Lenders have been busy over the past few weeks – unfortunately, not closing loans – but merging, consolidating and opening new business units. The biggest news is the $14.6 billion takeover of North Fork Bancorp by Capital One Financial Corp. Melville, NY-based North Fork is parent to Alt A leader GreenPoint Financial, which it bought in 2004 for $6.2 billion. …
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Commercial banks with significant mortgage-servicing businesses saw much improved revenue and stronger asset valuations on these activities during the fourth quarter of 2005. Rising interest rates slowed prepayment speeds and allowed banks to recover hefty impairment reserves they stowed away in previous periods. Net income from servicing loans for other investors among the 40 largest bank mortgage servicers surged from $3.85 billion in the third quarter of 2005 to $5.32 billion in the final… [One data table included]
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CitiMortgage has done it for the very first time. The lender has reached out and partnered with Foxtons, a real estate Web site, in its first external marketing deal in an effort to find a quality stream of highly motivated borrowers. The lender has had active internal cross-selling programs with CitiBank and SmithBarney, but the alliance with London-based Foxtons is the first with a non-Citicorp affiliate “with any kind of great vigor,” said Pablo…
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A subprime lender eschewing adjustable-rate mortgages and utilizing an uncommon accounting method sees itself increasing mortgage originations this year, even as analysts predict an overall downturn in originations. Delta Financial Corp. offers nonconforming, predominately fixed-rate loans in 34 states. “Our business model is such that we will not be one of the biggest in our sector,” Delta president and CEO Hugh Miller said at last week’s JMP Securities research conference in San Francisco. He acknowledged,…
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PHH Mortgage’s lighting fast spinoff from Cendant early last year has left the lender with a dizzying array of accounting headaches, which have caused the firm to delay filing its first year-end financial report as a standalone company. The firm’s 10-K filing with the Securities and Exchange Commission was due March 16. …
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The man who helped pioneer the airline industry’s pricing system has turned his sights on financial institutions. In doing so, his company is bringing detailed statistical analysis to an industry that has based pricing largely on personal judgment. Bob Phillips has helped a number of industries over the past 15 years optimize price and revenue. He founded Nomis Solutions in 2002 to bring customer price sensitivity into the financial world’s risk-based pricing model. …
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Wells Fargo Home Mortgage is forming a joint venture with Dominion Homes to tap directly into the homebuilder’s pool of motivated borrowers. The new venture, which remains unnamed, was the outgrowth of a relationship the lender has had with Dominion going back about five years, said Joe Jackson, who heads Wells Fargo Ventures. Casual talks to form a joint venture lasted only a few months, he added. …
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