What We're Hearing Daily

By Paul Muolo

Investment banker Friedman, Billings, Ramsey Group -- which during the subprime go-go years took many lenders public -- lost $25 million for the quarter ending June 30. FBR chief Eric Billings is the subject of a chapter in the book "Chain of Blame, How Wall Street Caused the Mortgage and Credit Crisis." The chapter that Mr. Billings appears in is called "The Holy Roller of REITs." Mr. Billings is the "Holy Roller" in question. Meanwhile, in 2Q FBR took a $5.8 million hit on writedowns and losses in its non-prime mortgage investment portfolio…

See Paul's weekly column here.

Conference Calendar

August 6 - 9
Mortgage Industry Conference & Annual Expo
California Association of Mortgage Brokers
Hyatt Regency Sacramento
Sacramento, CA
Tel: 916-448-8236
More info

September 30 - October 2
16th Annual NJ Association of Mortgage Brokers Conference
Trump Taj Mahal Resort
Atlantic City, NJ
More info

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Mortgage Industry Buyer's Guide

The 2008 edition of the Mortgage Industry Buyer's Guide has been launched.
Click here to see nearly a thousand listings in hundreds of categories.

Featured Buyer's Guide Category:

Document Preparation

The industry's top document preparation companies.
Click here to see listings in the Document Preparation category.

For online listing info for the Buyer's Guide, Call Steve at 866-752-7966 or send an email to steven.gallego@sourcemedia.com

Featured Event

3rd Annual Mortgage Fraud Conference

SourceMedia's 3rd Annual Mortgage Fraud Conference is held at The Rio Suite Hotel in Las Vegas on Nov. 13-14, 2008. This industry-leading National Mortgage News event will provide you with the techniques and strategies to detect, prevent and manage mortgage fraud; monitor your portfolio and identify potential loss exposure as early as possible.

Please visit the conference website for more information.

Related Newsletters

Daily Briefing Mortgage Servicing News Bulletin
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Mortgage Technology Newsletter

First American CREDCO Supports Updated FHA Credit Reporting Requirements

By James Comtois

ST. PETERSBURG, FL-First American CREDCO's Instant Merge and Anthem Suite products exceed certain guidelines for the updated Federal Housing Administration credit reporting requirements for FHA mortgage insurance risk-based premiums calculations, the company said. Specifically, the products meet or exceed requirements for credit reporting, scoring and non-traditional credit compilation and verification.

Available since 2004, the Anthem Report is used by mortgage lenders to obtain credit for borrowers with little or no credit history. Anthem is fully compliant with the non-traditional credit compilation and verification methodologies of Fannie Mae, Freddie Mac and FHA.

"Instant Merge and Anthem together help provide traditional credit bureau reporting and scoring, non-traditional credit reporting specific to the FHA's requirements and a borrower disputes process as outlined by the FHA," said Mark F. Catone, senior vice president of First American CREDCO, a provider of credit reports to the mortgage and consumer finance industries and part of First Advantage Corp here.

The FHA recently outlined new risk-based premiums on one- to four-unit single-family mortgages, explaining that the premium levels are charged by risk, using the decision credit score value and long-term value to determine the premium. The decision credit score is the median score when three scores are available, or the lesser of two scores when only two are available and "one" when only one score is available.

Read on...

SLN Proprietary Products Available in New York

By Brad Finkelstein

MELVILLE, NY-Senior Lending Network here is making two of its proprietary reverse mortgage products available to senior citizens in New York. The company sources product through mortgage brokers.

Equity Plus Advantage is a jumbo product for seniors who have a home value of more than $500,000. The valuation cap on the product is $2.5 million. This program is for borrowers who are aged 60 years and older. Besides New York, the product is offered in 23 other states and the District of Columbia. In these other states, borrowers need to be 62 years old or older.

The other product being offered is Simple60. Most reverse mortgages, including the Federal Housing Administration Home Equity Conversion Mortgage, require that the borrower be at least 62 years old. HECMs account for 90% of reverse mortgages originated.

The company said the Simple60 is the first reverse mortgage product for those who are younger than the HECM requirement. It is aimed at seniors between the ages of 60 and 62.

Read on...

Preying on the Weak: The Rise in Predatory Lending

The latest research report from Richard Beidl on Predatory Lending surveys the scope of the problem, discusses lender approaches and examines the effects of laws at the local level.

Research Highlights:
  • Understanding predatory lending and modern lending tactics
  • The magnitude of the problem
  • Who is affected
  • Advice and laws for combating fraud
  • Tools in preventing and detecting predatory lending abuses

Take advantage of Richard Beidl's immeasurable knowledge on this topic. Click here to purchase.

Outsource Service Provider Offers FHA Training

By James Comtois

DENVER-In order to allow its employees to respond to the increased demand for knowledgeable FHA business partners, outsource service provider LenderLive Network here has developed a training program on the fundamentals of FHA loan procedures and processing.

According to LenderLive president Rick Seehausen, the company developed this training program because of the FHA's growing significance within the mortgage industry.

"At least 10% of today's market share is FHA, and it is expected to rise to 40% or 50% in the near future," he said. "Most of our employees have had previous exposure to FHA operations, but we want to be certain that they can react to changing market conditions. From FHA program mechanics to technology, the sessions educate our staff on how these loans differ from the conventional loans they generally process."

LenderLive is an FHA-approved mortgagee. Any LenderLive client - also an FHA approved mortgagee - can effectively enter into an outsource agreement with the company for services from application to closing the mortgage transaction. To ensure that employees are well equipped, LenderLive developed the training for employees in its retail and specialty origination channels.

Read on...