Ally Financial Corp. this week announced what it calls “modest” layoffs in its correspondent lending division, but declined to specify how many workers were cut.
A spokeswoman for the government owned lender confirmed that layoffs occurred, and told National Mortgage News that it will keep alive only correspondent relationships that are “strategically beneficial” to Ally.
She said the decision to cut correspondent customers is “based on a number of factors” including which relationships pose the least amount of risk to Ally. The credit profile of mortgage selling companies will be considered, she said.
When Ally released 3Q earnings Wednesday it revealed that it would scale back its presence in the correspondent lending channel, but provided no details.
Ally said it remains committed to retail and wholesale lending.
Daily Briefing | Thursday, November 3, 2011
With an Eye Toward PLS, DeMarco Touts FHFA’s Abilities
The Federal Housing Finance Agency has the expertise to set servicing, underwriting, and mortgage securitization standards that could lead to the development of a private-label MBS market, according to the GSE regulator.
Senate Banking Committee Wants Answers on GSE Bonuses
A Senate panel wants the chief GSE regulator to explain why Fannie Mae and Freddie Mac executives continue to receive millions of dollars in bonus money for running the giant mortgage companies which continually need government assistance to stay afloat.
Freddie Loses $4.4B in 3Q, Asks Treasury for $6B
The government controlled Freddie Mac posted a net loss of $4.4 billion in the third quarter, blaming the performance on higher credit costs, and declining interest rates, which impacted the fair value of its investment in derivatives.
Efforts to Restore the GSE Loan Limit Move Along
Efforts to reinstate the $729,750 maximum loan limit for Fannie Mae, Freddie Mac and FHA loans has garnered the support of 137 House members, including 25 Republicans.
Thirty-Year Rate Drops to Its Second Lowest Point
European concerns’ effect on the larger market drove the average weekly rate for a 30-year fixed rate mortgage down to 4%, a level Freddie Mac said is the second-lowest ever.
Matt Morris Now CEO at Stewart Information Services
Matt Morris is the new chief executive of Stewart Information Services Corp., Houston, while Edward Douglas Hodo is now the company’s chairman.
Fed Might Consider Large Scale MBS Purchases But Not Right Now
Federal Reserve chairman Ben Bernanke Wednesday afternoon said the central bank might scale up its purchases of agency mortgage-backed securities if conditions warrant, but not right now.
Rally for CRE/MF Despite CMBS Decline
Commercial and multifamily mortgage originations in the third quarter were almost double what they were for the same period last year, according to the Mortgage Bankers Association.
CIT Adds CRE
CIT Group Inc., New York, is getting into the commercial real estate lending business, looking to originate and underwrite transactions in the Boston, New York and Washington markets.
Gloomy Sign for National Home Prices
With the winter months quickly approaching, there seems to be an ominous picture for national home prices.
CoreLogic Posts $107M Loss Off Expenses from Discontinued Units
CoreLogic posted a net loss of $107 million off revenue of $348 million, the result of substantial losses from the discontinued operations of five business units in the third quarter of 2011. The results compare to a net loss of $93 million off revenue of $330 million in 3Q10.
Ellie Mae Posts $1M 3Q Profit, Adjusts ’11 Outlook
Loan origination system provider Ellie Mae reported net income of $1 million for the third quarter of 2011, down from a $1.7 million profit in 3Q10, but better than its losses of $40,000 in 2Q11 and $800,000 in 1Q11.
AOL to Add Zillow Mortgage Marketplace to Websites
Two AOL online destinations will incorporate the Zillow Mortgage Marketplace into their websites beginning in 2012.
Two Harbors’ GAAP Improves After Offering, Repositioning
Two Harbors Investment Corp., a hybrid single-family residential mortgage REIT, recorded net GAAP earnings of $54.6 million during the third quarter when it completed a secondary stock offering and repositioned its portfolio to anticipate the HARP program change.
GOP Grills CFPB’s Date on Agency Governance, Policies
It may have been Raj Date’s first time testifying before Congress as the interim head of the Consumer Financial Protection Bureau, but Republicans did not let him off easy.