According to a source close to the company, Chevy Chase Bank’s Wholesale Lending Division will no longer originate new loans in California due to “escalating delinquencies, increasing fraud, and declining values”.
It is believed that management told staff today that beginning tomorrow the division would no longer accept applications for California-based loans that were not previously locked.
Apparently the company will wind down operations centers in California, though some may remain open to support other parts of the Western Region.
It is unclear at this time how many employees will be affected by the news/closures.
The same source also informed me that Chevy Chase stopped taking loan applications in Florida in mid-December, resulting in a number of Account Executive layoffs at the end of the month.
And noted that sister company B.F. Saul Mortgage was being dissolved.
In late November, the bank announced that it would reduce its 5,000-employee work force by roughly 300 positions and scale back evening hours at some of its branches to cope with the housing downturn.
Washington D.C.-based Chevy Chase Bank has been originating mortgage loans since 1892 and services more than $21 billion in loans, according to their website.
Update: I’ve been told today that all Western Region operations are being shuttered and that the Eastern Region will be covered by a handful of internal AE’s.
Check out the latest list of mortgage layoffs, closed lenders, mergers, and rumors.
After cutting nearly 25 percent of its workforce yesterday, IndyMac released a memo in an effort to confirm its overall stability and pledge its commitment to the wholesale lending channel.
“This is obviously the most tumultuous time that the mortgage industry has ever faced,” said Frank Sillman, Chief Executive Officer, in a memo to IndyMac customers.
“We’re seeing the very largest global financial companies taking billions of dollars of losses in each of the last two quarters, and the largest independent mortgage company in our industry has just accepted a bailout by one of the largest banks in the country.”
Sillman went on to explain that IndyMac had made the right move to convert from a REIT to a federally chartered bank after the liquidity crisis in 1998, and said it was well capitalized to weather the current mortgage crisis.
“Today, virtually 100% of our assets and liabilities are contained within IndyMac Bank. As a bank, we have strong and stable funding sources … FHLB advances and federally insured deposits … which have allowed us to build up a “war chest” of more than $6 billion in liquidity,” he explained.
“In addition, we continue to maintain strong capital levels. As previously reported, as of September 30, 2007 (the date of our most recent financial statements), IndyMac Bank had $2.5 billion in regulatory capital, and our capital ratios exceeded the “well capitalized” criteria outlined in the capital regulations.”
He also worked to dispel any rumors that the Pasadena-based mortgage lender may be slowly shuttering its wholesale lending division.
“As we have stated consistently through this crisis, IndyMac is very committed to the Wholesale business, he said.
“Wholesale has been IndyMac’s biggest and most profitable business unit over the years, and it’s our goal to return that business to profitability in March. That’s why we’ve had to take the steps we’ve taken, so we can right size our wholesale model for the new realities of the market.”
Regarding the wholesale operations centers that were shut down yesterday, Sillman said the bank reviewed volume trends by region, and determined that consolidation wouldn’t compromise its ability to serve customers in the areas affected.
“While many national banks are heading out of the Wholesale business, IndyMac remains strongly committed to it.”
Shares of IndyMac were up 31 cents, or 6.90%, to $4.80 in early afternoon trading on Wall Street.
Lately there has been a lot of Wells Fargo rumors swirling. First we saw trademarks for two new credit cards ‘Autograph Journey’ & ‘Autograph Beyond’. Then some potential details of the Autograph Journey were released. Then we saw partner transfers were delayed. Now the Wells Fargo business credit card page is advertising that a new business credit card is coming soon.
Merrill Lynch is reportedly shutting down its wholesale mortgage unit First Franklin, according to a report by CNBC.
Although it’s unclear how many of the thousands who used to work there are still employed, the report said roughly 400 to 500 could lose their jobs.
First Franklin began as a retail brokerage in San Jose, California in 1981, transitioned to a mortgage lender in 1984, and was later sold to National City in 1999.
In 2003, the company began offering 100% loan-to-value single-lien mortgages and other higher-risk loan programs, reaching $29.6 billion in loan origination volume in 2005, and a year later Merrill Lynch picked it up for $1.3 billion.
However, Merrill acquired First Franklin in December 2006, just when serious problems in the mortgage market began to surface, leading to substantial losses at the brokerage house and the eventual ousting of its CEO Stan O’Neal.
Last September, First Franklin cut an unknown number of jobs so staffing levels would be in line with their volume of business.
