Top National News 10-10-2007

Mortgage and Lending with American Financial Resources, Inc.

White House Threatens Housing Veto
Washington Post (10/10/07) P. D4
Legislation approved by the House Financial Services Committee in July that would force upwards of $600 million to be contributed by Fannie Mae and Freddie Mac annually toward the construction or rehabilitation of 1.5 million affordable housing units could go before the full House on Oct. 10. President Bush has signaled his intent to veto the bill if it is passed.
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Lead-Generation Site Asks for No Personal Data
American Banker (10/10/07) P. 17; Launder, William
Mortgage Marvel from Mortgagebot LLC is a new lead-generation Web site for lenders that targets borrowers who do not want to input personal information in order to receive rate quotes on prime loans. Users of Mortgage Marvel key in their Social Security numbers and other personal data only when they fill out an application--unlike LendingTree and, which require personal information upfront. Mortgagebot President and CEO Scott Happ says the quotes are presented in real time, as they are pulled from the Web sites of his firm's 250 partner lenders. He adds that quotes for subprime mortgages might be provided in the future.
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Pilot Program Aims at 'Thin File' Borrowers
Realty Times (10/10/07) ; Sichelman, Lew
In Washington, D.C., a pilot program is underway to provide as many as 2,000 renters with lean credit histories the opportunity to become homeowners. The R-Home project involves the collaborative efforts of CitiMortgage, the D.C. government, Neighborhood Housing Services of America and the nonprofits HomeFree-USA and Manna Mortgage, which will provide housing counseling to prospective borrowers. The 30-year fixed loans will be originated using First American Corp.'s alternative credit-evaluation model, Anthem, which assesses borrowers based on rental, utility and child-care payments, as well as tithing, so that they can get loans at the prevailing rate instead of being forced into more expensive subprime mortgages. Neighborhood Housing Services of America plans to buy back loans after 60 days of borrowers encountering problems in making their monthly payments and offer them additional credit counseling. Given that numerous layers of financing may be necessary, those involved in the program say government help is crucial; as a result, the program will be expanded by region and market if it is successful in D.C.
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Fed Takes Wait-and-See Approach
Washington Post (10/10/07) P. D2; Torres, Craig
Federal Reserve policymakers have no specific plan to continue to lower interest rates, according to minutes of the Sept. 18 meeting of the Federal Open Market Committee. Central bank officials expressed concern about how the financial markets and economic growth would respond to further cuts, adding that market developments and other factors would determine whether they proceed with any reductions. A statement on potential economic risks "could give the mistaken impression that the committee was more certain about the economic outlook than was in fact the case," according to the recently released report. Earlier in the month, Vice Chairman Donald Kohn and other Fed officials said they were unsure whether the central bank would pursue a series of rate cuts.
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Plots & Ploys: The Bears Have It
Wall Street Journal (10/10/07) P. B12; Chittum, Ryan; Frangos, Alex
A new DLA Piper poll of 332 U.S. commercial property executives found that 68 percent are bearish when it comes to their market expectations versus 31 percent who are bullish. Three out of five of those polled said they do not expect the outlook to improve for at least nine to 12 months, while 56 percent stated that commercial property prices have declined as deals more than $300 million have become increasingly difficult to finance. Only 5 percent forecast that markets will improve by the end of this year. Back in April, prior to the subprime mortgage market going bust, 78 percent of commercial real estate executives surveyed were bullish.
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BofA Takes No-Fee Mortgages to the Streets
Charlotte Observer (NC) (10/10/07); Rothacker, Rick
Bank of America and its mobile mini-neighborhood showed up at the Fan Fest in Concord, N.C., on Tuesday to promote its no-fee mortgage product. The Charlotte-based bank has already attracted 7,500 leads at its previous five stops at home shows and NASCAR races for its "No Fee Mortgage Plus," a product rolled out nationally in April that eliminates application, credit report and title policy fees. Bank of America has taken $42 billion in applications for no-fee mortgages and has funded $9 billion of the loans. The bank is on pace to overtake Countrywide Financial as the biggest provider of mortgages direct to consumers through branches, according to Guy Cecala, publisher of Inside Mortgage Finance.
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Federal Backstop Helps Insurance Community: RAND
Business Insurance (10/10/07); Hofmann, Mark A.
A new RAND Corp. report states that the backstop created by the Terrorism Risk Insurance Act (TRIA) has been good for the insurance marketplace. With the current program set to expire at the close of 2007, the U.S. House of Representatives has approved legislation that would extend TRIA for 15 more years. However, the White House has threatened to veto the measure. RAND officials support an extension, stating: "Even though TRIA saves taxpayers money only for conventional attacks causing less than $40 billion in damage, the expected annual taxpayer cost considering all types of attacks (conventional and nuclear, biological, chemical and radiological) is lower with TRIA than without TRIA over a wide range of assumptions about the relative probabilities of large and small attacks and government compensation of uninsured and unpaid insured losses."
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Thornburg Loses More From Sales
Wall Street Journal (10/10/07) P. C3
Thornburg Mortgage Inc. unloaded $22 billion of "high-quality" mortgage bonds in August at a discount in order to generate cash. Larry Goldstone, president of the Santa Fe, N.M.-based jumbo loan specialist, said the lender will register a $1.1 billion third-quarter loss--which is 27 percent greater than anticipated--as a result of the sale. However, Goldstone noted that the company's finances have been improving over the past two months.
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MBA Study Shows Drop in 2006 Industry Profits
MBA (10/10/2007 ) Kemp, Carolyn
Mortgage banking production profits fell to negative $50 per loan in 2006 from positive $258 per loan in 2005, according to the Mortgage Bankers Association's annual Cost Study. While production revenues increased on a per-loan basis, this increase did not keep pace with the increase in production operating expenses, which grew by 17 percent to $3,416 per loan in 2006.

