Presentation to House Select Committee on Home Foreclosures
February 28, 2006 Joseph A. Smith, Jr. North Carolina Commissioner of Banks
Top 20 Mortgage Lenders in NC
All Originations (NC)
All Originations (Nation) %
Lending Institution 1 WELLS FARGO BANK, NA (COMMERCIAL BANK) 2 COUNTRYWIDE HOME LOANS (MORTGAGE COMPANY) 3 BRANCH BANKING AND TRUST CO (COMMERCIAL BANK) 4 BANK OF AMERICA, N.A. (COMMERCIAL BANK) 5 NATIONAL CITY BANK, INDIANA (COMMERCIAL BANK) 6 WACHOVIA MORTGAGE (MORTGAGE COMPANY) 7 STATE EMPLOYEES CREDIT UNION (CREDIT UNION) 8 CHASE MANHATTAN MORTGAGE CORP. (MORTGAGE COMPANY) 9 NATIONAL BANK OF COMMERCE (COMMERCIAL BANK) 10 SUNTRUST MORTGAGE, INC (MORTGAGE COMPANY) 11 AMERICAN HOME MORTGAGE (MORTGAGE COMPANY) 12 ABN AMRO MORTGAGE GROUP, INC. (MORTGAGE COMPANY) 13 CENDANT MORTGAGE (MORTGAGE COMPANY) 14 FIRST HORIZON HOME LOAN CORP (MORTGAGE COMPANY) 15 RBC CENTURA (COMMERCIAL BANK) 16 FIRST-CITIZENS BANK & TRUST CO (COMMERCIAL BANK) 17 VANDERBILT MORTGAGE (MORTGAGE COMPANY) 18 HSBC MORTGAGE CORP (MORTGAGE COMPANY) 19 DECISION ONE MORTGAGE (MORTGAGE COMPANY) 20 CTX MORTGAGE COMPANY, LLC (MORTGAGE COMPANY) Source: Mortgage Bankers Association, 2004 Mortgage Market Summary
Dollar Volume ($000)
%
Dollar Volume ($000)
3,149,598 2,729,233 3,053,456 2,701,442 1,269,370 1,546,486 1,235,351 1,348,428 985,170 604,178 538,399 893,660 362,913 595,221 620,887 587,716 95,299 699,986 307,388 312,037
6.5 5.7 6.3 5.6 2.6 3.2 2.6 2.8 2 1.3 1.1 1.9 0.8 1.2 1.3 1.2 0.2 1.5 0.6 0.6
167,882,649 161,758,649 7,292,730 82,880,233 76,697,407 13,916,812
6.7 6.4 0.3 3.3 3.1 0.6
63,799,657
2.5
23,816,998 21,610,959 38,983,282 21,597,809 27,850,490
0.9 0.9 1.6 0.9 1.1
23,907,750 9,124,911 9,775,232
1 0.4 0.4
Top 20 Subprime Lenders in NC
All Originations (NC)
All Originations (Nation) %
Lending Institution 1 GREENPOINT MORTGAGE FUNDING (MORTGAGE COMPANY) 2 ARGENT MORTGAGE COMPANY (MORTGAGE COMPANY) 3 OPTION ONE MORTGAGE CORP. (MORTGAGE COMPANY 4 DECISION ONE MORTGAGE (MORTGAGE COMPANY) 5 AMERIQUEST MORTGAGE COMPANY (MORTGAGE COMPANY) 6 FREMONT INVESTMENT & LOAN (COMMERCIAL BANK) 7 SOUTHSTAR FUNDING (MORTGAGE COMPANY) 8 CITIFINANCIAL SERVICES, INC (MORTGAGE COMPANY) 9 EQUITY ONE, INC (MORTGAGE COMPANY) 10 NEW CENTURY MORTGAGE CORPORATION (MORTGAGE CO) 11 EQUIFIRST CORPORATION (MORTGAGE COMPANY) 12 BENEFICIAL (MORTGAGE COMPANY) 13 LONG BEACH MORTGAGE CO. (MORTGAGE COMPANY) 14 FIRST GREENSBORO HOME EQUITY (MORTGAGE COMPANY) 15 ACCREDITED HOME LENDERS INC, (MORTGAGE COMPANY) 16 NOVASTAR MORTGAGE INC (MORTGAGE COMPANY) 17 WELLS FARGO FINANCIAL NC (MORTGAGE COMPANY) 18 AIG FSB (FEDERAL SAVINGS INSTITUTION) 19 HFC (MORTGAGE COMPANY) 20 CENTEX HOME EQUITY COMPANY LLC (MORTGAGE COMPANY) Source: Mortgage Bankers Association, 2004 Mortgage Market Summary
Dollar Volume ($000)
%
Dollar Volume ($000)
520,085 332,937 311,197 307,388 270,927 238,680 230,668 217,695 214,751 200,325 199,122 192,290 159,166 142,913 130,621 126,340 120,290 117,810 117,338 114,144
9.5 6.1 5.7 5.6 4.9 4.3 4.2 4.0 3.9 3.6 3.6 3.5 2.9 2.6 2.4 2.3 2.2 2.1 2.1 2.1 10,528,997 7,507,911 4,578,638 2.6 1.9 1.1 7,729,003 15,958,524 479,850 12,398,345 1,694,274 1.9 4.0 0.1 3.1 0.4 36,463,549 9.0 44,014,234 22,056,866 9,124,911 32,538,287 23,804,037 4,220,865 10.9 5.5 2.3 8.1 5.9 1.0
Mortgage Lending Act Licensees
7000 6000 5000 4000 3000 2000 1000 0 Outside NC Outside NC Outside NC Inside NC Inside NC
6 Mortgage Bankers of Bank/FHC Subsidiary 168 698 Mortgage Mortgage Bankers Brokers 502 Mortgage Bankers
Number of Offices Number of Employees
95 Mortgage Brokers
Location of Headquarters
Source: Office of the North Carolina Commissioner of Banks
The Bad: Foreclosures in North Carolina • • • • • 2000: 20,579 2001: 25,871 2002: 35,589 2003: 44,209 2004: 42,882
108 % Increase in 5 years
Source: Center for Responsible Lending, Self-Help
View of the Market Today
There are still problems in the residential mortgage market. Total Complaints (1446) July 1, 2003 – June 30, 2004
4% 2%
25%
Mortgage Lender/Broker Banks Other Loan Servicing 68% Consumer Finance
Mortgage Complaints are varied.
Collection Practices Contract Disputes Unlicensed Broker Loan Closing Delays Insurance Dispute Prepayment Penalty Bait and Switch Escrow Allocation Dispute Advertising Practices Other Payoff Problem Fraud Monthly Payment Dispute Fee Dispute Loan Servicing- Misc. Problems Rate Issue Loan Funding Problems Misrepresentation Unpaid Appraisal Fees 0 7 9 12 12 16 18 21 25 26 30 32 35 36 46 61 62 64 129 342 100 200 300 400