Around that same time, there were scores of rumors that First Franklin was actually firing staff that failed to meet performance goals, despite dismal industry loan volume that would be dealt with more appropriately through layoffs.
It’s unclear what operating levels were like recently, but it’s doubtful that the closure will have a significant impact on the industry given separate accounts that claimed the company was running on a severely reduced staff.
After the crisis hit full swing, First Franklin reduced its subprime offerings, and began focusing on Alt-A, although they still had programs for Fico scores below 600.
There is no notice on the First Franklin website at this time, and Merrill Lynch declined to comment when reached by the press.
Check out the latest list of closed lenders, mortgage layoffs and mergers.
In the wake of the landmark Sitzer/Burnett commission lawsuit case, the real estate world is in turmoil. As industry players scramble to assess the fallout, there’s a silver lining for the astute – opportunity amidst chaos.
The savvy real estate agents and loan officers see this not a crisis but a golden opportunity. Now is the time to rise as an influencer, a trusted advisor and a beacon of stability in a sea of uncertainty. This is a call to arms for real estate agents and loan officers ready to seize the day.
The distraction advantage
Let’s cut to the chase: Your competitors are distracted. They’re caught in the headlights of change, poring over legal jargon, worrying about commission structures and losing sight of the prize – sales.
This is your moment. While they’re busy worrying, you should be busy working. The key is to stay laser-focused on what you do best: selling homes and providing stellar financial advice.
While your peers are entangled in adapting to changes, your clear focus and proactive approach puts you steps ahead. Your competitors’ distraction is your playground. In this environment, those who stay engaged in core sales activities, unswayed by the chaos, will not just survive but thrive.
The power of influence
In times like these, influence is your most potent weapon. It’s about being the voice that cuts through the noise, the trusted source of information when rumors and confusion are rampant. Personal branding isn’t just about recognition; it’s about establishing authority and trust. Your clients need a guide, and you are poised to be that guiding light.
Scripting the narrative
As you engage with clients, your message should be one of assurance and insight. You need to own the narrative with your clients. Here’s how:
For real estate agents:
Script: “While the industry is evolving, my commitment to finding your dream home remains steadfast. Let others focus on the noise; we’ll focus on your needs.”
Message: Project confidence and deep understanding of market changes. Show them that your expertise is their anchor in these turbulent times. That means you’d better do your homework!
For loan officers:
Script: “Market changes bring new opportunities. I’m here to offer you tailored, up-to- date financial advice. Let’s turn these changes into wealth!”
Message: Reinforce your role as a guide through uncertain financial landscapes. Highlight your adaptability and insight in finding optimal mortgage solutions, regardless of market fluctuations.
Presentation skills: A gateway to higher conversion rates
Presentation skills are another crucial element. Storytelling within sales presentations is proven to significantly improve conversion rates. A compelling narrative adds context to numbers, makes data relatable, and fosters deeper connections with clients.
Sales reps must balance stories with hard data to establish trust and enhance customer loyalty. Effective storytelling can also distinguish your brand, forming long-term partnerships and boosting customer retention.
Moreover, the caliber of a sales pitch is directly tied to the salesperson’s skills. Presentation analytics are invaluable in honing these skills. By analyzing factors like presentation duration and the time spent on specific sections, sales managers can identify strengths and weaknesses, enabling targeted coaching to improve performance.
This data-driven approach ensures that every team member can maximize their impact during sales pitches.
Comprehensive strategies for staying ahead and amplifying influence
Enhance client relationships: Trust is your currency. Forge stronger bonds through consistent, reliable communication and personalized service.
Educate yourself and clients: Stay abreast of mortgage and real estate industry changes and translate complex information into digestible, actionable advice for your clients.
Leverage social media: Regularly share insights and updates on social media to establish yourself as an industry thought leader.
Host informative sessions: Use webinars or community meetings to demonstrate your knowledge and reassure clients and prospects.
Network with purpose: Build relationships with like-minded professionals who see opportunity as they can support and enhance your influence.
Be visible and vocal: Use every platform available to you to share your perspective and insights, reinforcing your status as a go-to housing market expert.
Adapt to market needs: Be quick to adjust your strategies in response to market shifts, ensuring your services remain relevant and in demand.
Harness the influencer’s advantage
In these times of industry upheaval, your influence is your capital. Use it to build trust, provide clarity and lead with confidence. Those who do will emerge not just as survivors of change, but as architects of a new real estate era.