"Production profits began to slip in 2004, and we see a continuation of this trend in 2006," said Marina Walsh, senior director in MBA's research and economics department. "Despite some companies' best efforts to boost production revenues through the origination of higher-yielding mortgage products, several factors worked against the industry as a whole; the negative yield curve, which increased the cost of funds; lower sales productivity and higher per-loan sales and fulfillment costs, particularly personnel-related costs. Servicing profits in 2006 partially offset production losses, but even these profits declined from 2005 levels due to mortgage servicing hedge losses."

MBA's 2007 Cost Study is based on 2006 data and is the 29th in an annual series of reports on the income and expenses associated with the origination and servicing of one- to four-unit residential mortgage loans by mortgage banking companies. The study is based on a sample of 189 mortgage banking companies that originate and service loans, and originated an estimated 54 percent of total residential volume in 2006 and serviced an estimated 48 percent of home mortgage debt outstanding.  

Study highlights include:

· Overall, the average firm posted pre-tax net financial income of $6.4 million in 2006, compared to $26 million in 2005.

· Retail sales productivity averaged 62 loans per loan officer in 2006, compared to 83 loans per loan officer in 2005.

· On a per loan basis, the net "cost to originate" increased to $2,476 in 2006 compared to $2,049 per loan in 2005.  The "net cost to originate" includes all origination operating costs and commissions minus all fee income, but excludes secondary marketing gains, capitalized servicing, servicing released premiums and warehouse interest spread.

· Net warehousing income, which represents the net interest spread between the mortgage rate on a loan and the interest rate paid on a warehouse line of credit, dropped to $245 per loan from $294 per loan in 2005 and $481 per loan in 2004, due to the flat yield curve.

· Net marketing income, which includes the gain or loss on the sale of loans in the secondary market, pricing subsidies and overages, as well as capitalized servicing and servicing released premiums, averaged $2,180 per loan in 2006 compared to $2,012 per loan in 2005.

