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Warehouse lending has been a profitable business for banks, and they are closely watching their mortgage partners today, said Ted Tozer, former head of Ginnie Mae. The government's swift establishment of bridge banks, following failures of Signature Bank and Silicon Valley Bank, protected depositors and kept funds intact, including two loanDepot nine-figure funding facilities from Signature Bank. [Extracted from the article]

The traditionally slower fall and winter home buying seasons will be even harder on lenders amid this year's depressed market, but mortgage executives are pointing to purchase products and strategies they say will keep borrowers engaged. Lenders think borrowers won't stray from the products, but aren't as keen on the ARM advantage today. [Extracted from the article]

In the last few months, a series of lenders have issued layoffs or offered buyouts, everywhere from Better.com to Wells Fargo to PennyMac to Rocket Mortgage. A number of Covius' clients are shifting employees, said Niki Culver, senior vice president of operations at the mortgage technology company, which has units covering the loan transaction spectrum. "But what is common among an originations employee versus a back office, ops or default employee is the ability to engage the client", Price said. [Extracted from the article]

More than half, or 54%, expect one-stop shops, in which residential real estate buying is centralized with related services included, to be the biggest potential industry disruptor in the next three years, and mortgage companies are in the midst of working out how to position themselves in light of that shift. "The biggest trend that I'm seeing is that 2022 will be the biggest year for home equity accounts opened in the history of the mortgage market", said Jeff Taylor, managing partner at mortgage processor and risk compliance consulting firm Digital Risk. [Extracted from the article]

Information about several topics discussed at the National Secondary Market Conference in New York sponsored by the Mortgage Bankers Association of America is presented. Topics include the endorsement of a 30-year fixed-rate mortgage, the future of the nation's housing market, and the performance of the adjustable-rate mortgages (ARM). The conference featured several executives in the mortgage industry including Theodore Tozer, Michael Fratantoni, and Kevin Neylan.

The article reports on the belief of Milton Ezrati, senior economist and market strategist at Lord Abbet and Co. LLC, that economists who follow option adjustable-rate mortgage loans (ARM) will face reset risks in 2012.

The article reports on several problems of the Mortgage Bankers Association of America (MBA). The delinquency data of MBA shows that high percentage of loans are already changed and performing are option Adjustable Rate Mortgages (ARMs). It is expected that there will be 15-20 percent average rise in payment and payment shock at recast due to recent economic crisis which will increase the delinquency rates.

The article reports on the status of commercial banks Bank of America Corp. (BoA), Wells Fargo & Co., and J.P. Morgan Chase & Co. (JPM) amid the future losses of payment-option adjustable rate mortgages (POAs) in the U.S. The article notes that up to $400 billion in POAs are outstanding. Information on the POAs of BoA, Wells Fargo, and JPM are provided. Financial analysts say that the biggest concern over POAs is from the negative amortization option.

The article reports on the analysis that the auction market for nonperforming loans appear to be successful in the U.S. It cites that Wells Fargo & Co. is offering two different packages, including a $600 million protfolio of subprime loans and a $250 million package of real estate-owned. In addition, H & R Block Inc. is offering a $360 million portfolio of fixed-rate loans and adjustable rate mortgages (ARM).

The article reports on the announcement made by Wachovia Corp., the largest payment-option adjustable rate mortgage (POA) lender in the U.S., that it would no longer offer the negative amortization choice. According to the "Quarterly Data Report," the firm funded $5.5 billion in POA loans in the fourth quarter of 2007 which indicated a 44% decline from similar quarter in 2006. Meanwhile, the firm also revealed that they would continue to make POA mortgages.

The article reports that Thornburg Mortgage Inc., a real estate investment trust (REIT), has been hit with margin calls from its lenders in the U.S. It was stated that the margin calls produced a reduction in value on $2.9 billion in alternative-A adjustable-rate mortgages (ARMs). According to a spokeswoman for the REIT, they have to meet all margin calls and still funding loans and their credit quality. It was also claimed that due to the margin calls, the stock price fell by 18% share.

The article reports on the issue of subpoenas by the investigators for the state of Illinois to probe the origination of Countrywide Financial Corp.'s (CFC's) subprime loans and payment-option adjustable-rate mortgages (ARMs). The subpoenas were first issued in September 2007, and Debra Hagan, chief of the state's consumer protection division, claims that the investigators are scrutinizing the subprime and payment-option ARMs that CFC has funded.

