Articles by Paul Jackson

Green Tree's Servicer Ratings Affirmed; Subprime Servicing Stability Questioned

Moody's Investors Service announced yesterday that it has affirmed Green Tree Servicing LLC's ratings of SQ3 as a primary servicer of subprime and second lien residential mortgage loans. In spite of affirming its rating of Green Tree, Moody's noted below-average subprime servicing stablity in its review, reflecting a rapid decline in the company's retained subprime servicing portfolio. The subprime servicing portfolio of the company has declined from $5.7 billion as of December 31, 2003 to $2.8 billion as of May 31, 2006.
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Loan Production Lowest in Two Years at Downey Financial

Downey Financial, the parent company of West Coast option-ARM specialist Downey Savings, reported today that loan production dropped 19 percent in November to its lowest amount in two years. Loan production was reported at just over $171 million, versus $210 million in October. The currently reported loan production results are a far cry from a year ago, when Downey produced nearly $600 million in residential one-to-four loans.
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Southern California Home Sales Slowest Since 1997

Southern California home sales remained at their slowest pace in nine years last month, as the market continued to rebalance itself after several years of heated activity. A total of 20,388 new and resale homes sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was down 7.8 percent from 22,117 in October, and down 26.2 percent from 27,637 for November a year ago.
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SunTrust Tops JD Power's Borrower Satisfaction Survey

SunTrust ranks highest in overall customer satisfaction among primary mortgage lenders, according to the J.D. Power and Associates 2006 Primary Mortgage Origination Study, released today. The 2006 study was based on responses from 4,115 consumers who originated a new mortgage in the previous nine months. Measuring customer satisfaction with the mortgage borrowing process, the study found that overall satisfaction has improved significantly, increasing 7 percent from 2005. Overall satisfaction is most impacted by improvements in the closing process.
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Economic News Lifts Mortgage Rates

Mortgage rates rebounded this week following upbeat economic reports on employment and retail sales. The average 30-year fixed rate mortgage increased to 6.13 percent, which is still the third-lowest level of 2006. According to Bankrate.com's weekly national survey of large lenders, the 30-year fixed rate mortgages had an average of 0.24 discount and origination points.
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Ocwen's Resi and Special Servicer Ratings Affirmed

Fitch Ratings today affirmed Ocwen Financial Corporation's 'RPS2' residential primary servicer rating for subprime mortgages and its 'RSS2' residential special servicer rating. According to a statement released by the rating agency, its rating actions are based on what it sees as Ocwen's solid capabilities in loan administration and default management, comprehensive servicing technology, established training programs, and effectiveness in servicing nonperforming loans and liquidating real estate owned assets.
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Delinquencies, Defaults Continue Upward Run In 3rd Quarter

A new report suggests a clear trend of increasing homeowner distress across key US housing markets. According to the MBA's National Delinquency Survey, released today, the delinquency rate for mortgage loans on one-to-four-unit residential properties stood at 4.67 percent of all loans outstanding in the third quarter of 2006 on a seasonally adjusted (SA) basis, up 28 basis points from the second quarter and up 23 basis points from one year ago. The increase was driven by increases in delinquencies for all major loan types, most notably for subprime and FHA loans. Delinquency rates for prime, subprime, and FHA loans all increased on a seasonally adjusted basis relative to the second quarter.
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GMAC Adds to Subservicing Portfolio

GMAC Mortgage, LLC, the nation's second largest subservicer, announced today that it will handle interim subservicing for Sherman Oaks, Calif.-based Metrocities Mortgage, LLC. A residential mortgage lender, Metrocities Mortgage's lending territory covers all 50 states. GMAC Mortgage will provide interim subservicing for the company's full line of first mortgages, closed-end seconds and HELOCs.
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Report: Is California a Ticking Subprime Time Bomb?

A new report suggests that subprime, or higher-cost home lending, is increasing at a rapid rate in California. Sponsored by the California Reinvestment Coalition, a consumer advocacy group, the report analyzes federal Home Mortgage Disclosure Act (HDMA) data and shows that the number of higher cost home loans sold in the state doubled during 2005, making California the largest market for subprime lending in the country. The report primarily looks at the disparities in higher-cost lending to African Americans and Latinos, and in minority neighborhoods and Low and Moderate Income (LMI) neighborhoods in 14 cities across the state.
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