· Servicing financial profits per loan serviced declined by 44 percent, primarily because of mortgage servicing hedge losses that were only partially offset by gains in servicing valuations. Per-loan financial profits averaged $58 per loan in 2006, down from $104 per loan in 2005.

• The largest servicers outperformed their smaller peers operationally, with the lowest cost to service and the highest direct servicing net income.  However, these servicers also had the highest hedge losses, which hurt their financial bottom line.


Data for this report were primarily derived from the Mortgage Bankers Financial Reporting Form (or "WebMB"), a multi-agency reporting form administered by MBA, Fannie Mae, Freddie Mac and Ginnie Mae.

To purchase the report, call 1-800-348-8653.
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Lending Restrictions Stifle Latino Homeownership, CBIA Says
MBA (10/10/2007 ) Murray, Michael
Nearly two-thirds of Latino respondents found California "heading off on the wrong track" for increasing homeownership in the Latino community, according to report released yesterday by the California Building Industry Association, Sacramento, Calif.

Alan Nevin, chief economist at CBIA, reported that nearly one in four Latino adults did not have credit scores because they conducted their finances on an all-cash basis. Meanwhile, less than 4 percent of non-Latino whites do not have credit scores. The lack of formal credit worsens when combined with current restrictions in the lending market, according to the report.

"Latinos are one-third more likely to receive a higher-rate subprime loan than non-Latino whites. Currently, [Latinos] hold 40 percent of subprime mortgages," Nevin said. "The availability of subprime mortgages has allowed thousands of Latino families to acquire homes in the past few years, and if they can make their payments in a timely fashion, they do have the opportunity to eventually refinance. Notably, the interest rate and terms of [Latino] refinancing loans are the same as for non-[Latino] whites-therefore, once [Latinos] own, they are treated by lenders as ‘ordinary' Americans."

Nearly 80 percent of Latinos that receive parental support have a higher homeownership rate-compared to 45 percent of Latinos who do not receive support-and 95 percent of Latino homebuyers cannot rely on parental assistance in purchasing a home, according to the report.

The Greenlining Institute, Berkely, Calif., said fewer minorities can afford to purchase a home and, in a recent study of mortgage lenders, 22 percent of Latinos accounted for home loans. The Latino community represented 35 percent of the population. Greenlining Institute said Latinos accounted for less than 30 percent of all conventional home loans in Calif. despite making up 50 percent of the population. 

Nevin expects higher income levels and intergenerational wealth transfers for future Latino Californian generations, but he said rational housing prices could hamper Latino homeownership in upcoming years without involvement of the local, state and Federal government.

The CBIA's Latino Homeownership Poll reported 48 percent of Latino voters and 42 percent of non-voters saying California was moving in the wrong direction, particularly in non-voter concerns for housing costs, ease of children purchasing their own home and ease for families to get a home loan.

"The most important reasons non-homeowners say they do not own homes is because they cannot afford to live in their desired community and that they are waiting for the housing market to decline before buying," the study said.

Nevin challenged federal, state and local officials to consider the importance of the issue and called on land-use planning methods to create more affordable housing for Latinos.

The California Department of Finance forecasts the state's Latino community to represent an 81 percent increase of the total population from 2000-2030, a figure that would exceed 11.4 million people by 2030. Meanwhile, Latino households would increase to nearly four million by 2030. Nearly 50 percent of renters said housing should be the top priority for local government officials, while 34 percent and 40 percent of voter and non-voter respondents, respectively, said elected representatives should make housing a priority, according to CBIA's study.

"We estimate that California will need  four million new homes and apartments to house the growing Latino population during the 2000-2030 timeframe in addition to the new housing units needed for other segments of the population," the study said. "This projection assumes the continuing downsizing of [Latino] households which relates to the increasing education and income levels of the [Latino] population."
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Financial Services Sector Shows Maturity in Managing Change
MBA (10/10/2007 ) Palaparty, Vijay
Maturity in managing information technology change varies greatly among companies, according to a study from Vienna, Va.-based StackSafe Inc., revealing a link between quantifiable business benefits gained and maturity levels, Companies with large IT budgets and financial services companies exhibit the most maturity in change management.