The article presents the information of the adjustable mortgage reset plan launched in Washington D.C. The Bush administration has spearheaded its much awaited adjustable mortgage reset plan in the White House. Its purpose is to help the 1.2 million borrowers with mortgage and loan problems and it will serve as a protection of the servicer against the discontented investors.

The article reports on the increase rate of the loan percentage in the foreclosure process in the U.S. Despite of the widespread credit deterioration, increase was accumulated with the adjustable rate mortgages (ARM) particularly in the subprime credit quality borrowers. On the other hand, the problem concerning the speculative overbuilding has been faced by other states across the country.

The article reports on the $1.1 billion loss of residential jumbo specialist Thornburg Mortgage Inc. in the U.S. in the third quarter of 2007. Larry Goldstone, company president and chief operating officer (CEO), stated that the liquidity crisis reflects investor perception and not investment reality. The loss comes from the publicly traded real estate investment trust (REIT) selling $21.9 billion in adjustable rate mortgages (ARMs).

The article reports on the decline in originations of payment-option adjustable rate mortgages (ARMs) by 41% during the second quarter of 2007 in the U.S. It states that the top 20 originators of payment-option ARMs have recorded a fall in fundings by 33%. American Home Mortgage, the nation's third largest funder of payment-option ARMs, has closed its business and filed a bankruptcy.

The article reports on the emergency program of the U.S. Department of Housing and Urban Development which provides a refinancing option to delinquent subprime borrowers with adjustable rate mortgages from the Federal Housing Administration (FHA). FHA said that borrowers that were current on their monthly payments until the mortgage's reset are eligible for a new loan to be insured by the FHA.

The article focuses on the risks and the effects of the adjustable rate mortgages to moneylenders in the U.S. With the adjustments made by the Federal Reserve Board, borrowers cannot afford to make the payments because of high payment standards. Borrowers then are forced to refinance, at great cost, sell the house, or default on the loan to pay the original amount of loan.

The article reports on the move of HSBC Mortgage Services to withdraw the subprime correspondent channel of mortgage loans in Fort Mill, North Carolina. According to a spokesman of HSBC, another HSBC division, will take over the channel. The firm's operation in the state will continue to serve subprime loans but will not be purchasing them. It is stated that the writedowns and expected losses on adjustable-rate second-lien subprime loans are due to the 25% increase of bad debt reserve.

The article reports that Federal Reserve Board has started to review its authority to incorporate an ability to repay standard into anti-predatory lending regulations for mortgage lenders in the U.S. The board issued the Home Ownership and Equity Protection Act regulations for lenders and investors would comply with the rules to underwrite subprime adjustable-rate mortgage at the indexed rate. The rules are applied to federally chartered, insured banks and thrifts.

The article reports on the strategies used by lending institutions to address the issues concerning mortgage loans offered to borrowers in the U.S. The Wolters Kluwer Financial Services company has developed the Consumer Handbook on Adjustable Rate Mortgages (ARM) booklet that helps lenders enhance relationship with their clients through gaining awareness on loans and terms of payment. In addition, the ExSell company provides an online training program to Loan Officers in the mortgage industry.

The article reports on a study by First American CoreLogic Inc., which predicts that 13 percent of adjustable-rate mortgages (ARMS) beginning between 2004 and 2006 will end up in foreclosure as payments reset at higher interest rates. The study analyzes that 1.1 million of 8.37 ARMs will go into foreclosure over a six-to-seven-year period. The study is designed to help provide the financial community and the lending industry with a framework for assessing foreclosure risk.

The article reports on the ruling made by U.S. District Judge Lynn Adelman on the case of Susan and Bryan Andrews of Wisconsin and Chevy Chase Bank. Accordingly, the case sprung when the couple took out an option Adjustable Rate Mortgage loan under the belief that a 1.95 percent introductory rate was fixed for five years. Due to situation, the judge ordered the bank to rescind a loan made allegedly because the bank has failed to clearly explain how the loan would work.

The article reports that the new Congress is gearing up to hold hearings on subprime lending and rising foreclosures which will put more pressure on federal regulators to tighten underwriting standards ion subprime adjustable-rate products in Washington. The regulators are going to have key Democrats breathing down their necks as they consider expanding the nontraditional mortgage guidance to subprime 2/28 adjustable rate mortgages.

