Deconsolidation Nation for Mortgages?

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Deconsolidation Nation for Mortgages?
By Paul Muolo Let’s put Bank of America on the couch. If anyone can figure out its absolutely schizophrenic approach to mortgages over the past two decades drop me a line.

Remember when it owned a subprime lender back in the 1990s and actually liquidated the thing even though it was making money? And before buying Countrywide it tried to make a huge splash in wholesale lending and failed miserably only to get out with its tail between its legs. And then it bought Countrywide thinking it was buying a premier lender/servicer at a bargain-basement price. I would guess that by the time the CFC Trojan Horse has run its course at B of A that disastrous purchase—the worst in history for mortgage banking—will cost the bank upwards of $40 billion. But enough Monday morning quarterbacking. All eyes in the industry are on the Charlotte-based bank because of this simple reason: the general belief is that within three years its presence in the market will be half of what it was a year ago and that means all that “market share” is up for grabs. We’ve hinted on the concept of “deconsolidation” before but you may want to read our expanded analysis in the Monday edition of National Mortgage News. Don’t subscribe? Call 800-221-1809…

Meanwhile, mum is still the word on who bought B of A’s $73 billion servicing portfolio—you know, the one that Fannie Mae controls because it has the right to yank servicing at a moment’s notice. As we noted in a previous column, Green Tree Servicing was said to be the winning bidder but that company may not have actually bought MSRs. We’re told that Green Tree recently received a “large assignment”—the B of A’s MSRs. (How much we don’t know.) GT isn’t talking, neither is its parent company, that publicly traded Walter Investment Management. You would figure that this is a “material event” and that WIM would say something. But we’re also told that maybe the deal has not actually closed, which means no filing is necessary, at least not yet. Of course, B of A and Fannie are saying nothing. So maybe I should call my Senator who is on the Banking Committee…

By now, you all know that refinance applications are piling up. Second-quarter originations figures were not great but the third quarter could turn out to be a barn-burner. However, second-quarter commercial fundings were quite strong, according to figures compiled by NMN and the Quarterly Data Report. In the next issue of the QDR, NMN will start publishing the nation’s top ranked commercial lenders as well. To order the QDR drop a line to Deartra.Todd@SourceMedia.com…

What’s going on with Kislak Mortgage these days? Good question. Tom Wind left several weeks ago and the company’s PR lady has not returned multiple telephone calls and emails lately. Any insight? Drop me a note at Paul.Muolo@SourceMedia.com…

The Federal Housing Finance Agency has yet to release its draft proposal on restructuring Fannie/Freddie servicing fees. We’re told that there is now “radio silence” in Washington on the issue. However, something might shake loose by the end of September…

MORTGAGE HURRICANE STUFF: Yes, a big storm is on the way to the East Coast. I want all you mortgage surfing dudes who are contemplating a trip East to catch the wave to stay at home, unless of course you happen to be Dan Perl or Jeff Freud. Meanwhile, servicers should be checking the flood insurance policies on their portfolio…

Just how low are mortgage rates? Warehouse consultant Larry Charbonneau says he’s refinancing into a 3.25% 10-year loan. The grizzled industry veteran lives in Texas…

WASHINGTON NEWS: It’s been nearly two years since the Department of Housing and Urban Development implemented new policies for the Real Estate Settlement Procedures Act, including new versions of the good-faith estimate and HUD-1 disclosure documents. While the technology and automation exists to help mortgage lenders avoid GFE/HUD-1-related RESPA violations, industry participants say that even now, many lenders are still relying on manual processes—or no process at all—and end up having to pay the difference between underestimated and actual closing costs. For the full story see NMN and our website. (Reporting by NMN’s own Austin Kilgore.)

MORTGAGE PEOPLE: 3Point Asset Management, Irvine, Calif., has hired Ron Millar as AVP in charge of sales and training. Millar joins the residential specialist from Arch Bay Capital.

MUST ATTEND MORTGAGE CONFERENCES: On Sept. 19-20 NMN and SourceMedia will hold its Mortgage Regulatory Forum show at the Washington Marriott in the nation’s capital. Speakers include OCC chief John Walsh, Rep. Shelley Moore Capito, R-W.Va., and some congressman from Massachusetts whose last name is Frank. More info visit http://www.nationalmortgagenews.com/conferences/mr/

IMPORTANT DATA STUFF: MortgageStats.com is alive and well. This exclusive only data website has been updated to include not only full-year 2010 figures but first and second quarter information as well. MortgageStats boasts the nation’s top 400 lenders and servicers, including hard volume numbers and contact information. It also includes exclusive monthly analysis from me. (You can’t get this information anywhere else.) For more information drop an email to: Deartra.Todd@SourceMedia.com…

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Tags: Bank of America, bankruptcy, borrower, countrywide, disclosure, foreclosure, foreclosure defense, foreclosure offense, foreclosures, fraud, Green Tree Servicing, LOAN MODIFICATION, modification, Paul Muolo, quiet title, rescission, RESPA, securitization, TILA audit, trustee, WEISBAND
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