Twenty-four percent of companies reported experiencing problems in production when changes were implemented. The reasons most cited related to difficulties in interaction between systems, reported by 54 percent of companies, and insufficient pre-production testing, reported by 43 percent of companies. However, as companies implemented larger numbers of changes, these changes were reported to cause fewer problems in production.

Financial services companies demonstrated the greatest change management maturity-67 percent were reported more likely schedule changes on a regular basis. Government entities were reported to least likely make changes-only 48 percent of them reported making changes at regular intervals. Fifty-nine percent of financial services companies were also reported to most likely to have automated change management.

The study focused on five change management maturity factors that impact business benefits, including change management process. A more automated process could lead to fewer production problems in companies. Fifty percent of the companies reported having an automated change management process while 35 percent manually record changes in a log. Fifteen percent of companies have no consistent process whatsoever.

In scheduling changes, implementation at regular intervals versus on an ad-hoc basis could result in a lower percentage of IT staff dedicated to changes. Fifty-eight percent of companies reported scheduling changes at regular intervals-the most popular period being weekly, which is followed by 28 percent of companies. Nineteen percent of companies reported implementing changes immediately while 22 percent implement on an ad-hoc basis.

Process adoption that follows the IT Infrastructure Library, a set of concepts and techniques for managing IT infrastructure, development and operations, could also reduce the number of emergency changes required. One-fourth of all companies have already adopted ITIL for change management, and 12 percent adopted other standards. Forty-seven percent plan to adopt ITIL in the next two years.

Companies could also have greater confidence in changes they implement if they stage the changes on a staging platform before deployment. Sixty-five percent of all companies maintain a testing environment for the change management process. Thirty percent use other methods including testing servers, back-up data centers and non-customer visible systems.

Apart from staging change, conducting complete change testing could also ensure a smoother change management process. Forty-eight percent of companies reported testing the full impact of changes against the entire stack of systems, processes and applications.

"Being able to test and predict how software infrastructure changes are going to affect existing IT services can greatly reduce costly failures," said Loren Burnett, president and CEO of StackSafe. "As companies raise their change management maturity they have fewer and fewer problems with implementing changes in their environments. As companies institute more changes, they need to evaluate the risk that these updates could represent for their key business applications."

Computer -related companies reported experiencing the highest incident of problems, 30 percent, that were caused by IT changes. Twenty-eight percent of companies cited e-commerce and data warehousing as processes and applications that experienced the greatest percent of problems due to changes.

"Companies with the fewest IT staff and the lowest IT budget spend a greater percentage of time dealing with change management than large companies," the report said. "These companies are also more likely to lack consistent processes for dealing with change management.

The report recommended maintaining a staging environment for IT operation testing, testing changes across the entire stack of systems, processes and applications before making changes in production, and adopting a best practice product such as ITIL, which could all drive stronger business impact from change management.

"Not all change management activities will deliver the same impact to a company's change management maturity posture. To most dramatically increase positive business impact, companies should focus on two activities: invest in automating change management and regularly schedule changes," the report said.
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Rates, Applications up in MBA Weekly Survey
MBA (10/10/2007 ) Kemp, Carolyn
Rising interest rates didn't deter borrowers, resulting in an uptick in mortgage applications last week, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending October 5.

The Market Composite Index rose to 652.0, an increase of 2.4 percent on a seasonally adjusted basis from 636.7 one week earlier. On an unadjusted basis, the Index increased 2.4 percent compared with the previous week and was up 8.6 percent compared with the same week one year earlier. The four-week moving average for the seasonally adjusted Market Index is down 0.2 percent to 654.0 from 655.4. 

