Who is Gaining in Las Vegas?

As was discussed in an earlier post in this blog, there is a significant growth over the last few months (through July 2008) in FHA originations in Las Vegas. See the chart below.

Click on the chart to see a larger image.

Who is taking advantage of this shift? One such lender is Countrywide Bank. Take a look at the chart below to see their growth in market share through July 2008.

Click on the chart below to see a larger image.

Universal American is one lender who may be paying the price for this increased competition. Below is another chart that shows their overall decline in market share from August 2007 through July 2008.

Click on the chart for a larger image.

Check back to see if this trend continues.

Opportunities in Stockton,CA

Over the last year, we have seen many reports that Stockton, California is ground zero for the foreclosure mess. I decided to take a look to see if the FHA programs put in place last year have helped Stockton rebound at all.

Take a look at the chart below and click for a larger image.

As you can see from this chart, the FHA loan originations have increased dramatically since the beginning of this year. One lender that seems to be taking advantage of this opportunity is Wells Fargo.

Click on the chart below for a larger image.

Any other guesses on who else is taking advantage of this opportunity of getting homeowners who are struggling into more affordable products?

Re-aligned Mortgage Market of Woodbridge Virginia

Woodbridge, a bedroom community of Prince William County Virginia is home to roughly 12,000 households. Subdivisions such as Lake Ridge, Dale City, Rippon Landings have many homes financed with FHA mortgages during the 1970s through the 1990s. After 2003 homeowners overlooked FHA for financing home purchases.

Click on chart to view larger image:

As of this year, the trend has revered. FHA mortgages are approaching the same numbers as conventional mortgages to finance home purchases in Woodbridge, VA. If the realignment rate of mortgage products continue, we can expect to see FHA mortgages used more than conventional mortgages in Woodbridge within several months.

Weststar Mortgage, who coincidentally is headquartered in Woodbridge, succeeded in grabbing a large market share of the FHA mortgages in Woodbridge. Westar Mortgage happened to be ranked first in all of Prince William County for FHA purchase mortgages in the first half 2007. During that period, Weststar only originated 6 FHA purchase mortgages and all lenders originated 61. Now those numbers are surpassed in a single month just within Woodbridge. This reveals another big positive change in an otherwise dismal mortgage and housing market.

Mortgage Master Grows Market Share and Sales in Massachusetts

Mortgage Master, Inc., of Walpole, Mass. outperforms its prior years in shares and market share growth even in the miserable housing and mortgage market.

Click the thumbnail image for a Real Report and Chart options



In prior years Mortgage Master did not originate many FHA nor VA mortgages. Now Mortgage Master fourth in Massachusetts for FHAVA mortgages. They should move up to third soon given that First Tennessee has sold off its First Horizon Mortgage unit to MetLife Bank.


Click the thumbnail image for a Real Report and Chart options







Mortgage Master is on pace to pass last year's conventional mortgage originations. They doubled their market share this year and moved from tenth to eighth place in Massachusetts for conventional mortgage originations.

Who else performs this well despite the dismal mortgage environment?

FHA Originations Continue to Grow!

The FHA monthly purchase originations grew to 83,005 nationally in July 2008. This is an increase of over 10,000 from the June 2008 total of 72,613. Take a look at the accompanying chart to see the month-by-month trend over the last year.

The economic stimulus package continues to have an impact on FHA loans. Can we expect a similar increase in August? Check our blog again for the results.

FHA Refinances Mostly Replacing Non Dilinquent Conventional Mortgages

FHA Secure enables conventional mortgage borrowers refinance into FHA mortgages and obtain better loan terms. If the conventional mortgage borrower was current with their mortgage payments prior rate increases on adjustable mortgages they can qualify for the FHA secure refinance. If the borrower has trouble making payments and has been delinquent following interest rate increases they still may qualify.


Click on Chart for Larger Image


The data shows that for the quarter ending June 2008, FHA endorsed roughly $26 billion of FHA refinance mortgages. Nearly $20 billion (76%) of that total was to refinance conventional mortgages for borrowers who were current on their loans. $6 billion (23%) refinance mortgages replaced existing FHA mortgages with new FHA mortgages. The remainder (1%) refinanced existing conventional mortgages having delinqencies into new FHA mortgages. There were 146, 436 mortgages endorsed in the period. The average mortgage amount of these refinance mortgages was $177,000.

Ameripro Funding #7 and Falling!

Ameripro Funding from Austin, Texas is the #7 ranked lender for FHA Refi business in Austin-Round Rock for the last 12 months through June 2008. However, their market share percentage is trending down in a growing market (FHA Refinance in Austin). Take a look at the accompanying chart to see their market share trend. Any guesses for who is stealing their market share?

