BrokerWire

SigniaDocs Unveils Lender Protection Service July 23, 2008

SigniaDocs, a Houston-based provider of electronic mortgage services, has announced a new service aimed at protecting lenders against claims of improper disclosure processes. The service, called eSign eNsure, enforces compliant disclosure and closing practices by warranting the good-faith estimate, the truth-in-lending statement, and annual percentage rate calculations via the creation of electronic date-and-time stamps in key disclosure areas, signifying borrower understanding and acceptance of the loan conditions. Developed in collaboration with Shanks Darby PC, a Houston-based law firm specializing in commercial and residential real estate law, eSign eNsure creates a legal representation and warranty around electronic loan document disclosures. "Electronic initials can be placed anywhere on the document that you want to direct the borrower's attention," said Tim Anderson, president of SigniaDocs. "You can require electronic initialing in those areas of the documents where you want to show electronic evidence of borrower proof of understanding and intent." The company can be found online at http://www.signiadocs.com.

Applications Fall July 23, 2008

The Market Composite Index, an overall measure of mortgage applications, fell from 522.2 to 489.6 on a seasonally adjusted basis during the week ended July 18, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.

MBA Mortgage Application Survey (Seasonally Adjusted Index Levels)
	Wk Ended July 18	Wk Ended July 11
Market Composite	489.6	522.2
Purchase Index	335.6	359.7
4-Wk Moving Avg	351.0	350.5
Refinance Index	1392.7	1474.9
4-Wk Moving Avg	1379.0	1333.9
Source: Mortgage Bankers Association

The Purchase Index fell from 359.7 to 335.6 on a seasonally adjusted basis, while the Refinance Index declined from 1474.9 to 1392.7. Refinancings represented 39.4% of total applications, up from 39.2% the previous week, while adjustable-rate mortgages accounted for 8.5%, the MBA said. The average contract interest rate for 30-year fixed-rate mortgages rose from 6.22% to 6.59%, and points (including the origination fee) decreased from 1.21 to 1.05 for loans with 80% loan-to-value ratios, the association reported. The MBA can be found online at http://www.mortgagebankers.org.

Int'l Poll: Home Prices to Rise Within 5 Years July 23, 2008

An online poll of homeowners in the United States and five European countries found that most believe the value of their home, while not rising this year, will increase within five years. The online Financial Times/Harris Poll found 54% of U.S. respondents joining the majority of respondents from Germany, France, Italy, and Spain in saying that the price of their home will be the same one year from now. Slightly more respondents from Great Britain, 43% vs. 42%, said their home value would remain the same than said it would decline. As for the future, 68% of American homeowners joined 64% of Italian, 57% of Spanish, and 56% of British homeowners who believe their property will increase in value within five years. But 48% of German homeowners said they expect their property value to remain the same. Most respondents were not worried about losing their homes if they could not make their mortgage or rent payments: France, 67%; Germany 62%; U.S., 61%; and Great Britain and Italy, each 55%. In Spain, however, 39% were not concerned, compared with 33% who were somewhat concerned.

FDIC Hires IndyMac Conservator/Counsel July 22, 2008

Thacher Proffitt & Wood LLP, New York, has been hired as counsel to the Federal Deposit Insurance Corp. to act as the conservator for IndyMac Federal Bank FSB, Pasadena, Calif. The engagement pertains to corporate and transactional matters relating to the FDIC conservatorship. Its team is led by Stephen S. Kudenholdt, chairman of Thacher Proffitt's structured financial practice group, and Robert C. Azarow, a partner in the corporate and financial institutions practice group.

LPS Buys McDash Analytics July 22, 2008

Lender Processing Services Inc., Jacksonville, Fla., has announced the acquisition of McDash Analytics, providing access to what LPS called the industry's largest loan-level database of mortgage assets. LPS said it now offers loan-level data for more than 39 million active first- and second-mortgage loans, representing approximately two-thirds of the mortgage market. "McDash's solutions complement our existing analytic forecasting capabilities and will enable us to serve our clients on a more comprehensive level," said Greg Whitworth, president of LPS's applied analytics division. ".... LPS has been successful in bringing together the loan and property-level data and analytics needed to provide mortgage originators, servicers, and investors with a more complete, accurate picture pf their portfolios." LPS can be found online at http://www.lpsvcs.com.