The seasonally adjusted Refinance Index increased by 2.7 percent to 2003.2 from 1950.4 the previous week. The four-week moving average is up by 1.6 percent to 1985.5 from 1953.9. The refinance share of mortgage activity increased to 46.2 percent of total applications from 46.0 percent the previous week.

The seasonally adjusted Purchase Index increased by 2.1 percent to 420.2 from 411.4 one week earlier. On an unadjusted basis, the Purchase Index increased 2.2 percent to 401.9 from 393.3 the previous week. The four-week moving average is down by 1.6 percent to 425.6 from 432.6.

The seasonally adjusted Conventional Index increased by 3.4 percent to 934.8 from 904.2 the previous week; the seasonally adjusted Government Index decreased by 5.3 percent to 180.5 from 190.6 the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 6.40 percent from 6.32 percent, with points decreasing to 1.00 from 1.08 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages increased to 6.03 percent from 5.95 percent, with points increasing to 1.12 from 1.07 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year adjustable-rate mortgages decreased to 6.15 percent from 6.21 percent, with points increasing to 0.92 from 0.89 (including the origination fee) for 80 percent LTV loans. The ARM share of activity decreased to 13.6 percent from 13.8 percent of total applications from the previous week.

The survey covers 50 percent of all U.S. retail residential mortgage originations, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.
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CREF / MF News
Shadow Rental Concerns in Moody's RYG Report
MBA (10/10/2007 ) Murray, Michael
Analysts continue to watch "shadow rentals"-untracked condominium rental units -as apartment supply increases during the slowdown of single-family housing.

"The difficulties in the single-family market might very well benefit the apartment market, albeit sadly for the households so affected. On the other hand, another wild card could have the opposite effect: Construction of condominiums is still very robust in some places, and some of that new supply could become 'shadow' multifamily rental units if the condo sales market were to soften," said Sally Gordon, senior vice president at Moody's Investors Service, New York, which released its third quarter Red-Yellow-Green report.

During the third quarter, the multifamily sector gained three points, moving even farther into green territory with a score of 83 and, overall, 50 of the 60 markets Moody's follows fall into a green score, with the remaining 10 in yellow territory and no red markets.

The report scored five of seven commercial property types in green, showing continued strength for commercial mortgage-backed securities collateral. Moody's, however, reported two property types-suburban office and full-service hotel-both scoring in the yellow range at 47 and 64, respectively.

Moody's Red-Yellow-Green report scores markets on a scale of 0 to 100 and describes them in traffic light colors, with scores of 0-33 identified as red, 34-66 as yellow and 67-100 as green-with 100 the strongest score and 0 the weakest.

Year-over-year and quarter-to-quarter, performances were mixed because two sectors showed improvement in scores during that time, one sector remained the same and four sectors deteriorated. Commercial real estate would generally start from a strong position, Moody's said, if the economy slowed and job growth faltered.

"Commercial and multifamily real estate markets continue to show real strength," said Jamie Woodwell, senior director of commercial/multifamily research at the Mortgage Bankers Association. "Property market fundamentals remain strong, and the loans and bonds that are backed by commercial/multifamily real estate continue to perform extremely well."

Community shopping centers continued to show stability last quarter, with a score of 82, down from the previous quarter's 83.

"Overall the supply-demand relationship is very healthy, as growth in demand is expected to outpace new supply by 4.1 percent," Gordon said. "Furthermore, the 10 largest markets all have very healthy supply-demand relationships, most exceeding the national composite."

Offices in central business districts lost some traction as the sector's score lost two points for the second quarter in a row, ending the quarter at a barely green 68 score. Moody's said that while demand expectations held steady, the pace of growth in supply to be delivered in the next year picked up from last quarter, and the composite score was pulled down by the 10 largest markets holding nearly 75 percent of the sector. While four CBD offices retain a green rating-down from seven in the previous quarter-vacancy dropped to 9.9 percent and represented the first time vacancy dropped to single digits since the fourth quarter of 2001.

