Layered Alt-A Performance Down
Alt-A mortgages loaded with more layers of risk that were securitized this year are performing worse than prior vintages performed. But prime fixed rate loans are holding up.
NetBank Sues Former Executive
NetBank Inc. has filed a lawsuit against a former executive of its now defunct nonconforming mortgage subsidiary — claiming he owes the company $1.1 million as a result of being terminated.
HELOC Production Drops
With fewer borrowers responding to increased bank marketing for related products, the annual number of home equity lines-of-credit closed decreased.
Credit Fees, Inquiries to Rise
Subprime mortgage prospects may soon find it more expensive to qualify for a loan because of new credit reporting charges which will result in more credit report inquiries.
IRAs Fund Hard Money Loans
Mortgage lenders are turning to individual retirement accounts to help fund residential and commercial hard money mortgages.
2006 Subprime Vintage Rumblings
A recent bond rating study suggests some lenders have begun tightening underwriting standards as slowing home appreciation rates and overextended borrowers are pushing delinquencies, foreclosures and subprime issuance higher.
New Century Names Chairman
A new chairman will lead New Century Financial Corp.’s board of directors next year.
Aegis Open But Consolidated
While Aegis Mortgage Corp.’s wholesale subprime business may be struggling, the company is denying rumors that it is shutting the unit down. A consolidated operation is reportedly handling prime, slimmed down subprime and expanded Alt-A offerings.
Risk Premiums to Rise
There are “early signs” that compensation for risk taking in the mortgage market is changing, according to a Fannie Mae executive.
Secondary Subprime Suit
Two mortgage companies, one owned by an investment banker and another in the process of being acquired by an investment banker, are battling over $70 million in subprime mortgage buybacks.
Tough Subprime Outlook
Poor loan performance, payment shock among adjustable rate mortgage borrowers and a growing weakness in the West Coast job market are fueling what could turn out to be a potentially rough 2007 for subprime lenders, according to a mortgage industry analyst.
National City Slows
National City Corp.’s monthly volume slowed. More than $2.5 billion of the month’s volume reportedly came from subprime unit First Franklin.
Subprime Delinquency Soars
Led by adjustable-rate subprime loans, quarterly mortgage delinquency rose for the first time this year. And while an increasing share of subprime loans could make things worse, growing exotic loan originations shouldn’t.
Countrywide Off, Pipeline Up
Mortgage volume at Countrywide Financial Corp. descended. Home equity and subprime production totaled $6.3 billion during the latest month.
Decline at New Century
Mortgage volume decreased at New Century Financial Corp.
Study Challenges Vintage Performance
A white paper published by an investment banker refutes the concept that weak underwriting and rising rates are contributing to the higher default rates of recent adjustable-rate subprime originations. Instead, the author suggests local economic conditions and natural disasters are the culprit.
Acquisition Nets Layoffs
Morgan Stanley’s latest acquisition will result in mortgage job layoffs.
Ownit Closes
Ownit Mortgage Solutions has notified its brokers that it is out of business — leaving 600 employees and 11,500 brokers hanging.
Bear Acquisition Delayed
Bear Stearns Residential Mortgage Corp. has to wait a little longer to acquire a subprime wholesale operation.
Ameriquest Sale Imminent
A sale of the mortgage subsidiaries of ACC Capital Holdings, for which bids reportedly are now being sought, could happen “shortly,” according to one industry insider.
Improved Credit Initiative
Wells Fargo & Co. has created a program to assist nonprime borrowers improve their credit.
Subprime Consolidation Continues
A Texas-based wholesale lender has suddenly stopped accepting mortgage applications.
Option One Busting Block
Tighter underwriting contributed to falling broker business at Option One Mortgage Corp., which reported a quarterly loss.
Net Branch Launching
A California-based subprime wholesaler looks to expand into retail through a branch recruitment campaign — a move that could increase its employee count by as much as 50.
Wholesaler Settles Class Actions
A Michigan-based nonprime mortgage lender has settled three class action lawsuits.
WaMu Rating Improved
An integration of prime and nonprime servicing operations has made Washington Mutual Bank a better servicer.
