Latest Mortgage News Headlines

Erratic 1-Year Activity as Apps Ease

Longer term mortgage rates improved, but applications were still off. The 1-year adjustable-rate average surged, however, while its underlying index tumbled. (Aug. 21)

Foreclosure Class Action Against WaMu

A Massachusetts couple claim they were just following the advice of Washington Mutual Bank when they stopped making their mortgage payments so they could qualify for an assistance program being promoted by the bank. But following the foreclosure of their home, they became lead plaintiffs in a class action against the company. (Aug. 21)

N.C. Trade Group Clarifies YSPs Under New Law

A mortgage trade group in North Carolina has warned its members that news reports indicating yield spread premiums are prohibited under a new state law are wrong. The new law does, however, place limitations on mortgage broker income earned on high-cost loans. (Aug. 20)

LendingTree Settles Lawsuit

LendingTree LLC has settled a four-year-old lawsuit in which it was accused of the unauthorized use of technology from another company for its online exchange between borrower and lenders. (Aug. 20)

HUD Eases Loan Modification Procedures

The U.S. Department of Housing and Urban Development has made it easier for servicers to modify delinquent loans insured by the Federal Housing Administration. (Aug. 20)

IndyMac Pursues Wide-Scale Alt-A Modifications

The chairman of the Federal Deposit Insurance Corporation, who has been calling on servicers to make more loan modifications, is putting U.S. and investor money where her mouth is. (Aug. 20)

Best California Broker California mortgage brokers have recognized a San Francisco broker as being the best in the state.

Commercial Mortgage Volume Down

While quarterly commercial mortgage production has tumbled from last year, volume has recently stabilized. Meanwhile, fundings for health care properties have soared. Commercial loan securitizations have all but disappeared, though commercial banks have recently begun picking up some of the slack. (Aug. 20)

Massive Foreclosure Prevention Efforts Underway

Members of Congress are prodding servicers to hold off on foreclosures while new legislation is implemented, while a group of nonprofits is working to ensure foreclosure funds designated by the new law are put the highest and best use. In Chicago, the price of holding a vacant property rose, and the cost for foreclosure consultation from a Phoenix attorney fell. Two firms have automated the process of identifying foreclosure prospects and recommending solutions. (Aug. 19)

Routine Examination Turns Costly

When New Hampshire regulators were given loan files for a routine examination of a mortgage brokerage, they became suspicious about missing documents. With a little more work, they found the missing documents in a shredding bin and reconstructed them only to find altered documents on loans from that state and from Massachusetts. In addition to fining the broker $400,000, they alerted Massachusetts regulators -- who then took their own actions. (Aug. 19)

Fannie Halts N.Y. Subprime Purchases

Fannie Mae has followed Freddie Mac's lead on New York subprime mortgages. (Aug. 19)

Florida Firm Growing, Hiring

A Florida-based company that helps servicers with real estate owned has added nearly 100 employees this year and has plans to add more. (Aug. 19)

Bank Sued Over Failed Firm

A mortgage banking joint venture between a Colorado firm and a Kansas bank appeared to be weathering the financial markets storm until March, when the bank pulled the plug on the operation. Now the bank is being sued for millions of dollars by its former partners. (Aug. 19)

Wachovia Cutting PA Jobs

Wachovia Corp. plans to eliminate mortgage jobs in Pennsylvania. (Aug. 18)

Broker, Bank Exec Busted

A mortgage broker has pleaded guilty to helping a former executive of a Florida bank overcharge the banks borrowers. The two pocketed the difference while the bank wound up embroiled in lawsuits. (Aug. 18)

Help With Rising FHA Activity

The volume of loans insured by the Federal Housing Administration has spiked this year, new data indicate. Two firms are helping mortgage companies that are struggling to understand and comply with recent changes to the FHA program while trying to keep up with increased activity. (Aug. 18)

Firm Reports Success in Secondary Sales

A New York firm reports that it has brokered the successful sale of more than $6 billion in mortgage portfolios during the past year. (Aug. 18)

California Mortgage Layoffs

Hundreds of California employees were laid off earlier this month by Fremont Investment & Loan. (Aug. 18)

Positive IndyMac Update

IndyMac Federal Bank FSB, which still employs many of the people who worked there before it was taken over by government regulators, is operating under the Federal Deposit Insurance Corporation with fewer capital restraints in an environment with higher morale than in its final days as an independent company. Fewer layoffs are currently planned as the FDIC is apparently managing the company under a strategy that seeks to preserve value in the company's business units as ongoing entities. (Aug. 15)

BoA Lays Off Illinois Employees

Bank of America Corp. has begun the painful process of eliminating 7,500 jobs in connection with its recent acquisition of Countrywide Financial Corp. The first round involved Illinois employees. (Aug. 15)

N.C. Trade Group Clarifies YSPs Under New Law A mortgage trade group in North Carolina has warned its members that news reports indicating yield spread premiums are prohibited under a new state law are wrong. The new law does, however, place limitations on mortgage broker income earned on high-cost loans. Earlier this week, North Carolina Gov. Mike Easley announced he signed a number of bills designed to "drastically reduce" foreclosures in the state. Dubbed the "Emergency Foreclosure Reduction Program," Easley said more than 25,000 foreclosures could be prevented by the legislative package. (Aug. 20) read full story Florida Firm Growing, Hiring A Florida-based company that helps servicers with real estate owned has added nearly 100 employees this year and has plans to add more. Mortgage Contracting Services announced today that it has doubled its office space in Tampa, Fla., and Dallas to accommodate "explosive growth." So far this year, the firm said it has hired about 92 employees. The addition of several new customers during the second quarter has created the need for another 37 new positions. (Aug. 19) read full story BoA Lays Off Illinois Employees Bank of America Corp. has begun the painful process of eliminating 7,500 jobs in connection with its recent acquisition of Countrywide Financial Corp. The first round involved Illinois employees. (Aug. 15) Another State Sues Countrywide West Virginia has joined a host of other states suing Countrywide Financial Corp. (Aug. 13) Reverse Lender Seeing Success The company that claims to be the biggest privately held reverse mortgage originator sees more hiring ahead. (Aug. 11)