Most mortgage servicers will recognize immediate increases in the value of their mortgage servicing rights – and an easier time doing the accounting for these assets – with the release of Financial Accounting Standard 156. The Financial Accounting Standards Board finalized the new rule on March 17 that allows holders of MSR to use fair value accounting for these assets. …
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A mortgage technology outsourcer is hoping to break with industry convention by offering lenders high-end “knowledge process” outsourcing. Most of New Jersey-based Synechron’s 500 employees are actually in India and they have been trained to handle tasks that are not usually outsourced. Synechron does not compete on price for back-end outsourcing. Instead, the company hopes to take on front-end operations. “We’re not just saying ‘give us a mundane task and we’ll do it cheaper,’” Zia…
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Struggling automotive giant General Motors has had to address some accounting and internal control issues related to some mortgage loan transactions at Residential Capital Corp, its residential mortgage subsidiary, complicating the company’s efforts to lure investors into buying a stake in General Motors Acceptance Corp. In fact, the accounting problems might prompt GM to spin off ResCap itself rather than keep it part of the GMAC family, which also provides automobile financing and has…
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As strange it as it seems, Bob DeCecco decided it would be in the best interest of his small Sarasota, FL, shop, Aclarian Mortgage, to sit out most of the refi boom. He has a much bigger goal: becoming a $3 billion to $6 billion lender in three to six years. …
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Real estate investment trusts are prevalent in the subprime mortgage market. But is the structure still a profitable one? The answer appears to depend on whom you ask. Certainly, the REIT model has its defenders. Because they tend to focus on portfolio growth, REITs are thought to have the potential for steadier earnings than corporate structures that sell or securitize the majority of their production. …
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Thrift institutions posted another solid quarter in mortgage servicing operations during the final three months of 2005, lifting the industry to its first year in the black for servicing operations since 2000. According to data from the Office of Thrift Supervision, the industry posted $362.4 million in revenue from servicing loans for other investors, net of amortization and impairment expenses, during the fourth quarter of last year. That was down 37 percent from the previous… [One data table included]
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In this age of one-stop consumer shopping, mortgage industry players are finding profitable niches in strategic alliances that aim to provide funding and key services conveniently from one source and not have the consumer look elsewhere. If working properly, an alliance between a mortgage lender, a real-estate brokerage, a homebuilder or a title insurer can provide a nice boost to the bottom line while providing better quality and efficient service to customers. …
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