Check back to this blog in a couple days for some answers.

FHA Mortgage Leading Lenders for July: Results

The top ten FHA retail mortgage lenders for July 2008 are

1) Countrywide,
2) Wells Fargo,
3) B of A,
4) JP Morgan Chase,
5) National City,
6 ) First Horizon,
7)CTX,
8) Suntrust,
9)Quicken Loans, &
10) Allied Mtg Cap.

Countrywide was merged into B of A. First Horizon acquired by Metlife Bank. These rankings are based on retail (as opposed to wholesale). So who won the contest?

Wowee Zowee!!! FHA Mortgages Climbing High for July!

Click on chart for larger image.

The chart shows the month surge in FHA mortgage originations. This is the highest number since September 2003. Can you guess who are the top 10 leading lenders?

Universal American Losing Market Share In Harris County

Even though Universal American Mortgage is the leader for the FHA market in Harris County, Texas January through July 2008, their market share is declining. See the accompanying chart. This is happening while the overall marketplace for FHA is continuing to increase.

Las Vegas Mortgage Business. YUK!

Yea we know! Same old story. We still have to tell it like it is. If your a mortgage banker in Las Vegas, these days your having trouble making money. You can't even fund the casinos.


There are some interesting findings. In the second quarter of 2008, total conventional purchase mortgages in Las Vegas was roughly $550 million. During the same period of 2007 conventional purchase mortgages in Las Vegas exceeded $1.6 billion. Down a $billion year over year. Hey Donald its a billion with a 'B' !

Recently, FHA purchase mortgages have been increasing more than a little bit in Las Vegas. The April to June quarter of 2007 had roughly $38 million of FHA purchase originations in Las Vegas. For the April through June period of 2008, FHA purchase money originations zoomed upward to roughly $358 million. The FHA volume was ten times greater in the second quater of 2008 as compared with the same period in 2007.

So what do you think is happening in Las Vegas? Perhaps MGM's City Center and Donald Trumps' International Hotel and Towers have employed non profit down payment assistance grants with FHA mortgages to help their customers purchase housing units?

What happens in Vegas ....

Jumbo Mortgages - No Boost in Sales

The chart shows the monthly percentage of $jumbo purchase mortgages to all conventional purchase mortgages. $Jumbo mortgages in the data are mortgages having mortgage amounts greater than the conforming loan limits set by HUD. The data in the chart does not use the new maximum mortgage amounts that the GSEs can purchase as a result of recent legislation (economic stimulus legislation temporarily set the conforming loan limit as high as $729,750 until December 31, 2008 and it is location dependent).

In 2005, $jumbo mortgages were conventional mortgages greater than $359,650. In 2006, 2007, and 2008 $jumbos were mortgages greater than $417,000 (the data in the chart does not adjust for higher conforming limits in high cost areas). The step downward of percent $jumbo in the chart following December 2004 and December 2005 was caused by the increases in the conforming mortgage loan limit. There was an increase in the conforming loan limit between 2003 and 2004 however the percent of $jumbos were rapidly increasing in step with the surging prices of homes at that time.

Over the past several years the percentage of $jumbo mortgages versus all conventional purchase mortgages was above 10 percent. Since last August, the percentage of these $jumbo mortgages moved down towards to 5 percent. What are the reasons why the proportion of $jumbos do not return to the levels of prior years? Here are some explanations:

• The GSEs have not made the new $jumbos attractive for their seller/servicers to effectively sell these products to home purchasers.


• The prices of homes have fallen so that demand for $jumbo mortgages to purchase the homes have fallen


• There is hardly any secondary mortgage market for $jumbo mortgages


• All of the above

New Hampshire Conventional Mortgages

As New Hampshire conventional mortgages continue to decline over the past year, Merrimack Mortgage has continued to work through the decline capturing a top five seat for all of New Hampshire's market share. As we have previously viewed this week, Merrimack Mortgage continues to rise and beat out powerhouses such as Wells Fargo and Countrywide in government insured mortgages and now we find them coming close in conventional mortgages. The graph shows the monthly conventional purchase mortgage originations over the past years and one can see the decline in these mortgage sales. What is continuing to help Merrimack in this depressed New Hampshire home purchase market?