Rene Rodriguez is a best-selling author, keynote speaker, leadership advisor and transformational speaker coach.
According an SEC filing dated May 28, Bank of America originally offered Countrywide shareholders nearly $10 per share in its bid to takeover the nation’s top mortgage lender.
But after significant deterioration in the credit markets, namely involving a number of home equity loan securitizations, Bank of America reevaluated its position and came up with the current offer of about $6 per share.
Beginning in November 2007, Countrywide and Bank of America began merger talks after it became clear that additional capital raising and/or a private equity investment wouldn’t be enough to the keep the giant afloat.
At the time, Countrywide also began mitigating risk by eliminating the loan origination of subprime mortgages, increasing the origination of government-backed loans (FHA loans, VA loans), and reducing headcount.
During a meeting held on December 28, a Bank of America representative provided Countrywide representatives with a preliminary estimate for the proposed takeover, offering a 10 percent premium to the current Countrywide share price.
That implied an exchange ratio of 0.2353 shares of Bank of America common stock for each share of Countrywide stock, valuing the ailing mortgage lender at $9.96 per share.
But during that same meeting, Countrywide representatives fessed up about their home equity problems, prompting Bank of America to do their due diligence before moving forward.
Later in January, the groups met again, at which point Countrywide revealed that it would likely report a fourth quarter loss, and as a result, could face negative ratings action that would put further strain on the company.
Despite the bleak outlook, Bank of America agreed to push on in a call initiated by Countrywide representatives on January 8, offering an exchange ratio of 0.1822 of Bank of America stock for each share of the stressed lender’s.
Days later, the boards approved the merger and it was quickly announced to the public on January 11, just around the time when bankruptcy rumors were causing panic selling on Wall Street.
Check out the entire filing here if you want to hear more about the merger and the hundreds of pages of related detail.
Shares of Countrywide fell 13 cents, or 2.41%, to close at $5.26 on Friday.
A new “online study” from Carlisle & Gallagher Consulting Group released today revealed some interesting consumer sentiment regarding mortgages.
The point of the survey was to determine consumers’ views about the home mortgage application process, and if they’d consider alternatives to the traditional bank or lender route.
The results were somewhat strange.
Of the 618 U.S. consumers surveyed, 80% said they would consider taking out a mortgage from a “non-bank,” which isn’t the surprising part.
After all, these days the big banks are seeing increasing pressure from tech-happy startups and the like, many of which don’t charge fees, or at least make banking easier and related activities less painful.
A PayPal Mortgage?
But what was particularly interesting was that 48% of consumers said they would consider a mortgage from PayPal.
Last time I checked, PayPal was simply a company that allowed individuals to transfer money to friends and family or to pay for online purchases.
Businesses can also use PayPal for their merchant needs as an alternative to standard credit card processing hardware/software.
So where does the mortgage from PayPal come in? I’m not sure, but I guess the results suggest people like the company’s service, and perhaps ease of use, which would leave them open to a PayPal mortgage.
For the record, the biggest consumer gripes regarding mortgages included slow execution during the mortgage process, difficulty communicating with lenders, inability to track said mortgages, and untrustworthy advice.
How PayPal would tackle those issues is beyond me – no matter who’s doing your mortgage, it’s going to take a while these days thanks to the crazy demand and limited supply of mortgage originators.
Fewer Interested in a Walmart Mortgage
Then there’s mega-retailer Walmart, who was also included in the survey.
When asked the same question, only one in three consumers seemed enthused by the idea of picking up a mortgage at Walmart along with their milk, eggs, and big screen TV.
Still, that 33% or so was enough to get the media buzzing about a possible Walmart mortgage in the near future.
Even before this survey, there were plenty of rumors and rumblings of a Walmart mortgage, seeing that they already do just about everything else.
There’s already the Walmart MoneyCenter, which provides pretty much every financial tool you can think of, including bill pay, check cashing, money orders, credit cards, and so on.
Walmart even gives customers the option to purchase items online and pay with cash at a local store.
And I think that last service explains why Walmart won’t provide mortgages to its customers.
Many people that shop at Walmart don’t use credit, and instead rely on all types of other forms of payment such as the always-popular cash option, debit cards, and prepaid cards.
Are these the same consumers actively searching for mortgages, or are they perhaps more debt-averse?
If so, they surely wouldn’t want a mortgage, and would more likely choose to rent.
