilly Mortgage Capital Corp. This will allow the mortgage banker to "more effectively compete for multifamily loans" MRG believes. Reilly Mortgage, as a Fannie Mae Delegated Underwriting and ...

S&P Lowers Ratings On 2 CMBS Classes.
July 3, 2002 ... Standard & Poor's last month lowered its ratings on class E and F of Prudential Securities Secured Financing Corp.'s commercial mortgage pass- through certificates series 1995-C1. The lowered ratings reflect cumulative unpaid interest shortfalls in the amount of $299,637 and $190,326,...

LendingApps Releases New Tech.
July 3, 2002 ... LendingApps, a software provider for the commercial mortgage industry, has released a new version of its underwriting software aimed at smaller companies. LoanSizer Broker Express 1.0 desktop underwriting software is the "lite" version of the company's LoanSizer Broker Pro software...

Column Financial Expands into Western Canada.
July 3, 2002 ... The Canadian subsidiary of United States commercial mortgage conduit Column Financial Inc. has expanded into Western Canada and opened a new office in Vancouver. Rob Reichelt has been named business development officer at the new office, which will focus primarily on sourcing and...

Freddie Tightens Underwriting Rules.
July 3, 2002 ... Freddie Mac has instructed lenders to be more cautious in underwriting would-be borrowers who have been late with their housing payments. The big secondary market company also has re-instituted limits on the number of financed investment properties any one borrower can own. ...

Fannie Hikes Forecast to $1.75 Trillion.
July 3, 2002 ... Fannie Mae's chief economist now expects mortgage origination volume to reach $1.75 trillion this year, a level that would eclipse every year in history except the record shattering 2001 volume of just over $2 trillion. Moreover, he's not alone. Other housing economists have been ...

NAB Settles with Ex-HS Execs for $4.65MM.
July 3, 2002 ... National Australia Bank here has settled an arbitration claim filed against it by three former top executives of HomeSide Lending, Jacksonville, Fla. The three former officials - chief executive Hugh Harris, president Kevin Race and chief financial officer Blake Wilson - will receive...

People.
July 3, 2002 ... MORTGAGE BANKING CALIFORNIA Agoura Hills- Tom Stannard has been appointed as vice president of sales and marketing at Lenders Financial Services, a provider of default-related outsource management services to the banking and mortgage industries. Mr. Stannard will serve the company...

AHMH Amends Plan To Buy Valley Bancorp.
July 3, 2002 ... American Home Mortgage Holdings Inc. announced it has filed an amended application with the Office of Thrift Supervision for its proposed purchase of Valley Bancorp, Hunt Valley, Md. Valley is a thrift holding company whose subsidiary is Valley Bank of Maryland, Owings Mills, Md. The...

Servicing Income Lifts Thrift Industry's Earnings.
July 8, 2002 ... Thrifts finally got a boost from their servicing portfolios to post record earnings of $3.05 billion in the first quarter, up 4% from the fourth quarter. The Office of Thrift Supervision reported that servicing fee income totaled $135.3 million in the first quarter, compared to a $961.7...

Home Purchase, Underserved Markets Help Lenders Cope with Falling Refis.
July 8, 2002 ... The top mortgage originators feel that they can make up for the decline in refinancings by aggressively growing home purchase business, improving their customer retention and going after underserved markets. These were the findings of a survey commissioned by the marketing firm of...

Household Facing Investigations, Lawsuits in Washington State.
July 8, 2002 ... Subsidiaries of Household International are once again being sued by borrowers and investigated by state government agencies. This time it's in Washington state, and the subsidiaries are Household Finance Corp., Household Realty Corp. and Beneficial Mortgage Corp. Robert Parlette, a...

Freddie Mac Offers Larger, More Liquid Callable Notes.
July 8, 2002 ... Freddie Mac has redefined its callable note offerings by issuing what it describes as "larger, more liquid securities on an investor- demand basis." The GSE said that going forward, these issues will have a minimum size of $1 billion, a target size of $2 billion and will be offered no ...

Freddie Mac Opts to Reduce Minimum Size For Its Periodic Repurchase of Notes.
July 8, 2002 ... Freddie Mac, McLean, Va., has reported that it will modify eligible amounts for its periodic repurchase operations by reducing minimum issue sizes following repurchase operations. For Reference Notes, the minimum has been reduced from the greater of 80% of the issue size (prior to any...

Bridger Does $1 Billion+.
July 8, 2002 ... Although the commercial mortgage-backed securities industry's production in 2002 was trailing that seen in 2001 at press time, originator Bridger Commercial Funding has been able to surpass the $1 billion mark in commercial mortgage- backed securities loan fundings, the company reported...