The article reports on the factors driving up defaults in the mortgage industry as well as introduces the default management solution, Remend Analytics from Remend Inc. in the U.S. The factors mentioned include, declining housing prices, resets on adjustable-rate mortgage loans, and fraud. On the other hand, Remend has launched their new product that allows servicers to track and measure vendor performance from multiple data sources. Features of the solution and its benefits are also addressed.

The article reports on the depreciating payment-option adjustable-rate mortgage (POA) of the Countrywide Home Loans. In September 2006, the mortgage banker has originated $4.3 billion in POA, which allegedly is a 57 percent decline from September of last year. When CEO Angelo Mozilo was asked why they resorted to that payment option, he simply claimed that the customers felt comfortable with the decision because their home was appreciating in value faster than the negative-amortization amount.

The article reports on the decline in the demand for payment option (PO) adjustable rate mortgage (ARM) in Washington. The PO ARM has created issues due to its payment options which includes negative-amortization choice that causes the customer to accumulate more debt. The decline was triggered by several PO ARM borrowers to choose the lowest payment option rather than higher note rates.

A chart is presented that lists options of adjustable rate mortgage provided by various financial services in the U.S. which includes Countrywide Financial Corp., Washington Mutual and American Home Marketing Investment.

The article reports on the concern of leading consumer advocates regarding the increasing use of adjustable-rate mortgage products for families with debt. It is indicated that consumer advocates are encouraged to practice the concept of suitability to hold lenders accountable and secure remediation to harmed borrowers. The Center for Responsible Lending's executive president Deborah Goldstein asserted that such high risk home loans are not appropriate for families with debt.

The article reports that the Association of Community Organizations for Reform Now (ACORN) is pushing for regulation that will compel lenders to ensure that borrowers can afford financing event after rate adjustments. Credit Suisse reported an increase of 141 percent in delinquent adjustable-rate mortgages (ARM) and a 27 percent increase in fixed-rate mortgage delinquencies. The article notes the low-income or poor-credit borrowers have difficulties making their monthly payments.

The article reports on the increase in interest rates of an estimated $ 1.5 trillion of adjustable-rate mortgages (ARM) in the U.S. Zacks.com has revealed that the rising rate environment poses a big threat to housing markets and companies with exposure to home values as ARM begin to reset higher rates. In addition, the interest rate on one-year ARMs has also increased by 75 percent over the last two years and shows no sign of declining.

The article reports that Wells Fargo Home Mortgage Inc. have produced a total revenue of 4.9 billion in New York in 2005. Reports revealed that 33 percent of its single-family mortgage loans are supported by California home loans. Investment analysts at CreditSights Inc., states that Wells Fargo have outperformed its competitors by selling off lower yielding adjustable rate mortgage and replacing them with higher yielding assets.

The article reports that the U.S. mortgage bankers have funded $240 billion worth of interest-only (IO) loans in the third quarter of the current year. According to survey, IO loans are most popular in high cost areas as it allows homebuyers to into a house with a lower monthly payment. Lenders have been advised by the regulators for not depending on IO and payment option adjustable-rate mortgage. San Francisco based Wells Fargo Home Mortgage Inc., was the largest funder of IOs in the quarter, originating $27.05 billion

The article reports that according to a survey figures compiled by this periodical mortgage bankers funded almost $73 billion in payment-option adjustable rate mortgages (ARMs) in the third quarter of 2005. In the survey Countrywide Home Loans, Calabasas, California, ranked first, originating $29 billion in the third quarter. ARMs offer borrowers several payment options each month, including one that allows for negative amortization. The U.S. Federal Reserve Board and other agencies are of the view that payment-option ARMs are one of the causes escalating home prices.

Reports on the Federal Home Loan Banks'(FHLB) Mortgage Partnership Finance(MPF) program in Chicago, Illinois. Rate of increase of loans funded through the FHLB's MPF program in the third quarter of 2005; Rate of MPF loans as of September 30, 2005; Risk of long-term, fixed rate mortgage lending shared between mortgage lenders and the FHLB.

Reports on the avoidance of the pay-option adjustable rate mortgages by Chase Home Finance in New Jersey. Distrust about the pay-option feature allowing customers to choose the lowest monthly payment; Impact of the rising interest rates on consumers; Apprehension of the loan to become a negative-amortization portfolio limits.