The suburban office markets, in contrast, reversed their negative course last quarter after four consecutive quarters of falling scores, picking up a point to 47. An increase in demand slightly tightened the supply-demand imbalance in suburban office as the yellow score increased one point and vacancy declined.

The industrial sector held steady-unchanged at 69-as the construction pipeline remained stable at 1.1 percent. A slight softening in demand took place in both the composite level and 37 markets, or nearly three-quarters of the sector.

Full-service hotels-despite a two-point drop to 64 and deterioration from supply-demand imbalance-increased slightly in new supply, but a significant drop-off in expected demand growth led to the lower score, according to Moody's. Gordon expects demand growth to lessen in the next year with "potentially slower macro-economic growth."

"Nevertheless, year-over-year growth in revenue per available room [RevPAR] remained strong as in previous quarters and the current RevPAR level continues to exceed the baseline target for a second quarter," Gordon said.

Limited-service hotels remained strong at 82, one point lower than the score for the previous quarter, with slowing signs in some markets. Industry analysts expect supply growth to continue at a minimum with forward demand expectation picked up slightly for an overall positive supply-demand relationship of 4.6 percent, according to the report. RevPAR continues to grow at a moderate pace in limited service hotels.

The overall commercial real estate composite score in the U.S., 72, reflects CMBS dollar volume in the last quarter, as Los Angeles, New York and San Francisco dropped in their overall score but remained in the green range. Houston and Philadelphia reached higher scores than in the previous report, while Washington, D.C., Chicago, Dallas and Miami dropped to lower scores than last quarter.

The lowest scores belonged to Jacksonville, Fla., Trenton, N.J., Wilmington Del., West Palm Beach and Las Vegas. The scores ranged from 39-to-45 points-all in the yellow range. The five strongest markets included Los Angeles, New York, Richmond, Va.-up to an 80 score from 78. Long Island N.Y. was three points down from last quarter and Honolulu, two points up from last quarter to 78.

The rating agency's report, US CMBS: Red-Yellow-Green Update, Third Quarter Assessment of U.S. Property Markets is at
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DealMaker of the Day
MBA (10/10/2007 ) Murray, Michael
Companies from Brentwood, Tenn.-based Q10 Capital LLC secured more than $276 million in financing despite recent instability in the credit markets.

The Orange County, Calif., office of Q10/Dwyer-Curlett arranged a $17.8 million loan on two flex-tech office buildings totaling more than 98,000 square feet in Las Vegas. Both fully-occupied buildings house a single tenant, Credit One. Delaware Investments provided financing. Meanwhile, Q10/Dwyer-Curlett's Los Angeles office arranged more than $48.5 million for an acquisition/bridge loan on a 25 percent leased three-story, 250,000 square-foot office building in Torrance, Calif.

The Kansas City office of Q10/Triad Capital Advisors secured a $14.01 million permanent loan from PNC Real Estate Finance, Pittsburgh, Pa., for the Reading Surgical Hospital in Reading Pa. A $9.75 million loan for the Meadowbrook Shopping Complex in Pittsburg, Kan., was also secured through PNC on behalf of Meadowbrook Mall and several peripheral retail properties. The loan was used to refinance existing debt and provide for a return of invested equity to the property owner.

Meanwhile, the Cincinnati office of Q10/Triad Capital arranged a $6 million permanent first mortgage for Pebble Creek Golf Course in Cincinnati through Stancorp Mortgage Investors, Portland, Ore. Financing was based on a 10-year fixed-rate term. Pebble Creek Golf Course, an 18-hole course, includes a club house and banquet facility on the western side of Cincinnati.