New Hampshire VA Mortgages

While Merrimack Mortgage approaches Wells Fargo in FHA mortgages, they are dominating originations of VA mortgages in New Hampshire. Out of all the VA mortgages originated during the current quarter, Merrimack Mortgage is responsible for over a fifth of those, doubling the number of Wells Fargo. Through the end of the forth quarter in 2007 Merrimack, trailed Wells Fargo in market share. During the first two quarters of 2008 Merrimack’s market share has exceeded Wells Fargo market share. In the most recent quarter ending June, Merrimack Mortgage lead all lenders in New Hampshire with a 20.8% market share and Merrimack exceeded Wells Fargo by nearly 10%.

Is the national elephant capable of retaining their top position in New Hampshire or will the local strong man remain the giant?

Merrimack Mortgage is Growing the Fastest in New Hampshire

Merrimack Mortgage of Concord, NH is making the most of the growth of FHA mortgages in New Hampshire. So far this year, Merrimack Mortgage has moved into second place just behind Wells Fargo Mortgage with a 6.94% market share.

Click Chart for Larger Image

For the first 6 months of 2007, Merrimack Mortgage was ranked 13th with less than a 2% market share. $19.5 million year over year increase in FHA originations makes Merrimack Mortgage the fastest growing mortgage originator of FHA mortgages in New Hampshire.

FHA Lending in New Hampshire Sets Record in June 2008

In New Hampshire, we have not seen this number of FHA mortgages in a single month since at least before 2003. More than 350 FHA mortgages in a single month. The mortgage amounts reached new monthly records for the past three months.

Click on the chart to view larger image

Hudson City SB- Winner Despite Crummy Mortgage Market

The NY Times reports Hudson City Savings Bank profits while other banks and mortgage lenders suffer losses.

The mortgage data shows Hudson City's mortgage market success. In Connecticut, Hudson City Savings has moved into third place, right behind Bank of America and Wells Fargo in the rankings of conventional purchase mortgage originators. For conventional purchase mortgages, Hudson City has nearly a 6 percent market share. If we compare all lenders originating jumbo mortgages (which for ease of reporting we use mortgage amounts greater than $417,000), Hudson City Mortgage is number one in Connecticut approaching a 20 percent market share. Just two years ago, Hudson City Savings Bank, of Paramus, NJ was ranked 54th in conventional mortgage originations and 13th with Jumbo mortgages. Hudson City's mortgage dollar volume is up this year while almost all other mortgage lenders in Connecticut are substantially down this year as compared with prior years.

Connecticut, like almost everywhere else, has experienced a shrinking market for conventional purchase mortgages. The accompanying chart shows the consistent decline year over year of conventional purchase mortgage originations in Connecticut. The chart shows that the proportion of jumbo mortgages relative to all conventional mortgages has also declined. Fewer originators seem willing to offer jumbo mortgages even though recent legislation allows mortgages as high as $729,750 to be sold to the GSEs.

In the declining market Hudson City continuously grows mortgage originations.




Since Hudson City appears to focus on jumbo mortgages, their results show that they are dominating that segment of the mortgage market in Connecticut. So if no one else wants to finance jumbo size mortgages, Hudson City is ready to handle it! Look at their market share soar!

Stifel Bank & Trust Rapidly becomes a Leading Lender in St. Louis

Stifel Bank and Trust, a recent acquisition of Stifel Financial, rises to the top ten conventional purchase mortgage lenders in the St. Louis metropolitan area. The accomplishment is special since Stifel Bank and Trust recently started mortgage lending in this market.


Click the chart for a larger image




In St. Louis, this young bank now shares mortgage origination leadership with companies such as Pulaski Bank, Bank of America, Wells Fargo, US Bank, and PHH Mortgage. Each of those companies have originated substantially fewer mortgages in the first half of 2008 as compared to 2007.

The St. Louis metropolitan area mortgage market has been down significantly. The monthly trend shows a slowdown in St. Louis. Stifel Bank and Trust's mortgage origination growth under these difficult circumstances makes them a mortgage lender to watch.


We will watch and report back periodically!

VA Average Mortgage Passes $200K

During the months of February through June of this year, the average VA mortgage loan amount exceeded $200,000. The average loan amounts of government insured FHA mortgages and VA guaranty mortgages have been increasing each month. Note on the accompanying chart the spread between the average VA mortgage loan amount and the average FHA mortgage amount. Except for the past two months, the spread was increasing.

Nationwide, the average VA mortgage amounts have been exceeding the average FHA mortgage amounts by roughly 15 percent. For mortgage originators generating loan origination fees, VA mortgages are going to provide more revenue per unit. The problem for originators is that VA mortgages are not necessarily the most appealing mortgage product for eligible veterans. Although the volume of VA mortgages have been increasing, the number of new VA mortgages is under 20,000 units per month.