But Walmart could certainly still enter the game, or at the very least, partner with existing lenders and take a cut of the business, similar to what Costco has done.
The question is whether they’d want to sully their reputation in the process. It’s a tricky business to get in, as newcomers like Discover are probably learning rather quickly.
At the same time, they probably have enough influence to get more shoppers to take out mortgages and ultimately buy homes, which could increase sales of household items at Walmart.
So by now you’ve probably heard speculation that Indymac could be shutting down some of its operations today, or possibly even its doors.
While nothing has been confirmed as of yet, plenty of rumors are floating around regarding Indymac’s situation, and they aren’t good.
That said, the following is what I’ve heard, and while it makes sense, it hasn’t been corroborated as of yet, so take it with a grain of salt.
So apparently Indymac stop funding loans last Thursday, and a number of outstanding loans due to be funded had to be directed through other banks on their behalf.
A day earlier, Countrywide supposedly offered to buy a bundle of Indymac’s minor deficiencies loans, but because Bank of America had swallowed them up, they put the kibosh on that idea.
So now Indymac is stuck with the loans and no funding source, putting the Pasadena, CA-based mortgage lender in need of a possible rescue to stay afloat.
Additionally, I’ve been told that Indymac employees were advised to begin looking for other sources of employment because of the uncertainty surrounding the company’s future.
Of course, Indymac mentioned on their company blog last week that they were working with their regulators on a plan, and that details would emerge once it became fully developed, but things appear to have worsened since that communiqué.
In recent weeks, Indymac has seen its share price hit an all time low, falling as low as 56 cents last week after Senator Schumer put doubt in the minds of investors, leading to a run on the bank’s deposits.
Shares of Indymac were off 3 cents, or 4.48%, to 64 cents in midday trading on Wall Street, with many anxiously awaiting word regarding the company’s health.
More to come this afternoon, as Indymac is expected to make an announcement shortly.
Check out the latest list of closed lenders, mortgage layoffs and mergers.
Despite being in a quiet period, Indymac took the time to respond to a letter written by Senator Charles Schumer last week that stoked solvency concerns at the Pasadena, CA-based mortgage lender.
The letter, sent to the FDIC and the Office of Thrift Supervision, among other regulators, called for closer monitoring of the stressed lender, which Schumer felt could be a burden to both taxpayers and borrowers if it were to collapse.
Schumer noted that Indymac relied heavily upon advances from the Federal Home Loan Bank of San Francisco and brokered deposits to finance its “irresponsible growth” over the last couple years, stirring up bankruptcy rumors over the weekend.
But today, Indymac Communications Director Grove Nichols hit back on the company blog, claiming that the bank’s regulators were “actively involved” and “up-to-date” on the company’s position and working on a plan “to further improve the safety and soundness of Indymac.”
Additionally, he noted that the FHLB of San Francisco had positioned itself carefully in light of the ongoing mortgage crisis, increasing margin requirements on mortgage loans and related securities that it financed for all institutions, including Indymac.
And claimed that the brokered deposits in question actually helped Indymac improve liquidity, meet elevated margin requirements, pay off market funding sources, and bolster safety and soundness during the crisis.
Lastly, Nichols noted that as a result of Schumer’s letter, Indymac was hit with a high level of customer inquiries at its branches with regard to its stability, resulting in $100 million worth of withdrawals in just two days.
Later in the day, CEO Mike Perry told Bloomberg in a phone interview that Indymac was planning to scale back business activity, though no plans were fully developed or final as of yet.
He added that speculation involving the company’s plan to exit home lending was simply a rumor.
Shares of Indymac closed the day down 19 cents, or 23.46%, to 62 cents, falling as low as 56 cents during the trading session Monday.
Oh, boy. While taking my daily scroll, I uncovered a thread asking, “Which celebrity looks like they smell bad?” Here are the top-voted responses.
1. Post Malone
“It’s 100% Post Malone,” suggested one. Another joked, “People wish he were Post Cologne.” A third shared, “He said in an interview, “I won’t wear any deodorant or anything, but I have a musk, and it’s just kind of, like, naturally enticing to females.”
2. Harvey Weinstein
“Harvey Weinstein, but he smells terrible, according to reports. Like rotten flesh and poopy,” alleged one. “He has Fournier’s gangrene.”
Another confirmed, “My stepdad died of that. And yes, he stank to high heaven in his last few months. It wasn’t his fault, and he was very hygienic. But when your colon is rotting, you stink—really awful way to go.”
