Servicing

The 30-year fixed-rate mortgage slumped back to a new, record-breaking low, as manufacturing fell behind and more investors turned to the safe haven of Treasury debt. Zillow found that interest rates for the loan fell to 3.43 percent, beating a previous low of 3.48 percent for the real estate Web site and setting a new record since it started reporting interest rates in 2008. Interest rates for the 15-year fixed-rate mortgage averaged 2.87 percent, while those for 5- and 1-year adjustable-rate mortgages hovered at 2.43 percent.

Costs are rising for mortgage originators, but they are still seeing a rise in profit, according to a recent study of independent mortgage banks and mortgage subsidiaries of chartered banks conducted by the Mortgage Banks Association. The net cost of originating a mortgage loan in the first quarter of this year was $3,413. When calculating net cost, MBA weighs production and operating expenses and commissions against fee income, excluding factors such as secondary marketing gains, and capitalized servicing.

A Michigan man pleaded guilty to defrauding SunTrust Mortgage Inc. on a $2 million mortgage. Robert Martin Tolentino, of Grand Rapids, Michigan, pleaded guilty in a federal court in Tallahassee, Florida. The plea was announced by Pamela C. Marsh, U.S. Attorney for the Northern District of Florida. Tolentino applied in October 2006 for refinancing of his residential property on St. George Island. In the application, he falsely represented that his monthly salary was $48,000 to $60,000 a month.

Lending Processing Services, Inc., announced today that it has acquired LendingSpace, a provider of mortgage loan origination software solutions. The LendingSpace technology platform is expected to boost LPS├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ó origination technology solutions, including Empower and PCLender, programs used by mortgage lenders, credit unions, and community banks. The LendingSpace product suite features a lending platform that includes full web-enabled capabilities to enhance collaboration between retail originators and their lending partners.

Only one day after chairman Marcus Agius announced his resignation, Barclays announced that director and CEO Bob Diamond and COO Jerry del Missier are both stepping down. The resignations were announced Tuesday morning and are effective immediately. Agius will lead the search for a new CEO and will be supported by deputy chairman Michael Rake. Barclays has not yet commented on a successor for del Missier. The wave of resignations is brought on by a scandal last week, when it was revealed that Barclays had manipulated the London Interbank Offering Rate.

CoesterVMS is welcoming a new senior vice president of operations. The company recently appointed industry veteran Robert T. Chasteen to the leadership position.

Mortgage Insurance Companies of America released on Friday its monthly statistical report showing that member companies reported a total of $396 billion in primary insurance in force for May. This total is down nearly $1 billion from April and is the lowest total in a year-long fall. Member companies received 38,355 mortgage insurance applications for May, and 35,431 borrowers used private mortgage insurance to buy or refinance a home. Both figures are relatively large jumps up compared to flatter increases.

The Mortgage Bankers Association announced Monday that president and CEO David H. Stevens will continue with the organization instead of joining SunTrust Mortgage as originally planned. SunTrust had announced that Stevens would join the company as president, a move that would leave the trade group to pursue a new president and CEO. "The past few weeks have been extremely difficult for me personally and professionally. After serious thought and consideration, I simply cannot leave the MBA at such a critical time for the industry and the association," Stevens said in a statement.

WFG Title Insurance Company is expanding its industry footprint. The organization, which is part of the Williston Financial Group family of companies, recently announced plans to open a retail title office in Irvine, California.

Superstar soccer player Landon Donovan has put his California estate on the market. According to Zillow's blog, Donovan has listed his home in Manhattan Beach, California, for $4.295 million. The property, which was once featured on MTV Cribs, boasts two separate compounds on site.