The housing crisis will peak in 2011
Posted on October 28, 2009 at 11:59 am
Now that the subprime mortgage default wave has played itself out, it’s time to prepare for the damage that will be inflicted by souring option ARMs. The rates on many of those loans will start resetting next spring.
Local mortgage exec to lead FHA-focused task force
Posted on October 27, 2009 at 1:30 pm
Dan Crockett, CEO of Franklin American Mortgage Co., has been named chairman of a Mortgage Bankers Association panel that will advocate for the health of the Federal Housing Administration.
“During the recent run up in business, the folks at FHA have done an incredible job given the limited resources at their disposal,” said Council Chairman Dan Crockett. “Our members want to help ensure that FHA can effectively manage the risks that come with the increased business the agency is seeing. As a strong advocate of FHA and its mission, MBA wants to take proactive steps to ensure the safety and soundness of the agency today and in the future.”
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The impact of the mortgage bust
Posted on October 26, 2009 at 8:08 am
The hangover pain from the biggest housing boom in history hasn’t been shared equally. The nation’s biggest lenders have been grabbing chunks of market share as massive numbers of small lenders have shut their doors.
In Tennessee, the number of licensed mortgage originators has fallen by more than half since the summer of 2006. For more on the changed mortgage market, check out this story from our print edition. You can also click on the chart at left for the full numbers.
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Young Franklin bank ekes out a profit
Posted on October 20, 2009 at 2:07 pmThe cooling mortgage refinance market took the wind out of Franklin Synergy Bank’s asset growth and earnings in the summer. The two-year-old bank has been in the black for all of 2009, but only just made a profit in the third quarter. Assets during the period grew just $2 million to $237 million.
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JP Morgan’s mortgage warning
Posted on October 15, 2009 at 7:54 amDespite posting a third-quarter profit of $3.6 billion — more than six times the year-ago number — JP Morgan Chase says its loan losses are still rising and affecting even mortgages that were thought to be of high quality. Keep in mind that just about everyone in the know agrees that JPM is the cream of the crop.
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The extent of last year’s mortgage meltdown
Posted on October 5, 2009 at 7:21 amThe government has tallied the numbers documenting the drop in mortgage activity in 2008. Demand for loans fell by almost a third while the credit crunch claimed a good number of independent lenders.
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Two more obstacles for the housing market
Posted on September 29, 2009 at 8:25 amThe folks at HousingWire check in with one study taking a closer look at how loan modifications aren’t working and another that suggest an extension of the new homebuyer tax credit won’t stimulate demand anywhere near as much as its backers would want it to.
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Mortgage apps back at pre-recession levels
Posted on September 23, 2009 at 11:13 am
Low interest rates and tax credits are bringing more home buyers to the table. The weekly increase makes for a nice headline, but a longer-term chart shows we appear to be moving past the huge amount of noise from the past 18 months and back to the level of activity we saw for much of 2007 — provided, of course, that things level off here.
Bracing for the option ARM impact
Posted on September 18, 2009 at 2:35 pmQuick, who do you think said this: “Payment option ARMs are about to explode.”
A: Nouriel Roubini, aka Dr. Doom, arguably the most negative voice on the economy and markets
B: JPMorgan Chase CEO Jamie Dimon
C: Iowa Attorney General Tom Miller after speaking with President Obama
HT: Calculated Risk
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Franklin entrepreneur pitches Congress on mortgage-tracking app
Posted on at 11:22 am
Speaking to a House Financial Services subcommittee, Smart Data Strategies CEO Susan Marlow says regulators and lawmakers looking to get a handle on systemic risk in the financial services sector should think about using her services.
Under the Home Mortgage Disclosure Act, data on mortgage transactions is collected at the census track level, which includes large areas spanning different neighborhoods, versus at the individual parcel level. Individual parcel data has been proven to provide more accurate measures of distribution of households by income level, for instance.
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Tennessee moves up a list homebuyers don’t want to lead
Posted on September 2, 2009 at 11:27 amBankrate.com says Tennessee homebuyers can expect to pay $2,901 to close on a home purchase this year. That ranks the state 12th, up from 24th a year ago. Nationally, the average costs fell 12 percent in the past year.
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Sitel gets into the loan mod business
Posted on August 25, 2009 at 9:43 amCall center operator Sitel says it has signed a contract with a loan servicing company to handle up to 450,000 phone calls a month from borrowers looking to refinance or modify their mortgages. The deal means Nashville-based Sitel will hire several hundred people.
“Sitel has a deep and rich history in the credit services market, particularly when it comes to the minutia of lender-borrower relationships,” said Don Berryman, global chief sales & marketing officer, Sitel. “One of the primary challenges facing lenders is that modifications will not work for every type of borrower, and they face a significant uphill battle when it comes to sifting through these customers. Sitel’s certified agents can quickly isolate the key information required to determine a borrower’s loan modification options, and can effectively expedite the process.”
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Bankers clutch those purse strings tightly
Posted on August 17, 2009 at 5:18 pmSurveys published Monday by the Fed and the Treasury show that banks increased lending only to those with prime-mortgage-worthy borrowers during the spring.
Most banks said they expected their lending standards would be tighter than average until at least the second half of next year. For subprime companies and consumers, the majority of lenders said those standards will be stricter than normal for the foreseeable future.
SEE ALSO: The Fed and the Treasury’s announcement that they’ll extend the TALF liquidity program for commercial mortgage-backed securities through next June.
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BB&T said to be Colonial buyer
Posted on August 14, 2009 at 1:47 pm
Bloomberg reports that Alabama’s floundering Colonial BancGroup is about to be snapped up by regional powerhouse BB&T (Ticker: BBT). With $26 billion in assets, Colonial’s expansion into Florida, Nevada and elsewhere may well turn out to be a case study in how banks got in over their heads during the housing boom.
Investors like the look of the deal, which — of course — comes with a loss-sharing guarantee from the FDIC.
BB&T may gain $830 million, or $1.28 per share, in the third quarter from the acquisition, analyst Chris Marinac of FIG Partners LLC in Atlanta said in a report today that assumes the FDIC will absorb 80 percent of Colonial’s loan losses. BB&T is likely to mark down Colonial’s loans by 12.5 percent to account for likely losses, Marinac said.
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Regions pops on hedge fund manager’s move
Posted on August 13, 2009 at 12:11 pm
Shares of Regions Financial, the parent of the largest bank in Nashville, are up more than 8 percent (Ticker: RF) after hedge fund titan John Paulson disclosed yesterday he has bought almost 3 percent of the company.
SEE ALSO: Jim Cramer putting into perspective Paulson’s move: “The guy was short mortgages! Regions Financial is a living, breathing mortgage.”
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