Search

The mortgage industry is worried about the sale of Shearson Lehman Hutton Mortgage Corp to General Electric Capital Corp (GE). The merger will make GE the 3rd largest mortgage servicer in the US with almost $60 billion in mortgage payments processed each month. Mortgage bankers view the acquisition as a serious attempt by GE to be competitive in the market. Information on GE's growth in the mortgage servicing market is included., Friend or foe? Increasingly, that is the question mortgage bankers are asking about GE Capital Corp. The issue heated up this week when the financial services giant announced an agreement [...]

Director Mortgage Loan Corp of Riverside, CA, has produced $4.2 billion in mortgage loans for the first half of 1993, making it number 14 in industry rankings, and CEO Raymond L. Crebs would like the bank to have originations reach $14 billion by the end of 1994. The company boasts an increase in loans of 353% from 1990 to 1992. Crebs expects servicing for 1994 to reach $20 billion and to hit $35 billion by 1997. Directors, the largest privately held mortgage company in the country, is owned by a family trust established by the late A. Gary Anderson., Walking through the sprawling maze of hallways and staircases at Directors Mortgage Loan Corp.'s headquarters complex, Raymond L. Crebs marveled out loud at his company's size. 'It's scary,' the chief [...]

Minority lending is forecasted to make up 40% of a bank's mortgage lending business in the year 2000. The face of America is changing, and immigrants to this country is continuing to increase. In the 1980's, the Asian-American population doubled, the Hispanic population grew by 50% and the African-American population increased by 12%. For banks, this market offers increased business opportunities and its greatest challenge., The mortgage industry, like the country, is at a cultural crossroads. As the millennium approaches, the rapid growth of minority. and foreign-born populations is changing the face of the nation [...]

The volume of mortgage loan originations increased significantly for the top five lenders. Countrywide Credit Industries Inc saw a 41% gain from 1992 to $17.2 billion in loans. In second place, Prudential Home Mortgage Co generated $15.8 billion. Norwest Mortgage Inc was third with 13.7 billion, followed by Fleet Mortgage Group Inc with $10.5 million. North American Mortgage Co, which went public in 1992, took the fifth position with $7.05 billion in loans. Low interest rates have caused a surge in home buying and refinancing., The nation's top five mortgage lenders, thriving on the refinancing boom, posted spectacular originations during the first half of the year. An American Banker survey found that loan production at [...]

A drop in interest rates has spurred an increase in mortgage refinancings by consumers who are trying to lower their mortgage payments. For example, the average interest rate on a 30-year, fixed rate home loan has fallen to 7.37%, down 23 basis points from its May 1993 level. One lender reported Jun 1993 loan originations have risen 42% above originations during Jun 1992, and other lenders have reported similar increases., The recent drop in long-term interest rates has given a new lease on life to the mortgage refinancing boom. 'Refinance mania is in full gear,' said Steve Norman of Cal [...]

Jeanette F. Brummell manages the 'warehouse' lending activities of Chemical Bank. Her client list includes 23 of the largest mortgage banks in the US. Chemical an estimated $1.3 billion in outstanding warehouse credit. Brummell, who began her career as a city planner, has concentrated on developing a client base that includes mortgage companies with $2 billion or more in servicing. 'Warehouse' lending involves giving a mortgage company a line of credit so that it can afford to hold its loans until they are sold into a secondary market., When Jeanette Brummell joined Chemical Bank in 1977, she hardly expected to end up as head of one of the country's largest 'warehouse' lending operations. But 16 years later, there [...]

Mortgage banks are discovering that 30-year fixed-rate home loans are having a resurgence among homeowners choosing to refinance their present mortgage loans. Although last year homeowners were attracted to 15-year in 1992, plunging interest rates in 1993 and consumers interest in reducing their monthly payments caused many to refinance with 30-year loans. The number of homeowners refinancing with 30-year loans rose 40% from the number of ones issued in 1992., The 30-year, fixed-rate home loan -- the mortgage industry's old standby - is enjoying a fresh surge in popularity after losing ground last year to 15-year models, a study shows. [...]

PNC Bank Corp and Sears Mortgage Corp both came out winners in PNC's acquisition of Sears' mortgage business for $328 million. PNC will be able to quickly increase its fee income through the merger, and Sears will be able to better focus on its core retail business. Sears' mortgage unit is huge and has been negatively impacted by the early repayments of loans by homeowners, which greatly reduces expected fee income., At first blush, it was an out-and-out steal. In striking an agreement this month to buy the sprawling mortgage business of Sears, Roebuck and Co., PNC Bank Corp. looked like [...]