Parent Bruises PHHÂ Mortgage Rating
PHH Mortgage Corp.’s nonprime servicer ratings were lowered, reflecting a financial restatement by its parent.
Nationstar Servicer Rating Lowered
The former nonprime subsidiary of Centex Corp. saw its servicing rating lowered because of its new owner.
Countrywide Fundings Improve
Countrywide Financial Corp. improved production, but its pipeline of loans indicates a downturn is ahead. Nonprime originations were $6.9 billion during October.
Impac Originations Up
As quarterly fundings improved for Impac Mortgage Holdings Inc., derivative activity destroyed earnings.
HELOCÂ Activity Diminishing
Home equity lines of credit are not only becoming less popular than equity or second loans, but a growing share of outstanding HELOCs are becoming inactive, according to a recent banking study.
Nonprime Performance Deteriorating
Delinquency on nonprime mortgages — especially those securitized this year — are increasing, a recent report indicates.
Record NovaStar Activity
Quarterly originations inched up to a new record at NovaStar Financial Inc.
MortgageIT Business Nudges Down
Quarterly volume edged down for MortgageIT Holdings Inc. An annual decline primarily resulted from exiting the wholesale subprime mortgage market in the first quarter.
Fundings Up at New Century
Monthly volume improved at New Century Financial Corp. But the company is taking steps to compete successfully as overall mortgage industry volume declines.
Option One Offering
Option One Mortgage Corp. may be divested from its parent. Meanwhile, the nonprime wholesaler plans to close a dozen branches.
Subprime Unit Closing
NetBank Inc. is winding down its nonprime mortgage subsidiary.
Accredited Improves
Quarterly production edged up at Accredited Home Lenders Holding Co.
IndyMac Originations Continue Up
IndyMac Bancorp Inc. achieved several mortgage milestones during the latest quarter, including record fundings — again. Nonprime originations amounted to $21.6 billion, according to an SEC filing.
New CFO at New Century
New Century Financial Corp. has named a new financial chief.
New Century Servicing Improves
New Century Mortgage Corp. improved its handling of subprime loans.
American Home Upgraded
American Home Mortgage Servicing Inc. improved its nonprime servicing.
Alt-A Up, Rest Down
Nontraditional activity maintained momentum despite an overall slowdown in residential originations.
Alt-A Business Doubles
The largest mortgage bankers grabbed a bigger share of the market last year as Alt-A originations took off, according to a recent 94-page report from Fannie Mae’s and Freddie Mac’s regulator.
GreenPoint Activity Weakens
Specialty loan and home equity originations eased at GreenPoint Mortgage.
BoA Business Slips
Quarterly home equity originations were $20.7 billion at Bank of America.
Nonprime Warnings
Strong competition in the subprime sector prompted Accredited Home Lenders Holding Co. to warn investors about earnings.
Record Alt-A Volume
Residential mortgage securitizations have been flat or declined during the first half of this year. But Alt-A issuance, fueled by affordable mortgage demand, hit a record — and is not expected to wane.
150 Jobs Coming to Ohio
A new call center in Ohio will result in the addition of 150 nonprime mortgage jobs by 2008.
Downey Business Sinks
Downey Financial Corp. production fell for the seventh consecutive quarter and may be further affected by the recent federal guidance on nontraditional loans.
National City Fundings Maintain
Defying an early third quarter trend, mortgage volume held steady at National City Corp. Subprime fundings from First Franklin contributed over $7.7 billion.
Wachovia Fundings Dip
Home equity volume slipped during the third quarter for Wachovia Corp.
New Century Updates Underwriting
New Century Financial Corp. is tightening debt ratio requirements, stepping up confirmation of income on stated income loans and increasing the transparency of its mortgage products.
Bear Buys Subprime Unit
An investment banker has agreed to buy the subprime wholesale assets of a troubled mortgage banker.
Countrywide Production Down
Monthly nonprime fundings fell at Countrywide Financial Corp.
New Century Originations Off
Quarterly volume dipped at New Century Financial Corp.
Subprime ARMs Waning
Subprime adjustable-rate mortgages are showing signs of weakness in high priced markets.
Money Store Resurrected
The Money Store is back. But don’t look for subprime loans, TV commercials or Phil Rizzuto this time around.
