TARP, originally conceived by the Bush Administration and passed by Congress through the Emergency Economic Stabilization Act, provides for Treasury to purchase as much as $700 billion in troubled assets directly from financial institutions. At present, Treasury has committed $250 billion of the $700 billion allotted to purchase preferred stock in various banking institutions.

However, last week Paulson announced (http://www.treas.gov/press/releases/hp1265.htm) plans to suspend the program authorized by EESA that would enable Treasury to purchase illiquid assets on bank balance sheets as originally planned, but rather, the remaining funds would be spent stabilizing the financial system, supporting markets for securitizing credit and reducing incidences of foreclosures. He said implementation of the plan would not be the most effective use of resources.

Paulson said remaining funds should be used to address reinforcing stability of the financial systems; supporting the markets for securitizing credit outside the banking system; and reducing the rate of foreclosures.

Yesterday, Paulson said Treasury does not plan to spend nearly half of the $700 billion before the Obama Administration comes into power, leaving the decision-making as to that remaining funding to Obama’s choice as Treasury secretary.

Also testifying this morning is Federal Deposit Insurance Corp. Chairman Sheila Bair, who last week announced a program to encourage systematic loan modifications that would offer servicers financial incentives for each completed loan modification. Bair estimates that the program could result in modification of 2.2 million subprime mortgages.

The program has already garnered support from Democrats, including Committee chairman Barney Frank, D-Mass., who is expected to put pressure on the Bush Administration to approve it. But Treasury and the Bush Administration have reacted lukewarmly.

“We have three primary areas of interest,” Frank said. “First, the effort to recapitalize financial institutions; second, the effort to reduce volatility and restore liquidity to financial markets; third, the effort to reduce foreclosures and mitigate the erosion of housing values, which were and remain the epicenter of the current economic crisis.”

The hearing will take place at 10:00 a.m. ET in room 2128 of the Rayburn House Office Building. Also scheduled to testify:

• Steve Bartlett, president and CEO of The Financial Services Roundtable
• Edward Yingling, president and CEO of the American Bankers Association
• Cynthia Blankenship, vice chairman and COO of Bank of the West, on behalf of The Independent Community Bankers of America
• D. Cameron Findlay, executive vice president and general counsel of Aon Corp., on behalf of The Council of Insurance Agents & Brokers
• Alan Blinder, professor of economics and co-director of the Center for Economic Policy Studies at Princeton University
• Martin Feldstein, professor of economics at Harvard University and president emeritus of the National Bureau of Economic Research Inc.

MBA NewsLink will provide coverage; the hearing can be viewed live at http://financialservices.house.gov/.
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The update allows users of Calyx’s Point loan origination software to connect directly with lenders and mortgage service providers, automating data exchange and streamlining the loan origination process. Updates are automatically installed into Calyx Point and new providers are added to the application on a bi-monthly basis. The update is automatically installed into Point versions 5.4 and higher when users open their software and connect to the Internet. 

Avatar Partners, TradeCard Announce Alliance
Avatar Partners, Irvine, Calif., a provider of integrated supply chain and financial software, and TradeCard, New York, a supply chain collaboration platform, announced a partnership to offer services to enable sourcing, logistics and supply chain finance.

Avatar Partners will provide support of the TradeCard Platform, which deploys a network that connects and enables the extended supply chain. TradeCard’s services and global trading partners are delivered on a software-as-a-service platform that links buyers, suppliers and service providers. 

Celink Announces New Portal
Celink, Lansing, Mich., a subservicer of reverse mortgages, announced its new Client Data Portal. Celink’s reverse mortgage clients now have the ability to retrieve standard reports, make ad hoc queries on their portfolio database, create new reports and view loan-level information in real time.

Celink is a Fannie Mae, HUD and Ginnie Mae-approved servicer of reverse mortgages and its servicing portfolio is in excess of $2.3 billion.