Past-due home mortgages rose only five basis points to 4.29% in 1st qtr 1993 because of low interest rates. The rates, based on loans past due by 30 days, also reflect increased home sales and housing starts in 4th qtr 1992; delinquency rates on new loans are generally lower than old loans. In addition, delinquencies of 90 days or later rose two basis points to 0.77% and foreclosures fell to 1% of all home mortgages., Past-due home loans continued to run at historically low levels in the first quarter, reflecting the benefits of low interest rates and a stabilizing economy. The delinquency rate inched up [...]

Norwest Corp is increasing its presence in the mortgage loan servicing market. The company in the 1st qtr 1993 experienced a jump in its servicing portfolio to $25.8 billion, an increase of 30% over the same period in 1992. Norwest is pursuing the mortgage loans servicing market to protect itself when the boom in mortgage originations ends. Norwest's recent surge in servicing portfolios has moved it to one of the top ten mortgage servicers in the country., Norwest Corp. just can't get enough of the mortgage business. Two years ago, the Minneapolis-based banking company came out of nowhere to join the top ranks of mortgage originators. Now [...]

PNC Bank Corp has agreed to acquire Sears, Roebuck and Co's mortgage banking operations for $328 million in cash. The purchase includes Sears Mortgage Corp, the nation's 7th largest mortgage originator in 1992 and 15th largest mortgage servicer; Sears Savings Bank, the nation's 20th largest thrift with $6.67 billion in assets; and Sears Mortgage Securities Corp, the 6th largest issuer of mortgage securities. Analysts were extremely optimistic about the impact of the deal on PNC's long-term operations., PNC Bank Corp., plunging headlong into the home-loan business, said it has agreed to acquire the mortgage banking operations of Sears, Roebuck and Co. For $328 million in cash. The [...]

H.F. Ahmanson and Co allows its savings and loan associations to manage their property portfolios. The program has resulted in a decrease of real estate owned and improved property management flexibility. Ahmanson places the responsibility of making property loans and foreclosing property with its branches. The program helped raise the value of foreclosed properties by 75% in 1992., H.F. Ahmanson & Co., the nation's largest thrift company, had been making some major decisions at its headquarters in the Los Angeles suburbs in recent years. Like when to mow [...]

The boom in mortgage refinancing has resulted in the aggressive use of telemarketing by mortgage lenders. An increasing number of lenders are purchasing lists of mortgage holders, then calling the customers of rival banks and offering to help them refinance. Though some charge that this type of marketing is not scrupulously ethical, it is partially responsible for the prolonged boom in refinancing., The mortgage refinancing boom, now entering its second year, has spawned a new form of guerrilla warfare among lenders. Armed with detailed lists culled from county records, a growing number [...]

Home loan delinquencies, mortgages at least 30 days past due, stood at 4.24% at the close of 1992's fourth quarter, according to the Mortgage Bankers Assn of America. That is the lowest recorded rate since 1974. The decline was broad-based and shared in by all US regions except the Northeast. Economists attribute the improvement to a general increase in economic activity in the second half of 1992., Home loan delinquencies have fallen to the lowest level in nearly two decades, thanks to a strengthening economy. The Mortgage Bankers Association of America reported on Wednesday that 4.24% of [...]

PNC Bank, PNC Bank Corp's lead bank, announced it would acquire Massachusetts Co for $52 million in cash. Massachusetts Co has been a subsidiary of Travelers Corp since 1969. The $910-million asset company focuses on mortgages, but also offers trust services. The sale represents the insurance company's departure from banking-related business., PNC Bank of Pitssburgh said Tuesday that it had agreed to acquire the Massachusetts Co., a banking subsidiary of Travelers Corp., for $52 million in cash. The lead bank of [...]

The home mortgage market is on the rebound due to recent decreases in interest rates. HSH Associates reports that the average rate on 30-year fixed mortgages has dropped to 7.9%, a total of 38 basis points, in just over a month. Refinancings should remain strong in 1993, and some people in the industry predict an even better year than 1992, when nationwide lenders originated $850 billion in mortgages. Loans for home purchases will also be high in 1993. Yields on long-term bonds influence mortgage rates, and consumer confidence in the Clinton administration has caused these yields to drop., Following a yearend slump the home-mortgage market is roaring back to life. A drop in interest rates has spurred brisk demand for both home purchases and refinancings, according to mortgage [...]