Monarch Home Funding Grows with Conventional Mortgages. Increases Market Share in Virginia Beach.

Yesterday I reported that Monarch Home Funding increased their Veterans Administration mortgage market share in Virginia Beach. Monarch Home Funding also makes great strides with conventional purchase mortgages for Virginia Beach, Virginia. The chart shows the rapid market share growth that Monarch Home Funding has achieved with conventional purchase mortgages in the Virginia Beach metropolitan area market.


Click on the chart for a larger image

Big Winners in a Dismal Mortgage Market - Monarch Market Share Soars!"

Since entering the Virginia Beach-Norfolk-Newport News market in early 2004, Monrach Home Funding has continued to increase their market share in the VA product area. Monrach's market share has particularly increased since the latter half of 2007. Take a look at the accompanying chart.

Average FHA Mortgage Amount Continues to Grow!

The Economic Stimulus Bill that temporarily raised FHA Mortgage Amount Limits to as high as $729,500 in certain areas looks like it has played a factor in the actual average amount for FHA Mortgages. The accompanying chart shows how the Average FHA Mortgage Amount is growing every month.





Since the Housing Bill became law last week that includes a permanent increase the FHA Loan Limits, can we expect this to continue to increase every month?

Where is the Bull Market in Mortgages? We Help You Find It!

In June 2008, FHA mortgages posted two new records of the decade. The average mortgage amount of $172,933 for FHA mortgages in June was the highest average mortgage amount ever. The total dollar amount, $21.1 billion, was the highest monthly FHA mortgage total amount since we started tracking the the data in year 2000. June 2008 had the fifth highest number of FHA mortgage originations since year 2000.

The Economic Stimulus Act of 2008 (Public Law 110-185) included an increase to the maximum mortgage amount for FHA mortgages. That act temporarily allowed the maximum FHA mortgage to be as high as $729,750 for this year. The housing relief legislation signed this week makes permanent maximum FHA mortgage amounts as high as $625,500 in high cost areas. Over the next few months we expect to see the average mortgage size of FHA mortgages continue recording new highs.



Click on the chart for a larger image

The chart shows the monthly number of FHA mortgage originations since January 2000. June 2008 was the highest since October 2003.


The total monthly volume increases of FHA mortgages is partly related to an increase in the maximum FHA mortgage amounts. The new mortgage amount ceilings make FHA mortgages useful given price levels of homes. Conventional mortgages were available for prime borrowers having substantial down payments or lower down payments with private mortgage insurance. Since the latter half of 2007, FHA mortgages were the only option available for residential finance for many borrowers who could not qualify for conventional financing.

True! I stole the headline from Cramer.

Index for New Homes with Mortgages versus Resales with Mortgages

We are bombarded with metrics which we use to analyze trends, relate to other data, and to predict the future. Now MortgageDataWeb contributes some of our own metrics. Previously we looked at the percentage of variable rate mortgages to all mortgages (fixed plus variable rate mortgages) where the index has been declining for several years.

Click on chart for larger image

A new metric looks at conventional purchase mortgages used to purchase new homes as a proportion of conventional mortgages used to purchase new or existing homes. There are 14.7 million home purchase observations in our data since January 2003. The data does not include home purchases without a mortgage. This new metric, which we call the "New/Resale Mortgage Index" has been charted by month and shown in the exhibit.

The chart reveals that new home purchases as compared with resales appear to peak during the winter months. In December of the past five years we see the highest value of the New/Resale Mortgage Index as compared with the index value for the prior 11 months. What this means is that the propensity to close on purchases of new homes as compared with existing homes is maximum during the winter months and the propensity to close on purchases of existing homes as compared with new homes is maximum during summer months.

Another trend is that the New/Resale Mortgage Index year over year values have declined in 2008. This reflects an increasing propensity to purchase and close on existing homes and a decreasing propensity to purchase and close on new homes in the first half of 2008. This trend suggests that home purchasers find greater values in the stock of existing homes versus new homes.

Prince William County Virginia - Home Prices in Free Fall!

I found this dialogue amusing and as useful as any analysis of Case-Shiller home price data. The idle chat provides a description of home price declines in one market in Virginia. Some posters contend that the crack down on illegal immigrants exacerbate foreclosures and housing prices. If that is the case then perhaps we might all benefit by being a little nicer to our immigrant neighbors!

Just for fun!! These quotes were copied from the link.

• .....Seems like there was some really irresponsible lending going on
  there.

  Let's just say if the price charts were a ski slope--it would truly be "experts only."

  Let's say if Dumfries and Manassas combined, and they changed to Dumassas

Foreclosures Up Again!

