FNBA

FNBA is a privately-held bank based in Phoenix, Arizona, which has become a major national mortgage lending operation in recent years. Below is a timeline of information we have received from a key informant

2007-06-12:

Confirmation on the FNBA front, today 3 top AE's just resigned in the Southeast 2 out of Atlanta and one out of Ft Myers. I am hearing of about 7-8 more looking to jump within the next 2-3 weeks . In this atmosphere, you take away the stable guarantee base, even top producers get nervous.

2007-06-05:

Info on FNBA. They just changed the comp plan. The draws are no longer forgivable, meaning if you don't meet the draw, it carries over. Forcing people out.

2007-04-24:

Also, one of the midwest divisions, that cover Michigan , Kentucky and Indiana only funded 3mm as of close of business yesterday for the month of April. Not good. Remember I was telling you the old rust belt would feel this hardest - it has. This is Indianapolis, Louisville, Detroit, Evansville, et al.

[A source at] Deutsche Bank - Mortgage IT is telling me that the fears on CMA's are possibly being overstated, they are still getting 105 coupon on these loans for the time being. Hybrids though are crap as are the NoDoc loans - maybe they get a 101 coupon. What is killing this market is the explosion of the No Doc, No Ratio and Stated along with the subprime stupidity. The result he says with all of this is that the big houses will be the only ones able to wholesale and those like FNBA will not get backing and it will prevent anymore New Century's. So what you have left are the really big boys and regular banks that hold these mortgages, in essence some sanity will be returned.

As always, stay tuned!