Q10/G.S. Wilcox & Co. arranged a $12.75 million permanent first mortgage for the retail portion of the new Wal-Mart anchored Republic Plaza Shopping Center in Farmingdale, N.Y. Thrivent Financial for Lutherans, Appleton, Wis., provided the loan that carries a 16-year fixed-rate term with a 30-year amortization. The loan provided funds for the buyout of one partner as well as payoff of construction monies used for the development of this retail property, which was 100 percent leased at the time of funding. 
Q10/New England Realty Resources LLC arranged $9 million in acquisition financing for a Columbus, Ohio single-tenant industrial facility on 16.9 acres. The acquisition was part of a sale leaseback transaction with the seller/tenant nearing completion on a new facility wanting to execute a one-year lease. With the credit interruption risk, Q10/New England Realty Resources placed three-year interest-only debt on a non-recourse basis with pricing fixed at 6.17 percent. The pricing was "well below traditional bridge or structured debt financing providing the time and flexibility needed by the equity fund client to execute their business plan for re-leasing the building to a longer term user," Q10/New England Realty Resources said.  The deal, placed with Allianz of America Inc., Golden Valley, Minn., closed in under 40 days.

Q10/Kinghorn, Driver, Hough & Co. arranged $48.7 million in acquisition financing for a portfolio of six office and flex buildings in suburban Atlanta. The Class A institutional portfolio consists of nearly 530,000 square feet, nearly 88 percent leased at the time of closing. The financing, placed with a commercial mortgage-backed securities lender, was approved, rate-locked and closed less than 30 days after the application was signed. The financing was structured with 3.5 years interest only for a 10-year term. 

Q10/National Mortgage Co. arranged a $22 million construction-to-perm loan for a Class A office building with more than 86,700 square feet on 3.64 acres in Bend, Ore. Developers plan to use environmentally sustainable building techniques and materials with the goal of achieving a Gold Leadership in Energy & Environmental Design (LEED) certification. Loan terms include up to 24 months of interest only on a 30-year term, converting to a 30-year amortization schedule following the 24 months. The 75 percent preleased building would be the highest quality Class A office building in Bend, according to Q10/National Mortgage Co.
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MBA News
MBA Offers Special Pricing for One-Day Workshops
MBA (10/10/2007 ) Harris, Mary
Market turmoil in the mortgage industry requires focus on managing through the cycle. It also requires root-cause analysis as well as preparation for the future. To facilitate all three demands, CampusMBA, the education arm of the Mortgage Bankers Association, is hosting new one-day workshops in October and November that focus on targeted areas. And these events have special pricing so that you can learn and save.

These workshops include Pricing Strategies on October 24 (  This covers the components of an effective pricing policy, including; rational vs. irrational pricing, how to create a pricing and product strategy that generates required loan volume without sacrificing bottom-line profit objectives and limiting your risk exposure.

Hedging with Derivatives on October 25 ( covers methods for mitigating risks and leveraging hedging strategies to effectively manage the pipeline. It also explores what did and did not work during the events of the past few months.

During November CampusMBA offers two additional courses. Credit Enhancements in Mortgage Secondary Markets on November 14 ( identifies different mechanisms of providing credit enhancements within structured mortgage-backed securities, ranging from pass-through securities to the more complex collateralized mortgage obligations.

Loan Securitization: Structures, Cash Flow Criteria and Optimization on November 15 ( examines structures used to create mortgage-backed securities and how they serve their purpose in different entities, such as loan acquisition and securitization. In addition, the course covers how credit rating agencies, over-collateralization, excess spread, credit enhancements, etc. influence structuring, risks and tranches.

For a limited time, if you register for Pricing Strategies and Hedging with Derivatives in October, or Credit Enhancements in Mortgage Secondary Markets and Loan Securitization: Structures, Cash Flow Criteria and Optimization in November, you will receive 20 percent off your registration fee. To take advantage of this special offer, register by phone at (800) 348-8653.

CampusMBA is dedicated to offering real estate industry professionals a premium educational experience while providing the most relevant, up-to-date targeted workshops to meet your immediate as well as future business imperatives. We also like to provide opportunities for attendees to network with peers and industry experts.