Home Values Off Almost 5% Over 12 Months July 22, 2008

In May, home prices nationwide fell to a level 4.8% below that of a year earlier, but values may be firming up on the West Coast, according to new figures released by the Office of Federal Housing Enterprise Oversight. OFHEO said prices rose 0.3% from April to May in the Pacific region, which includes Alaska, California, Hawaii, Oregon, and Washington. Nationwide, values fell 0.3% from April to May. "It is very hard to draw conclusions from a one-month number, especially in these uncertain times," said OFHEO Director James Lockhart. The index is calculated by the agency using information on mortgages bought or guaranteed by Fannie Mae and Freddie Mac.

Wachovia Suffers Huge Loss, Exits Wholesale July 22, 2008

Wachovia Corp., the nation's 14th-largest wholesale originator, revealed Tuesday morning that it will exit that channel and shed thousands of mortgage-related jobs. The move was announced in tandem with an earnings report showing a stunning $8.86 billion loss in the second quarter. Overall, the Charlotte, N.C.-based Wachovia will shed 6,350 jobs. It said 1,000 mortgage workers will be "redeployed" to help Wachovia customers refinance "Pick-a-Pay" loans, a product the bank became heavily involved in when it bought World Savings of Oakland, Calif., two years ago. Wachovia blamed the huge losses on writedowns on its "commercial, corporate lending, and investment banking subsegments." Wachovia's investment banking arm was a huge player in the market for mortgage collateralized debt obligations.

Did Thousands of Felons Become FL Brokers? July 21, 2008

More than 10,000 people with criminal records were allowed to work in Florida's mortgage industry, according to a report in The Miami Herald. Of those, more than 4,000 cleared background checks despite committing crimes that state law requires regulators to screen, including fraud, racketeering, and extortion. The state's chief financial officer, Alex Sink, is calling for an executive order to stop issuing and renewing mortgage broker licenses to convicted felons. He has also requested that Florida's chief mortgage regulator, Don Saxon, step down. Mr. Saxon is commissioner of the Office of Financial Regulation.

BoA 'Committed' to Countrywide's TPOs July 21, 2008

Bank of America confirmed Monday that it is committed to maintaining the wholesale and correspondent platforms of Countrywide Financial Corp., which it purchased on July 1. According to the Quarterly Data Report, the Calabasas, Calif.-based Countrywide was the nation's largest correspondent lender and second-largest wholesaler in the first quarter, with production volumes of $31 billion and $9 billion, respectively. In a presentation released along with its second-quarter earnings, the Charlotte, N.C.-based BoA noted that the Countrywide mortgage franchise would discontinue the origination of certain types of nonconforming loans, including payment-option adjustable-rate mortgages. It reported that Countrywide will "significantly curtail" its use of low-documentation loans. Countrywide is no longer funding subprime loans of any type. In the first quarter, Countrywide's subprime servicing portfolio had a delinquency rate of 33%.

MGIC Reports $98M Loss July 18, 2008

MGIC Investment Corp., Milwaukee, has reported a net loss of $97.9 million ($0.79 per share) for the second quarter, compared with net income of $76.7 million ($0.93 per share) a year earlier. Curt S. Culver, MGIC's chairman and chief executive, said the loss stemmed from increases in delinquencies and foreclosures. He also noted that the company during the second quarter had announced additional underwriting changes, increased premiums on all insurance products, amended its revolving credit facility, and entered into a reinsurance agreement for new writings. Delinquencies, including loans insured through the bulk channel, totaled 8.60% as of June 30, compared with 6.11% a year earlier, MGIC reported. Losses incurred in the quarter totaled $688.1 million, up from $235.2 million for the same period in 2007. New insurance written totaled $14.0 billion in the second quarter, compared with $19.0 billion a year earlier. Persistency continued to improve, standing at 79.7% as of June 30, compared with 72.0% on the same date last year. The company can be found online at http://www.mgic.com.