It has been a busy week in the mortgage industry from Wall Street to Main Street to Pennsylvania Avenue.
Secretary of the Housing and Urban Development agency, Shaun Donovan, has been continuing to seek remedy for the agency's severe liquidity shortage. Continuing to push for measures which may hurt the already devastated housing market and economy Mr. Donovan continues to push for higher down payment requirements, lower seller contributions and costlier mortgage insurance for homes insured by the department's Federal Housing Administration.
House considering reform bill today
Congress is considering a vote on HR 4137 today which includes plenty of mortgage industry regulation verbiage. Key to the resolution is preventing ACORN and any of their affiliates or supporters from participating in mortgages in any way. Section 4105 prohibits certain indicted organizations from participating in regulated programs and specifically names ACORN et. al.
More job cuts
GMAC Financial Services announced on Thursday they will be closing their mortgage processing center in West Hartford. This move will cause the elimination of 84 employees by the end of March 2010. Courant.com reporter Matthew Sturdivant writes, "The West Hartford employees who will be laid off are mortgage loan processors and mortgage loan closers. Twenty-five underwriters will be offered positions working from home, said Jeannine Bruin, a spokeswoman for GMAC Mortgage."
Ellington Financial LLC, put off its initial public offering as investors failed to buy into the plan to purchase bonds backed by mortgage classes which helped cause the implosion of the mortgage industry and fueled the worst economy since the great depression.
Rate tracking
The Fannie Mae 30 year security opened at 98.78 on Monday and was holding near 98.44 mid day on Friday resulting in slightly increased wholesale rates. Originations were down for the week with the holidays fastly approaching.
Comments