The mortgage meltdown was not the result of a lack of transparency in the mortgage process, David G. Kittle, chairman elect of the Mortgage Bankers Association, testified to the House Committee on Small Business today, a press release said.

However, he said real estate prices and the voracious appetites of investors and borrowers were culprits in the credit crisis.
read full story

Analysis of Conforming Jumbo Pricing
Pricing on jumbo loans was slow to move lower following the passage of recent legislation designed to improve secondary market liquidity. But congressional testimony today indicated improvements have recently been noted.

Mortgage Bankers Highlight Broker Role
The Mortgage Bankers Association issued a new 33-page report suggesting that borrowers who use mortgage brokers do less research and comparison shopping, even though brokers don't necessarily look out for the customer's best interest. The paper recommended better yield-spread disclosures, more rigorous regulation and stronger oversight for brokers -- who have much less at stake in loan transactions.

Secondary Conference, Transactions
As mortgage bankers hold their annual secondary marketing conference, banking associations are strengthening secondary alliances and enhancing rural financing programs. A $14 billion servicing portfolio of government loans is on the market, as is a portfolio of loans backed by apartments, condominiums and land, and another closing of a smaller transaction helped the seller clear out an expiring warehouse line.

Lenders Call for Changes to New Appraisal Code
Mortgage bankers are concerned about the recent code that was established for appraisals on conforming loans and are calling for either elimination of the code or more industry input, further clarifications and other changes before it is implemented. Of concern is the additional cost to implement provisions of the code and the liability of lenders for activities outside their control.

Brokers May Fight New Appraisal Requirements
Mortgage brokers are threatening to file legal action in response to new appraisal guidelines on conforming mortgages.

Sector Shakeup Continues
As financial services firms continued to see their earnings pounded by mortgage related charges, National City Mortgage Co. named a new chief executive officer. Meanwhile, the merger of American Bankers Association and America's Community Bankers became effective Saturday.

Reverse Lending Outlook
SAN DIEGO -- The National Reverse Mortgage Lenders Association held its annual conference last week in sunny Southern California.

World of Warehousing
DALLAS -- Warehouse lending is not going away, though it has tightened up, according to panelists at a Texas mortgage banking conference this week. The sector, which operates on the basis of short term financing, has become saddled with mortgages from failed customers.

Originators Certifiable
Loan originators can enhance their image with a seal of approval from various mortgage organizations.