Family-owned Collateral Mortgage Ltd is slowly diversifying its mortgage business to remain independent after the refinancing boom ends. William Ratliff III is the third generation of Ratliff's to head the mortgage bank, which has $2.75 billion in its service portfolio as of Jun 30, 1993. Collateral Mortgage plans to diversify within the mortgage finance market, which is why the bank created Collateral Investment Corp, a mortgage insurance company., William Ratliff 3d is carrying around a lot of company history. He is the third Ratliff to head Collateral Mortgage Ltd. of Birmingham, Ala. Founded by his grandfather in 1933 [...]

Among thrifts with $300 million or more in home loans in their portfolios, those on the East and West Coasts are still much worse off than their counterparts in the [...]

Fleet Mortgage Group Inc has tapped Robert Golitz, former chief information officer of AT&T Universal Card Services, to be its president and chief operating officer. Fleet Mortgage's hiring of Golitz will free CEO Andrew Woodward from daily management tasks. Golitz has an extensive technology background that will help Fleet position itself as a technology leader. Before his tenure at AT&T, he served as president of BancSystems Association Inc from 1979 to 1985., Fleet mortgage group has hired a veteran of the credit wars for a newly created, No. 2 management post. Robert Golitz, formerly chief information officer of AT&T Universal Card Services, [...]

The Deep South posted the worst delinquency rates in the country during the second quarter, according to data released last week by the Mortgage Bankers Association of America. In all, [...]

The housing market has remained flat despite historically low interest rates and depressed housing prices. In Jul 1993, housing sales fell 5%. Some executives in the mortgage industry believe that the housing market will not pick up until the public's fears over the direction of the economy are removed. The lack of job security and concerns over tax increases and health care reform may make people delay their house purchase. Alternatively, the housing slump could be the result of a demographic change that may take many years to reverse., What will it take to spur home sales? Interest rates are at their lowest in 25 years and home prices are weak, making housing perhaps more affordable than ever. But [...]

Like a lead weight in a vacuum, the national average interest rate on the 30-year fixed-rate loan continued its plunge, dropping through 7% to its lowest level in 25 years. [...]

Plaza Home Mortgage Corp executives Brenda Lynn and William E. Moffatt will not be receiving the same high salaries in 1993 that they received in the previous two years. The mortgage company wrote $3.4 billion in loans for the first six months of 1993. Lynn was paid a base salary of $150,000 in 1992 and received a bonus of $876,261. Moffatt received a bonus of $905,466 in 1992 along with a salary of $95,000. Plaza Home Mortgage plans to restructure its executive compensation scheme in 1993., THEY SAY ALL GOOD THINGS must come to an end. Brenda Lynn, vice president of loan production at Plaza Home Mortgage Corp., knows exactly what they mean. During 1991 and [...]

Sales of existing single-family homes in the United States rose 5.4% in July. from the June level to a seasonally adjusted rate of 3.88 million, the National Association of Realtors [...]

American Residential Mortgage Corp is planning to increase lending to minorities and has opened an inner-city branch in San Diego, CA, as a first step in the plan. American Residential will open six more inner-city branches. The Mortgage Bankers Assn of America forecasts that 40% of all loan applications in the nest ten years will be from minorities, and American Residential wants to be a leader in this area. They offer low-down-payment loans to borrowers who meet the income criteria for the area., American Residential Mortgage Corp. has opened the first of several inner-city branches that it is planning as part of a bid to increase its lending to minorities across the country, [...]

Look out, Chicago-area lenders. Windsor Mortgage Inc., the new kid in town, means business. 'We're already big, and our intent is to be bigger,' said Steven H. Baer, the company's [...]

Despite the lowest rates ever on adjustable-rate mortgages, the loans remain stubbornly unpopular - and lenders can't figure out how to write more of them. 'It's incredible,' said Joe McNally, [...]

American Residential Mortgage Corp has acquired Fort Worth, TX-based Foster Mortgage Co to expand its operations. American Residential CEO John Robbins, who founded the bank in 1983, is responsible for buying out the company from Ford Motor Co in 1990 and expanding its mortgage operations. Residential Mortgage now has a servicing capacity of $90 billion, which brings its current portfolio to nearly $14.5 billion., As mortgage industry veterans go, John Robbins is one of the most authentic on the scene. As founder and chief executive of American Residential Mortgage Corp., La Jolla, Calif., Mr. [...]

What's in a name? For some borrowers, it could be plenty. Like their monthly mortgage payment. Immediate Payment Sought Last week, World Wide Financial Services and the Mortgage Bankers Association [...]

The refinance boom that has taken the industry to unheard-of heights is also giving mortgage executives the jitters - making recruiting difficult and driving salaries up. 'A lot of people [...]

Mortgage interest rates fell last week in response to slower-than-anticipated economic growth, reversing the preceding week's surge. 'I think the markets calmed down a little after Alan L. Greenspan's comments, [...]