Hyland Software Partners with Ocwen Financial
Hyland Software Inc., Cleveland, Ohio, developer of OnBase enterprise content management software, announced a partnership with Ocwen Financial Solutions, West Palm Beach, Fla., a business process outsourcing provider to the financial services industry.

Through the partnership, Ocwen Financial will recommend Hyland’s OnBase system to its broker customers as a complementary product to its REALSynergy loan servicing platform.

Lenders One Members Tap 'The Wizard of Oz'
Lenders One Mortgage Cooperative, St. Louis, a national alliance of mortgage bankers, announced it entered into a licensing agreement with Warner Bros. Consumer Products for the use of images and audio from The Wizard of Oz. The agreement will give Lenders One members access to the film’s visual and audio materials for advertising and marketing purposes. 

Members of Lenders One will have access to advertising and marketing materials that feature video clips, photographs and sound bites from the film. The materials will be customizable by the members to use in their markets in a variety of formats.

LenderLive Provides State Department Federal Credit Union with Loan Fulfillment, Web Site Hosting  
LenderLive Network Inc., Denver a provider of business process outsourcing and technology to the financial industry, is supporting State Department Federal Credit Union’s loan fulfillment services and is hosting its private-label mortgage origination web site. The relationship continues to evolve to meet the changing needs of the credit union’s 64,000 members worldwide.
 
Because of the geographic distribution of its members, 90 percent of SDFCU’s business is conducted via the phone or online. LenderLive’s private-label origination Web site and hosting capabilities allow members to have access to mortgage banking from any location. 

Advantage System Adds New Security feature for AMB Software
Advantage Systems, Irvine, Calif., a provider of accounting and contract management tools for the mortgage and real estate industries, announced addition of a new feature to Advantage Systems’ Accounting for Mortgage Bankers, an accounting service designed specifically for mortgage bankers, which enable users to limit access to individual bank accounts.

By securing access to bank accounts, AMB now enables branch users to manage their own checking accounts within the system. The enhancement provides managers within the mortgage industry with the ability to safely and securely enable branch users to print their own bank-related reports, such as cash disbursement and cash receipt reports.

Zillow, Houston Realtors Syndicate Listings
Zillow.com, Seattle, and the Houston Association of Realtors, Houston, a multiple listing service with more than 60,000 listings in the greater Houston area, announced a partnership that enables the MLS to automatically feed all for-sale listings to Zillow.com.

Each listing on Zillow from HAR includes a description of the property with up to 16 photos and contact information for the listing agent. In addition, each listing links to the HAR Web site, HAR.com, where consumers are able to find further information about the home, neighborhood, listing agent and brokerage.

Fidelity National Expands reInsight Tax
Fidelity National Real Estate Solutions, Jacksonville, Fla., a division of Fidelity National Financial Inc., now offers its MLS customers reInsight Tax, a new service that generates neighborhood and public record data.

The product is part of the reInsight suite, which also includes reInsight Data, a new data sharing service, and reInsight Mobile, to enhance Internet searching by hand-held devices. The products have been developed by Fidelity National MLS Systems & Solutions to promote its philosophy of open architecture.

Survey of Real Estate Agents Shows 19% Drop in Home Sales
Stresses in the real estate market caused U.S. home sales to fall sharply between September and October, according to a national survey of more than 2,500 real estate agents conducted November 1-8 by Campbell Communications.

The survey, conducted for Inside Mortgage Finance, found that buy-side agents responding to the survey indicated a 19 percent drop in completed transactions between September and October. Declines were especially severe for sales of non-distressed properties in states where home prices have fallen rapidly during the past year, agents said. For example, buy-side agents indicated a 22 percent decline in non-distressed sales in Florida, a 32 percent drop in California and a 51 percent drop in Michigan.