'Negative' Pressure on Freddie Mac's Retained Portfolio.
July 8, 2002 ... Freddie Mac is likely to show "negative" retained portfolio growth in the short-term, said Vaughn Clarke, the agency's executive vice president and chief financial officer in its recent quarterly earnings conference call. "We are currently seeing fewer attractive mortgage investment ...

Fannie Earnings Grow, But Increase Is Slowed by FAS 133.
July 8, 2002 ... Fannie Mae - for the first time since it started reporting under Financial Accounting Standard 133 - has announced a lower net income, attributing it to interest rate volatility and how it accounts for its hedging vehicles under the standard. Operating net income for the first quarter...

California Prices Hit New Quarterly High As They Rise 19%.
July 8, 2002 ... The median price of an existing, single-family detached home in California hit a new record during the first quarter of 2002, rising 19.1% to $295,130, according to a joint report by the California Association of Realtors, and Real Estate Solutions, a real estate information service. ...

Golden State Too Rich for Growing Number.
July 8, 2002 ... The percentage of households in California able to afford a median- priced home decreased by 5% in March year-to-year, according to the California Association of Realtors. CAR's March Housing Affordability Index stood at 29%, down five points from 34% in March 2001. The March HAI...

Underwriting Technology: "Lite" Version of LoanSizer Released.
July 9, 2002 ... LendingApps, Los Angeles, a software provider for the commercial mortgage industry, has released a new version of its underwriting software aimed at smaller companies. LoanSizer Broker Express 1.0 desktop underwriting software is the "lite" version of the company's LoanSizer Broker...

GSE Technology: Freddie Upgrades Gold Cash.
July 9, 2002 ... Freddie Mac, McLean, Virginia, is making prices available via the Internet to mortgage lenders that want to sell loans to the GSE for cash. Freddie's Gold Cash pricing tool provides seller/servicers access to pricing for fixed- and adjustable-rate products, and related...

Collateral Valuation Technology.
July 9, 2002 ... In a move the participants say will give lenders quicker turnaround times, FNC Inc., Oxford, Miss., and North American Title Co. have formed a strategic alliance. FNC, a firm that provides collateral information infrastructure for lenders, made the announcement, saying the alliance...

The Technology Behind The Call Center: The technology that runs the modern telephone call center is capable of reaching out to find borrowers anywhere they may be. We mean anywhere.
July 9, 2002 ... Mention call centers and people will cringe, their heads filling up with visions of incessant telemarketers who hawk delivered groceries, insurance for your credit cards and building supplies, usually at dinnertime. But the call center has come a long way from those humble beginnings. Gone...

Lender and WTC Owner Settle Lawsuit over Insurance.
July 9, 2002 ... The lawsuit filed by GMACCM against Silverstein Properties relating to the use of business interruption insurance payments on the World Trade Center properties has been resolved. Silverstein Properties said that under the settlement, GMAC "will make funds available from business...

Fitch Expects More CMBS Downgrades.
July 9, 2002 ... Commercial mortgage-backed securities with retail, hotel and health care collateral are expected to see increasing delinquencies this year, according to Fitch Ratings. Fitch said that transactions with high concentrations of these properties may be downgraded as a result. Fitch also...

Offering Credit Unions an Edge: Prime Alliance: Credit unions have plenty to gain by offering mortgages to their members. Now they have the tools to do it.
July 9, 2002 ... Fannie Mae figures show that the number of mortgages originated by credit unions jumped from $4.3 billion to $20.6 billion between 1990 and 2000. However, with 60% of credit union members owning their own homes, less than a tenth of those same members got their mortgages through their...

Leveling The Playing Field.
July 9, 2002 ... Though individual credit unions may not be able to compete head-to- head with mortgage brokers and lenders for purchase business, Prime Alliance expects to disprove those who say technology only favors the big players. In that fight it is not alone; rival CUNA Mutual Mortgage, Madison,...

Capital at GSEs Passes 1st Test.
July 9, 2002 ... Fannie Mae and Freddie Mac easily passed their first risk-based capital test - mainly due to their hedging activities and use of derivatives. The Office of Federal Housing Enterprise Oversight, the two's regulator, applied the new RBC test to their first-quarter results even though...

House Prices On the Bubble.
July 9, 2002 ... Housing prices in three markets - Boston, San Diego and Fort Lauderdale - have increased to a level that cannot be sustained, according to a new economic yardstick designed to help builders, lenders and investors determine which parts of the country are overheated and in danger of...

City Wins Ordinance Fight.
July 10, 2002 ... The American Financial Services Association plans to appeal an Alameda County Superior Court judge ruling upholding Oakland's right to enforce an anti-predatory lending ordinance. Judge James A. Richman ruled the ordinance was not pre-empted by state law, said the Oakland City...