If you are interested in attending the upcoming course or know someone who would benefit from attending, please contact a representative of CampusMBA at or call (800) 348-8653 to register by phone, register online by clicking on the links above or download the registration form at and fax it to (410) 672-3504.
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Call for Proposals for MBA Secondary Conference
MBA (10/10/2007 ) Jones, Coeli
The Mortgage Bankers Association's National Secondary Market Conference & Expo 2008 takes place May 4-7 at the Hynes Convention Center in Boston. MBA invites you to submit proposals for panel sessions and/or individual presentation topics. The deadline for proposal applications is close of business Monday, October 15.

To access the Call for Proposals online application, go to

The conference theme is "Succeed in a Changing Market." As rapid changes in the mortgage industry create difficult setbacks and hidden opportunities, this premier conference focuses on creative and forward-looking ways to meet the challenges of today's marketplace and come out ahead.

MBA's National Secondary Market Conference & Expo 2008 is designed for industry leaders and decision makers from residential and capital markets, including CEOs and senior level executives, mortgage investors, investment bankers, rating agency professionals, risk managers and mortgage lenders.

MBA invites proposals for presentations that address detailed and complex industry issues relating to today's changing environment. Proposed presentations should be described with accuracy and detail. Please give thought to individuals with appropriate levels of expertise that would make effective presenters.

MBA is particularly interested in proposals that highlight the following topics:

· Business strategies

· Management strategies

· Regulatory developments

· Risk management

· Technology

· Hedging strategies

· Pricing

· RMBS trends/issues

· Securitization

To process and consider all submissions, MBA must receive your proposal no later than Monday, October 15. MBA will contact you by January 2008 to let you know the status of your proposal.


If you have any questions, please contact MBA's Norman Edwards at (202) 557-2793 or
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MBA Debuts Foreclosure Prevention Resource Center
MBA (10/10/2007 ) McTamney, Missy
The Mortgage Bankers Association yesterday announced addition of the Foreclosure Prevention Resource Center to its popular consumer education site,

The Foreclosure Prevention site is part of MBA's outreach to advise those who may face trouble making their loan payment to contact their loan servicer, the company to whom they make payments each month as soon as possible to determine if an alternative to foreclosure may be possible based on the borrower's financial and employment status.
The bilingual site includes a listing of major loan servicers and their contact information as well as a guide to the Things to Know When You Contact Your Lender so that borrowers having difficulty making mortgage payments can begin an informed dialogue with their servicer about potential solutions.
"The sooner a borrower who is having trouble contacts his or her servicer, the more options they may have to make alternate arrangements," said MBA President and CEO Jonathan Kempner. "We concur with Treasury Secretary Henry Paulson's recent testimony about the important need for homeowners to be proactive in seeking mortgage counseling."
Homeowners facing possible foreclosure who wish to initiate such a discussion with their lender but do not know who to contact should visit and click through to the Foreclosure Prevention Resource Center. The site also includes an easy-to-use Glossary and Foreclosure Fact Sheet and links to other helpful sites. was originally established to increase consumer financial literacy and to help borrowers understand what type of loan best suits their needs. The Web site provides impartial loan, credit and other valuable information using a simple, user-friendly approach.
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HUD, Treasury to Announce Outreach Program; MBA to Participate
MBA (10/10/2007 ) Sorohan, Mike
The Mortgage Bankers Association will participate this morning in a news conference at the Treasury Department to announce HOPE NOW, a partnership among counselors, investors and lenders to maximize outreach efforts to homeowners in distress.

The news conference, scheduled for 10:30 a.m. ET, will include Treasury Secretary Henry Paulson Jr.; HUD Secretary Alphonso Jackson; MBA President and CEO Jonathan Kempner; and representatives from The Financial Services Roundtable; the Housing Policy Council; Washington Mutual; Bank of America; Wells Fargo; the Homeownership Preservation Foundation; NeighborWorks America; and the American Securitization Forum.

The partnership was convened at the request of the Treasury and HUD and emerged from discussions between the departments and industry organizations.

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Larry Bailey

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