While home sales typically exhibit seasonal variations, it is unusual for a drop of this magnitude to occur between the months of September and October, said Thomas Popik, designer of the survey instrument for Campbell Communications. “We can now see the effect of the recent credit crunch and associated media attention on home sales,” he said. “The effect is especially severe in states where home prices are rapidly declining or where the job market is uncertain. Agents tell us that many homebuyers have adopted a ‘wait and see’ attitude. Agents also say large numbers of potential home sellers remain in denial about the true value of their homes or are prevented from selling when the mortgage is greater than the market value of the home.”

Cogent Road Launches Business Spaces for Mortgage Industry
Cogent Road, San Diego, a provider of Internet-based applications for the mortgage industry, launched Business Spaces, the company’s new collaborative document management system.

In addition to an end-to-end e-mortgage platform, Business Spaces automates work processes by delivering documents, tracking their status and notifying key workgroups of issues that may delay closing. The moment a loan officer orders a credit report, a Business Space is created and the applicant is notified via e-mail. The loan applicant enters a private, secured environment through which he or she can view, e-sign or upload documents directly into the Business Space via computer, fax or virtual printer. The borrower can also communicate using micro-blogs and discussion threads integrated in different areas within the Business Space. With automatic audit logging, all borrower actions are tracked for compliance purposes.
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U.S. CMBS delinquencies jumped by six basis points in October to end the month at 0.51 percent, based on the latest loan delinquency index from Fitch Ratings, New York.

Fitch identified 274 fixed-rate loans at $987.8 million and 29 floating-rate loans at $2.4 billion in its CMBS portfolio of transactions scheduled to mature in November or December this year with extension options remaining on all but two floating-rate loans, likely to extend as performing loans. Fitch expected fixed-rate loans with high coupons and strong debt service coverage ratios to find financing earlier in the year, but now the loans face maturity defaults as lending stalls from the credit crisis.

"Timely repayment of maturing loans will continue to be a concern until global economic pressures subside and both lender and investor confidence are restored," said Susan Merrick, managing director and CMBS group head at Fitch Ratings.

Cash and synthetic spreads “blew out” in part to reaction to Chicago-based General Growth Properties’ announcement last week questioning its own ability to refinance and the company’s viability as “an ongoing concern,” said Alan Todd, head of CMBS research at JPMorgan Securities, New York.

The S&P 500 removed the mall real estate investment trust from its list and Moody’s Investors Service, New York, downgraded the firm.

Last week's GGP refinancing concerns combined with a November 10 Chapter 11 bankruptcy filing by a firm that arranges tenant-in-common properties— Boise, Idaho-based DBSI—showed property managers had significant difficulties refinancing upcoming debt.

Todd said continued negative news around commercial property valuations would weigh further on sentiment and spreads for CMBS transactions during the next few months as fundamentals continue to deteriorate and loans transfer to special servicing—particularly loans approaching refinance dates and with refinancing more unlikely to occur because of the credit crisis.

“When a loan is transferred to special servicing, additional fees will be siphoned away from the trust, contributing to interest shortfalls—and likely ratings downgrades, as well—up the capital structure,” Todd said.

Fitch said a proportion of non-performing matured loans within its loan delinquency index increased "significantly” during the past year and particularly showed upward trends in recent months.

In October 2007, non-performing matured loans were 16 percent of new delinquencies and 4 percent of the overall index compared to 42 percent of new delinquencies and 15 percent of the overall index for non-performing matured loans in October of this year. Fitch’s loan delinquency index measures loans at least 60 days delinquent within all Fitch-rated transactions, which consists of 475 transactions of $553.1 billion.

"With CMBS issuance at a standstill and portfolio lenders cautiously managing their balance sheets, borrowers are facing increased difficulty accessing capital to refinance maturing loans,” Merrick said. "Given the illiquidity in the market, we expect the proportion and dollar balance of maturity defaults to continue to grow at a fast pace with delinquencies approaching close to 75 basis points by the end of this year."

