Tag Archives: Company News

The American Credit Union Mortgage Association (ACUMA) has added a new member, with the incorporation of Equi-Trax Asset Solutions LP. Equi-Trax, a provider of borrower outreach programming and portfolio analytics, was recently accepted into the ACUMA, as part of the organization's continuing efforts to enhance its consumer assistance platforms.

Real estate investment trusts are making headlines again, on the news that the Federal Reserve will continue to drive long-term interest rates even lower. High yielding REIT stocks have dropped accordingly, and the REIT market, which thrives on borrowing at lower rates and lending in the mortgage marketplace at higher rates via the purchase of mortgage-backed securities, has struggled. Many industry analysts note that the segment's avoidance of any default risk should offset the instability caused by interest rate fluctuation.

Expanding its mortgage services, PHH Mortgage Corporation has announced the addition of five private clients, and the new financial institutions will gain access to the company's mortgage offerings through its Private Label Solutions division. PHH Mortgage, a subsidiary of PHH Corporation, will now provide end-to-end mortgage processing management to the PLS participants.

An inconclusive search for a buyer will lead Bank of America to shutter the mortgage correspondent unit it had originally hoped to sell. The move means the mortgage giant will wipe its hands of the correspondent business by yearend, with a series of transitions in store for the 1,200 or so employees currently on the payroll. It also tracks a broader strategy deployed by the bank to trim billions in expenses, shore up liquidity, and fend off suits over mortgage-backed securities from federal agencies.

Mortgage software company Mortech, Inc., found cause to celebrate with the launch of an industry-first Lending Management Platform, available via a Web site devoted entirely to the brand-new MarksmanLMP. According to the company, the aim of the dual launch is to streamline and simplify online lending processes.

The Securities and Exchange Commission recently announced a new game plan when it comes to targeting companies and individuals under fire for allegations stemming from the mortgage meltdown. The SEC will now update enforcement procedures; moving away from difficult to prove filings that are geared to prove purposeful wrongdoing, recklessness, or fraud, the SEC will reduce its burden with civil cases that require only proof of negligence. The SEC has utilized similar tactics as as supplement to more intensive accusations.

New regulations targeting capital requirements are challenging big banks in the U.S. and abroad. While large American financial institutions have been grappling with more strenuous capital rules since the Dodd-Frank Act was released, European banks are set to experience similar adaptations with the news that The Basel Committee on Banking Supervision chose to ignore stringent lobbying, in favor of mandating extended capital funding for mega banks. The committee moved forward with capital surcharges from 1 to 2.5 percent for the biggest banks worldwide.

Standard & Poor's is coming under heavy scrutiny from the Securities and Exchange Commission for it alleged misconduct in handling valuations for a $1.6 billion mortgage-bond deal. Regulators for the SEC are focusing on the company's possible exploitation of fictitious assets when rating the transaction in question. The bond deal became a debacle during the financial crisis, and this week, S&P's parent company, McGraw-Hill Cos., received notice from the SEC that it could be facing civil charges related to its potentially fraudulent actions.

The specialized lending arm of Prudential Mortgage Capital Company, which targets Federal Housing Administration-based loans, recently announced the closing of a $77.2 million deal on the FHA's behalf. Prudential Huntoon Paige (PHP), the official moniker of Prudential├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós FHA-focused division, purchased the loan to refinance a multi-family development in Upland, California.

The weekly mortgage applications numbers are in, and current data shows an increase nationally. The Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ended September 23 demonstrated a 9.3 percent rise in mortgage loan application volume on a seasonally-adjusted basis, according to the Market Composite Index contained within the report. The Purchase Index rose 2.6 percent this week on a seasonally-adjusted basis and showed a 0.1 percent hike year-over-year.