3. Bam Margera
One person said, “Bam Margera,” before another confessed, “When I met him, he just reeked of alcohol. Like he bathed in whiskey.” A third stated, “I met him while working at a Walmart. I can confirm he had an odor, but he was still very nice to me.”
4. Jared Leto
Jared Leto looks like he uses his sweat as cologne,” one suggested. A second alleged, “I worked with Jared Leto on a film set > 10 years ago. I can tell you that he smells fine but was a HORRIBLE human.”
“He treated his a-istant (for the film) like trash, was an entitled queen overall, and got a security guy fired because that guy laughed as Leto tripped out of his trailer while drunk. I was a huge fan until then.”
5. Mickey Rourke
Someone volunteered, “Mickey Rourke. He was the first person I thought of when I saw this question.” Others discussed rumors of him smelling back in the 90s before one joked, “I a-umed he smelled like Abercrombie.”
6. Kid Rock
“Kid Rock. He looks like he smells like he just smoked McDonald’s,” said one. Another claimed, “I worked at a radio station, and Kid Rock came in for an interview. He smelled like a dumpster after a fire.”
Funny, he keeps saying he’s a man of the people; Kid Rock’s humble origin story took place on a luxurious estate in wealthy Macomb County, Michigan. Rock, whose real last name is ‘Ritchie,’ grew up the son of millionaire William ‘Bill’ Ritchie, who owned several lucrative car dealerships, and Susan Ritchie, who instilled in Rock ‘a spirit of philanthropy.”
“They raised Rock, who once claimed to be ‘straight out the trailer,’ on six well-groomed acres, where he could pick fresh apples from his family’s orchard.”
7. Brad Pitt
“My first thought when opening this post was that Brad Pitt always looks a little greasy… but I’m sure I’m just being ridiculous,” one confessed. Next, people reminisced about him reportedly having issues on the set of Interview With a Vampire with Tom Cruise.
However, one fan argued, “For what it’s worth, I was an extra on a movie and stood next to Brad Pitt for a few seconds, and the man smelled incredible – to the point that it’s still what I remember the most clearly years later. He was wearing some expensive-smelling cologne.”
8. Russell Brand
One user admitted, “Russell Brand LOOKS like he stinks, but I can vouch the man smells incredible.” Another added, “I hugged Russell Brand at one of his shows. He does NOT smell at all.” A third argued, “He looks like he smells like patchouli.”
9. Pete Davidson
One user voted “Pete Davidson.” “He smells like cigarettes and stale pizza. I’ve met him several times and been in his hotel rooms. I can say he is a VERY nice fellow. But he chain smokes like crazy,” a second suggested.
Finally, a third said, “I get that he looks that way, but he didn’t pull the women he did without smelling amazing. I will die on this hill.”
10. Johnny Depp
“Johnny Depp looks like he forgets his deodorant a lot,” suggested one. “First person I thought of, and I’m surprised I had to scroll this far down to find it. All those scarves keeping the wine sweat insulated? No way he doesn’t smell,” answered another.
Source: Reddit.
25 Extraordinary Sequels and Remakes That Outshine the Originals
Every once in a while, a movie sequel or remake surpa-es the original film. After polling the internet, “Name a single movie where the sequel or remake was better than the original?” Here are the top-voted responses.
25 Extraordinary Sequels and Remakes That Outshine the Originals
These 7 Celebrities are Genuinely Good People
We’ve all heard the famous adage that “no publicity is bad publicity,” and while it tends to be accurate, there are certainly exceptions. But what about those few stars who stay out of the limelight and get along without a hint of trouble?
These 7 Celebrities are Genuinely Good People
Have you ever known someone and thought you liked them—until you learned about their hobbies? Then you get to know them and then you’re like, “Wow, red flag.” Well, you’re not alone.
These 10 Activities Are an Immediate Red Flag
15 Cover Songs that are Better than the Original
Sometimes, a cover of a song ends up doing far better than the original. Some covers are so good that we didn’t even realize the cover version wasn’t actually the original.
15 Cover Songs that are Better than the Original
These 11 Movies Are So Bad You’ll Wish You Could Unsee Them
The movies we love best are a combination of excellent characters, plots, stories and cinematography. But if these factors can make great movies, they can also make terrible movies—the ones that make people cringe, the ones we swear they’ll never watch again.
These 11 Movies Are So Bad You’ll Wish You Could Unsee Them