Subprime Servicer Upgraded
The mortgage servicing subsidiary of Merrill Lynch & Co. received a ratings upgrade for its handling of subprime loans.
Help for Delinquent 2nds
Servicers of delinquent second lien loans can get help from a new company.
HEL Servicer’s Ratings Raised
An Indiana-based company that is shedding its conforming operations is doing a better job at servicing its junior liens.
Mortgage Ops Being Divested
NetBank Inc.’s new CEO said the company is exploring alternatives for the nonconforming mortgage business.
Fremont Ratings Improved
Fremont Investment & Loan is better at subprime loan servicing.
HELÂ Delinquency Data Mixed
Quarterly delinquency on home equity loans and lines improved, but mixed data indicate performance could worsen.
HUD Secretary Interview
In an exclusive interview with MortgageDaily.com, U.S. Department of Housing and Urban Development Secretary Alphonso Jackson talked about what’s right at the Federal Home Loan Banking System and what is wrong at Fannie Mae and Freddie Mac. He also discussed FHA’s desired lending niche.
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State Warns Mass. Brokers on Alt-B
Recent onsite examinations of Massachusetts mortgage companies have prompted a warning from the state about subprime limited documentation loans.Home Equity Pricing to Tighten
Home equity lenders are leaving profits at the closing table, a recent survey indicated. But many are doing something about it.
Downey Turnaround
Downey Financial Corp. reversed a four-month production decline.
Uptick At Countrywide
Home equity and nonprime production turned higher at Countrywide Financial Corp.
Delinquency Slightly Better
More VA borrowers paid their mortgages on time, helping overall delinquency to decline for the second quarter in a row. But delinquency on subprime adjustable-rate mortgages was worse.
Originations Higher at New Century
New Century Financial Corp. improved monthly volume.
Regional Subprime Concentration
A majority of mortgages made in the Magnolia State were subprime, according to a recent study that looked at subprime lending by city, state and region.
$36 Million First Horizon Settlement
First Horizon Home Loan Corp. has agreed to settle allegations it charged Missouri borrowers illegal second mortgage fees. The move was made in spite of claims that no laws were broken.
Merrill Lynch Acquires Nonprime Business
Merrill Lynch & Co. is getting into subprime wholesale lending.
Option One Fundings Dip
Quarterly mortgage production decreased slightly at Option One.
Nonprime Servicer’s Rating Raised
Specialized Loan Servicing received a ratings upgrade.
Option ARMs Drive Record Alt-A Deals
Quarterly volume on Alt-A mortgage-backed securities reversed direction to set a record. And option ARM activity, which drove much of the increase, is expected to accelerate.
Online Platform Drives Wholesaler’s Expansion
A West Coast-based nonprime wholesaler is expanding east — hoping to add another 6,000 mortgage brokers in the process.
$102 Million Option One Charge
Nonprime repurchases and delinquencies will hurt H&R Block Inc.’s bottom line.
Mortgage Layoffs at NetBank
Weakened nonconforming originations led to layoffs at NetBank Inc.
Mortgage Associations Merge
Two prominent mortgage banking trade groups will merge.
Credit Scores Better for 2nd Lien Borrowers
Second mortgage borrowers had the highest credit scores in a recent study. But they also owed the most in nonmortgage debt.
Virtues of Subprime Lending
In a 16-page letter, mortgage bankers urged the Federal Reserve to continue with the current set of regulations for high-cost loans and to adopt national anti-predatory lending standards. The group indicated nonprime mortgages, which are priced more competitively under current rules, have fueled an increase in homeownership.
Downey Business Continues Descent
Downey Financial Corp. fundings trimmed down for the fourth consecutive month and were less than half the level a year prior.
Banks See Worse Subprime Quality
As loan demand weakened at banks, some believe subprime and nontraditional mortgage quality will worsen over the year.
Nonprime Shakeups
Investment banker Morgan Stanley is getting into nonprime mortgage banking while another nonprime player is shaking up its staff as well as its “products, pricing and commission plans.” And NetBank Inc. took an earnings hit because of a decline in nonconforming production.
Impac Originations Edge Up
Fundings slightly surpassed those of the first quarter at Impac Holdings Inc.