ABN Widens OneFee Use.
July 10, 2002 ... The management of ABN Amro Mortgage Group Inc. here has seen the future of the mortgage business and believes it to be one all-in cost disclosed to the consumer. Giving the customer one single price for a mortgage has been part of the discussions in Real Estate Settlement and Procedures Act...

Ask the Experts: The nation's best sales people on the industry's hottest issues.
July 10, 2002 ... This month's question: Who is the best mortgage originator you have ever known and why? Rob Reid, President, RMR Princeton Capital Los Gatos, CA It is a tough one to answer, because it all depends on how you want to measure it. The best all around mortgage originator that I...

BEST IDEAS: Top loan brokers discuss the tools they use in their business.
July 10, 2002 ... This month's question: What is your best? David Devlin Title: Loan Officer Company: Key Mortgage Corporation Location: San Rafael, CA Response: Much of my referral business comes from my relationships with certified public accountants, attorneys and financial planners....

FNIS Exits Commercial Risk Business.
July 10, 2002 ... Fidelity National Information Solutions has sold its environmental information business units to Environmental Data Resources, a national provider of environmental information for the commercial real estate market. Fidelity's environmental units include assets previously owned by ...

Servicing People.
July 10, 2002 ... CALIFORNIA Beverly Hills- Kennedy-Wilson Inc., an international real estate services and fund management firm, has appointed David Walker as a managing director, responsible for its real estate investment banking division. He will be responsible for overseeing all financing, both the ...

Wells Chooses eLynx To Handle Loan Docs: Wells Fargo Home Mortgage took its time choosing an electronic document provider to ride shotgun on its national origination business.
July 10, 2002 ... With one of every 15 residential loans in the country funded by industry leader Wells Fargo Home Mortgage Inc., and increased business volumes expected, WFHM watched with keen interest as its Crossland Mortgage division launched a new mortgage data and document delivery solution in January...

Tech Vendors In The Spotlight: Top 100 Technology Vendors: Here begins our list of the biggest technology players in the mortgage lending arena.
July 10, 2002 ... As many mortgage professionals have been aware, for some time, Mortgage Technology magazine has planned to publish a list of leading mortgage technology players. Then came the hardest part: deciding which companies go on the list and which do not. The results will appear in this issue and...

LSI: A Method for Managing Appraisals: With 3,000 independent appraisers faxing in reports, Lenders Service needed to find a better way to do business.
July 10, 2002 ... If you want to start an argument at a real estate appraisal meeting, there are two sure-fire topics. One is appraisal valuation modeling, a subject I have written about several times and one that will come up again and again. The other is appraisal management companies and their role in...

Debating Compensation: Our online community at www.mortgagegrapevine.com responds to a new broker's question: What do you charge and what is the norm?
July 11, 2002 ... Floridahomeloan: I am kind of a new broker and only know what and how people are charging fees within my office. What is everyone else doing? Some of the people I work with charge 1% Origination, 1% Broker and 1% YSP on every loan. What is the standard? Do you use a markup that is the same...

States Address Abuses: The industry reluctantly supports the moves.
July 11, 2002 ... CONNECTICUT Finance Charge Definition Change Connecticut Governor John G. Rowland has signed a bill redefining the definition of prepaid finance charges in the state. Norman Roos, the general counsel of the Connecticut Mortgage Bankers Association, believes the exclusion...

Starting a Training Program: Banknorth teaches its employees mortgage production.
July 11, 2002 ... In an effort to enhance its mortgage lending services through New England and upstate New York, Portland, Maine-based Banknorth Mortgage Group here has launched a mortgage training program for its employees. The company's new Certified Banknorth Mortgage Professional Training program is...

Planning Ahead: When the rates go up, will your business go down?
July 11, 2002 ... Right now, loan officers throughout the country are closing their guts out. Low rates, increased home values, refinancing of high levels of credit card debt have kept us busy. We consider ourselves lucky to only have 55 phone messages left to return when we leave the office at 8:30 pm. The...

Lenders Can Eliminate YSP Abuse: Give the credit to the borrower instead of the broker.
July 11, 2002 ... After watching one episode after another of that soapy drama called Yield Spread Premiums Today, I am continually amazed at the ineptitude of the mortgage lending industry. They are the only group involved in this controversy whose self- interest corresponds closely to the public...

Bulk Insurance Deals Slowing?
July 11, 2002 ... Mortgage insurance firms have made a killing in the bulk insurance market the past 18 months, but it appears this once hot niche could be slowing. Industry sources note that pricing for the product has firmed up - which hurts the dominant players in the niche - while others are cutting ...