Highlights the views of some members of an economic panel on housing prices that subprime borrowers could be hurt the most if U.S. home price appreciation slows. Claim of John Silvia, chief economist for Wachovia Corp., that $550 billion worth of subprime debt is expected to "reset" by the end of 2006; Warning of Dean Baker, an economist for the Center for Economic Policy and Research, that too many consumers are taking out adjustable rate mortgages because they cannot afford a fixed-rate loan.

Reports on the impact of the interest-only loans and adjustable-rate mortgage on homebuyers in the U.S. Views of Alan Greespan, chairman of Federal Reserve Board, on price decline in some local housing markets; Proliferation of exotic mortgage products in the housing market; Action taken by the Federal banking regulators to address the proliferation of interest-only and option loans.

Presents a chart depicting the adjustable rate mortgage volume leaders in the first quarter of fiscal 2005 in the U.S.

Reports on the plan of Freddie Mac, a mortgage loan servicing agency, to purchase adjustable-rate mortgages (ARMs) in the U.S. Offers of several payment options to address different and changing consumer needs; Preparations made by the agency for ARMs leverage; Comments of James Cotton, vice-president of Freddie Mac, regarding the ARMs purchase.

This article presents a chart, which provides information about various firms engaged in subprime lending in Q4 2004. Some of them are, Wells Fargo Home Mortgage Inc., First Horizon Home Loans, First Franklin Financial, New Century Financial Corp., AmSouth Mortgage Banking, First Magnus Financial Corp., and others.

Reports that First Franklin Financial has introduced a rapid refinancing product aimed at the refinancing market. Aim of the product to simplify the refinance process for borrowers with adjustable-rate mortgages and help mortgage brokers who are looking to manage an uptick in the refinancing business; Comment of First Frankin executive vice president Steven F. Skolnik regarding its products geared to the subprime and home equity markets.

Reports on the increase in the demand for low teaser adjustable-rate mortgage (ARM) loans by mortgage lenders in the U.S. as of July 2002. Companies involved in offering the mortgage loans; Strategies adopted by companies involved in the mortgage business; Reason for the avoidance of ARM offers by some companies.

Reports on the percentage of outstanding residential fixed mortgages and the adjustable-rate market in the United States that are at risk of refinancing. Efficiency of the origination market; Rumors that a major servicer will announce a writedown in 2001.

The article reports that mortgage refinance market has decreased according to the Mortgage Bankers Association (MBA)'s Mortgage Applications Survey in the U.S. Topics discussed include decrease in mortgage loan; refinance index and shares of overall mortgage activity; reduced adjustable-rate mortgage; and increase the U. S. Federal Housing Administration (FHA) share.

The article reports on rise in mortgage lending by credit unions (CUs) in the U.S. in 2014. It mentions the reasons behind CU's increase of mortgage lending which include their lowering of credit standards, effective portfolio management, and offering of adjustable-rate mortgages and informs about CUs' constant increase in mortgage lending, with 41 billion dollars in 2014 and 21 billion dollars in 2013.

The article reports on Stonegate Mortgage Corp.'s efforts to increase its originations of non-agency jumbo mortgage loans as of September 2014. The topics discussed include Stonegate's loans target at cash buyers who want interest only adjustable rate mortgages (ARM), the firms private-label mortgage-backed securities, and the views of the firm's chief executive officer (CEO) Jim Cutillo, on the issue.

The article focuses on the mortgage loan adjustable-rate mortgages (ARM), 30-year fixed-rate mortgage. It mentions several suggestions for reforming ARM including ARM should be offered only if the family is enrolled in a mandatory financial education program, no ARM should be less than the median time term and no institution should permit interest-only mortgages to borrowers less than 5 million U.S. dollar. Also mentions new mortgage products by Federal Housing Finance Agency.

The article focuses on the re-offering of adjustable-rate mortgages (ARM) by lenders. Topics include the rising interest rates for ARM, the challenges for lenders to set their offerings in the market, and the preference of regulators to hold ARM rather than the fixed-rate mortgages. Focus is also given on the application survey conducted by the Mortgage Bankers Association of America, regarding the rate of ARM loan applications for the week of April 18, 2014.