Articles Tagged with ''bank''

Sale of First Franklin Drives Q4 Profit at National City

National City Corporation reported Tuesday net income of $842 million for the fourth quarter 2006, up from $398 million one year ago; full year 2006 net income was reported at $2.3 billion, up slightly from $2.0 billion in 2005. Profit during the fourth quarter was driven largely by the sale of National City's First Franklin subprime mortgage franchise, which the company said led to a $622 million after-tax gain on sale. The gain was partially offset by after-tax charges of $172 million for credit losses on the First Franklin run-off portfolio, realized losses on sales of former First Franklin portfolio loans and fair-value writedowns on loans held for sale.
Read More

MBA Identifies Legislative Agenda for 2007

The Mortgage Bankers Association highlighted four key issues on Thursday that the trade organization says will serve as the center of its advocacy and legislative efforts during 2007. “The real estate finance industry made steady progress in 2006, highlighted by the enactment of mortgage insurance premium deductibility and significant progress toward GSE reform and FHA modernization, but there is plenty to be done in 2007,� said Kurt Pfotenhauer, senior vice president for government affairs at MBA.
Read More

Alaska Legislators to Consider Refunding Interest on Mortgage Reserves

Representative Jay Ramras (R-Fairbanks) pre-filed legislation late Monday that would seek to give back interest on a residential homeowners' mortgage reserve account, a move that state legislators say could save Alaskans millions of dollars a year in bank- or lender-held mortgage reserves. ''Banks and other institutions hold a portion of a mortgage payment every year in reserve to pay for homeowners' property taxes, insurance, or other obligations for a loan, but more often than not, banks fail to pay any interest to their borrowers and consequently they hold hundreds of millions of dollars interest-free and lend that money back to homeowners,'' Ramras said.
Read More

Federal Agencies Revise Guidance for Structured Finance Deals

Five federal agencies on Friday issued a final statement on the complex structured finance activities of financial institutions. The final guidance describes a set of internal controls and risk management procedures intended to help financial institutions identify, manage, and address the heightened legal and reputational risks that may arise from certain complex structured finance transactions (CSFTs).
Read More

MLN's Viability in Question

The Advocate is reporting today that Connecticut's Department of Banking is investigating MLN USA's operational stability following its decision to close its wholesale lending division.
Read More

Fannie Overhauls Core Servicing Requirements

Fannie Mae announced today that it has amended core requirements for servicers managing both its fixed and adjustable rate loans, including new requirements for default management and loan administration. Key among the changes are new requirements for approved custodial depositories, including a revised set of guidelines covering which institutions will be considered eligible for servicers' deposit receipts. Servicers will be subject to a 120-deadline to transfer funds out of a non-approved bank.
Read More

ABN AMRO to Cut 900 Jobs in North America

ABN AMRO Bank's North American businesses, which include ABN AMRO Mortgage Group, Inc. and LaSalle Bank Corporation, will reduce workforce by five percent in 2007, according to a statement released this afternoon. The cuts will amount to nearly 900 jobs, the bank said.
Read More

Commentary: A Question of Value

For this week's editorial, I was thinking about how much press coverage 'exotics' get, both in terms of the lax (or at least, poorly understood) underwriting criteria and in terms of how borrowers with these sorts of loans quickly find themselves in deepening water. While justified to a certain extent, the problem of exotics is a drop in the bucket of a much larger, and ultimately more sinister problem: appraisals.
Read More