Foreclosures are up again last month. Nevada is leading state with one out of every 43 homes. Who were the subprime lenders doing the most business in Nevada in 2007 that contributed to this mess? As the new housing legislation makes its way to the President's desk for signature, will these numbers finally level off in the latter part of this year? The Congressional Budget Office estimates that about 400,000 borrowers will benefit from the program. What do you think?

Fingerprint Registry in the Foreclosure Prevention Act of 2008

Can anyone provide a coherent explanation why this bill includes capturing fingerprints and other private information on mortgage originators? See section 1505. Am I crazy or what? How does fingerprinting mortgage originators help financially distressed homeowners stay in their homes?

Which Los Angeles Communities are most impacted by FHA mortgages?

The leading cities within Los Angeles county with the most new FHA mortgages are Lancaster and Palmdale. The chart shows the top five cities in Los Angeles county with the most FHA mortgages in 2008 (year to date).

Beverly Hills has some FHA mortgages. Not enough in Beverly Hills to make the top five. Do you think FHA mortgages will finance large portions of real estate in towns like Beverly Hills, Malibu, or Pacific Palisades? We see these FHA products financing a home near you!

Impact of Economic Stimulus on Mortgage Finance in Los Angeles

The chart shows the recent growth of FHA mortgages in Los Angeles. We expect this growth to accelerate exponentially.

Early this year, the Economic Stimulus Act of 2008 (Public Law 110-185) included an increase of FHA and conventional mortgage loan limits. For Los Angeles, the new mortgage loan limit is $729,750. Before the Economic Stimulus Act the maximum FHA mortgage amount for single family homes was $362,790. That prior mortgage loan limit made FHA mortgages useless for home purchases in Los Angeles because the purchase price for most homes were substantially greater than the FHA mortgage limit. Higher mortgage loan limits and lower home purchase prices make many more homes eligible for FHA mortgages for borrowers with low down payments. Home purchases using conventional mortgages will not be as easy or cost effective for many borrowers. While conventional mortgage financing in Los Angeles is still many times greater than FHA, conventional mortgage originations are declining.

The newer housing legislation maintains the high FHA mortgage limits. Homeowners can refinance their recent "under water" conventional mortgages into FHA mortgages with a principle balance reduced to 85% of the current market value of the home and approval from their lender to release the remaining loan obligation from the borrower. More mortgage investors are accepting reduced principle as payment in full when closing short sales. Reduced principle payoffs are expected to increase in mortgage refinances adjusted to current market value of the property.

Mortgage lenders serving borrowers in Los Angeles with FHA mortgages stand ready to profit from accelerating volumes of FHA mortgage transactions. The mortgage market share report for Los Angeles covering the past two months shows some lenders we spoken about recently. Several prominent mortgage lenders have stopped originating new mortgages. First Horizon sold their mortgage operations to Metlife Bank. Prospect Mortgage. shown in the report as Metrocities, has been gaining market share in Los Angeles, especially with FHA mortgages. Prospect Mortgage recently purchased retail offices of Indymac. Prospect Mortgage may also pick up the wholesale customers of Indymac. This will propel Prospect (Metrocities) to the top of the market. In Los Angeles, Metrocities shows strong market share with conventional mortgages (Let us know if you want these market share reports).

Another mortgage lender expected to show market leadership in Los Angeles is TB&W Mortgage. They recently acquired Platinum Home Mortgage. The combined company and business relationships that TB&W has with brokers should make TB&W a formidable competitor in this market.

Any mortgage company that expects to successfully compete for business in Los Angeles must know the conventional mortgage products, Government insured mortgage products, pricing, and the business relationships that companies like TB&W and Prospect/Metrocities has established in Los Angeles. What else do you need to know about the largest mortgage market in the nation? We might have the data for you to evaluate your decision to participate Los Angeles and how to succeed. Over the next few days and weeks, I'll be publishing more reports, charts, and maps showing the mortgage market landscape in Los Angeles. Knowing this market information gives mortgage professionals the edge needed to succeed!

Housing Bill on Fast Track for Approval

The White House today dropped their opposition to the most extensive housing legislation since the Great Depression. This legislation will offer up to $300 billion in assistance to troubled homeowners. There are still some Republicans in the Senate who want to make sure the bill is helping homeowners and not a bailout for lenders.

One portion of the bill that is of particular interest is increasing the FHA loan limit to $625,000 in high cost areas. Take a look at our report at FHA Purchase loans in Los Angeles for 2008. Who is going to increase their sales in the LA market if this legislation passes as expected?