Todd said the Treasury Department’s announcement last week not to use funds from the Troubled Asset Relief Program to purchase distressed mortgages prevented life insurance companies from alleviating balance sheet pressures and could result in their using bid-wanted-in-competition lists to lighten their exposure to CMBS. BWIC lists allow securities dealers to make bids for securities on the lists, which Todd said could “add incremental supply for very limited demand.”
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PNC Real Estate Finance provided a three-year, $65 million secured subscription facility and led syndication on a transaction to theMerlone Geier Partners LP, a San Francisco-based real estate investment firm focused on retail and mixed-use development and redevelopment.

Merlone Geier said it would use the $65 million for retail investment and continuous working capital needs.

PNC MultiFamily Capital arranged a $3.8 million Fannie Mae Supplemental Loan for The Landmark Companies LLC, developer of Brandon Place Apartments. Built in 1997, the 197-unit property in Riverside, Calif consists of 16 garden-style buildings targeting seniors 55 and above, earning 50 percent to 60 percent of area median income.

The loan follows two previous transactions with The Landmark Companies for Brandon Place.

The Calabasas Hills, Calif.office of PNC ARCS provided a $2.15 million loan for the Chateau Oaks Apartments, a 40-unit property in Sherman Oaks, Calif. The Fannie Mae Small Mortgage product was for a 10-year term/30-year amortization at a 5.8 percent fixed rate.

Built in 1978, Chateau Oaks Apartments is a garden-style community with amenities that include intercom access and underground gated parking.

The San Francisco office of PNC Arcs originated loan a $3.301 million loan through Fannie Mae for the Sandalwood Apartments, a 40-unit property in San Jose, Calif. The loan includes a seven-year term and three years of interest only. Built in 1962, Sandalwood is a garden-style community.

The same office also originated $4.653 million Fannie Mae loan for Marin Gardens Apartments, a 46-unit garden-style property built in 1964 in San Rafael, Calif. The loan consists of a seven-year term/three years of interest only at a 6.2 percent fixed rate.
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Significant developments within FHA reform continue to be a primary focus within our economy and on Capitol Hill. Learn how these and other occurrences affect the mortgage industry moving forward. Join experts from MBA and senior staff from HUD for updates on the latest FHA developments and how they affect your business. This LIVE Online Conference is an excellent opportunity to ask questions on how FHA will position itself under the new administration of President-Elect Barack Obama.

Topics and speakers for this program will be announced soon. Space is limited on this popular LIVE Online Conference, so be sure to register now to ensure your participation.

Cost: If you are interested in participating in this LIVE Online Conference, you must register. The fee is $175 per site for MBA members and $225 per site for nonmembers.

To register, visit http://www.campusmba.org/products/default.aspx?product_code=E2901716B/REGIS. You can also register by phone at (800) 348-8653.

About LIVE Online Conferences
Save money and time with MBA's LIVE Online Conferences, powered by CampusMBA, the education division of MBA. This interactive format enables participants to easily view presentations, download articles and analyses and interact with experts through their desktop or laptop computers. All that is needed to participate in this convenient and inexpensive format is a computer with an Internet connection and a phone. This saves both travel expenses and time away from the workplace.

Site Registrations: All LIVE Online Conference registrations are considered "site" registrations. Each site registration can have one or many participants. A site registration is equal to one connection. This means if you have multiple participants at one site, they must all be on the same phone line and internet connection. Additional phone lines or internet connections will require additional registrations. The person who registers for the program must participate on the site.

Limited Space: Due to limited number of seats on our online conference system, we are only able to present the full interactive program to the first 125 sites that connect on the day of the program. However, if you dial in after those allotted seats are full, you will still be able to participate in the audio portion of the program. All visual conference materials that will be used during the presentation will be available to all registered sites following the program.

To learn more about LIVE Online Conference Policies, visit http://www.campusmba.org/AboutCampusMBA/CampusMBAPolicies

Designation Credit: Participants receive one half point toward the Certified Mortgage Banker (CMB) designation. Learn how all participants at your site can earn CMB Points from this conference at (202) 557-2873.