Q2 RMBS Volume 2nd Highest Ever
Subprime borrowers are migrating toward longer-term mortgages and away from interest-only loans, according to a new securitization report.
Nonprime Layoffs at WaMu
Washington Mutual will layoff more employees when it closes a Florida office of its subprime unit.
Accredited Originations Ascend
Accredited Home Lenders Holding Co. pumped up its second quarter volume.
Countrywide Business Falls
Monthly fundings fell at Countrywide Financial Corp.
M&A Activity Maintains
The latest mortgage mergers, acquisitions and corporate activity include the prospective sale of a New Jersey-based subprime mortgage banker.
Fundings Higher at GreenPoint
GreenPoint Mortgage increased quarterly nonprime production.
Record NovaStar Production
After two consecutive quarters of falling activity, NovaStar Financial Inc. boosted mortgage volume to a new record.
Record Activity at IndyMac
Despite record overal originations at IndyMac Bancorp Inc., nonprime production declined.
Ameriquest Continues Layoffs
As part of the company’s previously-announced planned layoffs, another group of Ameriquest Mortgage employees were released.
Wachovia Volume Rises
Wachovia Corp. announced higher home equity originations.
National City Pushes Higher
First Franklin’s fundings were up more than $1 billion from the first quarter.
Wells, Countrywide Tied for 1st Place
Second quarter nonprime fundings were $13 billion at Wells Fargo & Co.
Countrywide Business Better
Business from its banking subsidiary and higher nonprime fundings fueled an increase in Countrywide Financial Corp.’s overall originations. But the news isn’t so good for secondary originations.
New Century Business Takes Off
Quarterly originations jumped, credit quality improved and operating margins widened at New Century Financial Corp.
Low FICOs, Piggybacks Don’t Mix
Subprime borrowers who simultaneously closed on a first and second lien have been found to be a worse risk than previously thought.
National City May Unload First Franklin
National City Corp. is considering selling its nonprime subsidiary.
Nonprime Servicer’s Rating Improved
The subprime mortgage servicing subsidiary of Merrill Lynch & Co. Inc. saw its servicer rating improved.
Home Equity Wholesaler Hiring Hundreds
A California-based home equity wholesaler plans to double its mortgage production over the next 12 months and hire 200 new employees in the process.
HEL Delinquency Improves
Quarterly delinquency declined on home equity loans — the strongest sector within the consumer credit category, according to a banking industry report.
Argent Enters Alt-A
The wholesale arm of Ameriquest Capital Corp. is tackling the Alt-A market.
Wholesale Operation Changes Hands
Two California-based subprime mortgage bankers have made a deal to transfer the wholesale operations of one company to the other ahead of their upcoming merger.
Mortgage Chess
Remnants of the failed Waterfield Mortgage have started a new company. Meanwhile, controlling interest in a hard money lender has traded hands and Wachovia Corp. is divesting some of its subprime home equity servicing operation.
Ratings Upgrade at National City
National City Home Loan Services was recognized for its improved ability to service mortgages.
Subprime Retailer Lays Off 100
The subprime subsidiary of American International Group has shut down retail call centers.
Delinquencies Down
Delinquencies and foreclosures slowed their pace in the first quarter. But the news wasn’t so good for subprime adjustable rate mortgages.
Ameriquest Servicer Rating Improved
The servicing arm of Ameriquest Mortgage is improving its operations.
National City Volume Jumps
First Franklin, originations were $2.3 billion during May, up from the prior month but off from May 2005.
Originations Off at Option One
Mortgage production slid for the second consecutive quarter at Option One Mortgage Corp.
Nice News at New Century
New Century Financial Corp. announced an $800 million increase in monthly production.
Accredited Touted as Good Buy
Shares of Accredited Home Lenders Holding Co. are set to rise.
Popular’s Subprime Rating Raised
A servicing operation expansion has apparently fared well for Popular Mortgage Servicing Inc.
Select’s Servicer Rating Improved
Select Portfolio Servicing Inc. has been recognized for its nonprime servicing ability.
NovaStar Servicer Rating Improved
NovaStar Mortgage Inc.’s ability to service, collect, and liquidate subprime loans has led to an upgrade of its servicer rating.
