GOP Senator’s Mortgage Company Closed. 53k Mortgage Companies in 2004 vs. 15k Now. Homeland Federal Mortgage, out of Oklahoma, was a mortgage broker until they recently shut down. Why is this worth mentioning? Interestingly, the owner is Republican state senator Dan Newberry who wrote, “Recent federal legislative initiatives that favor big banks have made it
Indymac
Cash-Out vs. Cash-In Refi Stats Remember when cash-out refinancing was the bulk of our business, and any investor who would tweak their price slightly on this product would either see all or none of the business? Four or five years ago, that category of loan hit 88%, which, according to Freddie Mac, put another way,
My 86-year old Dad caught me taking a nap over the weekend. Not one to miss an opportunity, he said, “You practically invented lazy. People should have to call you and ask for the rights to the word “lazy” before they use it.” That’s my Dad… Lock Desk personnel are seldom lazy, and in fact
Fed Mortgage Rate Help Waning? Let it happen or make it happen, it’s up to you! Or, with mortgage rates, it is up to the Fed. The Fed’s buying mortgage-backed securities has kept mortgage rates low, right? And one way to attract private investors to buy mortgage securities is to make the yield attractive, right?
The Economist recently pointed out how private equity is gearing up for some serious financial sector investing, saying that 60 private equity funds that focus on financial services were set up in 2008 and 114 are in the works. One key reason for the trend is that non-banking firms previously could not own significant stakes
It was mealtime during an airline flight. “Would you like dinner?” the flight attendant asked John, seated in front. “What are my choices?’ John asked. “Yes or no,” she replied. Banker vs. Broker Sometimes brokers feel that they are having fewer and fewer choices. One wrote to me last week and said, “Why would Wells
After failing and being seized by the FDIC earlier this year, Indymac is now on the block to be bought within 90 days. The FDIC has taken on the role of investment bank as the bank failures mount. After the Indymac failure depleted the FDIC fund, FDIC head Sheila Bair took on a new approach,
Twenty-two banks have failed so far in 2008. After Indymac failed in July, which was the largest of the year at that time, the FDIC saw that their reserves for taking over failing banks were going to disappear in a hurry. So they started acting as investment bank of sorts by brokering deals where they’d
Downey Financial, a Newport CA based savings and loan, was seized by the FDIC Friday and sold to US Bank in a deal the FDIC brokered. As of October 22, Downey’s loans no longer collecting interest were 15.7 percent of bank assets. Most of these bad loans were from their portfolio of about $7 billion
Who says investment banking is deal. The new deal brokers on The Street are the Fed, Treasury and, increasingly, the FDIC. Under Sheila Bair, the FDIC’s role in the credit crunch is getting larger and larger. When Indymac went down, it caused great concern that the FDIC’s industry-funded deposit insurance fund would quickly be depleted
Those clever FDIC/Indymac folks! They are sending out letters to their HELOC borrowers, saying, “IndyMac Federal Bank will be selling your home equity line of credit to a third party within the next 90 days.” (Who? We’d all like to know!) “To help facilitate this transaction, IMFB is willing to pay the greater of $500
I don’t make enough money, so how am I supposed to get a loan these days? Fortunately “entrepreneurs” never cease to amaze me. Jerry Seinfeld makes enough money: he just signed on with Microsoft for $10 million for an advertising campaign. Mortgage stocks in the news Yesterday mortgage company stocks were all over the map.
Indymac Bank made the biggest headlines recently, but so far in 2008, seven banks have failed and have been taken over by the FDIC. When this happens, the FDIC will guarantee $100,000 per account. But what if they run out of money? They insure $4.4 trillion in deposits and currently hold about $44 billion in
What Capital Markets employee hasn’t dreamed of being a rodeo clown? “They put themselves in the line of danger every time they go to work. With names like Shane, Flint, Cody, Scooter, and Tex, they evoke the nostalgia of the old west. Rodeo clowns make perhaps $100 to $225 for a show, usually setting their
In a press release 4 days ago, IndyMac said they were shutting down their retail and wholesale lending units but keeping their 33 branch banking network. The next day, a private equity firm purchased IndyMac’s retail lending operations for an undisclosed amount. Today, the Office of Thrift Supervision shut down IndyMac’s retail banking operations and
CONGRESS BETTER DO SOMETHING It appears that Congress can’t quite decide what to do on the current mortgage legislation. The broad thinking suggests that if they can’t do something prior to their summer recess, when they return the November election will consume their time. Although doing nothing is an option, let’s hope they don’t take
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