To learn more about CampusMBA and its programs, visit www.campusmba.org.
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Formerly a function of the myMBA web site, the new Membership Directory Questionnaire allows you to:

• Add important contacts to your company roster;
• Define your territories of operation in both the U.S. and abroad;
• Specify your product and service offerings; and
• Preview and update information in your current Membership Directory listing.

MBA's Membership Directory, http://www.mortgagebankers.org/tools/memberdirectory.aspx (restricted access) is searched by thousands and allows fellow members to find and be found by potential customers. That's why it's important to make sure that your company listing says the most about what you have to offer.

You must be a primary contact of an MBA member company to update your listing.

Don't leave new business opportunities on the table. Log on today at www.mortgagebankers.org/MemberProfile to update your company profile.

If you have any questions regarding your company profile or MBA's Membership Directory, please contact Venita Murray, membership manager, at (202) 557-2845 or vmurray@mortgagebankers.org.
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The report notes that lenders originated nearly 1.2 million single-family mortgage loans in California during 2007, representing 11.8 percent of U.S. originations based on loan count and 21.3 percent of U.S. originations based on dollar volume. With 734,000 originations, Florida had the second-highest number of overall originations, followed by Texas (652,000), Illinois (468,000) and Pennsylvania (427,000).

MBA Mortgage Market Summary reports are based on mortgage lending transactions at more than 8,600 financial institutions covered by the Home Mortgage Disclosure Act in metropolitan statistical areas throughout the nation. HMDA data provide the most comprehensive source of mortgage originations information.

To view the report list and download an order form, click http://www.mortgagebankers.org/ResearchandForecasts/ProductsandSurveys/
DataOnDemandServiceProductList.htm.

For more information, call 202/557-2830 Monday-Friday, 9:00 a.m.-5:00 p.m. ET.
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The HUD study—The State of the Housing Counseling Industry—noted a 55 percent increase in the number of clients receiving foreclosure prevention counseling between 2006 and 2007. Of nearly 136,000 families that completed this counseling during 2007, 45 percent remained in their homes, while 14 percent ultimately lost their home through foreclosure. Outcomes for the remaining 41 percent of clients were unknown, HUD said.

"More than 1,800 HUD-approved housing counseling agencies on the ground helping homeowners review their financial situation and negotiate with their lenders in order to find the best solution for them," said HUD Secretary Steve Preston.

Meanwhile, HOPE NOW—the private sector alliance of mortgage servicers, non-profits, counselors and investors of which the Mortgage Bankers Association is a founding partner—has helped more than 2.5 million homeowners avoid foreclosure since July 2007.

Of the 1.7 million who received counseling services from a HUD-approved agency in 2007, 54 percent were white, 36 percent were African-American and 20 percent were Hispanic. Most clients were low-income, HUD said.

A breakdown of services housing counseling clients received in 2007 includes:

• 308,389 sought pre-purchase counseling;
• 264,989 sought help to resolve or prevent mortgage delinquency; and
• 202,795 clients received mortgage refinance and reverse mortgage counseling.

The report noted surging demand and unprecedented level of funding for foreclosure prevention counseling, which will likely result in new agencies entering the counseling field and existing agencies reorienting their services toward foreclosure prevention counseling and other forms of post-purchase counseling.

“In many respects, the outlook for the housing counseling industry is likely to hinge to a great extent on the availability of funding,” the report said. “While the forces spurring demand for counseling are evident, to meet this demand agencies will need a reliable source of funding commensurate with the demand.”

HUD said funding for housing counseling agencies has grown steadily throughout the Bush Administration—from $20 million in 2001 to $50 million in 2008. In addition, HUD said federal money tagged specifically for foreclosure prevention counseling totaled $360 million in 2008 while the agency has requested another $65 million to support local housing counseling agencies during fiscal year 2009.
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