Shake up Planned at H.R. Block Mortgage Unit
WASHINGTON — Nonprime mortgage bankers opened a conference in the nation’s capital this week by discussing issues ranging from the “normalizing” of the housing market to one leading industry player’s plans to shake up its organization from top to bottom.
Nonprime Mortgage Leads
A newly-formed division of a major credit bureau is helping nonprime mortgage lenders close more loans.
Accredited Acquiring Aames
Accredited Home Lenders Holding Co. hopes to significantly boost its retail originations with its acquisition of Aames Investment Corp.
Fannie Fine Tops Corporate Mortgage News
A nonprime lender is among recent mortgage and banking acquisitions, while word is Fannie Mae may pay a $400 million fine.
Ameriquest Retail Volume Down
Retail production from Ameriquest Mortgage Co. descended for the fifth consecutive quarter. But the subprime lender has plans to reverse the trend.
Subprime Wholesaler Goes 2/43
Mortgage brokers are being offered a 45-year loan with an initial fixed rate by a California-based nonprime wholesaler.
Florida Worst Fraud State
A 16-page mortgage fraud report indicates the Sunshine State had more fraud than the rest last year, though Colorado and Illinois have placed more prominently in the rankings during the past few years. For the most part, the states that report difficulty with subprime fraud are the same ones for overall fraud.
Hard Money Goes Correspondent
A New Jersey-based hard money lender is getting into secondary marketing.
Investment Bankers Buying, Subprimers Selling
Some big investment bankers are looking at mortgage banking acquisitions, while some nonprime mortgage bankers are selling. And in the middle of this mortgage merger mayhem, a new billion-dollar originator is launching.
Do The Math
A basic analysis of Ameriquest Mortgage’s expense to settle charges of predatory lending with the states indicates that the hundreds of millions of dollars paid to borrowers will come right out of the pockets of the thousands of employees recently laid off by the subprime lender.
Downey Fundings Tumble
Following five consecutive quarters of falling fundings, monthly production was off nearly one-third at Downey Financial Corp.
Impac Originations Implode
Tighter underwriting and fewer risky loans led to a significant volume decline at Impac Holdings Inc.
Subprime Co. Director Running for Gov
A director on the board of one of the biggest subprime mortgage lending companies is running for governor of Massachusetts.
Subprime Lender May be Acquired
A California-based subprime lender has announced there is a good chance it will be acquired this quarter.
HEL Borrowers Happier Without Broker
Home equity borrowers that deal directly with lenders are more satisfied with the lending process than those who use mortgage brokers, according to a new study.
Countrywide April Off
Countrywide Financial Corp. started the second quarter with lower monthly production, though its nonprime numbers held up.
NovaStar Volume Off
Production has fallen for two consecutive quarters at NovaStar Financial Inc.
Ameriquest Lays Off 3800
Ameriquest has pursued a centralized business model that will help it better operate in today’s lending environment. The transition, however, has left 3,800 people unemployed.
Accredited Originations Tumble
Quarterly mortgage production was off by nearly a quarter at Accredited Home Lenders Holding Co.
Production Executive Changes Teams
As several banks expand their franchises and new mortgage lending operations are launched, a production executive from the third largest U.S. mortgage lender is going the nonprime route.
IndyMac Defies Industry
More than three-quarters of IndyMac Bancorp’s first quarter originations were Alt-A loans.
BoA Fundings Fall
The majority of Bank of America Corp.’s first quarter production consisted of home equity originations.
WaMu Production Down
Led by subprime lending, mortgage fundings continued to fall at Washington Mutual Inc.
Chase Volume Down
JPMorgan Chase & Co. closed $11.7 billion in first quarter home equity loans.
Downey Continues Down
As fundings decreased for the fifth consecutive quarter, Downey Financial Corp. warned that increases in teaser rates may lead to decreases in option-ARM originations.
Fundings Dip at National City
First Franklin ‘s quarterly fundings fell even as earnings increased.
Wells Wanes But Outlook Improves
Home equity loan production eased at Wells Fargo & Co. while Wells Fargo Financial fundings held steady