During the trial, nobody seemed to know anybody. The borrowers said they didn't know the brokers, the brokers said they didn't know the borrowers, and the brokerage firm said it [...]

PNC Bank Corp. has scrapped its plans to sell Sears Mortgage Corp.'s western production branches later this year when it acquires Sears Mortgage Banking Group. Pittsburgh-based PNC said Tuesday that [...]

Norwest Mortgage Inc. and Long & Foster Realty are banding together in a venture to capture mortgage business generated by the real estate company. The venture, called Prosperity Mortgage, is [...]

Despite a recent rise in interest rates, refinance mania shows no signs of letting up. 'For the last 45 to 60 days, we've been very strong - as strong as [...]

A leading investment bank has teamed up with a large financial services company in a venture to buy and securitize multifamily mortgages. Bear, Steams & Co. Inc., New York, and [...]

Despite weeks of public silence, General Electric Capital Corp. is still on track to buy the large mortgage unit of She son Lehman Brothers, industry sources said. GE had originally [...]

Saying its stock is undervalued, Arbor National Holdings Inc. of Westbury, N.Y., has announced a two-year stock buy-back plan. Ivan Kaufman, the mortgage company's chief executive, said the plan allows [...]

Top executive Norwest Mortgage knew were bad when word came back that a damage-assessment team had paddled a boat through a window of their downtown Des Moines headquarters. 'It's drying [...]

Moving to bolster its share of a flourishing business, Banc One Mortgage Corp. announced Tuesday that it is forming a 'wholesale' lending division. The division will seek to step up [...]

James M. Weld, president and chief operating officer of Plaza Home Mortgage Corp., resigned abruptly this week after six years with the company. Jack French, Plaza's cheif executive, will take [...]

The 1993 western secondary mortgage market conference focused on technological developments and the issue of discrimination in mortgage lending. Several conference participants blamed federal agencies for the low rate of loans to low-income groups. Agency guidelines need to be relaxed if the disparity in lending between certain racial and ethnic groups is to be corrected. Technological developments were predicted to result in greater standardization by some lenders, but others felt that the paperwork would still be a significant factor., The refinancing boom will never end. The unusual stretch of perfect weather in the Bay Area will last forever. And the annual western secondary mortgage market conference is a version [...]

Fannie Mae has issued guidelines that relax eligibility and loan underwriting requirements for bankers engaged in mortgage lending to low and moderate income families. Fannie Mae also initiated a program to finance $1 billion for an affordable housing program in Oakland, CA. The new guidelines allow rent receipts, phone bills, and tax payments to be used by potential borrowers to establish creditworthiness., Fannie Mae, scrambling to meet congressionally imposed goals, has announced new guidelines that make it easier for lenders to make home loans to families with low and moderate incomes. The [...]

The 21st annual western secondary mortgage market conference in San Francisco, CA experienced a 20% increase in attendance in 1993. The attendance, 1,200, is an indication that the mortgage market is on the upswing. Mortgage bank executives are predicting that the industry will consolidate and competition for market share is going to increase. They also are predicting that there will be 15 to 20 mortgage lender that will dominate the origination and servicing businesses., SAN FRANCISCO -- As the industry gathers here this week for the 21st annual western secondary mortgage market conference, it is clear that the mortgage business is in high gear. [...]

Officials of Washington State are mounting a campaign to save a program that has financed 21,000 low-interest mortgages over the past 10 years. The U.S. House of Representatives has reauthorized [...]

National Cooperative Bank has issued a new kind of mortgage security in an effort to attract capital to the low-income housing market. The issue, backed by multifamily mortgages, is the [...]

Ending months of speculation, General Motors Acceptance Corp. said that it would not sell its mortgage subsidiaries. 'We're committed to these businesses, and we're going to promote their ongoing success,' [...]

Chase Manhattan Corp. has named Geoff Dreyer as president of Troy & Nichols, a mortgage unit in Monroe, La. Chase announced the appointment on Thursday as part of a statement [...]

Empire of America Realty Credit Corp., a sizable mortgage bank, is for sale by its owners, according to an industry source. The Buffalo-based company is owned by Carbadon Corp., a [...]

The rise in mortgage originations in the mortgage industry is an indirect cause for an increase in fraud as originators become inundated with loan applications. A Federal Bureau of Investigation (FBI) study disclosed 10% of mortgage applications carry fraudulent information. At the end of Mar 1993, the FBI had 10,028 financial institution fraud cases, and it expects to have 11,000 cases pending by the end of 1995., A man buys a house with a loan from a local bank. Instead of occupying the house as required by the lender, he rents it out, pockets the money, and [...]